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Investing.com -- Shares of Steven Madden (NASDAQ:SHOO) tumbled by 5.5% Monday as market sentiment was dampened on the potential impact of tariffs on the company’s 2025 outlook. Analysts at Jefferies highlighted uncertainties around the trajectory of tariffs in China and other countries, suggesting a significant effect on the company’s performance.
The fashion footwear and accessories company, known for its trendy offerings, sources over 70% of its products from China, with a substantial portion also coming from Mexico, particularly in its women’s division. According to Jefferies analyst Corey Tarlowe, the existing tariff situation could potentially affect Steven Madden’s results by "several hundred" basis points if not adequately addressed.
Tarlowe’s analysis indicates that while the company is likely to take measures to reduce its reliance on Chinese manufacturing, the timeline and effectiveness of these strategies remain uncertain. This uncertainty has cast a shadow over Steven Madden’s stock, prompting a cautious approach from investors.
The concerns raised by Jefferies come at a time when global trade tensions have put the spotlight on companies with significant exposure to tariff-impacted supply chains. As a company with a heavy reliance on imports, Steven Madden is particularly vulnerable to shifts in trade policy, which could lead to increased costs and pressure on margins.
Investors are closely monitoring the situation, as any prolonged tariff-related headwinds could necessitate a strategic pivot for Steven Madden. The company’s ability to navigate these challenges and mitigate the associated risks is expected to be a key factor in its long-term success and stability in the competitive fashion industry.
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