Hold Rating on Steven Madden Due to Tariff Headwinds and Macroeconomic Pressures

Analyst Paul Lejuez of Citi maintained a Hold rating on Steven Madden (SHOO – Research Report), reducing the price target to $23.00.

Paul Lejuez has given his Hold rating due to a combination of factors impacting Steven Madden’s stock. A primary concern is the significant headwinds from the high tariffs on goods sourced from China, which constitute a large portion of the company’s sales. This tariff impact is expected to severely affect the company’s gross margins and lead to a reduction in orders from China, resulting in decreased sales in the latter half of the year.
Additionally, the macroeconomic environment is anticipated to slow down, further pressuring the company’s performance. Lejuez has adjusted his earnings estimates downward, reflecting weaker sales and margins, and has also lowered the target price for the stock. Given the high level of uncertainty and the potential for management to suspend guidance, a cautious approach is warranted, justifying the Hold rating.

In another report released yesterday, Telsey Advisory also maintained a Hold rating on the stock with a $24.00 price target.