Steven Madden (NASDAQ:SHOO) Stock, Quote.Headers.trade-ideas

Steven Madden

Steven Madden Ltd designs and sells brand-name and private-label footwear and accessories. Its products are geared toward fashion-conscious adults and children. The company sells its products through department stores and other retailers as well as its own stores and websites. The company's revenue comes from its operating segments: Wholesale Footwear, Wholesale Accessories or Apparel, Direct-to-Consumer, and Licensing. The wholesale footwear segment accounts for the majority of revenue.

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Steven Madden, SHOO

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Steve Madden has announced plans to significantly reduce its manufacturing operations in China.

Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There&#39;s A Catch

Steven Madden Ltd

Needham analyst Tom Nikic reiterates Steven Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) from Hold to Hold.

Reiteration

Analyst Ratings

Needham Reiterates Hold on Steven Maddento Hold

This whale alert can help traders discover the next big trading opportunities.
Whales are entities with large sums of money and we track their transactions here at Benzinga on our options activity scanner.
Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. High amounts of trading activity could push option prices to exaggerated or underestimated levels. 
Here's the list of options activity happening in today's session: 
<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th>Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>TSLA</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/06/24</td>
<td>$355.00</td>
<td>$26.2K</td>
<td>11.1K</td>
<td>38.5K</td>
</tr>
<tr>
<td>SBUX</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$100.00</td>
<td>$53.9K</td>
<td>13.1K</td>
<td>1.5K</td>
</tr>
<tr>
<td>WSM</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$190.00</td>
<td>$27.1K</td>
<td>2.2K</td>
<td>1.2K</td>
</tr>
<tr>
<td>SHOO</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>12/20/24</td>
<td>$45.00</td>
<td>$55.0K</td>
<td>3.6K</td>
<td>1.0K</td>
</tr>
<tr>
<td>DAN</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>06/20/25</td>
<td>$12.00</td>
<td>$30.3K</td>
<td>13</td>
<td>1.0K</td>
</tr>
<tr>
<td>PVH</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>12/20/24</td>
<td>$115.00</td>
<td>$33.3K</td>
<td>980</td>
<td>545</td>
</tr>
<tr>
<td>GME</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$32.00</td>
<td>$34.5K</td>
<td>2.1K</td>
<td>449</td>
</tr>
<tr>
<td>PDD</td>
<td>CALL</td>
<td>SWEEP</td>
<td>BEARISH</td>
<td>12/13/24</td>
<td>$97.00</td>
<td>$61.8K</td>
<td>335</td>
<td>243</td>
</tr>
<tr>
<td>CPNG</td>
<td>PUT</td>
<td>SWEEP</td>
<td>BULLISH</td>
<td>02/21/25</td>
<td>$27.00</td>
<td>$26.2K</td>
<td>484</td>
<td>135</td>
</tr>
<tr>
<td>CROX</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$110.00</td>
<td>$88.0K</td>
<td>1.4K</td>
<td>127</td>
</tr>
</tbody>
</table>

<h2>Explanation</h2>
These itemized elaborations have been created using the accompanying table. 
• Regarding TSLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), we observe a call option sweep with bullish sentiment. It expires in 2 day(s) on December 6, 2024. Parties traded 69 contract(s) at a $355.00 strike. This particular call needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $26.2K, with a price of $380.0 per contract. There were 11199 open contracts at this strike prior to today, and today 38566 contract(s) were bought and sold. 
• Regarding SBUX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), we observe a call option sweep with bearish sentiment. It expires in 44 day(s) on January 17, 2025. Parties traded 135 contract(s) at a $100.00 strike. This particular call needed to be split into 15 different trades to become filled. The total cost received by the writing party (or parties) was $53.9K, with a price of $400.0 per contract. There were 13139 open contracts at this strike prior to today, and today 1565 contract(s) were bought and sold. 
• For WSM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WSM#NYSE">WSM</a>), we notice a call option sweep that happens to be bullish, expiring in 16 day(s) on December 20, 2024. This event was a transfer of 68 contract(s) at a $190.00 strike. This particular call needed to be split into 13 different trades to become filled. The total cost received by the writing party (or parties) was $27.1K, with a price of $400.0 per contract. There were 2211 open contracts at this strike prior to today, and today 1251 contract(s) were bought and sold. 
• For SHOO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>), we notice a put option trade that happens to be bullish, expiring in 16 day(s) on December 20, 2024. This event was a transfer of 1000 contract(s) at a $45.00 strike. The total cost received by the writing party (or parties) was $55.0K, with a price of $55.0 per contract. There were 3664 open contracts at this strike prior to today, and today 1008 contract(s) were bought and sold. 
• For DAN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAN#NYSE">DAN</a>), we notice a put option trade that happens to be bearish, expiring in 198 day(s) on June 20, 2025. This event was a transfer of 202 contract(s) at a $12.00 strike. The total cost received by the writing party (or parties) was $30.3K, with a price of $150.0 per contract. There were 13 open contracts at this strike prior to today, and today 1000 contract(s) were bought and sold. 
• For PVH (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>), we notice a call option sweep that happens to be bearish, expiring in 16 day(s) on December 20, 2024. This event was a transfer of 71 contract(s) at a $115.00 strike. This particular call needed to be split into 33 different trades to become filled. The total cost received by the writing party (or parties) was $33.3K, with a price of $470.0 per contract. There were 980 open contracts at this strike prior to today, and today 545 contract(s) were bought and sold. 
• Regarding GME (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>), we observe a call option sweep with bullish sentiment. It expires in 44 day(s) on January 17, 2025. Parties traded 108 contract(s) at a $32.00 strike. This particular call needed to be split into 5 different trades to become filled. The total cost received by the writing party (or parties) was $34.5K, with a price of $320.0 per contract. There were 2155 open contracts at this strike prior to today, and today 449 contract(s) were bought and sold. 
• For PDD (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>), we notice a call option sweep that happens to be bearish, expiring in 9 day(s) on December 13, 2024. This event was a transfer of 220 contract(s) at a $97.00 strike. This particular call needed to be split into 17 different trades to become filled. The total cost received by the writing party (or parties) was $61.8K, with a price of $281.0 per contract. There were 335 open contracts at this strike prior to today, and today 243 contract(s) were bought and sold. 
• Regarding CPNG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>), we observe a put option sweep with bullish sentiment. It expires in 79 day(s) on February 21, 2025. Parties traded 72 contract(s) at a $27.00 strike. This particular put needed to be split into 16 different trades to become filled. The total cost received by the writing party (or parties) was $26.2K, with a price of $365.0 per contract. There were 484 open contracts at this strike prior to today, and today 135 contract(s) were bought and sold. 
• Regarding CROX (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>), we observe a call option trade with bearish sentiment. It expires in 44 day(s) on January 17, 2025. Parties traded 100 contract(s) at a $110.00 strike. The total cost received by the writing party (or parties) was $88.0K, with a price of $880.0 per contract. There were 1419 open contracts at this strike prior to today, and today 127 contract(s) were bought and sold. 
Options Alert Terminology 
 - Call Contracts: The right to buy shares as indicated in the contract. 
 - Put Contracts: The right to sell shares as indicated in the contract. 
 - Expiration Date: When the contract expires. One must act on the contract by this date if one wants to use it. 
 - Premium/Option Price: The price of the contract. 
For more information, visit our <a href="https://pro.benzinga.com/blog/how-to-understand-option-alerts/">Guide to Understanding Options Alerts</a> or read <a href="https://www.benzinga.com/markets/options">more news on unusual options activity</a>. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Options

