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Steven Madden , Ltd. (NASDAQ:SHOO) stock has touched a 52-week low, dipping to $36.06, as market conditions weigh on the retail sector. According to InvestingPro data, the company maintains a "GOOD" Financial Health score, with liquid assets exceeding short-term obligations and a moderate debt level. The fashion-forward footwear and accessories brand has faced a challenging economic environment, contributing to a notable decline in its stock value. Despite these headwinds, the company maintains strong fundamentals with a healthy 41% gross profit margin and generates substantial free cash flow. Investors are closely monitoring the company’s performance, seeking signs of a turnaround, while the management remains focused on strategic initiatives to navigate through the current headwinds and strengthen the brand’s market position. InvestingPro analysis reveals management’s aggressive share buyback program, though four analysts have recently revised their earnings expectations downward. For deeper insights into SHOO’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Steven Madden has announced a definitive agreement to acquire UK-based fashion brand Kurt Geiger for £289 million in cash. This strategic acquisition aims to expand Steven Madden’s international presence, particularly in the accessories category and direct-to-consumer channels. Kurt Geiger, known for its strong brand image and successful product categories, reported estimated revenues of around £400 million for the twelve months ending February 1, 2025. Meanwhile, UBS analyst Jay Sole adjusted Steven Madden’s price target from $44 to $38, maintaining a Neutral rating. Sole anticipates softer earnings per share guidance for fiscal year 2025, citing cautious inventory purchases and margin pressures due to manufacturing relocation efforts.
BTIG analyst Janine Stichter also revised the price target for Steven Madden to $46 from $52, while maintaining a Buy rating, reflecting challenges such as recent tariffs on goods from China and Mexico. Despite these obstacles, Stichter sees potential fashion tailwinds, particularly the popularity of skinny jeans paired with tall boots. Needham maintained a Hold rating on Steven Madden, expressing concerns over substantial gross margin challenges expected in 2025, potentially reducing margins by over 200 basis points. The firm suggests that the consensus earnings per share estimate of $2.76 for fiscal year 2025 may be overly optimistic, projecting a more cautious EPS of $2.53.
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