SHOO - Embedded Expectations Analysis - 2021 04 23
Steven Madden, Ltd. (SHOO:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 20.9x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about retail promotions, marketing investments, and consumer demand patternsSpecifically, management may have concerns about their increased use of recycled and renewable materials in products, the sustainability of reduced retail promotional activity, and uncertainty about the pandemic's impact on inventory orders and demand patterns. In addition, management may lack confidence in their ability to maintain their strong financial position and continue to increase marketing investments in their brands. Moreover, they may have concerns about air freight rates, the sustainability of demand in their casual boots category, and the pace of store re-openings internationally. Finally, management may be overstating the potential of their digital commerce investments and they may be downplaying concerns about sales declines in their footwear business
Steven Madden designs, sources, markets and sells name brand and private label footwear for women, men and children and name brand and private label handbags and accessories. The company licenses its trademarks for use in connection with the manufacturing, marketing and sale of various products by third party licensees. The company's products are marketed through its retail stores and its e-commerce websites within the U.S., Canada, Mexico, the company's joint ventures in South Africa, China, Taiwan and Israel, as well as department stores, specialty stores, retailers, national chains, mass merchants, online retailers and catalog retailers throughout the U.S., Canada, Mexico, certain European nations and Tunisia.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.