Steven Madden (SHOO) Stock Forecast & Price Target

Steven Madden Ltd has demonstrated strong growth potential, highlighted by a 54.2% increase in wholesale accessories/apparel revenue, which now constitutes 31.4% of total revenues, largely due to the successful Almost Famous acquisition. The company anticipates overall revenue growth of 17%-19% year-over-year and expects earnings per share (EPS) to range between $2.30 and $2.40, showcasing a solid financial outlook. Additionally, Steven Madden's international business is projected to grow by mid-teens, with significant expansion in the EMEA region, reflecting a successful strategy in diversifying its revenue streams.

The financial outlook for Steven Madden Ltd appears negative due to an anticipated decline in EPS of 30%-35% year-over-year for Q1, driven by tough comparisons to the previous year and increased marketing expenses. Although the direct-to-consumer revenue segment witnessed a 7.8% growth, the wholesale footwear segment, which represents nearly half of total revenue, experienced a decline of 2.2% to $299.3 million. Furthermore, projected FY25 EPS is revised downward to $2.35 from a previous estimate of $2.89, indicating ongoing challenges in the wholesale environment and potential slow growth in the accessories market amid weakening consumer confidence.