HomeMost PopularInvestingSteven Madden (SHOO): Strong Growth Strategies Drive Progress

Steven Madden (SHOO): Strong Growth Strategies Drive Progress

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Steven Madden, Ltd. (SHOO) has been making significant progress, fueled by its robust business strategies. The company is well-positioned to capitalize on positive trends in the fashion industry, thanks to its digital initiatives and other strategic efforts. With a focus on creating a trend-right merchandise assortment, deepening customer relationships through marketing, enhancing its digital commerce agenda, expanding into international markets, and efficiently managing expenses, Steven Madden has gained 9.6% in share value compared to the industryโ€™s 4.3% rise in the past year. With a VGM Score of A and a Zacks Rank #3 (Hold), analysts are optimistic about the companyโ€™s growth potential.

Delving Deeper

Steven Madden is committed to boosting its e-commerce presence through prudent investments in digital marketing and enhancements to its website. The company has experienced gains from increased investment in digital marketing, as well as robust consumer reception capabilities such as โ€œtry before you buy.โ€ Furthermore, Steven Madden has accelerated its digital commerce initiatives, particularly in distribution.

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The company has added high-level talent to its organization, increased digital marketing spending, improved data science capabilities, launched a try-before-you-buy payment facility, introduced buy online-pick up in-store across all US retail outlets, and implemented advanced delivery and return options. Steven Madden is focused on driving growth in its direct-to-consumer business, expanding categories beyond footwear, enhancing its international presence, and reinforcing its core US wholesale footwear business.

Prudent acquisitions have also contributed to Steven Maddenโ€™s performance. The acquisition of BB Dakota, a California-based womenโ€™s apparel company, has expanded the companyโ€™s apparel category. Additionally, Steven Madden has completed the acquisition of the remaining 49.9% share of its European joint venture, enabling it to distribute branded footwear and accessories across most European countries.

Positive Figures

The companyโ€™s international business has been a highlight, with a revenue increase of 13% in the first quarter of 2023. International business accounted for more than 18% of consolidated revenues for the third consecutive quarter.

Investment Outlook

Given the aforementioned positives, Steven Madden appears to be a promising investment opportunity. The companyโ€™s strong business model, along with its market growth opportunities, positions it well to deliver long-term value to stakeholders.

Eye These Solid Investment Picks

Some other companies worth considering for investment are:

  • Royal Caribbean (RCL): Sporting a Zacks Rank #1 (Strong Buy), Royal Caribbean has reported an average earnings surprise of 26.4% in the last four quarters. The Zacks Consensus Estimate for 2023 sales and EPS indicates increases of 48.7% and 162.9%, respectively, from the year-ago periodโ€™s reported levels.
  • Crocs (CROX): Currently holding a Zacks Rank #2 (Buy), Crocs offers casual lifestyle footwear and accessories. The expected EPS growth rate for the next three to five years is 15%. The Zacks Consensus Estimate for the current financial year suggests growth of 13.1% in sales and 5.6% in EPS from the year-ago periodโ€™s reported figures. Crocs has reported an average earnings surprise of 19.6% in the last four quarters.
  • Lululemon Athletica (LULU): A yoga-inspired athletic apparel company, Lululemon has a Zacks Rank #2. The Zacks Consensus Estimate for the current financial year indicates growth of 17% in sales and 18.4% in EPS from the year-ago corresponding figures. Lululemon has reported an average earnings surprise of 9.9% in the last four quarters.

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With its strong growth strategies and positive industry trends, Steven Madden is poised for continued success in the fashion market. Coupled with prudent investments, acquisitions, and expanding international business, the companyโ€™s stock presents an attractive investment opportunity. Additionally, investors may also consider Royal Caribbean, Crocs, and Lululemon Athletica for their financial portfolios.

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