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Steven Madden , Ltd. (NASDAQ:SHOO) stock has tumbled to a 52-week low, with shares dropping to $25.55. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while the company maintains a "GOOD" overall financial health score. This latest price point marks a significant downturn for the fashion-forward footwear and accessories brand, which has seen its stock value decrease by 38.37% over the past year. Despite the challenges, the company maintains strong fundamentals with more cash than debt on its balance sheet and has sustained dividend payments for eight consecutive years. Investors and analysts are closely monitoring the company’s performance, as it navigates through a retail landscape that has been fraught with hurdles, including changing consumer habits and supply chain disruptions. The steep year-over-year decline underscores the pressures faced by the retail sector, particularly in the wake of economic uncertainties. For deeper insights into SHOO’s valuation and 12 additional exclusive ProTips, visit 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, slightly above the forecasted $0.54. The company’s revenue also exceeded projections, reaching $582.3 million against the anticipated $550.64 million. Despite these positive results, analysts from Jefferies and Telsey Advisory Group have adjusted their price targets for Steven Madden shares, lowering them to $36 and $38 respectively, while maintaining a Hold and Market Perform rating. The analysts noted concerns over the company’s gross margin pressures and the potential impact of tariffs on profitability.
The acquisition of Kurt Geiger is anticipated to be accretive to Steven Madden’s earnings per share, with an expected $0.10 increase in EPS for FY25. However, excluding this acquisition, Steven Madden’s revenue growth is projected to be in the low single digits, slightly below previous consensus estimates. The company’s full-year earnings per share guidance was reported to be significantly below Wall Street expectations, reflecting challenges such as tariff exposure.
Looking ahead, Steven Madden forecasts a 17-19% increase in revenue for 2025, largely attributed to the Kurt Geiger acquisition, which is expected to close in the second quarter of 2025. Despite the anticipated benefits from the acquisition, concerns remain regarding the company’s profitability due to potential trade tariffs and other macroeconomic challenges. Analysts continue to monitor Steven Madden’s strategic moves and the broader retail environment’s challenges.
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