Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
On Wednesday, Jefferies analyst Corey Tarlowe adjusted the price target for Steven Madden (NASDAQ: NASDAQ:SHOO) shares, reducing it to $36.00 from the previous $46.00, while keeping a Hold rating on the stock. The revision follows Steven Madden’s fourth-quarter financial results, which showed a top- and bottom-line beat but also revealed a softer gross margin (GM). According to InvestingPro data, the company maintains a healthy gross margin of 41.27%, though the stock is currently trading near its 52-week low at $34.84. InvestingPro’s Fair Value analysis suggests the stock may be undervalued at current levels.
Steven Madden’s recent financial performance indicated a stronger than anticipated sales growth, attributed in part to the acquisition that is expected to contribute double-digit percentage (DD%) increases in future sales. The company has demonstrated solid performance with revenue growth of 14.89% in the last twelve months. However, excluding the impact of the acquisition, sales growth is projected to be in the low single-digit percentage (LSD%). For deeper insights into Steven Madden’s growth prospects and financial health, InvestingPro subscribers can access additional exclusive tips and comprehensive analysis in the Pro Research Report.
Despite these positive sales forecasts, the company’s gross margin is expected to remain under pressure. Steven Madden’s full-year earnings per share (EPS) guidance was reported to be significantly below the expectations of Wall Street analysts, with InvestingPro data showing four analysts recently revising their earnings estimates downward. This outlook reflects the challenges the company faces, including the potential impact of tariffs, even though Steven Madden has been actively trying to mitigate these risks. The company currently trades at a P/E ratio of 14.62x and maintains a "GOOD" Financial Health Score.
The acquisition of Kurt Geiger, a British footwear and accessories retailer, is anticipated to be accretive to Steven Madden’s earnings per share. Nevertheless, Jefferies maintains a cautious stance on the company due to the ongoing concerns about tariff exposure and its effects on profitability.
Investors and market watchers will continue to monitor Steven Madden’s performance, particularly in light of the company’s strategic moves and the broader retail environment’s challenges. The updated price target from Jefferies reflects the firm’s current assessment of the company’s prospects in the face of these factors.
In other recent news, Steve Madden Ltd reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.55, slightly above the forecast of $0.54. The company’s revenue also exceeded projections, reaching $582.3 million against the anticipated $550.64 million. Despite these positive results, the company announced a strategic acquisition of Kurt Geiger to enhance its "accessible luxury" offerings. Looking ahead, Steve Madden forecasts a 17-19% revenue increase for 2025 and anticipates low single-digit organic revenue growth. The company expects challenges, including tariffs and potential inventory issues in the handbag segment. Analysts noted the acquisition of Kurt Geiger as a potential growth engine, with the company projecting a partial year EPS contribution of $0.1 from the acquisition. The firm Piper highlighted a cautious outlook for 2025 due to market conditions, while Citi analysts inquired about tariff mitigation strategies. Steve Madden’s CEO, Ed Rosenfeld, expressed confidence in the company’s ability to navigate these challenges and leverage the new acquisition for sustained growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.