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Steven Madden (SHOO)
:SHOO
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Steven Madden
(NASDAQ:SHOO)
73Outperform
Positive Factors
Earnings Performance
1Q25 results beat on the bottom line, showcasing the company's ability to exceed expectations.
EPS Performance
EPS of $0.60 was above the Street at $0.45, highlighting the company's strong earnings performance.
Growth Potential
The KG acquisition is seen as a win for Steven Madden, providing potential for future growth.
Negative Factors
Guidance Withdrawal
The company withdrew its full-year guidance, indicating uncertainty in future performance.
Tariff Impact
Steven Madden is facing significant headwinds from 145% China tariffs, as 58% of sales are from items sourced in China sold in the US.
Wholesale Challenges
Management made it clear that SHOO was receiving order cancelations from its wholesale partners due to the increased prices, delivery delays, and overall increased conservatism.
Steven Madden (SHOO) vs. S&P 500 (SPY)
Market Cap
$1.67B
Dividend Yield3.65%
Average Volume (3M)2.22M
Price to Earnings (P/E)9.9
Beta (1Y)0.92
Revenue Growth10.17%
EPS Growth-4.71%
CountryUS
Employees3,500
SectorConsumer Cyclical
Sector Strength61
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.60
Shares Outstanding72,576,130
10 Day Avg. Volume1,882,663
30 Day Avg. Volume2,219,365
Financial Highlights & Ratios
PEG Ratio-22.88
Price to Book (P/B)1.91
Price to Sales (P/S)0.00
P/FCF Ratio9.69
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.76
Enterprise Value/Ebitda1.61
Forecast
1Y Price Target
$25.75Price Target Upside12.05% Upside
Rating ConsensusHold
Number of Analyst Covering9
Steven Madden Business Overview & Revenue Model
Company DescriptionSteven Madden, Ltd. designs, sources, markets, and sells fashion-forward branded and private label footwear, accessories, and apparel for women, men, and children in the United States and internationally. Its Wholesale Footwear segment provides footwear under the Steve Madden, Steven by Steve Madden, Madden Girl, BB Dakota, Dolce Vita, DV Dolce Vita, Betsey Johnson, GREATS, Blondo, Anne Klein, Mad Love, Superga, Madden NYC, and COOL Planet brands, as well as private label footwear. The company's Wholesale Accessories/Apparel segment offers handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other accessories under the Steve Madden, BB Dakota, Anne Klein, Betsey Johnson, Cejon, Madden NYC, and Dolce Vita brands, as well as private label handbag and accessories to department stores, mass merchants, off-price retailers, online retailers, specialty stores, and independent stores. Its Direct-to-Consumer segment operates Steve Madden and Superga full-price retail stores, Steve Madden outlet stores, and Steve Madden shop-in-shops, as well as digital e-commerce websites, including SteveMadden.com, DolceVita.com, betseyjohnson.com, Blondo.com, GREATS.com, and Superga-USA.com. The company's Licensing segment licenses its Steve Madden, Madden Girl, and Betsey Johnson trademarks. Its First Cost segment operates as a buying agent for footwear products under private labels for national chains, specialty retailers, and value-priced retailers. As of December 31, 2021, it owned and operated 214 brick-and-mortar retail stores that included 147 Steve Madden full-price stores, 66 Steve Madden outlet stores, and 1 Superga store, as well as 6 e-commerce websites. Steven Madden, Ltd. was incorporated in 1990 and is headquartered in Long Island City, New York.
How the Company Makes MoneySteven Madden, Ltd. generates revenue through multiple channels. The primary revenue stream comes from its wholesale operations, where the company sells its products to department stores, specialty stores, and mass-market retailers both domestically and internationally. In addition to wholesale, the company operates a retail segment, which includes Steve Madden-branded stores and its e-commerce platform, offering direct-to-consumer sales. Another significant component of the company's revenue model is licensing, through which Steven Madden licenses its brands for products like eyewear, outerwear, and handbags, earning royalties. Strategic partnerships and collaborations with celebrities and designers also enhance brand visibility and contribute to sales growth. The company's ability to quickly adapt to fashion trends and its strong brand appeal are crucial factors in driving its earnings.