CPNG

CROX

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SBUX

TSLA

10 Consumer Discretionary Stocks With Whale Alerts In Today's Session

Analysts' ratings for Steven Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $48.75, with a high estimate of $50.00 and a low estimate of $45.00. This upward trend is evident, with the current average reflecting a 1.04% increase from the previous average price target of $48.25.
<img src="https://www.benzinga.com/files/images/story/2024/1732276827_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Steven Madden. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$50.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Paul Lejuez</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$45.00</td>
<td>$43.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$50.00</td>
<td>$50.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$50.00</td>
<td>$50.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Steven Madden. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Steven Madden compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Steven Madden's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Steven Madden's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SHOO/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Steven Madden analyst ratings.</a>
<h2>Get to Know Steven Madden Better</h2>
Steven Madden Ltd designs and sells brand-name and private-label footwear and accessories. Its products are geared toward fashion-conscious adults and children. The company sells its products through department stores and other retailers as well as its own stores and websites. The company's revenue comes from its operating segments: Wholesale Footwear, Wholesale Accessories or Apparel, Direct-to-Consumer, and Licensing. The wholesale footwear segment accounts for the majority of revenue.
<h3>Steven Madden: Delving into Financials</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Positive Revenue Trend: Examining Steven Madden's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.02% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Steven Madden's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 8.85%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Steven Madden's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.73% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Steven Madden's ROA excels beyond industry benchmarks, reaching 3.9%. This signifies efficient management of assets and strong financial health.
Debt Management: Steven Madden's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.19.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Forecasting The Future: 4 Analyst Projections For Steven Madden

Needham analyst Tom Nikic initiates coverage on Steven Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) with a Hold rating.

