{"id":41698,"date":"2025-07-18T11:35:11","date_gmt":"2025-07-18T11:35:11","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/18\/steven-madden-stock-rises-5-after-citi-upgrades-the-stock\/"},"modified":"2025-07-18T11:35:11","modified_gmt":"2025-07-18T11:35:11","slug":"steven-madden-stock-rises-5-after-citi-upgrades-the-stock","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/07\/18\/steven-madden-stock-rises-5-after-citi-upgrades-the-stock\/","title":{"rendered":"Steven Madden stock rises 5% after Citi upgrades the stock"},"content":{"rendered":"
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Shares of Steven Madden Ltd. (NASDAQ: SHOO) jumped 5% on Thursday after Citi upgraded the stock from Neutral to Buy and raised its price target to $32. <\/p>\n

The investment bank cited signs of a margin bottom, easing tariff headwinds, and shifting fashion trends as key drivers behind the more optimistic outlook.<\/p>\n

Citi expects second-quarter earnings, set to be reported on July 30, to mark the low point for margins after the company faced steep tariffs, some as high as 145% on goods sourced from China. <\/p>\n

With the company actively diversifying its supply chain and reducing reliance on Chinese manufacturing, the bank believes gross margins are set to rebound above 40% by fiscal 2026.<\/p>\n

The upgrade and revised projections fueled Thursday\u2019s rally in the stock, as it extended its surge to 10% in a month.<\/p>\n

Citi\u2019s note suggested the company is entering a period of renewed growth and profitability, making the current valuation attractive relative to its historical average.<\/p>\n

EPS and revenue set to grow on product shift and acquisitions<\/h2>\n

Citi also raised its earnings-per-share (EPS) estimates for both 2025 and 2026, projecting 2026 EPS to hit at least $2.15, well above the current consensus of $1.84. <\/p>\n

The firm anticipates that a stronger product mix and improved gross margins will drive this earnings acceleration.<\/p>\n

Revenue is expected to grow 12% in 2025, supported by the full-year contribution from the KG brand, which Steven Madden acquired as part of its strategic push into premium and dressier footwear categories. <\/p>\n

Citi views the acquisition as a meaningful contributor to both sales and profitability, especially as fashion trends shift away from casual sneakers toward dress styles.<\/p>\n

These changing preferences post-pandemic are expected to work in the company\u2019s favor, giving Steven Madden an edge in a market that is beginning to favor more formal and semi-formal shoes.<\/p>\n

Valuation and guidance potential support higher target<\/h2>\n

At roughly 11.5 times Citi\u2019s 2026 EPS estimate, Steven Madden stock trades below its five-year average price-to-earnings multiple of 15x. <\/p>\n

Citi\u2019s $32 price target reflects a reversion to that average, citing improved gross margins, a more balanced sourcing footprint, and easing tariff risks.<\/p>\n

The footwear brand\u2019s strategy to reduce sourcing from China is central to the bullish outlook. <\/p>\n

By expanding production to other regions, the company is lowering supply chain concentration risk and positioning itself more competitively in the face of geopolitical and trade-related challenges.<\/p>\n

Although Steven Madden has suspended its practice of issuing full-year guidance, Citi believes there is room for upside if the company offers third-quarter guidance during its upcoming earnings call. <\/p>\n

With less tariff-related uncertainty and stronger demand trends, management may choose to provide a positive outlook, which could further boost investor confidence.<\/p>\n

With Thursday\u2019s 5% rally, the market has responded positively to Citi\u2019s upgraded stance, signaling growing belief in the footwear maker\u2019s recovery and strategic execution.<\/p>\n

The post Steven Madden stock rises 5% after Citi upgrades the stock<\/a> appeared first on Invezz<\/a><\/p>\n

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Shares of Steven Madden Ltd. (NASDAQ: SHOO) jumped 5% on Thursday after Citi upgraded the stock from Neutral to Buy and raised its price target to $32. The investment bank cited signs of a margin bottom, easing tariff headwinds, and shifting fashion trends as key drivers behind the more optimistic outlook. Citi expects second-quarter earnings, <\/p>\n","protected":false},"author":1,"featured_media":41699,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-41698","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41698"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41699"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}