Steven Madden (SHOO, Financial) has been upgraded by Citi from a Neutral to a Buy rating. The financial firm has increased its price target for the company from $26 to $32, anticipating the release of the second-quarter report on July 30. Citi analysts suggest that the second quarter will mark the lowest point for Steven Madden's margins, attributing current pressures to tariffs. They express optimism regarding the company's potential for improved performance, citing a favorable risk/reward scenario and a positive shift in fashion trends.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Steven Madden Ltd (SHOO, Financial) is $27.63 with a high estimate of $38.00 and a low estimate of $23.00. The average target implies an upside of 12.39% from the current price of $24.58. More detailed estimate data can be found on the Steven Madden Ltd (SHOO) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Steven Madden Ltd's (SHOO, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Steven Madden Ltd (SHOO, Financial) in one year is $49.28, suggesting a upside of 100.49% from the current price of $24.58. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Steven Madden Ltd (SHOO) Summary page.
SHOO Key Business Developments
Release Date: May 07, 2025
- Consolidated Revenue: $553.5 million, a 0.2% increase compared to Q1 2024.
- Wholesale Revenue: $439.3 million, up 0.2% compared to Q1 2024.
- Wholesale Footwear Revenue: $296.1 million, a 0.2% increase from Q1 2024.
- Wholesale Accessories and Apparel Revenue: $143.2 million, up 0.4% compared to Q1 2024.
- Direct-to-Consumer Revenue: $112.1 million, a 0.2% decline.
- Licensing Royalty Income: $2.2 million, compared to $1.8 million in Q1 2024.
- Gross Margin: 40.9%, a 20-basis-point increase from Q1 2024.
- Wholesale Gross Margin: 35.7%, compared to 35.1% in Q1 2024.
- Direct-to-Consumer Gross Margin: 60.1%, compared to 61.9% in Q1 2024.
- Operating Expenses: $170.5 million, or 30.8% of revenue.
- Operating Income: $56.1 million, or 10.1% of revenue.
- Net Income: $42.4 million, or $0.60 per diluted share.
- Cash and Cash Equivalents: $147.2 million as of March 31, 2025.
- Inventory: $238.6 million, compared to $202 million in Q1 2024.
- Capital Expenditures: $9.8 million in Q1 2025.
- Quarterly Cash Dividend: $0.21 per share, payable on June 20, 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Steven Madden Ltd (SHOO, Financial) exceeded earnings expectations for the first quarter of 2025.
- The company saw a strong improvement in sales in March due to favorable weather and effective spring fashion assortments.
- Steven Madden Ltd (SHOO) successfully negotiated discounts with suppliers in China to mitigate the impact of new tariffs.
- The acquisition of Kurt Geiger is expected to enhance the company's growth profile, with Kurt Geiger showing strong momentum in multiple categories.
- The company has a strong financial foundation with $147.2 million in cash and no debt as of March 31, 2025.
Negative Points
- Steven Madden Ltd (SHOO) faces significant headwinds due to new tariffs on goods imported into the United States.
- The company experienced a decline in direct-to-consumer revenue, with brick-and-mortar sales decreasing.
- Operating expenses increased to 30.8% of revenue, up from 29.7% in the first quarter of 2024.
- The company withdrew its 2025 financial guidance due to uncertainty related to tariffs.
- Net income decreased to $42.4 million, or $0.60 per diluted share, compared to $47 million, or $0.65 per diluted share, in the first quarter of 2024.