Initiation

Needham Initiates Coverage On Steven Madden with Hold Rating

President-elect Donald Trump&#8217;s proposed tariffs have already <a href="https://www.benzinga.com/news/24/11/41871407/trumps-tariffs-deportations-and-tax-cuts-may-push-prices-higher-experts-say-its-pretty-clear">begun to upend businesses</a> in several industries and many are taking action to safeguard their profits. The tariffs, which include a 10-20% tax on all imports and a potential <a href="https://www.benzinga.com/news/global/24/11/41870809/china-may-benefit-from-trumps-return-to-white-house-despite-his-tariff-plans-says-expert-short-term-pain-but-potentially-long-term-strategic-gain">60-100% on goods from China</a>, are causing significant concern – and the costs are likely coming right to consumers' wallets.
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Philip Daniele, the CEO of AutoZone (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>), has stated unequivocally that if these tariffs are imposed, consumers will bear the expense. On a recent earnings call, Daniele said, &#8220;If we get tariffs, we will pass those tariff costs back to the consumer.&#8221; The company expects to raise prices even before the tariffs take effect, anticipating how these new policies will impact its margins.
<h2 class="wp-block-heading">Who Else Is Raising Prices?</h2>
Many other businesses, particularly those that depend significantly on foreign suppliers, are also preparing for possible price increases, so AutoZone is not the only company preparing for these changes.&nbsp;
Steve Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) is one of the first companies to make a move. The shoe retailer, which sources 70% of its products from China, <a href="https://www.benzinga.com/24/11/41862692/steve-madden-announces-plans-to-move-production-to-avoid-trump-tariffs-but-theres-a-catch">announced that it will cut its reliance</a> on Chinese production by half, moving to places like Vietnam, Cambodia and Mexico. Even with these changes, customers should anticipate price increases as Steve Madden manages the higher expenses related to the effects of tariffs and changing supply chains.
Trending: ‘Scrolling to UBI': Deloitte's #1 fastest-growing software company allows users to earn money on their phones –<a href="https://www.benzinga.com/money/mode-mobile-2"> invest today with $1,000 for just $0.25/share</a>
Columbia Sportswear (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COLM#NASDAQ">COLM</a>) also raised concerns about how tariffs would make it more difficult to maintain the affordability of its products. According to CEO Tim Boyle, the company may be forced to raise prices to cover the additional tariff charges.&nbsp;
The <a href="https://www.benzinga.com/news/24/11/41737933/trump-tariff-proposed-may-cost-americans-78b-in-spending-study">National Retail Federation</a> expressed similar views, describing the tariffs as &#8220;a tax on American families&#8221; and warning that the cost of daily goods like furniture, shoes and clothes might rise sharply.
According to their research, a $90 pair of sneakers might cost $106-116 and a $100 coat could cost up to $21 more. Footwear companies, in particular, are worried – since nearly 99% of all shoes sold in the U.S. are made abroad, it will be tough to move production to the U.S. anytime soon.
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<a href="https://www.benzinga.com/news/earnings/24/10/41599361/stanley-black-decker-q3-earnings-revenue-misses-cost-savings-drive-margin-gains-narrows-2024-eps-gu">Stanley Black &amp; Decker</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWK#NYSE">SWK</a>) is another company planning to deal with the potential impact of tariffs. According to CEO Donald Allan Jr., the company has been considering several options, but manufacturing their goods in the United States isn&#8217;t considered practical because of financial difficulties. Rather, they will probably pass on any higher expenses to customers. &#8220;And obviously, coming out of the gate, there would be price increases associated with tariffs that we put into the market,&#8221; Allan stated.
Even dollar stores aren&#8217;t immune. <a href="https://www.benzinga.com/insights/analyst-ratings/24/10/41451898/what-analysts-are-saying-about-dollar-tree-stock">Dollar Tree</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>), which imports many of its items from China, might have to rethink its fixed-price-point model of $1.25 per item if tariffs increase costs too much. Like other importers, the company faces a difficult choice – absorb higher costs, which would hit profits or raise prices, which could challenge its value-focused business model.
For now, many companies are waiting to see what will actually happen with the proposed tariffs, but one thing is clear – if they do go into effect, the cost of imports will rise and those increases will most likely reach consumers.
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"We Will Pass Those Tariff Costs Back To The Consumer," Says CEO Of AutoZone. Here's A Look At Other Companies Raising Prices

Telsey Advisory Group analyst Dana Telsey maintains Steven Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) with a Market Perform and maintains $50 price target.

Price Target

Telsey Advisory Group Maintains Market Perform on Steven Madden, Maintains $50 Price Target

China may view President-elect Donald Trump&#8217;s return to the White House as an opportunity for strategic advantage despite immediate economic challenges, according to a leading China expert.
What Happened: Elizabeth Economy, a senior fellow at the Hoover Institution, <a href="https://x.com/BloombergTV/status/1855626514500333605">told</a> Bloomberg TV that while Trump&#8217;s proposed 60% tariffs would significantly impact China&#8217;s economy, the longer-term implications could favor Beijing&#8217;s global ambitions.
&#8220;China is probably looking at the return of Donald Trump as short-term pain, but potentially long-term strategic gain,&#8221; Economy said. She estimated that China would need to find new markets for approximately $200 billion in exports if Trump&#8217;s tariff plans materialize.
The trade restrictions would hit China particularly hard given its current economic struggles, Economy noted. However, she suggested that Trump&#8217;s potential impact on America&#8217;s global leadership role could ultimately benefit China&#8217;s strategic interests.
Economy emphasized that Trump&#8217;s presidency could weaken the United States&#8217; traditional position as a major security guarantor, free trade advocate, and democracy supporter on the world stage – areas where China seeks to expand its influence.&#8221;It opens up an opportunity for [Chinese Prsident] Xi Jinping to fill the gap to step into the bridge,&#8221; Economy said. 
See Also: <a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Wall Street Hits Record Highs After Powell&#8217;s Speech, Lifts Magnificent 7 Stocks To $17 Trillion In Historic Trading</a>
Why It Matters: Trump&#8217;s return has already <a href="https://www.benzinga.com/24/11/41867397/xi-jinping-courts-us-allies-to-counter-trumps-trade-threats-report">prompted reactions from China</a>, as seen in recent moves by Chinese leadership. China is actively engaging U.S. allies in Europe and Asia to mitigate the impact of Trump&#8217;s proposed tariffs, which could be as high as 60% on Chinese imports. This strategy includes offering tariff cuts and visa exemptions to these allies.
Additionally, the U.S. has taken steps to curb China&#8217;s technological advancements. A report reveals that the U.S. has asked Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) to halt shipments of advanced chips to China, further <a href="https://www.benzinga.com/24/11/41867470/us-asks-tsmc-to-stop-shipment-of-chips-used-in-ai-applications-to-customers-from-china-after-its-chip-was-found-in-huawei-ai-processor">complicating China&#8217;s economic landscape</a>.
Furthermore, companies like Steve Madden Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) are <a href="https://www.benzinga.com/24/11/41862692/steve-madden-announces-plans-to-move-production-to-avoid-trump-tariffs-but-theres-a-catch">already adjusting their strategies</a> to avoid potential tariffs by reducing manufacturing in China and shifting production to other countries.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/11/41795320/trumps-20-tariff-plans-could-unleash-wave-of-spending-on-big-ticket-buys-in-holiday-quarter-says-eco?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s 20% Tariff Plans Could Unleash Wave Of Spending On Big Ticket Buys In Holiday Quarter, Says Economist Justin Wolfers — &#8216;Already Hearing Anecdata&#8217;</a></li>
</ul>
Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