Steven Madden Financial Statement Overview
Summary
Steven Madden shows strong financial health with notable revenue growth and stable cash flow management. The balance sheet is solid with low leverage and a high equity ratio. While profitability has slightly declined, the company remains well-positioned in the Apparel & Luxury industry.Income Statement
Steven Madden has shown strong revenue growth recently, with a 15.19% increase from 2023 to 2024. The gross profit margin is healthy at 41.02% for 2024, and EBIT and EBITDA margins stand at 9.85%. However, the net profit margin decreased slightly to 7.42% in 2024, down from 8.65% in 2023.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is low at 0.05, indicating minimal reliance on debt, which is a strength. The equity ratio is robust at 60.04%, suggesting a stable financial structure. Return on equity decreased to 19.98% from 20.68% in 2023, which needs monitoring.78
Positive
Cash Flow
Steven Madden demonstrates solid cash generation with an operating cash flow to net income ratio of 1.17 and a free cash flow to net income ratio of 1.02 for 2024. However, free cash flow decreased slightly by 17.94% compared to the previous year.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.28B | 1.98B | 2.12B | 1.87B | 1.20B | Gross Profit |
| 936.93M | 832.41M | 873.84M | 767.50M | 464.54M | EBIT |
| 224.94M | 213.22M | 281.64M | 243.60M | 130.73M | EBITDA |
| 250.49M | 235.24M | 302.22M | 257.28M | 66.92M | Net Income Common Stockholders |
| 169.39M | 171.55M | 216.06M | 190.68M | -18.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 203.41M | 219.81M | 289.80M | 263.54M | 287.17M | Total Assets |
| 1.41B | 1.35B | 1.26B | 1.36B | 1.14B | Total Debt |
| 152.99M | 138.88M | 108.63M | 110.83M | 132.85M | Net Debt |
| -36.94M | -65.76M | -166.09M | -108.67M | -115.02M | Total Liabilities |
| 535.77M | 499.91M | 414.13M | 535.00M | 347.39M | Stockholders Equity |
| 847.72M | 829.60M | 831.55M | 812.10M | 776.59M |
| Cash Flow | Free Cash Flow | |||
| 172.19M | 209.77M | 249.53M | 152.85M | 37.64M | Operating Cash Flow |
| 198.10M | 229.24M | 267.88M | 159.46M | 44.21M | Investing Cash Flow |
| -39.49M | -99.89M | 5.52M | -3.21M | -4.88M | Financing Cash Flow |
| -167.91M | -200.94M | -215.83M | -184.65M | -57.07M |
Steven Madden Technical Analysis
Neutral
22.98
Price Trends
24.19
Negative
32.18
Negative
38.35
Negative
Market Momentum
-0.58
Negative
52.41
Neutral
84.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHOO, the sentiment is Neutral. The current price of 22.98 is above the 20-day moving average (MA) of 21.02, below the 50-day MA of 24.19, and below the 200-day MA of 38.35, indicating a neutral trend. The MACD of -0.58 indicates Negative momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHOO.
