Latest news with #SHOO
Yahoo
09-07-2025
- Business
- Yahoo
Steven Madden, Ltd. (SHOO): A Bull Case Theory
We came across a bullish thesis on Steven Madden, Ltd. on Waterboy's Substack by Waterboy Investing. In this article, we will summarize the bull's thesis on SHOO. Steven Madden, Ltd.'s share was trading at $23.35 as of June 25th. SHOO's trailing and forward P/E ratios were 10.06 and 30.67, respectively, according to Yahoo Finance. A pair of stylish shoes on a modern store shelf, illustrating the companies focus on footwear and accessories. Steve Madden, Ltd. (SHOO), is a footwear and accessories company known for high returns on capital (15%+), consistent free cash flow ($163 million LTM), and shareholder-friendly capital allocation—buybacks have reduced share count by 22% over the past decade. Despite this, the stock trades at just 8.93x trailing earnings with a 3.52% dividend yield, weighed down by tariff-related concerns. Founded in 1990 by Steve Madden with just $1,100, the company has grown through a nimble 'test-and-react' strategy, quickly scaling popular designs across its online platform and 314 stores. This approach yields industry-leading inventory turns (5.5x) and stable 40% gross margins, well above peers like Crocs, Skechers, and Birkenstock. The brand has maintained strong relevance with fashion-conscious women while avoiding expensive celebrity endorsements, though it still enjoys visibility among stars like Selena Gomez and Lady Gaga. Under CEO Ed Rosenfeld, a former retail investment banker, the company has exercised disciplined capital allocation, amassing $1.5 billion in treasury stock and delivering a 117% EPS increase over 10 years. Recently, SHOO made its largest acquisition ever: UK-based Kurt Geiger for $384 million, financed through a $300 million term loan. Geiger's $530 million in revenue and estimated 8–10% margins make it an attractive deal at ~8x EBIT. With SHOO founder Madden nearing retirement and the stock undervalued relative to peers—especially after 3G Capital acquired Skechers at 15x earnings—the company itself may be a potential acquisition target, offering a compelling upside opportunity for investors. Previously, we covered a bullish thesis on Birkenstock Holding plc (BIRK) by Bulls On Parade in February 2025, which highlighted the company's strong expansion in Asia, improving manufacturing efficiency, and premium brand positioning. The company's stock price has depreciated by approximately 4% since our coverage. This is because the thesis hasn't fully played out yet. Waterboy Investing shares a similar view on Steven Madden, Ltd., but emphasizes disciplined capital allocation and acquisition potential. SHOO isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of SHOO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
11-06-2025
- Business
- Yahoo
SHOO Q1 Earnings Call: Tariffs Drive Strategy Shift, Kurt Geiger Acquisition Adds Growth Potential
Shoe and apparel company Steven Madden (NASDAQ:SHOO) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $553.5 million. Its non-GAAP profit of $0.60 per share was 31.7% above analysts' consensus estimates. Is now the time to buy SHOO? Find out in our full research report (it's free). Revenue: $553.5 million vs analyst estimates of $559.1 million (flat year on year, 1% miss) Adjusted EPS: $0.60 vs analyst estimates of $0.46 (31.7% beat) Adjusted EBITDA: $61.33 million vs analyst estimates of $49.57 million (11.1% margin, 23.7% beat) Operating Margin: 9.7%, in line with the same quarter last year Locations: 314 at quarter end, up from 253 in the same quarter last year Market Capitalization: $1.8 billion Steven Madden's first quarter performance was shaped by persistent headwinds in the footwear and accessories industry and the company's rapid response to shifting market dynamics. CEO Ed Rosenfeld highlighted that while sales trends were sluggish early in the quarter, demand improved markedly in March as seasonal product assortments resonated with consumers. The company credited its product and marketing teams for supporting demand through targeted campaigns, such as the "House of Steve" initiative. Rosenfeld also acknowledged heightened uncertainty from new U.S. tariffs on imports, noting, 'Our team moved swiftly to adapt to the changing landscape with a focus on mitigating near-term impacts while positioning the company for long-term growth.' Looking ahead, management is focused on mitigating the impact of tariffs by accelerating supply chain shifts away from China, implementing selective price increases, and seeking operational efficiencies. Rosenfeld emphasized that while the company faces near-term challenges, it is leveraging its ability to pivot production and maintain supplier relationships to protect market share. The acquisition of Kurt Geiger is seen as a strategic addition, with Rosenfeld stating, 'We believe the agility of our business model, combined with our fortress balance sheet, gives us a competitive advantage in dynamic environments like this one.' However, the company withdrew its annual financial guidance due to ongoing uncertainty, underscoring the need for close monitoring of consumer demand and tariff developments. Management attributed the quarter's performance to disciplined execution in product assortment, rapid supply chain adjustments, and early action in response to tariff