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Steven Madden (SHOO) Looks Robust on Digital & Brand Strength
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Steven Madden, Ltd. (SHOO - Free Report) is well poised to tap the positive trends in the fashion world, thanks to its sturdy digital efforts and other robust strategies, including international business expansion and brand progress. SHOO is witnessing immense strength in the e-commerce business against a tough operating backdrop. Solid gains from product assortments and direct-to-consumer channels have been yielding results so far.
This renowned fashion-footwear player’s shares have increased 6.9% in the past three months against the industry’s 3.9% decline. A VGM Score of B for this currently Zacks Rank #1 (Strong Buy) stock further speaks volumes for its attractiveness. You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, the Zacks Consensus Estimate for Steven Madden’s sales and earnings per share (EPS) is currently pegged at $2.15 billion and $2.99 each. These estimates suggest growth of 15.2% and 19.6%, respectively, from the year-ago period’s corresponding figures. This reflects analysts’ optimism about the company. Steven Madden projects revenues to rise 13-16% from $1.87 billion recorded in 2021 and adjusted earnings per share in the band of $2.90-$3.00, up from $2.50 earned last year.
Let’s Delve Deeper
E-commerce business remains a bright spot for Steven Madden. Solid gains from increased investment in digital marketing and robust consumer capabilities, such as try before you buy have been contributing to its performance. E-commerce revenues rose 57.5% year over year during the first quarter of 2022, reflecting solid performances in the Steve Madden, Dolce Vita and Betsey Johnson digital businesses.
Management also added high-level talent to the organization, ramped up digital marketing spend, improved data science capabilities, launched try-before-you-buy payment facility, rolled out buy online, pick-up in store across its entire U.S. full price retail outlets plus introduced advanced delivery and return options. SHOO is also significantly accelerating its digital commerce initiatives with respect to distribution.
Additionally, Steven Madden is focused on international expansion. Management remains optimistic about the buyout of BB Dakota, a California-based women's apparel company, through which SHOO is steadily expanding its apparel category. Steven Madden is well poised for double-digit gains in the key markets for 2022 and believes that international business is a major driver. Last April, SHOO achieved a significant milestone in international development by acquiring the remaining interest in a European joint venture.
Coming to brand strength, Steven Madden’s flagship Betsey Johnson and Dolce Vita brands are performing well. SHOO has been witnessing solid consumer demand for its brands as well as a robust performance across the channels, product categories and geographies. Its branded handbag business grew more than 50%, while apparel revenues were up more than 100% in the first quarter of 2022. Management is focused on driving growth across SHOO’s direct-to-consumer business, led by its digital capabilities; expanding categories apart from footwear, such as handbags and apparel; enhancing its presence in the international markets and reinforcing its core U.S. wholesale footwear business.
Wrapping up, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enriching digital commerce agenda, expanding international markets including Europe, and efficiently controlling inventory and expenses. Strength in SHOO’s brands and the e-commerce unit coupled with a strong business model positions it well to cash in on the market-growth opportunities and boost its stakeholders’ value in the long term.
Eye These Solid Picks Too
Rocky Brands (RCKY - Free Report) , a key designer and marketer of premium quality footwear and apparel, currently sports a Zacks Rank #1. RCKY delivered an earnings surprise of 17% in the last reported quarter.
The Zacks Consensus Estimate for Rocky Brands’ 2022 sales and EPS suggests growth of 23.1% and 22.8%, respectively, from the year-ago corresponding figures.
Delta Apparel (DLA - Free Report) is a manufacturer of activewear and lifestyle apparel products. DLA flaunts a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and EPS suggests growth of 14.6% and 45.8%, respectively, from the year-ago corresponding figures. DLA has a trailing four-quarter earnings surprise of 41.1%, on average.
Caleres (CAL - Free Report) , a footwear dealer, flaunts a Zacks Rank of 1 at present. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.2% and 1.8%, respectively, from the year-ago corresponding figures.
