Large Retailers Push Back on Steve Madden's Price Hikes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SHOO?
Source: seekingalpha
- Price Hike Pushback: Steve Madden (SHOO) faces significant resistance from major retailers like Walmart, Target, and TJ Maxx against its double-digit price increases, prompting Jefferies to downgrade the stock to Underperform and cut the target price by 23% to $30, indicating strong market disapproval of its pricing strategy.
- Wholesale Sales Pressure: With approximately 70% of its business tied to wholesale sales concentrated among these retailers, analysts predict a reduction of about $250 million in FY26 wholesale revenue, reflecting the ‘material headwind’ the company faces, which will exert ongoing pressure on future revenues and profits.
- Production Shift Challenges: In response to tariffs on Chinese-made goods, Steve Madden raised prices by around 10% last fall and has actively shifted production to Mexico, Brazil, Vietnam, and Cambodia, yet still contends with import tariffs as high as 40%, leading to constrained order volumes.
- Earnings Forecast Downgrade: Analysts have lowered the FY26 EPS forecast from $2.40 to $2.00, with risks skewed to the downside, and due to slowing orders and pricing concessions, multi-quarter pressure on margins and revenue is anticipated.
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Analyst Views on SHOO
Wall Street analysts forecast SHOO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SHOO is 48.00 USD with a low forecast of 41.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 34.560
Low
41.00
Averages
48.00
High
52.00
Current: 34.560
Low
41.00
Averages
48.00
High
52.00
About SHOO
Steven Madden, Ltd. designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel. The Company’s Wholesale Footwear segment designs, sources, and markets its brands and sells its products to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs. Its Wholesale Accessories/Apparel segment designs, sources, and markets its brands and sells its products, primarily consisting of handbags and apparel, to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs. Its Direct-to-Consumer segment engages in the sale of footwear, handbags, apparel, and other accessories. Its Licensing segment engages in the licensing of the Steve Madden and Betsey Johnson trademarks for use in the sale of select apparel, accessories, and home categories as well as various other non-core products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Large Retailers Push Back on Steve Madden's Price Hikes
- Price Hike Pushback: Steve Madden (SHOO) faces significant resistance from major retailers like Walmart, Target, and TJ Maxx against its double-digit price increases, prompting Jefferies to downgrade the stock to Underperform and cut the target price by 23% to $30, indicating strong market disapproval of its pricing strategy.
- Wholesale Sales Pressure: With approximately 70% of its business tied to wholesale sales concentrated among these retailers, analysts predict a reduction of about $250 million in FY26 wholesale revenue, reflecting the ‘material headwind’ the company faces, which will exert ongoing pressure on future revenues and profits.
- Production Shift Challenges: In response to tariffs on Chinese-made goods, Steve Madden raised prices by around 10% last fall and has actively shifted production to Mexico, Brazil, Vietnam, and Cambodia, yet still contends with import tariffs as high as 40%, leading to constrained order volumes.
- Earnings Forecast Downgrade: Analysts have lowered the FY26 EPS forecast from $2.40 to $2.00, with risks skewed to the downside, and due to slowing orders and pricing concessions, multi-quarter pressure on margins and revenue is anticipated.
See More
Steve Madden's Former NYC Penthouse Returns to Market for $11.5 Million
- Significant Price Reduction: Steve Madden's former NYC penthouse is back on the market for $11.5 million, reflecting a $12.4 million drop from its September asking price, indicating volatility in the luxury real estate market and shifting buyer demand.
- Historical Transaction Context: Madden purchased the apartment for $15 million in 2013, which was transferred to his ex-wife after their 2015 divorce, who sold it for $8.8 million in 2022, showcasing the property's fluctuating value over time.
- Luxury Apartment Features: Located in Trump Palace, the 4,600-square-foot residence boasts six bedrooms and 5½ bathrooms, featuring a 30-foot living room and a balcony overlooking Central Park, offering a high-end living experience that appeals to affluent buyers.
- Market Competition Analysis: At $11.5 million, this unit is the highest-priced listing in Trump Palace, with other units ranging from $735,000 to $3.95 million, highlighting the diverse market positioning of the building and the competitive nature of high-end residential properties.
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- Economic Data Impact: Initial jobless claims in the US rose by 8,000 to 208,000, lower than the expected 212,000, suggesting a strong labor market that could influence Fed policy in a hawkish direction.
