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In a challenging market environment, Steven Madden , Ltd. (NASDAQ:SHOO) stock has touched a 52-week low, dipping to $24.54. The fashion-forward footwear and accessories company has faced significant headwinds over the past year, with InvestingPro data showing a 29.77% decline over the past year. Despite the price weakness, the company maintains strong fundamentals with a healthy current ratio of 2.16 and more cash than debt on its balance sheet. This downturn has brought the stock to its lowest price level in the past year, signaling a period of investor caution and a potential reassessment of the company’s market position and growth prospects. While trading at a P/E ratio of 9.98, InvestingPro analysis suggests the stock may be undervalued at current levels. As shareholders and analysts watch closely, the company’s strategies to rebound from this low will be critical in determining its future performance in the competitive retail landscape. For deeper insights into SHOO’s valuation and growth prospects, discover 8 additional exclusive ProTips and comprehensive financial analysis available on InvestingPro.
In other recent news, Steven Madden reported its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.55 and revenue of $582.3 million, both above projections. The company also announced a strategic acquisition of Kurt Geiger, which is expected to enhance its "accessible luxury" offerings and contribute positively to its earnings per share. Despite these positive developments, analysts from Telsey Advisory Group and Jefferies have adjusted their price targets for Steven Madden, lowering them to $38 and $36, respectively, while maintaining neutral ratings on the stock. Both firms expressed concerns over the company’s gross margin pressure and the potential impact of trade tariffs on profitability.
Steven Madden’s revenue guidance for fiscal year 2025 is notably above prior consensus estimates, largely due to the inclusion of the Kurt Geiger acquisition. However, excluding this acquisition, year-over-year revenue growth is projected to be in the low single digits. The company’s full-year EPS guidance for 2025 is also below Wall Street expectations, reflecting challenges such as tariff exposure and potential inventory issues in the handbag segment. Despite these challenges, Steven Madden demonstrated robust financial health in 2024, with full-year revenue climbing 15.2% to $2.3 billion and net income rising to $192.4 million.
Looking forward, the company forecasts a 17-19% increase in revenue for 2025, with diluted EPS expected between $2.30 and $2.40. The acquisition of Kurt Geiger is anticipated to be accretive to Steven Madden’s earnings per share, and the company is actively working on mitigating tariff risks. Investors will continue to monitor Steven Madden’s performance amid these strategic moves and the broader retail environment’s challenges.
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