Steven Madden's (SHOO) Growth Strategies Appear Encouraging
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.
Delving Deeper
Steven Madden is committed to boosting 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. We note that the company’s international business has also been encouraging.
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.
Prudent acquisitions have been aiding Steven Madden’s performance. Its BB Dakota buyout, which is a California-based women's apparel company, is commendable. With this acquisition, the company is able to expand its apparel category. Additionally, Steven Madden, which shares space with Deckers DECK, Caleres CAL and Wolverine World Wide WWW, has concluded the acquisition of its European joint venture. This acquisition appears encouraging too. This transaction distributes the company’s branded footwear and accessories across the majority of countries in Europe.
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.
Despite a soft second-quarter 2023 performance, management on its earnings call, said the company is poised to witness major improvement in its financial performance starting in the third quarter. Steven Madden expects to experience significant improvement for the rest of the year in comparison to the first half of 2023.
Hence, a proven business model, robust brands, aforesaid strategic endeavors and various growth opportunities position the company well to boost growth and maximize stakeholders’ value in the long run.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Wolverine World Wide, Inc. (WWW) : Free Stock Analysis Report
Steven Madden, Ltd. (SHOO) : Free Stock Analysis Report
Caleres, Inc. (CAL) : Free Stock Analysis Report
