Steven Madden's (SHOO) Strategic Growth Efforts Progress Well
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
The company 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. Steven Madden, which shares space with Crocs CROX, Deckers DECK and Cater’s CRI, 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.
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 remaining 49.9% share of its European joint venture. This transaction distributes the company’s branded footwear and accessories across the majority of the countries in Europe.
The aforesaid 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.
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