Corey Tarlowe, an analyst from Jefferies, maintained the Hold rating on Steven Madden (SHOO – Research Report). The associated price target is $46.00.
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Corey Tarlowe has given his Hold rating due to a combination of factors affecting Steven Madden’s business outlook. The company is facing potential challenges in its Wholesale Footwear segment, with expectations that margins might align with historical averages and consumer demand could remain unpredictable. This uncertainty suggests that the company’s performance might be constrained over the next 6-12 months.
Another significant concern is the reliance on sourcing more than 70% of its products from China, with plans to reduce exposure by 40-45%. Despite efforts to manage tariffs, the unpredictable nature of future tariffs, particularly those affecting China, poses a risk to the company’s financial outlook for 2025. Additionally, while there is optimism in mass retail and off-price channels, potential disruptions from tariffs and port strikes could increase off-price supply, adding further variability to results. The handbag segment, a strong growth driver, might also face a slowdown due to challenging comparisons and inventory issues.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SHOO in relation to earlier this year.