impacts. Seasonal product success: The launch of spring assortments was well received by consumers, especially as weather improved in March, helping reverse sluggish sales seen earlier in the quarter. Increased marketing investment, including the 'House of Steve' campaign, supported brand engagement. Accelerated supply chain shift: In response to new tariffs, Steven Madden rapidly reduced its reliance on China for U.S. imports, moving much of its fall 2025 production to countries such as Vietnam, Cambodia, Mexico, and Brazil. Management noted that, by spring 2026, less than 10% of sourcing for U.S. imports (excluding Kurt Geiger) is expected to come from China. Price increases and demand monitoring: The company has begun raising prices selectively across products and brands, with average increases around 10%. Management is closely monitoring demand elasticity to ensure competitiveness and will adjust pricing strategies as needed. Inventory and logistics adjustments: Inventory levels rose, driven by longer lead times from supply chain diversification and efforts to accelerate shipments ahead of tariff implementation. Management stated this was a proactive measure to manage disruption and maintain product availability. Kurt Geiger acquisition: The purchase of Kurt Geiger, a London-based accessories brand, was completed. The brand's momentum, especially in U.S. digital channels and international expansion, is expected to support long-term growth, though management acknowledged that 80% of its sourcing is currently from China, requiring a similar transition strategy. Management expects future performance to be influenced by tariff-related cost pressures, supply chain transitions, and the integration of Kurt Geiger. Tariff impact and mitigation: The company anticipates further gross margin pressure as tariffs on imports take full effect, particularly as it cycles through higher-cost inventory. Management is pursuing supplier negotiations, price increases, and operational efficiencies to offset these headwinds. Kurt Geiger integration: Leveraging Kurt Geiger's digital and physical retail expansion in the U.S., as well as international growth opportunities, is a strategic priority. Management aims to align sourcing practices with Steven Madden's transition away from China to reduce future tariff exposure. Consumer demand and promotional activity: There is uncertainty regarding consumer response to higher prices and later product deliveries caused by longer lead times. Management highlighted that direct-to-consumer performance was mixed in April and indicated a cautious outlook on consumer confidence, requiring ongoing assessment of trends and promotional needs. In future quarters, the StockStory team will track (1) the pace at which Steven Madden reduces China-based sourcing across both legacy and Kurt Geiger brands, (2) the effect of price increases and shifting supply chains on gross margin and sales trends, and (3) execution on U.S. and international expansion plans, especially for Kurt Geiger. Progress on integrating Kurt Geiger's operations and adapting to ongoing tariff developments will also be key signposts. Steven Madden currently trades at a forward P/E ratio of 13.5×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Reuters
22-05-2025
- Business
- Reuters
Steve Madden sues Adidas to thwart challenges to shoe designs
NEW YORK, May 21 (Reuters) - Adidas ( opens new tab, known for shoes with three parallel stripes, was sued on Wednesday by Steven Madden (SHOO.O), opens new tab over its alleged effort to stop the American shoe company from selling fashion sneakers with two non-parallel bands. In a complaint filed in federal court in Brooklyn, New York, Steve Madden, as the company is often known, said it has grown "tired" of Adidas' decades of complaints about footwear whose designs bear no resemblance to its three-stripe design. These allegedly include objections to two Steve Madden sneakers launched this year: Viento, which has two bands, and Janos, whose two bands resemble the letter K. Steve Madden said Adidas' lawyers have demanded that Viento sales be halted because the design would likely confuse consumers, and signaled to the U.S. Patent and Trademark Office it may formally challenge the Janos design. "The use of band designs on footwear is ubiquitous in the fashion industry," Steve Madden said. "Simply put, Adidas does not own all stripes and should not be allowed to claim that it has a monopoly on all footwear that includes stripes, bars, bands or any shape having four sides—parallel, straight or not." Adidas did not immediately respond to requests for comment outside business hours. Like some shoe companies including Nike (NKE.N), opens new tab, Adidas sometimes turns to U.S. courts and agencies to stop rivals from selling products it considers knockoffs. Steve Madden, based in Long Island City, New York, said Adidas sued it twice in 2002 to challenge footwear with two parallel stripes and four parallel stripes, leading to a confidential settlement the next year. The latest dispute does not arise from that accord. Wednesday's lawsuit seeks a judgment that the Viento and Janos designs do not infringe Adidas' trademarks or three-stripe design, allowing Steve Madden to continue sales. The case is Steven Madden Ltd v Adidas AG et al, U.S. District Court, Eastern District of New York, No. 25-02847.
