Steven Madden: Overvalued At These Levels
Steven Madden Is Offering Decent Upside With Limited Down Side
Steven Madden: Overvalued At These Levels
Mon, Jun. 20, 11:29 AM
- Steve Madden (SHOO +2.5%) could be well-positioned to benefit from the increased focus on fashion sneakers and sandals by younger women, notes Brian Sozzi.
- The company's double-digit same-store sales growth last quarter backs up the contention of Sozzi that the retailer has "nailed" its latest offering in open toe dress shoes, sandals, and fashion sneakers. The steady growth in demand for fashion sneakers (online and B&M) is a bright spot in the apparel industry (see Google Trends chart).
- Another point in Steve Madden's favor is the Wal-Mart selling channel which could see a bounce this summer.
- Investors have plenty of time to wait for an entry point on SHOO with the next earnings report not scheduled until August 4.
- Shares of Steve Madden are up 17% YTD, but are still 21% lower than their 52-week high.
Mon, May 23, 10:27 AM
- The U.S. footwear industry is expected to be big winner from the Trans-Pacific Partnership trade agreement, according to analysis from the U.S. International Trade Commission.
- U.S. footwear imports are expected to increase by 2.7% or $1.1B vs. the 2032 baseline growth estimate, with the bulk coming from Vietnam at the expense of China.
- Exports from the U.S. are seen increasing 12.2% as more parts are sent to Vietnam for final assembly.
- TPP is anticipated to have a positive impact on U.S. output and footwear-related employment levels.
- Footwear is the sector with the largest positive benefit from reduced tariffs in what could be a favorable development for margins.
- Full U.S. ITC report (.pdf)
- Related footwear stocks: DSW, SHOO, FINL, FL, UA, SCVL, UA, NKE, OTCQX:ADDYY, DECK, WWW, SKX.
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Sun, Apr. 24, 6:13 PM
- via Credit Suisse, in order of # of small-cap funds who own the stock. Following the stock is the number of funds who own it, and the change vs. previous quarter:
- IDTI - Integrated Device Tech 96 | 14
- MSCC - Microsemi 86 | 10
- MANH - Manhattan Associates 85 | 5
- CBM - Cambrex 80 | 4
- EEFT - Euronet Worldwide 80 | 8
- POR - Portland General Electric 79 | 0
- EME - Emcore 78 | 6
- LAD - Lithia Motors 78 | 6
- AMSG - Amsurg 78 | 0
- JCOM - J2 Global 77 | 4
- PFPT - Proofpoint 77 | 4
- AHS - AMN Healthcare 74 | 2
- EXPR - Express Inc. 74 | 3
- ICUI - ICU Medical 73 | 0
- LGND - Ligand Pharma 73 | 6
- PVTB - Privatebancorp 73 | -2
- PRXL - Parexel 72 | 5
- AEL - Americal Equity Investment Life 71 | 3
- TYL - Tyler Technologies 71 | 7
- CRZO - Carrizo Oil & Gas 69 | 3
- MENT - Mentor Graphics 69 | -9
- MNRO - Monro Muffler Brake 68 | 0
- WAL - Western Alliance Bancorp 68 | 8
- AEO - American Eagle Outfitters 67 | 0
- LOGM - Logmein 67 | -1
- OZRK - Bank of the Ozarks 67 | 5
- SHOO - Steven Madden 67 | -10
- STE - Steris 67 | 20
- WNC - Wabash National 67 | -1
- Credit Suisse recommends reducing exposure in small-cap "darlings" due to less opportunity for differentiation; historical underperformance; and outflows.
Fri, Apr. 22, 7:15 AM
- Steve Madden (NASDAQ:SHOO) announces it recorded a 10.7% increase in same-store sales in its retail segment during Q1.
- Sales in the wholesale segment were flat Y/Y at $275.8M.
- Gross margin rate improved 90 bps to 35.3% during the quarter, while the operating income rate was 10 bps lower at 9.1% of sales.
- The effective tax rate paid during the quarter fell to 32.0% from 34.3% a year ago.
- The company expects revenue to increase 2% to 4% this year. EPS is seen landing in a range of $1.93 to $2.03. vs. $2.02 consensus.
- Now read Steve Madden Has Minimal Upside From Here
Fri, Apr. 22, 7:04 AM
Thu, Apr. 21, 5:30 PM
Thu, Mar. 31, 10:21 AM
- Investors are giving companies that make shoes a hard look today. Macroeconomic factors including as strong U.S. dollar have been tugging on earnings in the sector.
- Shoe stocks ahead of broad market averages include Deckers Outdoor (DECK +3.6%), Crocs (CROX +5.1%), Steven Madden (SHOO +2.1%), Wolverine Worldwide (WWW +1.4%), Genesco (GCO +1.3%), and Boot Barn (BOOT +4.3%).
