Steven Madden (SHOO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Sam Poser from Williams Trading maintained a Hold rating on the stock and has a $35.00 price target.
Sam Poser has given his Hold rating due to a combination of factors affecting Steven Madden’s financial outlook. Despite the positive impact of the Kurt Geiger acquisition, there are significant uncertainties such as tariffs, cautious consumer behavior, and declining handbag trends that pose challenges. Although the fourth quarter of 2024 saw sales and earnings per share surpass expectations, the gross margin fell short due to a less favorable wholesale product mix and increased promotional activities in the direct-to-consumer segment.
Furthermore, the fiscal year 2025 earnings guidance, even with the inclusion of the Kurt Geiger acquisition, is approximately 9% below current consensus estimates. Excluding the acquisition, revenue growth is expected to be low single digits, with earnings per share projected between $2.20 and $2.30, which is below the consensus of $2.58. Additional concerns include a significant year-over-year decline in first-quarter 2025 earnings per share due to increased marketing investments and pressure on gross margins from tariffs and production shifts. The core branded footwear business, particularly the women’s segment, is experiencing low growth, adding to the cautious outlook.