This story originally appeared on Zacks

Steven Madden, Ltd. SHOO appears well poised, thanks to its robust digital marketing efforts and brand strength. Management is focused on creating trend-right merchandise assortment, deepening relations with customers via marketing, digital commerce agenda enhancement, international market expansion and efficient controlling expenses. These coupled with a robust business model position it well to cash in on market-growth opportunities and drive overall growth.
This presently Zacks Rank #2 (Buy) Steven Madden has surged 48.9% in a year, outperforming the industry’s 26.1% rally.

– Zacks

Let’s Delve Deeper

Robust gains from increased investment in digital marketing and solid consumer capabilities, such as try before you buy, have been contributing to the performance for a while. Steven Madden continues to accelerate its digital commerce initiatives with respect to distribution. Management added 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.

Zacks Investment ResearchImage Source: Zacks Investment Research

Steven Madden’s e-commerce business has been a key growth driver. E-commerce momentum continued in the third quarter of 2021 with revenues surging 83.7% year over year and 200% from the same-period level in 2019. Digital sales represented about 49% of SHOO’s total Retail segment sales in the third quarter. SHOO’s e-commerce wing continues to gain from prudent efforts to boost its digital capabilities as well as initiatives to optimize features and functionality of the website.
Steven Madden has also been benefiting from smart buyouts for a while. Management 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. The European joint venture (JV) is noteworthy as well. 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 last year. These buyouts are likely to keep contributing to SHOO’s performance ahead.

Conclusion

Aforesaid strengths will aid Steven Madden to retain its momentum in the future. We note that the Zacks Consensus Estimate for 2021 revenues and earnings currently stands at $1.81 billion and $2.35, respectively. These estimates indicate growth of 50.8% and 267.2%, respectively, from the corresponding year-ago reported figures.
Wrapping up, Steven Madden seems a solid investment bet now, given the aforementioned positives. An expected long-term earnings growth rate of 15% further speaks of strength.

Eye These Solid Picks Too

Delta Apparel DLA, the manufacturer of activewear and lifestyle apparel products, sports a Zacks Rank #1 (Strong Buy) at present. The stock has surged 43% in the year-to-date period. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Delta Apparel’s current financial-year sales and earnings per share (EPS) suggests growth of 11.6% and 9.4%, respectively, from the year-ago period’s corresponding figures. DLA has a trailing four-quarter earnings surprise of 95.5%, on average.
PVH Corp. PVH, a leading apparel company, flaunts a Zacks Rank of 2, currently. PVH has a trailing four-quarter earnings surprise of 72.3%, on average. Shares of PVH have jumped 14.5% year to date.
The Zacks Consensus Estimate for PVH Corp.’s current-year sales and EPS suggests growth of 27.6% and 571.6%, respectively, from the year-ago period’s corresponding readings. PVH has an expected EPS growth rate of 38.5% for three-five years.
lululemon athletica LULU, a renowned athletic apparel retailer, presently carries a Zacks Rank #2. LULU has a trailing four-quarter earnings surprise of 25.2%, on average. The stock has rallied 22.4% in the year-to-date period.
The Zacks Consensus Estimate for lululemon’s current-year sales and EPS suggests growth of 42.2% and 59.8%, respectively, from the corresponding year-ago period’s levels. LULU has an expected EPS growth rate of 18.3% for three-five years.

Zacks’ Top Picks to Cash in on Artificial Intelligence

This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.

See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>

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
 
lululemon athletica inc. (LULU): Free Stock Analysis Report
 
PVH Corp. (PVH): Free Stock Analysis Report
 
Steven Madden, Ltd. (SHOO): Free Stock Analysis Report
 
Delta Apparel, Inc. (DLA): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



Source link

Leave a Reply

Your email address will not be published.

Main Menu