China May Benefit From Trump's Return To White House Despite His Tariff Plans, Says Expert: 'Short-Term pain, But Potentially Long-Term Strategic Gain'

Steve Madden Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>), a major player in the footwear industry valued at $3 billion, has announced plans to significantly reduce its manufacturing operations in China. This strategic shift is in response to President-elect Donald Trump&#8217;s <a href="https://www.benzinga.com/news/24/11/41737933/trump-tariff-proposed-may-cost-americans-78b-in-spending-study">proposed tariffs on Chinese imports</a>.
What Happened: CEO Edward Rosenfeld revealed that the company intends to cut its production in China by half, as reported by<a href="https://edition.cnn.com/2024/11/08/economy/steve-madden-china-trump-tariffs/index.html"> CNN</a>. Currently, 70% of Steve Madden&#8217;s imports come from China.
The company plans to decrease this to between 40% and 45% over the next year by shifting production to countries like Cambodia, Vietnam, Mexico, and Brazil. This strategy aims to circumvent the potential tariffs, which could reach up to 60% on Chinese goods.
See Also:<a href="https://www.benzinga.com/markets/equities/24/11/41767332/trumps-potential-return-to-white-house-sends-ex-president-linked-phunware-stock-upwards-during-p?itm_source=parsely-api"> Trump&#8217;s Potential Return To White House Sends Ex-President Linked Phunware Stock Upwards During Pre-Market Hours</a>
Why It Matters: The decision by Steve Madden to move production is part of a broader response to President-elect Trump&#8217;s aggressive tariff proposals.
Trump has <a href="https://www.benzinga.com/news/large-cap/24/11/41774549/trumps-big-tech-policies-what-gop-victory-means-for-apple-google-microsoft">suggested imposing a 20% tariff</a> on all imports and even higher rates on Chinese goods. This has raised concerns among companies heavily reliant on Chinese manufacturing, such as Apple Inc. and others, about potential cost increases that might be passed on to consumers.
Furthermore, a<a href="https://www.benzinga.com/news/24/11/41737933/trump-tariff-proposed-may-cost-americans-78b-in-spending-study"> study by the National Retail Federation</a> warns that these tariffs could lead to a significant reduction in consumer spending, potentially costing Americans $78 billion annually. The study highlights the impact on essential items like apparel and appliances, which could see price hikes, disproportionately affecting low-income families.
Economist <a href="https://www.benzinga.com/news/24/11/41795320/trumps-20-tariff-plans-could-unleash-wave-of-spending-on-big-ticket-buys-in-holiday-quarter-says-eco">Justin Wolfers</a> thinks that the anticipation of these tariffs might drive a surge in consumer spending on big-ticket items in the short term as people rush to make purchases before the tariffs take effect.
Read Next:
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41794596/bitcoin-ethereum-dogecoin-slingshot-to-the-moon-after-trump-victory-but-sharp-correction-m?itm_source=parsely-api">Bitcoin, Ethereum, Dogecoin Slingshot To The Moon After Trump Victory But &#8216;Sharp&#8217; Correction Might Be In Store</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Wikimedia Commons

Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There's A Catch

Citigroup analyst Paul Lejuez maintains Steven Madden (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) with a Neutral and raises the price target from $43 to $45.

Citigroup Maintains Neutral on Steven Madden, Raises Price Target to $45

Steven Madden, Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOO#NASDAQ">SHOO</a>) shares are trading lower on Thursday. The company reported third-quarter adjusted EPS of 91 cents, <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">beating the Wall Street View of 89 cents.</a>
Quarterly revenues of&nbsp;$624.7 million&nbsp;surpassed the analyst consensus of&nbsp;$607.9 million. Revenue <a href="https://www.benzinga.com/earnings">increased&nbsp;13.0%&nbsp;year over year</a>.
Direct-to-consumer revenue was&nbsp;$125.5&nbsp;million, a&nbsp;7.8%&nbsp;increase year over year. Revenue for the wholesale business was&nbsp;$495.7&nbsp;million, a&nbsp;14.4%&nbsp;increase year over year.
Gross profit as a percentage of revenue was&nbsp;41.5%&nbsp;compared to&nbsp;42.1%&nbsp;in the same period of 2022. Adjusted operating expenses as a percentage of revenue were&nbsp;27.9%&nbsp;compared to&nbsp;27.0%&nbsp;in the same period of 2022.
The company ended the quarter with 282&nbsp;company-operated brick-and-mortar retail stores and five e-commerce websites, as well as 67 company-operated concessions in international markets.
As of Sept. 30, cash and equivalents and short-term investments totaled $150.5 million. Inventory totaled $268.7 million as of the same date.
Dividend: The company approved a quarterly cash dividend of 21 cents per share. The dividend is payable on Dec. 27, to stockholders of record on Dec. 13.
Buyback: The company repurchased shares worth $20.2 million, which includes shares acquired through the net settlement of employees&#8217; stock awards.
Outlook:&nbsp;Steve Madden raised its FY24 revenue guidance to a 13%-14% increase (up from 11%-13%) and now expects adjusted EPS to be in the range of $2.62-$2.67, up from the prior range of $2.55-$2.65. The consensus <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">estimate for adjusted EPS is $2.64</a>.
Edward Rosenfeld, chairman and chief executive officer, said, &#8220;This performance was driven by outstanding growth in the accessories and apparel categories – including another quarter of exceptional performance in Steve Madden handbags and a strong contribution from newly acquired Almost Famous – and robust top line gains in international markets and direct-to-consumer channels, demonstrating our team&#8217;s strong execution of our key strategic initiatives.&#8221;
Price Action: SHOO shares are up 1.1% at $44.75 at last check Thursday.
Read Next:
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<li><a href="https://www.benzinga.com//node/41803738" target="_blank" rel="noreferrer noopener">Invesco Launches New ETFs Targeting AI, Cybersecurity, And Defense. Here&#8217;s How Some Of Their Peers Have Performed In The Past Year</a></li>
</ul>
Photo via Wikimedia Commons

