Piper Sandler maintains neutral rating on Steven Madden stock

On Thursday, Piper Sandler analysts reiterated their Neutral rating and maintained a $25.00 price target on Steven Madden stock (NASDAQ: NASDAQ:SHOO). The analysts shared insights after previewing Steven Madden’s Fall collection at FFANY and meeting with key company executives, including CEO Ed Rosenfeld, CFO Zine Mazouzi, and IR Danielle McCoy. According to InvestingPro data, six analysts have recently revised their earnings estimates downward, with price targets ranging from $20 to $38.

The analysts highlighted Steven Madden’s efforts in diversifying its manufacturing base to mitigate supply chain disruptions. The company has shifted a significant portion of its production outside of China, with over 50% of Fall deliveries now sourced from countries like Mexico, Brazil, Vietnam, and Cambodia. This strategic move is seen as beneficial, offering advantages such as no duties and faster turnaround times. The company maintains strong operational efficiency with a healthy 41% gross margin and operates with moderate debt levels, as revealed in InvestingPro’s detailed financial health analysis.

Steven Madden’s performance is closely linked to fashion trends, and the company is currently experiencing a positive response to its new boot and dressy collections, which feature higher average selling prices. However, the analysts noted that uncertainty around potential order cancellations adds complexity to forecasting sales for this year.

Despite the stock recovering from its lows, Piper Sandler believes it remains attractively priced at 13 times the estimated 2026 earnings. The management of Steven Madden is optimistic about achieving low double-digit margins in a more stable market environment. The price target remains unchanged as the firm projects forward to 10 times the estimated 2026 earnings. Currently trading at a P/E of 11.3x and offering a 3.4% dividend yield with an 8-year track record of consistent payments, InvestingPro’s Fair Value analysis suggests the stock is undervalued. Get access to 8 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.

In other recent news, Steven Madden Limited reported its first-quarter earnings for 2025, exceeding earnings per share (EPS) expectations with a reported EPS of $0.60 against the forecasted $0.46. However, the company’s revenue of $553.5 million fell slightly short of the expected $556.3 million. Despite these mixed results, the company withdrew its previous 2025 financial guidance due to tariff challenges. In analyst updates, Williams Trading upgraded Steven Madden stock from Sell to Hold, raising the price target significantly to $31.00, following a government decision to suspend additional tariffs on Chinese imports. UBS and Citi both maintained a Neutral rating on the stock, with UBS expressing concerns about growth in the women’s fashion footwear category and potential impacts of recent price increases. Citi noted positive trends, such as a shift in fashion preferences and a viral marketing moment, but emphasized ongoing uncertainties around tariffs. The recent acquisition of Kurt Geiger is expected to support Steven Madden’s international expansion, although the company faces challenges related to shifting production out of China to mitigate tariff impacts.

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