SHOO - Steven Madden shares slip despite strong second quarter results

Steven Madden ( NASDAQ: SHOO ) shares slid sharply on Wednesday as margin pressure and light full-year guidance overshadowed strong Q2 results.

The New York-based shoe and fashion accessory manufacturer reported non-GAAP EPS of $0.63 and $535M in revenue for the second quarter, coming in comfortably above estimates on both fronts. The results were bolstered by a 51.5% increase in wholesale revenue from the prior year and a slight increase in profits from direct to consumer sales.

“We delivered strong results in the second quarter, with revenue and earnings growing robustly compared to the prior year and exceeding our expectations,” CEO Edward Rosenfeld said. “While macro pressures have increased, making the near-term outlook more uncertain, we are confident that our core strengths – our people, brands and business model – leave us well-positioned to drive growth and create significant value for our stakeholders over the long term.”

To be sure, the results were not entirely positive. Gross profit as a percentage of revenue fell 200 basis points from the prior year amid inflationary impacts. The company also provided a light forecast for earnings per share that came up short of estimates. Management expects diluted EPS will be in the range of $2.87 to $2.97. Analysts had expected $2.98.

Shares slid 2.9% during Wednesday’s trading.

Read more on the details of the quarter .

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