Overview
Jefferies has reiterated an Underperform rating on Steven Madden Ltd. (NASDAQ:SHOO), maintaining a $30.00 price target following the companys fourth-quarter results. The quarter was described as solid, with results bolstered by performance from the recently acquired Kurt Geiger brand and continued strength in direct-to-consumer channels.
Quarterly performance and channel detail
The company reported that its direct-to-consumer segment remained robust, and when excluding Kurt Geiger the direct-to-consumer business still showed growth of 1.6%. By contrast, wholesale revenues excluding Kurt Geiger declined by 2.6% during the quarter. Management expects next years sales to increase in a range of 9% to 11% following the quarters results.
Guidance and uncertainties
Steven Madden did not provide earnings-per-share guidance for the coming year, citing uncertainty around tariffs. Jefferies indicated it will seek additional detail on the companys wholesale outlook during the upcoming conference call with management.
Analyst commentary and valuation metrics
"SHOO delivered solid 4Q results, supported by strong performance at KG," Jefferies said in a note. The stock is trading at $37.36 and carries a market capitalization of $2.71 billion. InvestingPro analysis referenced in the report indicates that, relative to its Fair Value model, the shares may be undervalued. At the same time, InvestingPro Tips point out that the company is trading at a high earnings multiple, with a reported price-to-earnings ratio of 48.1.
Broader reception of results
Steven Maddens fourth-quarter results were reported as exceeding analyst expectations. The company attributed the outperformance to its core footwear operations and to the favorable contribution from the Kurt Geiger acquisition. Those results were characterized as demonstrating the companys ability to integrate the acquisition effectively while sustaining growth in its principal business segments.
Observers noted the financial results were well received for showing resilience and strategic growth, and that the earnings release offered insights into Steven Maddens operational approach and market adaptability. The companys trajectory was described as one of expanding market presence, and analysts and investors are expected to continue monitoring future performance closely.
Research and screening tools mentioned
The coverage referenced access to a comprehensive Pro Research Report that includes SHOO alongside more than 1,400 other U.S. equities. The article also noted that ProPicks AI evaluates SHOO among thousands of companies each month, using a broad set of financial metrics to flag potential ideas.