Earnings

Mid Cap

Guidance

Steve Madden Q3 Earnings Top Estimates As Revenue Jumps 13%, Lifts 2024 Outlook

Updated 2024 Outlook
For fiscal 2024, the Company now expects revenue will increase 13% to 14% compared to 2023. The Company now expects diluted EPS will be in the range of $2.36 to $2.41. The Company now expects Adjusted diluted EPS will be in the range of $2.62 to $2.67.

Steve Madden Continues To Expect FY24 Revenue To Increase 13%-14% (Prior 11%-13%), Adjusted EPS Of $2.62-$2.67 (Prior $2.55-$2.65), Est $2.64

Earnings Beats

Steven Madden Q3 2024 Adj. EPS $0.91 Beats $0.89 Estimate, Sales $624.675M Beat $607.858M Estimate

Burlington Stores, Inc.&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/burl#NYSE">BURL</a>) strong sales growth in the second quarter of 2024, driven by an aggressive store expansion strategy, robust comparable sales performance and operational efficiencies, positions the company for sustained success.
Enhanced inventory management and operational efficiencies have boosted profitability. The company&#39;s revised guidance for fiscal 2024 reflects confidence in its continued strong performance, with expectations for improved margins and earnings.
Investments in supply-chain upgrades and automation position Burlington for sustained long-term growth. The company remains well-positioned to provide continued value to both consumers and investors, solidifying its market presence and competitive advantage.
<h2>BURL Achieves Growth on Store Expansion &amp; Improved Margins</h2>
Burlington achieved a remarkable 13% growth in total sales in the second quarter due to rapid store expansion. The company added 36 stores, raising its total store count to 1,057. This expansion is expected to continue, with plans to open 100 stores and relocate 30 by the end of 2024.
Sales at these new locations exceeded expectations, typically generating about $7 million in their first full year of operation. Burlington&#39;s continued focus on growing its store footprint underscores its ability to scale revenues and enhance its market presence across the United States.
Burlington&#39;s comparable store sales (comp sales) grew 5% year over year, surpassing its guidance of flat to 2%. A key driver of this success has been the company&#39;s emphasis on full-price selling, which rose 7%, enabling Burlington to reduce markdowns and increase margins. By reducing clearance sales and focusing on full-price goods, the company improved profitability and showcased its ability to deliver value to consumers.
BURL also made significant strides in improving its margins. The company&#39;s gross margin rose by 110 basis points, reaching 42.8% in the second quarter primarily due to faster inventory turnover and fewer markdowns. Operational efficiencies in distribution centers helped offset inflationary pressures, while supply-chain improvements contributed to a 160-basis-point expansion in the operating margin.
<h2>Burlington&#39;s Strong Outlook for FY24</h2>
BURL, which shares space with Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>), Steven Madden, Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>) and Abercrombie (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>), updated its fiscal 2024 guidance, signaling a stronger outlook. Total sales are expected to rise 9-10%, up from the previously mentioned 8-10%. Comparable store sales are projected to grow 2-3%, an improvement from the earlier stated 0-2%.
The adjusted operating margin is forecast to increase 50-70 basis points, higher than the prior stated 40-60 basis points. Adjusted earnings per share are expected to be $7.66-$7.96, up from the previously stated $7.35-$7.75.
For the third quarter, Burlington anticipates a total sales increase of 10-12%, with comparable sales growth of 0-2% and an adjusted EBIT margin improvement of 60-80 basis points. In the fourth quarter, comparable sales are forecast to be flat or rise up to 2%, with total sales growth expected to be 5-7%.
<h2>Synopsis of SKX, SHOO &amp; ANF</h2>
Skechers is focused on expanding its direct-to-consumer segment and growing international sales. The company plans to invest in store openings, enhance omnichannel capabilities and build a second distribution center in China. These initiatives align with its long-term strategy to improve operational efficiency and expand customer reach. For fiscal 2024, Skechers expects sales between $8.88 billion and $8.98 billion, suggesting an increase from the $8 billion reported in fiscal 2023. It anticipates earnings per share between $4.08 and $4.18, indicating a rise from the $3.49 recorded in fiscal 2023.
Steven Madden&#39;s recovery in the U.S. wholesale footwear business signals a positive shift toward normalized inventory levels and renewed growth with key retail partners. This recovery underscores the brand&#39;s strength in its primary market and highlights its ability to overcome past challenges. With this improvement, the company is well-positioned for sustainable growth in its core business. Steven Madden&#39;s solid business framework enables it to capitalize on market opportunities and enhance stakeholder value. For 2024, SHOO expects revenue growth of 11-13% from that reported in 2023, with adjusted earnings projected at $2.55-$2.65 per share, implying growth from the $2.30 recorded in 2023.
Abercrombie is on track to achieve its 2024 target of demonstrating sustainable, profitable growth. The company expects to continue benefiting from strength in its brands, driven by its focus on delivering high-quality, on-trend assortments for new and retained customers across regions and brands. It has also been focused on making strategic investments across stores, digital and technology, which are slated to aid the company in the long term. Backed by the strong first-half fiscal 2024 results, Abercrombie raised its sales and operating margin views for the fiscal 2024. It anticipates net sales for fiscal 2024 to increase 12-13% from the $4.3 billion reported in the prior year. It earlier expected net sales growth of 10% for the fiscal 2024.
<a href="https://www.zacks.com/stock/news/2348944/burl-gains-from-robust-comparable-sales-operational-efficiencies?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2348944">To read this article on Zacks.com click here.</a>

