Cautious Outlook for Steven Madden: Tariff Exposure and Financial Challenges Persist

Needham analyst Tom Nikic has maintained their neutral stance on SHOO stock, giving a Hold rating yesterday.

Tom Nikic has given his Hold rating due to a combination of factors affecting Steven Madden’s stock. One of the primary concerns is the company’s significant exposure to tariffs, with a notable portion of their products being imported from China. Although efforts have been made to reduce this exposure, it remains a considerable risk factor.
Additionally, the company faces challenges such as a high cost of goods sold relative to revenue, limited international sales, and a substantial reliance on wholesale channels. Despite the transparency of Steven Madden’s management, which is commendable, the overall outlook remains cautious. The company’s financial forecasts have been adjusted downward, reflecting the ongoing impact of tariffs, and the stock’s performance has significantly lagged behind the broader market this year.

In another report released yesterday, Citi also maintained a Hold rating on the stock with a $23.00 price target.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SHOO in relation to earlier this year.