- Now read Are Crocs About To Make An Unlikely Comeback?
Wed, Feb. 24, 7:33 AM
- Steven Madden (NASDAQ:SHOO) reports retail sales rose 8.9% to $79.3M in a weather-challenged Q4. Same-store sales were up 6.1% during the period.
- Gross margin rate +180 bps to 36.1%.
- Operating expenses as a percentage of sales increased 10 bps to 25.6%.
- The company ended the quarter with inventory up 10% Y/Y to $102.08M.
- Steven Madden sees FY16 sales rising 2% to 3% and EPS falling in a range of $1.93-$2.03 vs. $2.10 consensus.
- Previously: Steven Madden EPS and revenue in-line (Feb. 24 2016)
Wed, Feb. 24, 7:12 AM
Tue, Feb. 23, 5:30 PM
Thu, Feb. 18, 7:07 AM
Mon, Feb. 8, 11:22 AM
- NPD Group reports the U.S. athletic footwear industry grew 8% last year to $17.2B.
- Unit sales were up 3%, while the average selling price of a pair of athletic footwear rose over 5%.
- In an interesting category trend, running and basketball cooled off a bit, while casual accelerated. Hot demand for retro lifted growth in the classics category to 30% for the year.
- Looking ahead, NPD analyst Matt Powell expects growing interest in social fitness (class-based fitness, shared activities, Planet Fitness (NYSE:PLNT), SoulCycle (Pending:SOULC)) to help keep demand strong in athletic footwear.
- Related shoe stocks: DSW, SHOO, FINL, FL, UA, SCVL, UA, NKE, OTCQX:ADDYY, DECK, WWW, SKX.
Mon, Jan. 11, 10:09 AM
- Shoe stocks are under pressure after channel checks on pricing add a new layer of worry.
- Trading lower in morning action are Crocs (CROX -3.2%), Deckers Outdoor (DECK -2.1%), Wolverine Worldwide (WWW -2.4%), Steven Madden (SHOO -2.1%), Skechers (SKX -0.6%), Columbia Sportswear (COLM -2.8%), and VF Corp (VFC -2.6%).
- Under Armour just dipped below $70 after being as high as $105 in October.
- The panicky trading isn't encapsulating sector giant Nike (NKE +0.8%) or the Adidas (OTCQX:ADDYY +3.3%) ADRs.
- Previously: Under Armour slides as new footwear pricing concerns crop up (Jan. 11 2016)
Nov. 30, 2015, 9:28 AM
- Retail stocks to watch for some Cyber Monday volatility include Under Armour (NYSE:UA), Deckers Outdoor (NYSE:DECK), Steven Madden (NASDAQ:SHOO), GoPro (NASDAQ:GPRO), Michael Kors (NYSE:KORS), and Ralph Lauren (NYSE:RL).
- While some reports on low traffic at malls are a factor, a bigger consideration are the channel checks conducted by several firms showing some intense pricing competition in key apparel categories. Analysts also note the higher mix of toy purchases online - particularly those tied to the new Star Wars film - is a consideration for Hasbro (NASDAQ:HAS), Mattel (NASDAQ:MAT), and Target (NYSE:TGT).
- On the e-commerce front, Amazon (NASDAQ:AMZN) appears to have been firing on all cylinders ahead of Cyber Monday. Same-store sales are estimated to have been up 29% on Thanksgiving, 21% on Black Friday, and 21% on Cyber Saturday. EBay (NASDAQ:EBAY) outpaced broad retail, but registered more modest gains of 7.0%, 1.5%, and 3.6% for the three key shopping days.
Nov. 20, 2015, 10:09 AM
- Strong earning reports from Foot Locker (FL +7.9%), Hibbett Sports (HIBB +4.7%), Sportsman's Warehouse Holdings (SPWH +19.6%) seem to be reverberating around the sportswear/footwear sector.
- Lululemon (LULU +5.3%), Big Five Sporting Goods (BGFV +2.4%), Skechers (SKX +4.4%), Columbia Sportswear (COLM +4.1%), Under Armour (UA +3.6%), V.F. Corp (VFC +1.7%), Steven Madden (SHOO +3.5%), Crocs (CROX +2.2%), and Wolverine Worldwide (WWW +3.3%) are all solidly higher.
- Cabela's (CAB +7.2%) is higher off more merger speculation, while Nike (NKE +5%) gave investors plenty of reasons to smile last night on the buybacks and dividend front.
- Dick's Sporting Goods (DKS -0.2%) hasn't joined the sportswear party quite yet as the company's large retail footprint continues to dampen enthusiasm.
Steven Madden Ltd. designs, sources, markets and sells fashion-forward footwear for women, men, and children. The company operates through five segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. The Wholesale Footwear segment is comprised of the following... More
Sector: Consumer Goods
Industry: Textile - Apparel Footwear & Accessories
Country: United States
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