Large Cap

Retail Sales

Trading Ideas

BURL

BURL Gains From Robust Comparable Sales & Operational Efficiencies

WIIM

FORD

PLCE

ROST

SCVL

ULTA

Shares of apparel-related stocks are trading lower possibly amid overall market weakness. Also, the sector could be pulling back from Friday's rally after the dockworkers reached a tentative deal to suspend their strike.

Steven Madden And Fast Simon Partner To Bring AI Shopping Optimization To 25 Online Stores

Designer Brands Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dbi#NYSE">DBI</a>) released second-quarter fiscal 2024 results, wherein both the bottom and top lines lagged the Zacks Consensus Estimate and declined year over year.
However, during the second quarter, the company continued to advance with its strategic initiatives aimed at business transformation. Despite challenges in categories like dress and seasonal footwear, the expansion of athletic and athleisure brands helped mitigate some of the pressure.
Looking ahead, the focus will be on investments in retail and brand businesses to drive growth. Enhancements in product assortment, marketing and the omnichannel customer experience are intended to ensure the company remains a top destination for footwear. These enhancements will also help it to adapt to changing consumer spending patterns and evolving market trends.
<div class="chart_embed">
<h3>Designer Brands Inc. Price, Consensus and EPS Surprise</h3>
<h2><img alt="Designer Brands Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/d8/1726139435.png" style="height:265px; width:570px" title="" /></h2>
Designer Brands Inc. price-consensus-eps-surprise-chart | Designer Brands Inc. Quote
</div>
<h2>More on Designer Brands&#39; Q2 Results</h2>
Designer Brands posted adjusted earnings of 29 cents per share, which missed the Zacks Consensus Estimate of 56 cents. The company recorded earnings of 59 cents per share in the year-ago period.
Net sales were $771.9 million, down 2.6% year over year. The top line missed the Zacks Consensus Estimate of $819 million. Also, comparable sales (comps) decreased 1.4% year over year compared with the Zacks Consensus Estimate of a nearly 3.7% decline.
<h2>Insight Into DBI&#39;s Margins &amp; Expenses</h2>
Gross profit amounted to $252.9 million, down 7.5% from $273.4 million in the year-ago quarter. This was primarily due to lesser revenues. Also, the gross margin decreased 170 bps to 32.8% from the prior-year period&#39;s level.
This decline was mainly due to a lower initial markup on athletic and athleisure products as the company focused on increasing its market share in these categories. Additionally, the need to run promotions to clear seasonal inventory put pressure on the gross margin, leading to reduced profitability.
Adjusted SG&amp;A expenses, as a percentage of net sales, rose to 28.9%, up 200 basis points from 26.9% in the same quarter last year. This increase in the ratio was primarily due to a drop in overall sales, combined with higher fixed costs and greater investment in areas like talent acquisition and IT, particularly for e-commerce and back-to-school marketing. However, this impact was somewhat mitigated by cost reductions implemented at the start of the second quarter.
Adjusted net income amounted to $17.1 million, down 56.7% from $39.4 million in the year-ago quarter.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/3a/77463.jpg?v=1059863912" />
Image Source: Zacks Investment Research
<h2>Update on Designer Brands&#39; Segmental Performance</h2>
U.S. Retail: Segment sales decreased 2.6% year over year to $641.7 million compared with the Zacks Consensus Estimate of $652 million.
Canada Retail: Segment sales increased 6.4% year over year to $74.8 million compared with the Zacks Consensus Estimate of $86 million.
Brand Portfolio: Segment sales of $96 million increased 14% year over year. The metric lagged the Zacks Consensus Estimate of $121 million.
<h2>DBI&#39;s Financial Snapshot: Cash, Debt &amp; Equity Overview</h2>
In the second quarter, the company reported cash and cash equivalents totaling $38.8 million compared with $46.2 million at the end of the same period in 2023. It also had $155.1 million available for borrowings under its senior secured asset-based revolving credit facility.
Debt levels also rose significantly, reaching $465.7 million by the end of the second quarter compared with $331 million in the year-ago period. Additionally, the company ended quarter with inventories of $642.8 million, which marked an increase from the $606.8 million recorded at the end of second-quarter 2023.
As part of its efforts to return value to shareholders, the company repurchased 2.7 million Class A common shares during the second quarter, with an aggregate cost of $18 million. As of Aug. 3, 2024, there remained $69.7 million worth of Class A common shares available for repurchase under the share repurchase program.
<h2>Update on DBI&#39;s Stores</h2>
During the fiscal second quarter, the company closed one store in the United States and opened two stores in Canada, resulting in a total of 499 U.S. stores and 177 Canadian stores as of Aug, 3, 2024.
<h2>Designer Brands&#39; FY24 Guidance</h2>
The company has revised its financial outlook for 2024. It now expects sales growth to be flat to low-single digits compared with the initial projection of low-single digits growth.
Additionally, the company has lowered its guidance for adjusted earnings per share. The metric is now expected to be in the range of 50-60 cents compared with the prior guided range of 70-80 cents. This revised outlook reflects more cautious expectations for the remainder of the year.
Shares of this Zacks Rank #3 (Hold) company have lost 29.7% in the past three months compared with the industry&#39;s 12.6% decline.
<h2>Key Picks</h2>
Some better-ranked companies are Boot Barn Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/boot#NYSE">BOOT</a>), Abercrombie &amp; Fitch Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>) and Steven Madden, Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>).
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Boot Barn&#39;s fiscal 2025 earnings and sales indicates growth of 10.3% and 10.7%, respectively, from the fiscal 2023 reported figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie&#39;s fiscal 2025 earnings and sales indicates growth of 61% and 12.6%, respectively, from the fiscal 2024 reported levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden&#39;s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
<a href="https://www.zacks.com/stock/news/2335063/designer-brands-q2-earnings-miss-estimates-comps-decline-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2335063">To read this article on Zacks.com click here.</a>

