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LONG ISLAND CITY, N.Y. - Steve Madden (NASDAQ:SHOO), a prominent fashion footwear and accessories company with annual revenue of $2.22 billion and a market capitalization of $2.72 billion, has announced a definitive agreement to acquire British footwear brand Kurt Geiger from a group led by Cinven for £289 million in cash. This strategic move is aimed at expanding Steve Madden’s international presence, particularly in the accessories category and direct-to-consumer channels. According to InvestingPro analysis, Steve Madden maintains a strong financial health score, suggesting solid positioning for this strategic acquisition.
The acquisition, which includes Kurt Geiger London, KG Kurt Geiger, and Carvela brands, is expected to enhance Steve Madden’s portfolio with Kurt Geiger’s distinct brand image and successful product categories led by handbags. Kurt Geiger has also demonstrated considerable growth, with estimated revenue of around £400 million for the twelve months ending February 1, 2025.
Edward Rosenfeld, Chairman and CEO of Steve Madden, expressed enthusiasm for the addition of Kurt Geiger to their brand family, citing its alignment with strategic initiatives and elevated market positioning. Neil Clifford, CEO of Kurt Geiger, remarked on the brand’s global recognition and design aesthetic, and he anticipates further growth through the partnership with Steve Madden.
Steve Madden’s Board of Directors has approved the transaction unanimously, and the company plans to fund the purchase with committed debt financing and cash on hand. With a healthy current ratio of 2.09 and operating with moderate debt levels, the company appears well-positioned to manage this acquisition. The closing of the deal is anticipated in the second quarter of 2025, pending regulatory approvals and customary closing conditions. InvestingPro subscribers can access detailed financial health metrics and 8 additional ProTips about Steve Madden’s current market position and growth potential.
The acquisition not only signifies a milestone for Steve Madden’s expansion but also stands as a testament to the company’s evolution since its inception in 1990. Steve Madden, the company’s founder, expressed his excitement about the partnership with Kurt Geiger, which he considers a significant achievement in his career.
Advisors for the transaction include Solomon Partners, L.P. for Steve Madden, with Travers Smith LLP and Foley & Lardner LLP as legal advisors. BofA Securities and Freshfields LLP are advising Cinven, while Kinmont and Addleshaw Goddard LLP are advising Kurt Geiger’s senior management.
This information is based on a press release statement, and it marks a notable development in the fashion footwear industry as Steve Madden continues to build its global brand portfolio. Currently trading near its 52-week low, the stock presents an interesting opportunity for investors to evaluate. For comprehensive analysis including Fair Value estimates and detailed financial metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US equities with deep-dive analysis and actionable insights.
In other recent news, Steven Madden has been a focal point for analysts due to tariff-related concerns. BTIG adjusted the price target for Steven Madden shares to $46.00, maintaining a Buy rating, despite the company facing challenges like the impact of recent tariffs on goods from China and Mexico. Needham, on the other hand, reaffirmed its Hold rating on Steven Madden, noting the management team’s confidence in strategies to mitigate tariff impacts but also predicting substantial gross margin challenges in 2025.
Citi maintained a Neutral rating on Steven Madden stock, with a steady price target of $38.00, and projected significant gross margin weakness for the company in fiscal year 2025 due to the company’s significant exposure to China tariffs. Piper Sandler reduced its price target for Steven Madden to $40, keeping a Neutral rating on the company’s shares, and adjusted its 2025 earnings estimate for the company to $2.38.
These are recent developments, and it’s important for investors to note that while Steven Madden is facing tariff-related challenges, the company has previously demonstrated resilience in navigating similar issues. The company’s ability to mitigate these challenges will be crucial in the coming times.
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