Shares of Steven Madden Ltd. SHOO, +1.51% were indicated up nearly 1% in premarket trading Wednesday, after the footwear, clothing and accessories company reported third-quarter earnings that topped expectations, but lowered its full-year outlook, as wholesale customers have pulled back on orders as they deal with excess inventory. Kudos to Wedbush analyst Tom Nikic, who warned investors on Tuesday that while third-quarter results “should be OK,” forward guidance will likely be lowered. On Wednesday, the company reported net income that fell to $61.3 million, or 79 cents a share, from $66.6 million, or 82 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 79 cents beat the FactSet consensus of 78 cents. Revenue grew 5.3% to $556.6 million above the FactSet consensus of $532.5 million. Wholesale revenue rose 8.1% to $434.6 million while direct-to-consumer revenue fell 3.7% to $118.5 million. For 2022, the company cut its guidance ranges for adjusted EPS to $2.77 to $2.82 from $2.90 to $3.00, and for revenue growth to 12.5% to 13.5% from 13% to 16%. The stock has shed 7.0% over the past three months through Tuesday, while the S&P 500 SPX, -0.36% has lost 5.8%.
