Steven Madden (SHOO) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: 4.19%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.20
• Revenue Growth: 15.03%
• EPS Growth: 1.51%
• Country: US
• Employees: 3,500
• Sector: Consumer Cyclical
• Sector Strength: 55
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 2.35
• Shares Outstanding: 72,576,130
• 10 Day Avg. Volume: 2,372,117
• 30 Day Avg. Volume: 2,105,042
• PEG Ratio: 6.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.79
• Price to Cash Flow (P/CF): 4.40
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.25
• Price Target Upside: 68.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

Steven Madden's strong financial performance and strategic growth initiatives, such as the acquisition of Kurt Geiger, are key strengths. However, current technical indicators suggest a bearish trend, and potential challenges in 2025 from tariffs and inventory issues may pose risks. The stock is undervalued with a high dividend yield, which may attract value investors.

Positive Factors

Acquisitions

The KG acquisition is seen as a win for Steven Madden, providing potential for future growth.

Earnings

The analyst reiterates a Buy recommendation with a price target of $46.

Financial Performance

SHOO's acquisition of Kurt Geiger showcases its ability to leverage a strong balance sheet and cash flow to pursue growth opportunities.

Negative Factors

Consumer Trends

Department store exposure has led to weak order trends in the core footwear business, which are not expected to improve soon.

Core Business Challenges

Our ongoing concern is regarding the health of SHOO's core branded footwear businesses, which decreased ~3% in 4Q24.

Tariffs

Increased tariffs and the shift of production from China to other markets are expected to pressure gross margin by ~200bps YoY.

Steven Madden Business Overview & Revenue Model

Company Description

Steven Madden, Ltd. designs, sources, markets, and sells fashion-forward branded and private label footwear, accessories, and apparel for women, men, and children in the United States and internationally. Its Wholesale Footwear segment provides footwear under the Steve Madden, Steven by Steve Madden, Madden Girl, BB Dakota, Dolce Vita, DV Dolce Vita, Betsey Johnson, GREATS, Blondo, Anne Klein, Mad Love, Superga, Madden NYC, and COOL Planet brands, as well as private label footwear. The company's Wholesale Accessories/Apparel segment offers handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other accessories under the Steve Madden, BB Dakota, Anne Klein, Betsey Johnson, Cejon, Madden NYC, and Dolce Vita brands, as well as private label handbag and accessories to department stores, mass merchants, off-price retailers, online retailers, specialty stores, and independent stores. Its Direct-to-Consumer segment operates Steve Madden and Superga full-price retail stores, Steve Madden outlet stores, and Steve Madden shop-in-shops, as well as digital e-commerce websites, including SteveMadden.com, DolceVita.com, betseyjohnson.com, Blondo.com, GREATS.com, and Superga-USA.com. The company's Licensing segment licenses its Steve Madden, Madden Girl, and Betsey Johnson trademarks. Its First Cost segment operates as a buying agent for footwear products under private labels for national chains, specialty retailers, and value-priced retailers. As of December 31, 2021, it owned and operated 214 brick-and-mortar retail stores that included 147 Steve Madden full-price stores, 66 Steve Madden outlet stores, and 1 Superga store, as well as 6 e-commerce websites. Steven Madden, Ltd. was incorporated in 1990 and is headquartered in Long Island City, New York.

How the Company Makes Money

Steven Madden, Ltd. generates revenue through multiple channels. The primary revenue stream comes from its wholesale operations, where the company sells its products to department stores, specialty stores, and mass-market retailers both domestically and internationally. In addition to wholesale, the company operates a retail segment, which includes Steve Madden-branded stores and its e-commerce platform, offering direct-to-consumer sales. Another significant component of the company's revenue model is licensing, through which Steven Madden licenses its brands for products like eyewear, outerwear, and handbags, earning royalties. Strategic partnerships and collaborations with celebrities and designers also enhance brand visibility and contribute to sales growth. The company's ability to quickly adapt to fashion trends and its strong brand appeal are crucial factors in driving its earnings.