- Military Spending Expectations: President Trump announced plans to increase the US military budget by 50% to $1.5 trillion by 2027, leading to a rally in defense stocks, with AeroVironment rising over 8%.
- Energy Market Rebound: Energy producers surged as WTI crude oil prices rose by more than 3%, with APA Corp leading gains in the S&P 500, up over 8%.
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- Defense Stocks Rally: Following this announcement, AeroVironment (AVAV) shares surged over 8%, and Huntington Ingalls Industries (HII) rose more than 7%, reflecting investor optimism regarding increased defense spending.
- Market Reaction: Despite weakness in chipmakers and software companies, the strong performance of defense stocks helped contain broader market declines, indicating a divergence in capital flows and investor sentiment across sectors.
- Economic Data Impact: U.S. economic data showed initial jobless claims rose to 208,000, lower than the expected 212,000, suggesting a robust labor market that could influence the Federal Reserve's monetary policy direction.
See More
Trump Plans to Increase Military Spending to $1.5 Trillion
- Military Budget Increase: President Trump plans to raise U.S. military spending by approximately 50% to $1.5 trillion by 2027, which is expected to significantly boost growth in the defense sector and enhance the market performance of related companies.
- Defense Stocks Surge: Following this announcement, Northrop Grumman (NOC) shares rose over 10% and Lockheed Martin (LMT) increased by more than 8%, indicating a positive market reaction to increased defense spending that may attract more investor interest in the sector.
- Supportive Economic Data: U.S. December Challenger job cuts fell 8.3% year-on-year to 35,553, marking a 17-month low, which reflects a strong labor market and provides a favorable economic backdrop for increased defense spending, potentially influencing Federal Reserve policy.
- Market Reaction: While the broader stock market faced pressure from profit-taking in chipmakers and software firms, the robust performance of defense stocks demonstrates optimistic market expectations regarding Trump's policies, which may drive future investment and growth in the industry.
See More
Twisted X Raises Prices by 3% Amid Tariff-Driven Cost Surge
- Tariff Impact: Twisted X has raised prices by 1% to 3% in 2025 due to surging import costs from tariffs imposed by the Trump administration, which has significantly increased raw material and shipping expenses.
- Industry-Wide Challenges: The leather industry is facing similar pressures, with projections indicating a nearly 22% increase in leather goods prices over the next two years, which will have long-term implications for consumer purchasing power, particularly from major suppliers like China, Vietnam, and India.
- Supply Chain Bottlenecks: Twisted X's reliance on overseas production, especially in China, has led to supply chain bottlenecks following the tariff implementation, increasing production cycles and costs, forcing the company to reassess its global supply chain strategy.
- Decline of Domestic Manufacturing: The U.S. leather manufacturing workforce has plummeted from 300,000 in the 1950s to 50,000 in 2025, limiting companies' ability to pivot away from imports in response to tariffs, thereby exacerbating reliance on foreign production.
See More
Large Retailers Push Back on Steve Madden's Price Hikes
- Price Hike Pushback: Steve Madden (SHOO) faces significant resistance from major retailers like Walmart, Target, and TJ Maxx against its double-digit price increases, prompting Jefferies to downgrade the stock to Underperform and cut the target price by 23% to $30, indicating strong market disapproval of its pricing strategy.
- Wholesale Sales Pressure: With approximately 70% of its business tied to wholesale sales concentrated among these retailers, analysts predict a reduction of about $250 million in FY26 wholesale revenue, reflecting the ‘material headwind’ the company faces, which will exert ongoing pressure on future revenues and profits.
- Production Shift Challenges: In response to tariffs on Chinese-made goods, Steve Madden raised prices by around 10% last fall and has actively shifted production to Mexico, Brazil, Vietnam, and Cambodia, yet still contends with import tariffs as high as 40%, leading to constrained order volumes.
- Earnings Forecast Downgrade: Analysts have lowered the FY26 EPS forecast from $2.40 to $2.00, with risks skewed to the downside, and due to slowing orders and pricing concessions, multi-quarter pressure on margins and revenue is anticipated.
See More
Steve Madden's Former NYC Penthouse Returns to Market for $11.5 Million
- Significant Price Reduction: Steve Madden's former NYC penthouse is back on the market for $11.5 million, reflecting a $12.4 million drop from its September asking price, indicating volatility in the luxury real estate market and shifting buyer demand.
