We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Steven Madden (SHOO) Rides on Strategic Growth, Market Success
Read MoreHide Full Article
Steven Madden, Ltd. (SHOO - Free Report) is positioning itself to leverage opportunities for market growth and value enhancement for its stakeholders through strategic initiatives across various business segments and regions. The company’s focus on expanding its product lines, enhancing digital commerce and growing its international presence underscores its commitment to long-term growth and market leadership.
Image Source: Zacks Investment Research
Let’s Delve Deeper
Steven Madden is prioritizing its direct-to-consumer (DTC) channels, particularly through digital enhancements, to strengthen customer relations and expand its market reach. This includes leveraging digital marketing, optimizing website features and introducing consumer-centric options, such as "try before you buy" and "buy online, pick up in store." DTC revenues increased 1.9% year over year to $162.3 million in fourth-quarter 2023, driven by growth in the brick-and-mortar business.
The company has diversified its product lines beyond footwear, venturing into handbags and apparel. This expansion has been underscored by significant sales increases, particularly a 37% rise in the Steven Madden handbag line in the fourth quarter of 2023. The acquisition of Almost Famous has further bolstered this strategy by expanding product assortments and distribution channels.
Steven Madden continues to focus on growing its international presence, especially in the EMEA region. Plans include leveraging brand popularity in Europe, establishing a joint venture in the Middle East, and capitalizing on strong brand recognition in South Africa. The company's international segment has proven resilient, growing 11% year-over-year in 2023 despite challenging macroeconomic conditions. SHOO is also reinforcing its core U.S. wholesale footwear business, aiming to maintain its competitive edge and market leadership.
Operational Highlights
Steven Madden plans to open 10 stores in 2024, focusing on international expansion. This aligns with the observed trend of outlet stores significantly outperforming full-price stores in the United States, reflecting consumer preference for more affordable options.
The company is making significant investments in its e-commerce capabilities, including enhancements to digital marketing, data science and customer experience on its websites. This is part of a broader digital transformation aimed at boosting online sales and improving operational efficiency.
Steven Madden made a significant stride in 2023, acquiring Almost Famous for $52 million in cash. Almost Famous reported revenues of approximately $163 million in the 12 months ending Sep 30, 2023. The acquisition of Almost Famous is a strategic move to enhance Steven Madden's apparel platform.
The company forecasts an 11-13% increase in revenues for 2024 over the previous year, driven by robust segmental performances and strategic expansions. Anticipated revenue growth is supported by strong sales in wholesale and DTC channels. For 2024, Steven Madden expects earnings per share between $2.55 and $2.65. Notably, the company reported earnings of $2.30 per share in 2023.
These factors led to the Zacks Rank #3 (Hold) company’s shares climbing 20.9%, outperforming the industry's 6.9% decline over the last six months.
Margin Pressure
Despite the positive strides, SHOO has been battling with margin pressure. The adjusted gross margin for the fourth quarter of 2023 was 41.7%, demonstrating a year-over-year decrease of around 50 basis points. Management expects the adjusted gross margin for fiscal 2024 to continue to face pressure primarily due to the impacts of the acquisition of Almost Famous and increased freight costs.
3 Promising Stocks
Some better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 12.5% and 3.3% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 22.7%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 19.1% and 5.6% from the year-ago period’s reported figures.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. The company carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.7% and 15.9% from the year-ago period’s reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Steven Madden (SHOO) Rides on Strategic Growth, Market Success
Steven Madden, Ltd. (SHOO - Free Report) is positioning itself to leverage opportunities for market growth and value enhancement for its stakeholders through strategic initiatives across various business segments and regions. The company’s focus on expanding its product lines, enhancing digital commerce and growing its international presence underscores its commitment to long-term growth and market leadership.
Image Source: Zacks Investment Research
Let’s Delve Deeper
Steven Madden is prioritizing its direct-to-consumer (DTC) channels, particularly through digital enhancements, to strengthen customer relations and expand its market reach. This includes leveraging digital marketing, optimizing website features and introducing consumer-centric options, such as "try before you buy" and "buy online, pick up in store." DTC revenues increased 1.9% year over year to $162.3 million in fourth-quarter 2023, driven by growth in the brick-and-mortar business.
The company has diversified its product lines beyond footwear, venturing into handbags and apparel. This expansion has been underscored by significant sales increases, particularly a 37% rise in the Steven Madden handbag line in the fourth quarter of 2023. The acquisition of Almost Famous has further bolstered this strategy by expanding product assortments and distribution channels.
Steven Madden continues to focus on growing its international presence, especially in the EMEA region. Plans include leveraging brand popularity in Europe, establishing a joint venture in the Middle East, and capitalizing on strong brand recognition in South Africa. The company's international segment has proven resilient, growing 11% year-over-year in 2023 despite challenging macroeconomic conditions. SHOO is also reinforcing its core U.S. wholesale footwear business, aiming to maintain its competitive edge and market leadership.
Operational Highlights
Steven Madden plans to open 10 stores in 2024, focusing on international expansion. This aligns with the observed trend of outlet stores significantly outperforming full-price stores in the United States, reflecting consumer preference for more affordable options.
The company is making significant investments in its e-commerce capabilities, including enhancements to digital marketing, data science and customer experience on its websites. This is part of a broader digital transformation aimed at boosting online sales and improving operational efficiency.
Steven Madden made a significant stride in 2023, acquiring Almost Famous for $52 million in cash. Almost Famous reported revenues of approximately $163 million in the 12 months ending Sep 30, 2023. The acquisition of Almost Famous is a strategic move to enhance Steven Madden's apparel platform.
The company forecasts an 11-13% increase in revenues for 2024 over the previous year, driven by robust segmental performances and strategic expansions. Anticipated revenue growth is supported by strong sales in wholesale and DTC channels. For 2024, Steven Madden expects earnings per share between $2.55 and $2.65. Notably, the company reported earnings of $2.30 per share in 2023.
These factors led to the Zacks Rank #3 (Hold) company’s shares climbing 20.9%, outperforming the industry's 6.9% decline over the last six months.
Margin Pressure
Despite the positive strides, SHOO has been battling with margin pressure. The adjusted gross margin for the fourth quarter of 2023 was 41.7%, demonstrating a year-over-year decrease of around 50 basis points. Management expects the adjusted gross margin for fiscal 2024 to continue to face pressure primarily due to the impacts of the acquisition of Almost Famous and increased freight costs.
3 Promising Stocks
Some better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) .
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. The company sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year earnings and sales indicates growth of 12.5% and 3.3% from the year-ago period’s reported figures. AEO has a trailing four-quarter average earnings surprise of 22.7%.
Abercrombie & Fitch is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1. ANF has a trailing four-quarter average earnings surprise of 715.6%.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales indicates growth of 19.1% and 5.6% from the year-ago period’s reported figures.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. The company carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 38.7% and 15.9% from the year-ago period’s reported figures. DECK has a trailing four-quarter average earnings surprise of 32.1%.