Steven Madden (SHOO) shares surged 6.43% in pre-market trading on Wednesday, following the company's release of its third-quarter earnings report and fourth-quarter outlook. Despite facing challenges in Q3, investors appear to be focusing on the footwear retailer's optimistic projections for the upcoming quarter.
The company reported Q3 adjusted earnings per share of $0.43, meeting analysts' expectations. However, revenue for the quarter came in at $667.9 million, falling short of the $693.6 million forecast by analysts. Steven Madden cited the impact of new tariffs on goods imported into the United States as a significant factor contributing to the challenging quarter.
Despite the mixed Q3 results, the market's positive reaction seems to be driven by Steven Madden's upbeat Q4 guidance. The company expects Q4 revenue to increase by 27% to 30% and projects adjusted earnings per share between $0.41 and $0.46, surpassing the $0.29 per share analysts were anticipating. This strong outlook suggests that Steven Madden is positioned to overcome the tariff pressures and potentially deliver robust year-end performance, which appears to be boosting investor confidence.
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