Steven Madden's 3-Pronged Tariff Mitigation Plan Stands Out To Analyst

While Steven Madden Ltd SHOO reported a "significant" earnings beat on Wednesday, Telsey Advisory Group reported that the company withdrew its full-year guidance due to tariff-related uncertainty.

The Steven Madden Analyst: Analyst Dana Telsey maintained a Market Perform rating and price of $24.

The Steven Madden Thesis: The company completed the acquisition of Kurt Geiger, which nicely complements the existing business as "it skews higher end and more towards handbags," Telsey said in the note.

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Management withdrew its 2025 guidance, due to uncertainty associated with tariffs, which was not surprising given the company's exposure to China for sourcing, she added.

The analyst highlighted that Steven Madden plans to follow a three-pronged tariff mitigation strategy:

• Moving production out of China
• Negotiating with suppliers for price concessions
• Taking price on products

Management indicated that these changes would position the company for long-term growth, she stated.

"Overall, we believe SHOO has been bringing trend-right products to market quickly, growing its apparel and accessories business, and expanding internationally," Dana further wrote.

SHOO Price Action: Shares of Steven Madden had risen by 2% to $23.90 at the time of publication Thursday.

Read More:

• Steve Madden Faces Looming Margin Pressure And Tariff Headwinds, Analyst Predicts Tough Road Ahead

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