- Historical Transaction Context: Madden purchased the apartment for $15 million in 2013, which was transferred to his ex-wife after their 2015 divorce, who sold it for $8.8 million in 2022, showcasing the property's fluctuating value over time.
- Luxury Apartment Features: Located in Trump Palace, the 4,600-square-foot residence boasts six bedrooms and 5½ bathrooms, featuring a 30-foot living room and a balcony overlooking Central Park, offering a high-end living experience that appeals to affluent buyers.
- Market Competition Analysis: At $11.5 million, this unit is the highest-priced listing in Trump Palace, with other units ranging from $735,000 to $3.95 million, highlighting the diverse market positioning of the building and the competitive nature of high-end residential properties.
See More
US Stocks Close Mixed on Thursday as Tech Sector Faces Pressure
- Market Volatility: The S&P 500 Index closed up 0.01% while the Dow Jones Industrial Average rose 0.55%, and the Nasdaq 100 fell 0.57%, indicating mixed market performance amid weakness in tech stocks.
- Economic Data Impact: Initial jobless claims in the US rose by 8,000 to 208,000, lower than the expected 212,000, suggesting a strong labor market that could influence Fed policy in a hawkish direction.
- Military Spending Expectations: President Trump announced plans to increase the US military budget by 50% to $1.5 trillion by 2027, leading to a rally in defense stocks, with AeroVironment rising over 8%.
- Energy Market Rebound: Energy producers surged as WTI crude oil prices rose by more than 3%, with APA Corp leading gains in the S&P 500, up over 8%.
See More
Trump Plans to Increase Military Spending to $1.5 Trillion
- Military Budget Increase: President Trump plans to ramp up U.S. military spending by about 50% to $1.5 trillion by 2027, which is expected to significantly boost growth in the defense sector and enhance market confidence in related companies.
- Defense Stocks Rally: Following this announcement, AeroVironment (AVAV) shares surged over 8%, and Huntington Ingalls Industries (HII) rose more than 7%, reflecting investor optimism regarding increased defense spending.
- Market Reaction: Despite weakness in chipmakers and software companies, the strong performance of defense stocks helped contain broader market declines, indicating a divergence in capital flows and investor sentiment across sectors.
- Economic Data Impact: U.S. economic data showed initial jobless claims rose to 208,000, lower than the expected 212,000, suggesting a robust labor market that could influence the Federal Reserve's monetary policy direction.
See More
Trump Plans to Increase Military Spending to $1.5 Trillion
- Military Budget Increase: President Trump plans to raise U.S. military spending by approximately 50% to $1.5 trillion by 2027, which is expected to significantly boost growth in the defense sector and enhance the market performance of related companies.
- Defense Stocks Surge: Following this announcement, Northrop Grumman (NOC) shares rose over 10% and Lockheed Martin (LMT) increased by more than 8%, indicating a positive market reaction to increased defense spending that may attract more investor interest in the sector.
- Supportive Economic Data: U.S. December Challenger job cuts fell 8.3% year-on-year to 35,553, marking a 17-month low, which reflects a strong labor market and provides a favorable economic backdrop for increased defense spending, potentially influencing Federal Reserve policy.
- Market Reaction: While the broader stock market faced pressure from profit-taking in chipmakers and software firms, the robust performance of defense stocks demonstrates optimistic market expectations regarding Trump's policies, which may drive future investment and growth in the industry.
See More
Twisted X Raises Prices by 3% Amid Tariff-Driven Cost Surge
- Tariff Impact: Twisted X has raised prices by 1% to 3% in 2025 due to surging import costs from tariffs imposed by the Trump administration, which has significantly increased raw material and shipping expenses.
- Industry-Wide Challenges: The leather industry is facing similar pressures, with projections indicating a nearly 22% increase in leather goods prices over the next two years, which will have long-term implications for consumer purchasing power, particularly from major suppliers like China, Vietnam, and India.
- Supply Chain Bottlenecks: Twisted X's reliance on overseas production, especially in China, has led to supply chain bottlenecks following the tariff implementation, increasing production cycles and costs, forcing the company to reassess its global supply chain strategy.
- Decline of Domestic Manufacturing: The U.S. leather manufacturing workforce has plummeted from 300,000 in the 1950s to 50,000 in 2025, limiting companies' ability to pivot away from imports in response to tariffs, thereby exacerbating reliance on foreign production.
See More