Earnings Misses

Small Cap

BOOT

Designer Brands' Q2 Earnings Miss Estimates, Comps Decline Y/Y

Under Armour, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uaa#NYSE">UAA</a>) has revised its fiscal 2025 restructuring strategy to include additional steps aimed at enhancing supply-chain operations and business efficiency. Originally, the company estimated pre-tax restructuring expenses to be in the range of $70-$90 million.&nbsp;After reevaluation, pre-tax restructuring expenses are anticipated to be in the range of $140-$160 million.
A major driver of this adjustment is the decision to phase out one of its primary distribution centers in Rialto, CA, by March 2026. This restructuring reflects Under Armour&#39;s broader goal of streamlining operations and refining its supply chain. While the updated plan will increase short-term costs, the company aims to emerge more agile and financially stronger in the long run.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/69/77143.jpg?v=261741690" />
Image Source: Zacks Investment Research
<h2>Financial Impact of Restructuring on Under Armour</h2>
The financial impact of Under Armour&#39;s restructuring plan is expected to be significant, involving both cash-related and non-cash expenses. The company projects cash-related charges of up to $75 million, with $30 million allocated for severance and employee benefits and an additional $45 million for various transformation initiatives aimed at improving operational efficiency.&nbsp;
In addition, non-cash charges are anticipated to be almost $85 million. This includes $7 million in severance-related costs and $78 million in impairments tied to assets such as facilities, software and other resources. By the end of the first quarter of fiscal 2025, Under Armour had already incurred $34 million in restructuring costs, consisting of $19 million in cash-related charges and $15 million in non-cash expenses. The company estimates that approximately two-thirds of the total restructuring costs will be recognized by the end of fiscal 2025.
<h2>UAA&#39;s Revised Financial Projections</h2>
As a result of the expanded restructuring efforts, Under Armour has updated its fiscal 2025 financial outlook. The company now forecasts operating loss to be in the range of $220-$240 million, an increase from the previously expected range of $194-$214 million. However, excluding restructuring and litigation-related charges, adjusted operating income is projected to be between $140 million and $160 million.
Additionally, the company has revised its expectations for loss per share, which is now estimated to be between 58 cents and 61 cents, up from the earlier guided range&nbsp; of 53 - 56 cents. On an adjusted basis, excluding the impact of restructuring expenses, Under Armour anticipates earnings per share to be in the range of 19 - 22 cents. These updated projections reflect the financial implications of the restructuring plan.
<h2>Conclusion</h2>
Under Armour&#39;s updated fiscal 2025 restructuring plan marks a significant shift in its efforts to streamline operations and cut costs. The decision to exit a key distribution facility, alongside other transformational initiatives, has led to an increase in anticipated restructuring expenses. Despite the immediate financial impact, including higher projected losses, the company aims to create a more agile and efficient business in the long term.
While the expanded restructuring will result in increased short-term costs, the adjusted earnings outlook, excluding these charges, remains positive. Under Armour aims to be better positioned for sustained profitability and growth in the years to come.
This Zacks Rank #3 (Hold) company&#39;s shares have risen 9.4% in the past three months against the industry&#39;s 10.9% decline.
<h2>Key Picks</h2>
Some better-ranked stocks are Boot Barn Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/boot#NYSE">BOOT</a>), Abercrombie &amp; Fitch Co.&nbsp;and Steven Madden, Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>).
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Boot Barn&#39;s fiscal 2025 earnings and sales indicates growth of 8.9% and 10.7%, respectively, from the fiscal 2023 figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie&#39;s fiscal 2025 earnings and sales indicates growth of 61% and 12.6%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden&#39;s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
<a href="https://www.zacks.com/stock/news/2333875/under-armour-s-restructuring-to-improve-supply-chain-long-term-growth?cid=CS-BENZ-FT-analyst_blog|rank_focused-2333875">To read this article on Zacks.com click here.</a>

