Needham cuts Steven Madden stock price target on slower recovery

Investing.com - Needham lowered its price target on Steven Madden Ltd. (NASDAQ:SHOO) to $41 from $50 while maintaining a Buy rating on the shares. The stock currently trades at $35.26, down 10% year-to-date.

The firm noted that Steven Madden shares have been under pressure since FFANY meetings earlier this month, and the fourth-quarter results did not alleviate recent investor concerns. According to InvestingPro data, the stock has declined 4.6% over the past week. An InvestingPro Tip notes that net income is expected to drop this year, aligning with the company’s challenges. The private label business remains pressured, though it accounts for less than 15% of revenues and less than 10% of gross profit.

Needham is now assuming a slower pace of earnings recovery, reducing its fiscal 2026 and 2027 earnings per share forecasts to $1.84 and $2.22 from $2.20 and $2.60, respectively. For the fourth quarter, revenue growth of 29% was in line with guidance of up 27% to 30%, and earnings per share of $0.48 came in slightly above guidance of $0.41 to $0.46.

For fiscal 2026, Steven Madden guided to revenue growth of 9% to 11%, in line with Street expectations, representing low single-digit organic growth. For the first quarter, the company expects revenue growth of 15% to 17%, below Street estimates of 21%. Despite near-term headwinds, InvestingPro analysis suggests the stock is undervalued at current levels, with analyst price targets ranging from $30 to $53. The company maintains a market cap of $2.56 billion and offers a 2.25% dividend yield.

In other recent news, Steven Madden Ltd. reported strong financial results for the fourth quarter of 2025. The company achieved earnings per share (EPS) of $0.48, slightly surpassing Wall Street’s forecast of $0.47. Revenue for the quarter was $753.7 million, which also exceeded expectations of $752.2 million, representing a significant 29.4% increase compared to the previous year. These results indicate a solid performance despite broader market challenges. Analysts had anticipated slightly lower figures, making the company’s achievement a noteworthy surprise. While these financial outcomes were positive, the stock experienced a pre-market decline, reflecting investor concerns about potential future challenges. The company’s ability to exceed projections highlights its resilience in a competitive market environment.

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