Citi cuts Steven Madden target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Steven Madden (SHOO) to $38 from $45 and keeps a Neutral rating on the shares. The firm also opened a “90-day negative catalyst watch” on the shares. Citi expects Steven Madden to beat Q4 earnings estimates on February 26, buy says the focus will be on the fiscal 2025 guidance, which will be “very weak” versus consensus. Given Steven Madden’s exposure to China tariffs, the analyst expects “significant” gross margin weakness in fiscal 2025 “with limited tools to offset near-term pressures.” Additionally, Citi sees continued headwinds facing wholesale in 2025, including conservative department store orders and weak made-for orders to off-price.