Steven Madden Financial Statement Overview

Summary

Steven Madden shows strong financial health, with notable revenue growth and stable cash flow management. The balance sheet is solid with low leverage and a high equity ratio. While profitability has slightly declined, the company remains well-positioned in the Apparel & Luxury industry.

Income Statement

Steven Madden has shown strong revenue growth recently, with a 15.19% increase from 2023 to 2024. The gross profit margin is healthy at 41.02% for 2024, and EBIT and EBITDA margins stand at 9.85%. However, the net profit margin decreased slightly to 7.42% in 2024, down from 8.65% in 2023.

Balance Sheet

The company's debt-to-equity ratio is low at 0.05, indicating minimal reliance on debt, which is a strength. The equity ratio is robust at 60.04%, suggesting a stable financial structure. Return on equity decreased to 19.98% from 20.68% in 2023, which needs monitoring.

Cash Flow

Steven Madden demonstrates solid cash generation with an operating cash flow to net income ratio of 1.17 and a free cash flow to net income ratio of 1.02 for 2024. However, free cash flow decreased slightly by 17.94% compared to the previous year.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.28B	1.98B	2.12B	1.87B	1.20B
	Gross Profit
936.93M	832.41M	873.84M	767.50M	464.54M
	EBIT
224.94M	213.22M	281.64M	243.60M	130.73M
	EBITDA
258.01M	235.24M	302.22M	257.28M	66.92M
	Net Income Common Stockholders
169.39M	171.55M	216.06M	190.68M	-18.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
203.41M	219.81M	289.80M	263.54M	287.17M
	Total Assets
1.41B	1.35B	1.26B	1.36B	1.14B
	Total Debt
43.17M	138.88M	108.63M	110.83M	132.85M
	Net Debt
-146.75M	-65.76M	-166.09M	-108.67M	-115.02M
	Total Liabilities
535.77M	499.91M	414.13M	535.00M	347.39M
	Stockholders Equity
847.72M	829.60M	831.55M	812.10M	776.59M
Cash Flow		Free Cash Flow
172.19M	209.77M	249.53M	152.85M	37.64M
	Operating Cash Flow
198.10M	229.24M	267.88M	159.46M	44.21M
	Investing Cash Flow
-39.49M	-99.89M	5.52M	-3.21M	-4.88M
	Financing Cash Flow
-167.91M	-200.94M	-215.83M	-184.65M	-57.07M

Steven Madden Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHOO, the sentiment is Negative. The current price of 22.14 is below the 20-day moving average (MA) of 25.45, below the 50-day MA of 31.36, and below the 200-day MA of 40.62, indicating a bearish trend. The MACD of -1.83 indicates Negative momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 79.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHOO.

Steven Madden Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CROX	76 Outperform	$5.37B	5.59	57.76%	―	3.53%	24.55%
DECK	76 Outperform	$16.11B	16.54	39.80%	―	19.40%	32.70%
SHOO	74 Outperform	$1.61B	9.41	20.20%	4.19%	15.03%	1.51%
SKX	70 Outperform	$7.20B	10.95	15.42%	―	12.11%	19.16%
NKE	61 Neutral	$87.56B	19.74	31.93%	2.89%	-7.11%	-12.12%
Sector *	59 Neutral	$11.74B	10.16	-1.06%	4.15%	1.27%	-16.61%
FL	57 Neutral	$1.30B	111.07	0.62%	―	-2.20%	―

Steven Madden Corporate Events

Steve Madden to Acquire UK’s Kurt Geiger

On February 13, 2025, Steve Madden announced a definitive agreement to acquire UK-based Kurt Geiger from a group led by Cinven for approximately £289 million in cash. This acquisition is expected to enhance Steve Madden’s portfolio with Kurt Geiger’s strong market presence and aligns with its strategic initiatives of expanding into international markets and direct-to-consumer channels. The transaction, approved by Steve Madden’s Board, is anticipated to close in the second quarter of 2025, pending regulatory clearances.