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Steven Madden (SHOO) Solid on E-commerce & Brand Strength
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Steven Madden, Ltd. (SHOO - Free Report) is well-poised for growth, thanks to its robust business strategies. Sturdy digital efforts, international business expansion and brand strength bode well for SHOO. Solid gains from product assortments and direct-to-consumer channels have also been yielding results for a while. This renowned fashion-footwear player’s shares have increased 15.6% in the past three months against the industry’s 3.6% decline.
Let’s Dive in
Steven Madden’s e-commerce wing continues to gain from its prudent investments in digital marketing and efforts to optimize the features and functionality of its website. Gains from increased investment in digital marketing and robust consumer reception of capabilities, such as try before you buy have been contributing to its performance for a while. SHOO is significantly accelerating its digital commerce initiatives with respect to distribution.
Management had earlier 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, and introduced advanced delivery and return options. We believe that e-commerce business will continue to boost Steven Madden’s overall results in the future.
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 had achieved a significant milestone by acquiring the remaining interest in a European joint venture. These buyouts are consistently contributing to its overall results.
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. The international business represented 15% of total revenues, up from 11% a year ago.
Now talking of its brand strength, SHOO’s flagship brand, Betsey Johnson, Anne Klein, Dolce Vita and private label brands are performing impressively. Overall, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enriching the digital commerce agenda, expanding international markets, including Europe, and efficiently controlling inventory and expenses.
What Else?
In addition, analysts look optimistic about SHOO. For 2022, the Zacks Consensus Estimate for Steven Madden’s sales and earnings per share (EPS) is currently pegged at $2.14 billion and $2.96 each. These estimates suggest respective growth of 14.7% and 18.4% from the year-ago period’s corresponding figures. For next year, the consensus mark for sales and EPS is currently pegged at $2.20 billion and $3.15 each. These estimates suggest respective growth of 2.7% and 6.3% from the year-ago period’s corresponding figures.
All in all, Steven Madden looks good on the back of its aforesaid strengths. A VGM Score of B for this currently Zacks Rank #3 (Hold) stock further speaks volumes for its attractiveness.
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 has 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, has 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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Steven Madden (SHOO) Solid on E-commerce & Brand Strength
Steven Madden, Ltd. (SHOO - Free Report) is well-poised for growth, thanks to its robust business strategies. Sturdy digital efforts, international business expansion and brand strength bode well for SHOO. Solid gains from product assortments and direct-to-consumer channels have also been yielding results for a while. This renowned fashion-footwear player’s shares have increased 15.6% in the past three months against the industry’s 3.6% decline.
Let’s Dive in
Steven Madden’s e-commerce wing continues to gain from its prudent investments in digital marketing and efforts to optimize the features and functionality of its website. Gains from increased investment in digital marketing and robust consumer reception of capabilities, such as try before you buy have been contributing to its performance for a while. SHOO is significantly accelerating its digital commerce initiatives with respect to distribution.
Management had earlier 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, and introduced advanced delivery and return options. We believe that e-commerce business will continue to boost Steven Madden’s overall results in the future.
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 had achieved a significant milestone by acquiring the remaining interest in a European joint venture. These buyouts are consistently contributing to its overall results.
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. The international business represented 15% of total revenues, up from 11% a year ago.
Now talking of its brand strength, SHOO’s flagship brand, Betsey Johnson, Anne Klein, Dolce Vita and private label brands are performing impressively. Overall, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enriching the digital commerce agenda, expanding international markets, including Europe, and efficiently controlling inventory and expenses.
What Else?
In addition, analysts look optimistic about SHOO. For 2022, the Zacks Consensus Estimate for Steven Madden’s sales and earnings per share (EPS) is currently pegged at $2.14 billion and $2.96 each. These estimates suggest respective growth of 14.7% and 18.4% from the year-ago period’s corresponding figures. For next year, the consensus mark for sales and EPS is currently pegged at $2.20 billion and $3.15 each. These estimates suggest respective growth of 2.7% and 6.3% from the year-ago period’s corresponding figures.
All in all, Steven Madden looks good on the back of its aforesaid strengths. A VGM Score of B for this currently Zacks Rank #3 (Hold) stock further speaks volumes for its attractiveness.
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 has 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, has 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.