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's (SHOO) E-commerce Business Exhibits Strength
Read MoreHide Full Article
Fashion footwear dealer Steven Madden, Ltd. (SHOO - Free Report) has been in good shape on the back of its growth initiatives and strength in e-commerce. Amid the pandemic, the e-commerce business has been a bright spot for the company. 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.
The company has also been significantly accelerating its digital commerce initiatives with respect to distribution. It has added a 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.
Encouragingly, momentum in the e-commerce unit continued in fourth-quarter 2020 with revenues surging 36%, including a 51% increase in Steve Madden e-commerce business. In 2020, the company-operated e-commerce revenues rose about 50% versus 58% increase last year. This included 55% growth in Steve Madden’s e-commerce business, up from a 51% increase in the previous year. We note that the company-operated e-commerce profit margins increased meaningfully for the third consecutive year. Going forward, strength in e-commerce is likely to stay and boost the company’s overall results, given such robust digital endeavors.
What Else?
Although the coronavirus pandemic continued to hurt business, the company’s fourth-quarter 2020 results surpassed management’s expectations and improved sequentially. The company’s actions, like quick adjustments to merchandise assortments to cater to changed consumer preferences, enhanced digital initiatives, and managing of expense structure have aided it to maneuver the pandemic-induced challenges. Meanwhile, strength in brands, a strong balance sheet and a robust business model appear encouraging.
However, sluggishness across the company’s wholesale business continued in the fourth quarter of 2020 on lower wholesale footwear and accessories/apparel revenues. We note that the pandemic has been hurting this business. Incidentally, management projects wholesale revenue decline of high-single digits, on a percentage basis, year over year for the first quarter of 2021.
On a positive note, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enhancing digital commerce agenda, expanding international markets including Europe, and efficiently controlling inventory and expenses. For the first quarter of 2021, retail revenues are anticipated to rise mid-single digits on a percentage basis, year over year.
Furthermore, Steven Madden remains encouraged about the buyout of BB Dakota, a California-based women's apparel company. With this acquisition, the company looks to expand its apparel category. It remains on track to launch the BB Dakota Steven Madden product. Meanwhile, management is focusing on expanding the business globally, with a greater emphasis on Europe. These initiatives are likely to contribute to the company’s top line.
Buoyed by the aforesaid strengths, shares of this Zacks Rank #3 (Hold) stock have surged 83.3% and outperformed the industry’s mere 7.9% gain in a six-month time frame. An expected long-term earnings growth rate of 15% and a VGM Score of B further demonstrate strength.
G-III Apparel (GIII - Free Report) , also a Zacks Rank #1 stock, has a long-term expected earnings growth rate of 11.6%.
Deckers (DECK - Free Report) has a long-term expected earnings growth rate of 21.5% and carries a Zacks Rank #2 (Buy).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Steven Madden's (SHOO) E-commerce Business Exhibits Strength
Fashion footwear dealer Steven Madden, Ltd. (SHOO - Free Report) has been in good shape on the back of its growth initiatives and strength in e-commerce. Amid the pandemic, the e-commerce business has been a bright spot for the company. 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.
The company has also been significantly accelerating its digital commerce initiatives with respect to distribution. It has added a 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.
Encouragingly, momentum in the e-commerce unit continued in fourth-quarter 2020 with revenues surging 36%, including a 51% increase in Steve Madden e-commerce business. In 2020, the company-operated e-commerce revenues rose about 50% versus 58% increase last year. This included 55% growth in Steve Madden’s e-commerce business, up from a 51% increase in the previous year. We note that the company-operated e-commerce profit margins increased meaningfully for the third consecutive year. Going forward, strength in e-commerce is likely to stay and boost the company’s overall results, given such robust digital endeavors.
What Else?
Although the coronavirus pandemic continued to hurt business, the company’s fourth-quarter 2020 results surpassed management’s expectations and improved sequentially. The company’s actions, like quick adjustments to merchandise assortments to cater to changed consumer preferences, enhanced digital initiatives, and managing of expense structure have aided it to maneuver the pandemic-induced challenges. Meanwhile, strength in brands, a strong balance sheet and a robust business model appear encouraging.
However, sluggishness across the company’s wholesale business continued in the fourth quarter of 2020 on lower wholesale footwear and accessories/apparel revenues. We note that the pandemic has been hurting this business. Incidentally, management projects wholesale revenue decline of high-single digits, on a percentage basis, year over year for the first quarter of 2021.
On a positive note, Steven Madden is focused on creating trendy products, deepening relations with customers via marketing, enhancing digital commerce agenda, expanding international markets including Europe, and efficiently controlling inventory and expenses. For the first quarter of 2021, retail revenues are anticipated to rise mid-single digits on a percentage basis, year over year.
Furthermore, Steven Madden remains encouraged about the buyout of BB Dakota, a California-based women's apparel company. With this acquisition, the company looks to expand its apparel category. It remains on track to launch the BB Dakota Steven Madden product. Meanwhile, management is focusing on expanding the business globally, with a greater emphasis on Europe. These initiatives are likely to contribute to the company’s top line.
Buoyed by the aforesaid strengths, shares of this Zacks Rank #3 (Hold) stock have surged 83.3% and outperformed the industry’s mere 7.9% gain in a six-month time frame. An expected long-term earnings growth rate of 15% and a VGM Score of B further demonstrate strength.
Stocks to Watch
Rocky Brands (RCKY - Free Report) has delivered an average earnings surprise of 120.9% in the trailing four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
G-III Apparel (GIII - Free Report) , also a Zacks Rank #1 stock, has a long-term expected earnings growth rate of 11.6%.
Deckers (DECK - Free Report) has a long-term expected earnings growth rate of 21.5% and carries a Zacks Rank #2 (Buy).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>