Under Armour's Restructuring to Improve Supply Chain, Long-Term Growth

Stitch Fix, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>) has seen a substantial 45.4% surge in its stock price in the past six months, significantly outpacing the Zacks Retail-Apparel and Shoes industry&#39;s 6.5% decline. This impressive growth is driven by the company&#39;s strategic initiatives, such as AI-powered inventory management, pricing optimization, margin expansion, enhanced client engagement and improved cost efficiency.
These efforts have enabled Stitch Fix to outperform both the broader Retail-Wholesale sector and the S&amp;P 500 index, which saw growth of 2.6% and 5.9%, respectively, in the same period. This impressive uptick has left many investors wondering if they missed out on a lucrative opportunity or if there is still potential for growth. Closing at $3.46 as of Sept. 6, the SFIX stock is inching toward its 52-week high of $5.05 attained on July 16, 2024.
Technical indicators are supportive of Stitch Fix&#39;s strong performance. The stock is trading above both its 100-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in SFIX&#39;s financial health and prospects.
From a valuation perspective, the stock presents an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-sales ratio of 0.33, below the five-year median of 0.54 and the industry&#39;s average of 1.04, the stock offers compelling value for investors seeking exposure to the sector. The stock currently has a Value Score of A, further validating its appeal.
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<h2>Stitch Fix&#39;s Strategic Moves to Drive Growth</h2>
Stitch Fix continues to fuel its growth by leveraging AI and data analytics, which have become central to the company&#39;s operations. A key driver of this success is the implementation of an AI-driven inventory buying tool, now responsible for nearly half of all inventory decisions, significantly boosting efficiency compared to traditional methods. This strategic application of AI highlights Stitch Fix&#39;s commitment to innovating business processes and maintaining a competitive edge.
The introduction of Quick Fixes, a feature that allows clients to schedule an additional fix immediately after checkout, has led to a 25% increase in average order value within three weeks, showcasing the company&#39;s agility in meeting client needs. Additionally, a comprehensive review of pricing architecture has resulted in adjustments expected to generate more than $20 million in annualized contribution profit, aligning prices with the value offered and enhancing profitability.
Stitch Fix has also made significant strides in margin expansion and operational efficiency. In the third quarter of fiscal 2024, the company reported a 280-basis-point year-over-year increase in gross margin, reaching 45.5%. This improvement was driven by strong product margins and better transportation leverage, reflecting the company&#39;s strategic focus on optimizing pricing and inventory management.
Enhancing the client experience remains a top priority for Stitch Fix. The company has introduced more dynamic and personalized interactions, such as increasing the number of items in each fix, refining discount strategies and improving the onboarding process. These initiatives have already delivered promising results, with higher average order values and improved retention metrics, indicating strong client satisfaction and loyalty.
The launch of Stitch Fix Freestyle has created a unique shopping experience, allowing customers to discover and purchase curated items based on their style preferences, fit and size, without the need for a Fix first. This initiative is part of the company&#39;s broader strategy to expand its client base and achieve long-term profitability.
On the marketing front, Stitch Fix is refining its strategy to prioritize liquidity preservation and profitability by focusing on high-lifetime-value clients. The company is also restructuring its operations, including consolidating U.S. warehouse locations from five to three and successfully divesting its U.K. operations, further aligning SFIX&#39;s business for sustained growth.
<h2>Declining Active Client Base: A Major Hurdle of SFIX</h2>
The reduction in the active client base in the past eight quarters has been a major concern and is the primary factor behind the company&#39;s revenue decline. In the third quarter of fiscal 2024, the number of active clients involved in ongoing operations fell to 2,633,000, representing a 20% year-over-year decrease.
Consequently, the company&#39;s revenues dropped 15.8% in the fiscal third quarter. This persistent decline in sales indicates ongoing challenges in client retention and acquisition, possibly indicating deeper issues related to product appeal or increased market competition.
<h2>Conclusion</h2>
Investors may consider SFIX stock due to its strong recovery momentum, bolstered by innovative AI-driven inventory management and pricing strategies, which have significantly improved efficiency, margins and client engagement.
Despite a decline in the active client base, the stock&#39;s value appeal is evident in its low price-to-sales ratio and outperforming industry benchmarks, combined with technical indicators showing robust price stability. This makes SFIX an attractive option for those seeking exposure to a company leveraging advanced analytics for growth. The company&#39;s focus on operational efficiency and profitability further enhances its investment potential. Stitch Fix currently carries a Zacks Rank #3 (Hold).
<h2>Key Picks</h2>
Some better-ranked stocks are Boot Barn Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/boot#NYSE">BOOT</a>), Abercrombie &amp; Fitch Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>) and Steven Madden, Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/shoo#NASDAQ">SHOO</a>).
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Boot Barn&#39;s fiscal 2025 earnings and sales indicates growth of 8.9% and 10.7%, respectively, from the fiscal 2023 figures. BOOT has a trailing four-quarter average earnings surprise of 7.1%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It sports a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter. The consensus estimates for Abercrombie&#39;s fiscal 2025 earnings and sales indicate growth of 61% and 12.6%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for Steven Madden&#39;s 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
<a href="https://www.zacks.com/stock/news/2333466/should-you-invest-in-stitch-fix-stock-after-a-45-rise-in-six-months?cid=CS-BENZ-FT-analyst_blog|rank_focused-2333466">To read this article on Zacks.com click here.</a>

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