Telsey upgrades Steven Madden stock rating to Outperform on fashion trends

Investing.com - Telsey Advisory Group upgraded Steven Madden (NASDAQ:SHOO) stock rating from Market Perform to Outperform while significantly raising its price target to $43.00 from $26.00 ahead of the company’s upcoming earnings release, scheduled for November 5th, just 6 days away.

The research firm cited Steven Madden ’s ability to bring trend-right products to market quickly, along with growth in its apparel and accessories business and international expansion efforts as key factors supporting the upgrade. This positive outlook aligns with the stock’s strong performance, which has seen a 66.39% price increase over the past six months according to InvestingPro data.

Telsey noted that while tariff pressures and consumer uncertainty continue to affect visibility for the second half of 2025, the company’s acquisition of Kurt Geiger should complement its existing business by adding higher-end products and more handbags, potentially providing earnings accretion next year. Despite these challenges, InvestingPro data shows Steven Madden maintains a solid financial foundation with a "GOOD" overall financial health score and operates with a moderate level of debt.

The firm believes Steven Madden is well-positioned to benefit from a potential cyclical improvement in the fashion segment, highlighting the company’s work to diversify its supply chain and its success in implementing price increases without consumer pushback. The company has also maintained dividend payments for 8 consecutive years, currently offering a 2.44% dividend yield.

The new $43 price target assumes an 18.2x multiple on Telsey’s fiscal year 2027 earnings per share estimate of $2.36, which the firm notes is in line with the recent average next-twelve-months multiple for the stock. Currently trading at $34.42 with a P/E ratio of 27.07, InvestingPro analysis suggests Steven Madden is slightly undervalued based on its Fair Value assessment. Investors looking for deeper insights can access the comprehensive Pro Research Report, available for SHOO and 1,400+ other US equities.

In other recent news, Steve Madden Ltd reported its financial results for the second quarter of 2025, showing a 6.8% year-over-year increase in consolidated revenue, reaching $559 million. This growth was primarily driven by strong performance in the company’s direct-to-consumer segment. Despite the positive revenue results, the company’s stock experienced a slight decline in aftermarket trading. These developments are part of the latest updates from Steve Madden Ltd, reflecting its current financial health and market activities. The financial community continues to monitor these results closely to gauge the company’s performance.

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