Thursday, BTIG has increased the price target on Steven Madden (NASDAQ:SHOO) to $53 from the previous $50, while reaffirming a Buy rating on the stock.
The firm's decision follows a series of meetings during FFANY Market Week with key Steven Madden executives, including CEO Ed Rosenfeld and VP of Corporate Development and Investor Relations Danielle McCoy. The discussions and product walkthroughs with EVP of Brand Development Lauren Wilner provided insights into the company's performance and market trends.
The analyst observed that despite a generally conservative stance among retailers, especially department stores, the wholesale buying environment is showing signs of improvement. Steven Madden is reportedly experiencing strong sell-throughs and securing better purchasing agreements than its competitors. A notable uptick in sandal sales was also highlighted as a positive development.
In light of these observations, BTIG has adjusted its second-quarter earnings per share (EPS) estimate for Steven Madden to $0.55, up from $0.52, which is also above the consensus estimate of $0.52. This revision is based on anticipations of a slightly stronger top-line growth of 17%, compared to the consensus projection of 15.4%.
Furthermore, BTIG's EPS estimate for the year 2024 stands at $2.68, marginally surpassing Steven Madden's own guidance range of $2.55 to $2.65.
BTIG's outlook for Steven Madden is optimistic, with expectations that the wholesale environment will continue to improve throughout 2024, positioning the company to benefit earlier and more significantly than others.
The firm also notes that Steven Madden's ongoing investments in international expansion and its apparel and accessories offerings will provide additional momentum in the medium term. The reiterated Buy rating and the raised price target to $53 reflect BTIG's confidence in Steven Madden's potential for growth and market performance.
In other recent news, Steven Madden, Ltd. reported a robust start to 2024 with a notable first-quarter performance. The company saw a 19% increase in revenue and a 30% rise in diluted earnings per share (EPS) compared to the same period in 2023. Despite challenges in the branded wholesale footwear sector, Steven Madden achieved year-over-year growth and increased its operating margin.
The company's growth strategy has been focusing on expanding international markets, diversifying beyond footwear, and strengthening its direct-to-consumer (DTC) and core U.S. wholesale footwear businesses.
In terms of future expectations, Steven Madden maintains its annual outlook, projecting revenue growth and EPS within its previously stated range. The company anticipates continued revenue growth of 11% to 13% for the year, with diluted EPS expected to remain within the range of $2.55 to $2.65. International expansion, DTC growth, and marketing investment are areas where the company plans to focus to drive further penetration.
InvestingPro Insights
In alignment with BTIG's positive stance on Steven Madden (NASDAQ:SHOO), recent data from InvestingPro supports a strong financial outlook for the company. With a market capitalization of $3.25 billion and a robust revenue growth of 19.09% in Q1 2023, Steven Madden's financial health appears solid. The company's prudent financial management is evident, as it holds more cash than debt on its balance sheet, a reassuring sign for investors. Additionally, Steven Madden's gross profit margin stands at an impressive 41.65% for the last twelve months as of Q1 2023, underscoring its efficiency in maintaining profitability.
An InvestingPro Tip worth noting is that five analysts have revised their earnings upwards for the upcoming period, indicating a bullish sentiment that echoes BTIG's forecast. Furthermore, Steven Madden's stock is trading near its 52-week high, at 96.58% of the peak, reflecting investor confidence in the brand's performance and future prospects. For those seeking to delve deeper into Steven Madden's potential, InvestingPro offers additional tips and a fair value estimate of $46.27, compared to the current price of $44.34. To access these insights and more, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With 7 additional InvestingPro Tips available, investors can gain a comprehensive understanding of the company's trajectory.
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