Steven Madden Risk Analysis
Steven Madden disclosed 27 risk factors in its most recent earnings report. Steven Madden reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Steven Madden Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.67B | 9.91 | 19.51% | 3.65% | 10.17% | -4.71% | |
71 Outperform | $314.23M | 10.74 | 11.76% | 3.19% | -5.46% | -1.09% | |
70 Outperform | $152.36M | 11.12 | 5.97% | 3.04% | -2.01% | 2.08% | |
70 Outperform | $513.77M | 4.88 | 17.83% | 1.86% | -3.36% | -35.98% | |
68 Neutral | $1.24B | 17.24 | 25.29% | 2.62% | -13.05% | ― | |
61 Neutral | $6.68B | 11.75 | 3.01% | 3.94% | 2.61% | -21.96% | |
41 Neutral | $52.21M | ― | -28.34% | ― | -20.99% | -976.24% |
* Consumer Cyclical Sector Average
Performance Comparison
SHOO
Steven Madden
22.98
-18.08
-44.03%
RCKY
Rocky Brands
20.42
-14.06
-40.78%
VRA
Vera Bradley
1.87
-5.64
-75.10%
WEYS
Weyco Group
32.60
6.76
26.16%
WWW
Wolverine World Wide
15.29
1.59
11.61%
CAL
Caleres
15.07
-22.68
-60.08%
Steven Madden Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 14.16%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The call highlighted the company's strong March performance, strategic acquisition of Kurt Geiger, and significant reduction in reliance on China for production. However, challenges related to new tariffs, a slight decline in direct-to-consumer revenue, and withdrawal of financial guidance were notable concerns. Despite these challenges, the company maintains a strong financial foundation.Q1-2025 Updates
Positive Updates
Strong March Performance
The company experienced a strong improvement in March due to warmer weather and successful spring fashion assortments, leading to earnings significantly exceeding expectations.
Kurt Geiger Acquisition
Steve Madden closed the acquisition of Kurt Geiger London, a brand demonstrating outstanding momentum with revenue of £400 million for the 12 months ending February 1, 2025, and an enterprise value of £289 million.
Reduction in China Sourcing
The company significantly reduced dependence on China for production, expecting to source mid-teens percentage from China for fall 2025 and mid-single digits by spring 2026.
Strong Financial Foundation
As of March 31, 2025, the company had $147.2 million in cash and no debt, maintaining a strong balance sheet.
Negative Updates
Impact of Tariffs
New tariffs on goods imported into the U.S. have created headwinds and uncertainty, affecting short-term earnings and leading to price increases.
Decline in Direct-to-Consumer Revenue
Direct-to-consumer revenue declined by 0.2% to $112.1 million, with increases in digital sales offset by declines in brick-and-mortar.
Lower Operating Income
Operating income for the quarter was $56.1 million or 10.1% of revenue, down from $61 million or 11% of revenue in the first quarter of 2024.
Withdrawal of 2025 Financial Guidance
Due to uncertainty related to new tariffs, the company withdrew its 2025 financial guidance.
Company Guidance
During the Q1 2025 earnings call for Steve Madden Limited, the company provided several key metrics and insights into their financial performance and strategic adjustments. The consolidated revenue for the quarter was reported at $553.5 million, marking a slight 0.2% increase from Q1 2024. Wholesale revenue also saw a similar increase at $439.3 million. In contrast, the direct-to-consumer segment experienced a modest decline of 0.2%, totaling $112.1 million, with a noted drop in brick-and-mortar sales despite a small rise in digital sales. Gross margin for the company improved by 20 basis points to 40.9%, despite a negative impact from newly implemented tariffs. The company proactively addressed these tariffs by negotiating discounts with suppliers and accelerating production shifts from China to other countries, with the aim of reducing China-sourced imports from 71% in 2024 to mid-single digits by spring 2026. Additionally, a recently completed reduction in force is projected to save over $12 million annually. The acquisition of Kurt Geiger was finalized, adding a brand with £400 million in revenue to their portfolio, and is expected to enhance Steve Madden's growth prospects, especially with its strong international presence. However, due to the uncertainties surrounding new tariffs, the company withdrew its 2025 financial guidance provided earlier in February.Steven Madden Corporate Events
M&A TransactionsBusiness Operations and Strategy
Steve Madden to Acquire UK’s Kurt Geiger
Positive
Feb 13, 2025
On February 13, 2025, Steve Madden announced a definitive agreement to acquire UK-based Kurt Geiger from a group led by Cinven for approximately £289 million in cash. This acquisition is expected to enhance Steve Madden’s portfolio with Kurt Geiger’s strong market presence and aligns with its strategic initiatives of expanding into international markets and direct-to-consumer channels. The transaction, approved by Steve Madden’s Board, is anticipated to close in the second quarter of 2025, pending regulatory clearances.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.