Shoe and apparel company Steven Madden (NASDAQ:SHOO) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Steven Madden beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $519.7 million, up 10.4% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates. EPS guidance for the full year also fell short of Wall Street estimates.

Is Steven Madden a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Steven Madden's revenue to grow 13.3% year on year to $525.4 million, a reversal from the 17.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Steven Madden has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 4.7% on average.

Looking at Steven Madden's peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, beating analysts' expectations by 1.1%, and Skechers reported revenues up 12.5%, topping estimates by 2.3%. Nike traded down 7% following the results while Skechers was up 11.3%.

Read our full analysis of Nike's results here and Skechers's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 6.2% on average over the last month. Steven Madden is down 3.4% during the same time and is heading into earnings with an average analyst price target of $45 (compared to the current share price of $40.99).

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