Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - BTIG raised its price target on Steven Madden (NASDAQ:SHOO) to $40.00 from $34.00 on Thursday, while maintaining a Buy rating on the footwear company’s stock. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.01 and operates with moderate debt levels, while consistently paying dividends for 8 consecutive years.
The price target increase reflects BTIG’s growing confidence in its above-consensus 2026 earnings estimates, which are approximately 15% higher than the market consensus. BTIG analyst Janine Stichter noted that the Kurt Geiger acquisition, completed in early May 2025, is expected to be significantly accretive, potentially boosting 2026 earnings per share by mid-teens percentage points and approximately 60% over the long term. The company’s solid financial foundation, with $2.32 billion in revenue and a healthy gross profit margin of 40.8%, positions it well for this strategic move.
BTIG benchmarked the Kurt Geiger brand against handbag peers Coach and Kate Spade (divisions of TPR) and Michael Kors (division of CPRI) to validate its views on long-term earnings potential. The firm believes investor focus will shift toward Steven Madden’s long-term sustainable earnings power as both the tariff-recovery story and accretion from Kurt Geiger gain attention.
From a core business perspective, BTIG emphasized that Steven Madden was among the earliest companies impacted by tariffs and should be among the quickest to rebound. The firm also sees fashion tailwinds continuing to build as dressy footwear and boots gain momentum while the casual sneaker trend moderates.
Despite a partial recovery in share price, BTIG noted that Steven Madden’s stock still trades at multiples similar to peers, based on earnings estimates that appear poised to increase. The stock has shown strong momentum with a 56.6% return over the past six months. InvestingPro analysis reveals 8 additional key insights about Steven Madden’s financial health and growth potential, available exclusively to subscribers through the comprehensive Pro Research Report.
In other recent news, Steven Madden reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company’s earnings per share (EPS) came in at $0.20, surpassing analyst expectations of $0.18, marking an 11.11% surprise. However, revenue fell short at $559 million, missing the forecasted $578.41 million by approximately $20 million, primarily due to tariff-related disruptions affecting both wholesale and direct-to-consumer channels. These disruptions led to order cancellations, delivery delays, and shipments being pushed to later periods.
BTIG responded by lowering its price target on Steven Madden to $34.00 from $38.00, maintaining a Buy rating. The firm cited the tariff challenges as a significant factor in their decision. Meanwhile, Williams Trading raised its price target to $42.00 from $28.00, keeping a Buy rating. They noted a shift in consumer preference towards women’s dress shoes, which aligns with the strength of the Steve Madden brand. These developments come as the company prepares for its third-quarter earnings report expected in early November.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.