Steven Madden (SHOO) Stock Gains 15% in a Year: Here's Why
Steven Madden, Ltd. SHOO is well-poised to tap the positive trends in the fashion world, thanks to its digital endeavors and other robust strategies. Undoubtedly, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing the digital commerce agenda, expanding international markets and efficiently controlling expenses.
The company is committed to enhancing its e-commerce wing via prudent investments in digital marketing as well as efforts to optimize the features and functionality of its website. Gains from increased investment in digital marketing and robust consumer reception capabilities such as try before you buy have been strengths. The company has also been significantly accelerating its digital commerce initiatives with respect to distribution.
Management has added high-level talent to the organization, ramped up digital marketing spending, improved data science capabilities, launched a 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.
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Steven Madden is focused on driving growth across the direct-to-consumer business, led by 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.
Prudent acquisitions have been aiding Steven Madden’s performance. Its BB Dakota buyout, which is a California-based women's apparel company, appears encouraging. With this acquisition, the company is able to expand its apparel category. Additionally, management had concluded the acquisition of the European joint venture. This transaction distributes the company’s branded footwear and accessories across the majority of countries in Europe.
What’s More?
Buoyed by such strengths, shares of this footwear dealer have gained 15.7% compared with the industry’s 12.7% rise over the past year. A VGM Score of A further adds strength to this current Zacks Rank #3 (Hold) company.
Analysts seem quite optimistic about the company. The Zacks Consensus Estimate for 2024 sales and earnings per share (EPS) is currently pegged at $2.1 billion and $2.74, respectively. These estimates show corresponding growth of 4.5% and 10.9% year over year.
To wrap up, Steven Madden seems to be a good investment pick given all the aforementioned positives. These tailwinds, coupled with a robust business model, position the company well to cash in on the market growth opportunities and boost stakeholders’ value in the long haul.
Eye These Solid Picks
Some better-ranked companies are G-III Apparel Group GIII, lululemon athletica LULU and Ralph Lauren RL.
G-III Apparel sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GIII has a trailing four-quarter earnings surprise of 526.6%, on average. The Zacks Consensus Estimate for GIII’s 2023 sales and EPS indicates increases of 2.4% and 14.7%, respectively, from the year-ago period’s reported levels.
lululemon athletica is a yoga-inspired athletic apparel company. LULU carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for lululemon athletica’s current financial-year sales and EPS suggests growth of 18.1% and 20.5%, respectively, from the year-ago corresponding figures. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank of 2 at present. RL has a trailing four-quarter earnings surprise of 17.3%, on average.
The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 2.4% and 13.4%, respectively, from the year-ago corresponding figures.
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Ralph Lauren Corporation (RL) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
Steven Madden, Ltd. (SHOO) : Free Stock Analysis Report
