Source: Bloomberg
Summary
Deckers Outdoor Corp. and Boot Barn are expected to meet or exceed gross margin expectations, while Steven Madden Ltd. is at risk of missing its target. According to a Bloomberg Intelligence analysis, Deckers and Boot Barn have a lower risk of a gross margin miss due to their strong brand portfolios and pricing power. Steven Madden, on the other hand, faces challenges in maintaining its margins due to increased competition and higher costs.
Our Reading
The trend returns with a new name. Deckers and Boot Barn are reaping the benefits of their strong brand recognition, while Steven Madden is struggling to keep up. The cycle of margin pressure is nothing new in the fashion industry. Steven Madden’s challenge is to maintain its pricing power in a competitive market. The look of caution is familiar in the fashion world.
Author: Evan Null
