Steven Madden price target lowered to $23 from $35 at Citi

Citi analyst Paul Lejuez lowered the firm’s price target on Steven Madden (SHOO) to $23 from $35 and keeps a Neutral rating on the shares. The firm expects relatively in-line Q1 results from Steven Madden but says the print will be overshadowed by the “significant headwinds” the company is facing from 145% China tariffs. Citi notes that 58% of Madden’s sales are from items sourced in China sold in the U.S. The company’s fiscal 2025 guidance incorporated 10% China and 25% Mexico tariffs, resulting in a 250 basis point unmitigated headwind to core business gross margin and highlighting how significant the margin impact will be with China tariffs at 145%, the analyst tells investors in a research note. Citi expects management to significantly cut orders from China to limit margin pressure, resulting in meaningful lost sales in the second half of 2025.