Yahoo
01-04-2025
- Business
- Yahoo
Steven Madden (SHOO): Buy, Sell, or Hold Post Q4 Earnings?
Steven Madden has gotten torched over the last six months - since October 2024, its stock price has dropped 46.5% to $26.58 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Steven Madden, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why SHOO doesn't excite us and a stock we'd rather own. As seen in the infamous Wolf of Wall Street movie, Steven Madden (NASDAQ:SHOO) is a fashion brand famous for its trendy and innovative footwear, appealing to a young and style-conscious audience. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Steven Madden's 5% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the consumer discretionary sector. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Steven Madden's EPS grew at an unimpressive 6.8% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 5% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Steven Madden has shown mediocre cash profitability over the last two years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 9%, subpar for a consumer discretionary business. Steven Madden isn't a terrible business, but it isn't one of our picks. After the recent drawdown, the stock trades at 10.4× forward price-to-earnings (or $26.58 per share). While this valuation is reasonable, we don't really see a big opportunity at the moment. We're fairly confident there are better investments elsewhere. Let us point you toward one of our all-time favorite software stocks. With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we're laser-focused on finding the best stocks for this upcoming cycle. Put yourself in the driver's seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Steven Madden Q4 Performance Beats Expectations But CEO Cautions About 2025 Profit Impact From Tariff Headwinds
On Wednesday, Steven Madden (NASDAQ:SHOO) reported fourth-quarter 2024 financial results. It clocked a fourth-quarter adjusted EPS of 55 cents, beating the Wall Street View of 53 cents. Quarterly revenues of $582.32 million increased 12.0% year over year, surpassing the analyst consensus of $548.50 million. Micron Expands AI Chip Capabilities With Faster, More Efficient DRAM for Next-Gen Devices Revenue from direct-to-consumer was $176.0 million, an 8.4% increase year over year. Revenue from the wholesale business was $402.9 million, a 13.6% increase year over year. Gross profit as a percentage of revenue was 40.4% compared to 41.3% in the same period of 2023. Adjusted operating expenses as a percentage of revenue were 31.4% compared to 31.5% in the same period of 2023. The footwear company ended the quarter with 291 company-operated brick-and-mortar retail stores, five e-commerce websites, and 42 company-operated concessions in international markets. As of December 31, cash and equivalents and short-term investments totaled $203.4 million, and inventory totaled $257.6 million. Chair and CEO Edward Rosenfeld remains cautious on the near-term outlook, as it faced meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the U.S. However, he expressed optimism over the pending acquisition of Kurt Geiger, likely to close in the second quarter of 2025, whose differentiated and elevated positioning, expanding in international markets, accessories categories, and direct-to-consumer channels make it a highly attractive and complementary addition to the company's portfolio. FY25 Outlook: Steven Madden expects revenue growth of 17%-19%, implying revenue of $2.67 billion-$2.72 billion against the consensus of $2.33 billion. It expects EPS of $2.30-$2.40. The consensus estimate for EPS is $2.58. Price Action: SHOO stock traded lower by 5.22% at $35.91 at the last check on Wednesday. Also Read:Photo by DCStockPhotography via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? STEVEN MADDEN (SHOO): Free Stock Analysis Report This article Steven Madden Q4 Performance Beats Expectations But CEO Cautions About 2025 Profit Impact From Tariff Headwinds originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