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Steven Madden (SHOO) Looks Robust on Digital & Brand Strength
Steven Madden, Ltd. (SHOO - Free Report) is well poised to tap the positive trends in the fashion world, thanks to its sturdy digital efforts and other robust strategies, including international business expansion and brand progress. SHOO is witnessing immense strength in the e-commerce business against a tough operating backdrop. Solid gains from product assortments and direct-to-consumer channels have been yielding results so far.
This renowned fashion-footwear player’s shares have increased 6.9% in the past three months against the industry’s 3.9% decline. A VGM Score of B for this currently Zacks Rank #1 (Strong Buy) stock further speaks volumes for its attractiveness. You can see the complete list of today’s Zacks #1 Rank stocks here.
For 2022, the Zacks Consensus Estimate for Steven Madden’s sales and earnings per share (EPS) is currently pegged at $2.15 billion and $2.99 each. These estimates suggest growth of 15.2% and 19.6%, respectively, from the year-ago period’s corresponding figures. This reflects analysts’ optimism about the company. Steven Madden projects revenues to rise 13-16% from $1.87 billion recorded in 2021 and adjusted earnings per share in the band of $2.90-$3.00, up from $2.50 earned last year.
Let’s Delve Deeper
E-commerce business remains a bright spot for Steven Madden. Solid gains from increased investment in digital marketing and robust consumer capabilities, such as try before you buy have been contributing to its performance. E-commerce revenues rose 57.5% year over year during the first quarter of 2022, reflecting solid performances in the Steve Madden, Dolce Vita and Betsey Johnson digital businesses.
Management also added high-level talent to the organization, ramped up digital marketing spend, improved data science capabilities, launched try-before-you-buy payment facility, rolled out buy online, pick-up in store across its entire U.S. full price retail outlets plus introduced advanced delivery and return options. SHOO is also significantly accelerating its digital commerce initiatives with respect to distribution.
Additionally, Steven Madden is focused on international expansion. Management remains optimistic about the buyout of BB Dakota, a California-based women's apparel company, through which SHOO is steadily expanding its apparel category. Steven Madden is well poised for double-digit gains in the key markets for 2022 and believes that international business is a major driver. Last April, SHOO achieved a significant milestone in international development by acquiring the remaining interest in a European joint venture.
Coming to brand strength, Steven Madden’s flagship Betsey Johnson and Dolce Vita brands are performing well. SHOO has been witnessing solid consumer demand for its brands as well as a robust performance across the channels, product categories and geographies. Its branded handbag business grew more than 50%, while apparel revenues were up more than 100% in the first quarter of 2022. Management is focused on driving growth across SHOO’s direct-to-consumer business, led by its digital capabilities; expanding categories apart from footwear, such as handbags and apparel; enhancing its presence in the international markets and reinforcing its core U.S. wholesale footwear business.
Wrapping up, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enriching digital commerce agenda, expanding international markets including Europe, and efficiently controlling inventory and expenses. Strength in SHOO’s brands and the e-commerce unit coupled with a strong business model positions it well to cash in on the market-growth opportunities and boost its stakeholders’ value in the long term.
Eye These Solid Picks Too
Rocky Brands (RCKY - Free Report) , a key designer and marketer of premium quality footwear and apparel, currently sports a Zacks Rank #1. RCKY delivered an earnings surprise of 17% in the last reported quarter.
The Zacks Consensus Estimate for Rocky Brands’ 2022 sales and EPS suggests growth of 23.1% and 22.8%, respectively, from the year-ago corresponding figures.
Delta Apparel (DLA - Free Report) is a manufacturer of activewear and lifestyle apparel products. DLA flaunts a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and EPS suggests growth of 14.6% and 45.8%, respectively, from the year-ago corresponding figures. DLA has a trailing four-quarter earnings surprise of 41.1%, on average.
Caleres (CAL - Free Report) , a footwear dealer, flaunts a Zacks Rank of 1 at present. CAL has a trailing four-quarter earnings surprise of 62.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.2% and 1.8%, respectively, from the year-ago corresponding figures.