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Steven Madden (SHOO) Up 17% in a Year: How It Unfolds Ahead
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Steven Madden, Ltd. (SHOO - Free Report) has been experiencing a momentum in its e-commerce wing since the outbreak of the coronavirus pandemic. Solid gains from increased investment in digital marketing and robust online capabilities, such as try before you buy, have been steadily contributing to its performance for a while. In addition, SHOO is benefiting from other strategic efforts like product enhancement and judicious buyouts.
Buoyed by such endeavors, this renowned fashion-footwear player’s shares have increased 17% in the past year despite quite a challenging operating landscape. This Long Island City, NY-based player’s stock has also outperformed the industry’s 0.4% growth in the same time frame. An expected long-term earnings growth rate of 15% further highlights its inherent potentials.
Strategic Updates
E-commerce business remains a bright spot for Steven Madden. Management added a high-level talent to the organization, ramped up digital marketing spend, improved data science capabilities, rolled out buy online, pick-up in store across the U.S. full price retail outlets plus introduced advanced delivery and return options. SHOO continues to accelerate its digital-commerce initiatives with respect to distribution. During third-quarter 2021, e-commerce revenues surged 83.7% year over year and 200% from the same-period level in 2019.
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With regard to the solid acquisitions, Steven Madden is optimistic about the buyout of BB Dakota, a California-based women's apparel company through which the former is steadily expanding its apparel category. SHOO had earlier also bought Greats Brand, Inc., a renowned digitally native footwear brand.
The European joint venture (JV) is noteworthy too. This transaction distributes SHOO’s branded footwear and accessories across the majority of countries in Europe. Management formed the European JV roughly five years ago and the same registered solid double-digit percentage revenue growth each year with 21% revenue increase witnessed in 2020.
Overall, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing digital commerce agenda, expanding its international footprint and efficiently controlling expenses. All the aforesaid strengths coupled with a robust business model position Steven Madden well to cash in on the favorable market trends.
How Will SHOO Fare This Earnings Season?
Aforementioned tailwinds signal impressive fourth-quarter 2021 results for this currently Zacks Rank #3 (Hold) player, expected to be released in a couple of weeks.
Steven Madden is likely to deliver results with top and bottom-line growth for both the fourth quarter and 2021. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved a penny up in the past 30 days to 73 cents, indicating a sharp rise from 27 cents earned in the same quarter a year ago. The consensus mark for quarterly revenues is pinned at $526.5 million, suggesting growth of 49.2% from the year-earlier quarter’s reported figure.
For 2021, the Zacks Consensus Estimate for earnings has also moved a penny up in the past 30 days to $2.36, reflecting a sturdy increase from 64 cents earned in 2020. Also, the consensus estimate of $1.81 billion for revenues suggests an increase of 50.8% from the prior year’s actuals. On its last earnings call, management had projected revenue growth of 50-52% from the year-earlier reading and adjusted earnings between $2.30 and $2.35 for 2021.
Eye These Solid Picks
Some better-ranked stocks from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , Oxford Industries (OXM - Free Report) and Gildan Activewear (GIL - Free Report) .
The Zacks Consensus Estimate for Ralph Lauren's current financial year’s sales and earnings per share suggests growth of 40% and 374.7%, respectively, from the corresponding year-ago period's reported numbers.
Oxford Industries, an apparel company, currently carries a Zacks Rank of 2. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 2.1% and 4%, respectively, from the year-ago period's reported numbers.
Gildan Activewear, the manufacturer and marketer of branded basic activewear, presently carries a Zacks Rank #2 (Buy). GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales and earnings suggests growth of 8.2% and 9.4% each from the respective year-ago period’s reported numbers.
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Steven Madden (SHOO) Up 17% in a Year: How It Unfolds Ahead
Steven Madden, Ltd. (SHOO - Free Report) has been experiencing a momentum in its e-commerce wing since the outbreak of the coronavirus pandemic. Solid gains from increased investment in digital marketing and robust online capabilities, such as try before you buy, have been steadily contributing to its performance for a while. In addition, SHOO is benefiting from other strategic efforts like product enhancement and judicious buyouts.
Buoyed by such endeavors, this renowned fashion-footwear player’s shares have increased 17% in the past year despite quite a challenging operating landscape. This Long Island City, NY-based player’s stock has also outperformed the industry’s 0.4% growth in the same time frame. An expected long-term earnings growth rate of 15% further highlights its inherent potentials.
Strategic Updates
E-commerce business remains a bright spot for Steven Madden. Management added a high-level talent to the organization, ramped up digital marketing spend, improved data science capabilities, rolled out buy online, pick-up in store across the U.S. full price retail outlets plus introduced advanced delivery and return options. SHOO continues to accelerate its digital-commerce initiatives with respect to distribution. During third-quarter 2021, e-commerce revenues surged 83.7% year over year and 200% from the same-period level in 2019.
With regard to the solid acquisitions, Steven Madden is optimistic about the buyout of BB Dakota, a California-based women's apparel company through which the former is steadily expanding its apparel category. SHOO had earlier also bought Greats Brand, Inc., a renowned digitally native footwear brand.
The European joint venture (JV) is noteworthy too. This transaction distributes SHOO’s branded footwear and accessories across the majority of countries in Europe. Management formed the European JV roughly five years ago and the same registered solid double-digit percentage revenue growth each year with 21% revenue increase witnessed in 2020.
Overall, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing digital commerce agenda, expanding its international footprint and efficiently controlling expenses. All the aforesaid strengths coupled with a robust business model position Steven Madden well to cash in on the favorable market trends.
How Will SHOO Fare This Earnings Season?
Aforementioned tailwinds signal impressive fourth-quarter 2021 results for this currently Zacks Rank #3 (Hold) player, expected to be released in a couple of weeks.
Steven Madden is likely to deliver results with top and bottom-line growth for both the fourth quarter and 2021. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has moved a penny up in the past 30 days to 73 cents, indicating a sharp rise from 27 cents earned in the same quarter a year ago. The consensus mark for quarterly revenues is pinned at $526.5 million, suggesting growth of 49.2% from the year-earlier quarter’s reported figure.
For 2021, the Zacks Consensus Estimate for earnings has also moved a penny up in the past 30 days to $2.36, reflecting a sturdy increase from 64 cents earned in 2020. Also, the consensus estimate of $1.81 billion for revenues suggests an increase of 50.8% from the prior year’s actuals. On its last earnings call, management had projected revenue growth of 50-52% from the year-earlier reading and adjusted earnings between $2.30 and $2.35 for 2021.
Eye These Solid Picks
Some better-ranked stocks from the Consumer Discretionary sector are Ralph Lauren (RL - Free Report) , Oxford Industries (OXM - Free Report) and Gildan Activewear (GIL - Free Report) .
Ralph Lauren currently sports a Zacks Rank #1 (Strong Buy). RL has a trailing four-quarter earnings surprise of 94.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ralph Lauren's current financial year’s sales and earnings per share suggests growth of 40% and 374.7%, respectively, from the corresponding year-ago period's reported numbers.
Oxford Industries, an apparel company, currently carries a Zacks Rank of 2. OXM has a trailing four-quarter earnings surprise of 96.7%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 2.1% and 4%, respectively, from the year-ago period's reported numbers.
Gildan Activewear, the manufacturer and marketer of branded basic activewear, presently carries a Zacks Rank #2 (Buy). GIL has a trailing four-quarter earnings surprise of 85%, on average.
The Zacks Consensus Estimate for Gildan Activewear’s current financial-year sales and earnings suggests growth of 8.2% and 9.4% each from the respective year-ago period’s reported numbers.