Steven Madden (SHOO – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Janine Stichter from BTIG reiterated a Buy rating on the stock and has a $46.00 price target.
Janine Stichter’s rating is based on several factors that indicate Steven Madden’s resilience and potential for growth despite current challenges. Although the company faces multiple headwinds, such as increased tariffs from China and Mexico and a cautious wholesale buying environment, these are seen as temporary obstacles. Efforts to mitigate tariffs are already in progress, with a significant reduction in U.S. purchases from China expected by year-end. Additionally, once the elevated handbag inventory is cleared, it presents an opportunity for increased shelf space, which could be beneficial for both Steven Madden and its recent acquisition, Kurt Geiger.
Furthermore, the company’s Q4 performance exceeded expectations, with a notable increase in revenue and a beat on EPS. While the FY25 guidance reflects these headwinds, the long-term outlook remains positive, particularly with the potential accretion from the Kurt Geiger acquisition. The branded wholesale footwear segment is also on track to show positive growth. Given these factors, Janine Stichter believes that Steven Madden is well-positioned to navigate through the current challenges and continue capturing market share, justifying the Buy rating with a price target of $46.
SHOO’s price has also changed moderately for the past six months – from $45.160 to $34.840, which is a -22.85% drop .