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Here's Why You Should Hold on to Steven Madden (SHOO) Stock
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Steven Madden, Ltd. (SHOO - Free Report) is well poised for growth, thanks to its sturdy digital efforts and other robust strategies, including international business expansion and brand strength. Solid gains from product assortments and direct-to-consumer channels have been yielding results so far. Additionally, SHOO is focused on international expansion.
Analysts look optimistic about Steven Madden. For 2022, the Zacks Consensus Estimate for SHOO’s sales and earnings per share (EPS) are currently pegged at $2.15 billion and $2.97 each, suggesting respective growth of 15.4% and 18.8% from the year-ago period’s corresponding figures. Management 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, implying an increase from $2.50 earned last year.
This renowned fashion-footwear player’s shares have increased 2.1% in the past year against the industry’s 9.9% decline. A VGM Score of A for this currently Zacks Rank #3 (Hold) stock further speaks volumes for its attractiveness.
Let’s Delve Deeper
Steven Madden’s e-commerce wing has been gaining from prudent investments in digital marketing as well as efforts to optimize features and functionality of its website. Gains from increased investment in digital marketing and a robust consumer reception ofcapabilities, such as try before you buy have been contributing to its performance for a while. Management continues to significantly accelerate its digital commerce initiatives with respect to distribution.
SHOO added a 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. We believe that e-commerce business will continue to be a bright spot for Steven Madden ahead.
Additionally, 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. Last April, SHOO achieved a significant milestone by acquiring the remaining interest in a European joint venture. During the second quarter of 2022, Steven Madden’s international revenues surged 82% from the year-ago period’s figure, driven by a stellar performance in directly-owned subsidiary markets, namely Canada, Mexico and Europe. Overall, the international business represented 15% of total revenues, up from 11% a year ago.
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. SHOO’s Steve Madden, Betsey Johnson, Anne Klein, Dolce Vita and private label brands are performing well.
Strength in Steven Madden’s brands and the direct-to-consumer channels coupled with a strong business model positions it well to cash in on the market-growth opportunities and boost its stakeholders’ value.
The Zacks Consensus Estimate for Designer Brands’ current financial-year revenues and earnings per share (EPS) suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago reported figures. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.
Delta Apparel is a manufacturer of activewear and lifestyle apparel products. DLA flaunts a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and EPS suggests growth of 12.6% and 27.4%, respectively, from the year-ago corresponding figures. DLA has a trailing four-quarter earnings surprise of 34.2%, on average.
Caleres, a footwear dealer, flaunts a Zacks Rank of 2 at present. CAL has a trailing four-quarter earnings surprise of 34.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.6% and 0.9%, respectively, from the year-ago corresponding figures.
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Here's Why You Should Hold on to Steven Madden (SHOO) Stock
Steven Madden, Ltd. (SHOO - Free Report) is well poised for growth, thanks to its sturdy digital efforts and other robust strategies, including international business expansion and brand strength. Solid gains from product assortments and direct-to-consumer channels have been yielding results so far. Additionally, SHOO is focused on international expansion.
Analysts look optimistic about Steven Madden. For 2022, the Zacks Consensus Estimate for SHOO’s sales and earnings per share (EPS) are currently pegged at $2.15 billion and $2.97 each, suggesting respective growth of 15.4% and 18.8% from the year-ago period’s corresponding figures. Management 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, implying an increase from $2.50 earned last year.
This renowned fashion-footwear player’s shares have increased 2.1% in the past year against the industry’s 9.9% decline. A VGM Score of A for this currently Zacks Rank #3 (Hold) stock further speaks volumes for its attractiveness.
Let’s Delve Deeper
Steven Madden’s e-commerce wing has been gaining from prudent investments in digital marketing as well as efforts to optimize features and functionality of its website. Gains from increased investment in digital marketing and a robust consumer reception ofcapabilities, such as try before you buy have been contributing to its performance for a while. Management continues to significantly accelerate its digital commerce initiatives with respect to distribution.
SHOO added a 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. We believe that e-commerce business will continue to be a bright spot for Steven Madden ahead.
Additionally, 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. Last April, SHOO achieved a significant milestone by acquiring the remaining interest in a European joint venture. During the second quarter of 2022, Steven Madden’s international revenues surged 82% from the year-ago period’s figure, driven by a stellar performance in directly-owned subsidiary markets, namely Canada, Mexico and Europe. Overall, the international business represented 15% of total revenues, up from 11% a year ago.
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. SHOO’s Steve Madden, Betsey Johnson, Anne Klein, Dolce Vita and private label brands are performing well.
Strength in Steven Madden’s brands and the direct-to-consumer channels coupled with a strong business model positions it well to cash in on the market-growth opportunities and boost its stakeholders’ value.
Eye These Solid Picks
Here we highlighted three better-ranked stocks, namely, Designer Brands (DBI - Free Report) , Delta Apparel (DLA - Free Report) and Caleres (CAL - Free Report) .
Designer Brands designs, manufactures and retails footwear and accessories. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Designer Brands’ current financial-year revenues and earnings per share (EPS) suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago reported figures. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.
Delta Apparel is a manufacturer of activewear and lifestyle apparel products. DLA flaunts a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and EPS suggests growth of 12.6% and 27.4%, respectively, from the year-ago corresponding figures. DLA has a trailing four-quarter earnings surprise of 34.2%, on average.
Caleres, a footwear dealer, flaunts a Zacks Rank of 2 at present. CAL has a trailing four-quarter earnings surprise of 34.9%, on average.
The Zacks Consensus Estimate for Caleres’ current financial-year sales and EPS suggests growth of 5.6% and 0.9%, respectively, from the year-ago corresponding figures.