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Investors Digest Steve Madden's Reinstated Dividend

SHOO closed out fiscal 2020 with revenues down 33%

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Steven Madden, Ltd. (NASDAQ:SHOO) is an American lifestyle clothing brand and retailer. The company designs, sources and markets footwear, accessories, and apparel for women, men, and children. Its brands include Steve Madden, Dolce Vita, Betsey Johnson, Blondo, Report, Brian Atwood, Cejon, GREATS, BB Dakota, Mad Love and Big Buddha. In addition, Steve Madden is a licensee of various brands, including Anne Klein, Superga, and DKNY.

In recent news, SHOO announced the reinstatement of a quarterly cash dividend during its quarterly financial report. The payment amount will be $0.15 per share, payable on March 26 to stockholders of record as of the close of business on March 16. Steven Madden's forward dividend now stands at $0.60 per share, indicating 1.51% dividend yield.

SHOO has increased roughly 40% over the past year. At its March 2020, eight-year low, shares of Steven Madden stock traded at $16.38. Since then SHOO has shot up 140%, but is off slightly from Friday's annual peak of $40.49. So far in 2021, Steven Madden stock has risen 14%.

SHOOchart

In the earnings arena, Steven Madden has outperformed earnings expectations on all three of its latest earnings reports. For the second quarter of 2020, SHOO reported an earnings per share (EPS) of -$0.19, but beat expectations by a margin of $0.08. For the third quarter of 2020, Steven Madden stock posted a big increase in earnings up to $0.39 per share and beat estimates by a margin of $0.17. In their most recent quarterly report for the fourth quarter of 2020, SHOO reported an EPS of $0.27 and beat expectations by $0.06.

Nonetheless, the COVID-19 pandemic did significant damage to the fashion retail company. For the year of 2020, Steven Madden’s revenues decreased 32.8%, going from $1.8 billion to $1.2 billion. SHOO also posted a net loss of $18.4 million, down about $160 million from the $141.3 million it reported for fiscal 2019. However, on the upside, SHOO revenues are projected to bounce back above $1.6 billion for 2021. Prior to the pandemic, Steven Madden was regularly growing revenues by more than $1 billion on a yearly basis since at least 2017. Overall, Steven Madden stock remains an intriguing growth play despite its huge losses the past year. SHOO boasts a forward price-earnings ratio of 22.12.

 

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