In a report released today, Sam Poser from Williams Trading maintained a Hold rating on Steven Madden (SHOO – Research Report), with a price target of $35.00.
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Sam Poser has given his Hold rating due to a combination of factors impacting Steven Madden’s financial outlook. The company’s strategic actions, such as relocating production from China to other countries in response to the newly imposed tariffs, are expected to be disruptive. This move is anticipated to increase production costs and delay the speed to market by up to two weeks, affecting the company’s operational efficiency.
Additionally, the handbag segment of Steven Madden is facing challenges, contributing to the overall downward adjustment of the company’s performance estimates. The potential increase in tariffs further complicates the situation, with production plans in Mexico being reevaluated. These factors are expected to result in a notable gross margin headwind by 2025, leading to revised financial projections that are significantly below market consensus. Given these circumstances, Poser sees limited near-term upside for the stock, justifying the Hold recommendation.