Steven Madden (SHOO) shares are soaring 7.70% in Wednesday's intraday trading, following the company's release of its third-quarter earnings report and an optimistic fourth-quarter outlook. The footwear retailer's stock is rallying despite facing challenges in Q3, as investors focus on the promising projections for the upcoming quarter.
The company reported mixed results for the third quarter. While Steven Madden's adjusted earnings per share of $0.43 met analysts' expectations, revenue fell short at $667.9 million compared to the anticipated $693.6 million. Edward Rosenfeld, Chairman and CEO, acknowledged that "the third quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States." This tariff pressure contributed to a significant decrease in net income, which dropped to $20.5 million from $55.3 million in the same quarter last year.
However, the market's positive reaction appears to be driven by Steven Madden's upbeat fourth-quarter guidance. The company expects Q4 revenue to increase by an impressive 27% to 30% and projects adjusted earnings per share between $0.41 and $0.46, surpassing analysts' expectations of $0.29 per share. This strong outlook suggests that Steven Madden is positioned to overcome the recent tariff pressures and potentially deliver robust year-end performance, boosting investor confidence and driving the stock's significant rise.
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