Here’s Why Jefferies Upgraded Steven Madden (SHOO) Stock

Steven Madden, Ltd.'s SHOO wholesale business reported a 19.4% year-over-year revenue increase to $528.7 million in Q3 2026, driven by strong branded product demand. Footwear sales rose 21% to $322.6 million, while accessories and apparel revenues grew 17% to $206.1 million. Gross margin improved to 36.8% from 33.6%, despite higher freight costs. Management expects Q4 wholesale revenues to decline 6-7% due to shipment timing.

Steven Madden Ltd (SHOO) reported Q3 2026 revenue up 16% and EPS growth, but lowered full-year guidance for Kurt Geiger to low-double digits. Wholesale shipments shifted due to typhoons, and private label business remains challenged. International comps for Steve Madden brand decreased 2%. CEO Ed Rosenfeld noted Q4 sales guidance is flat to up, with Wholesale down 6% to 7%. Kurt Geiger's Q3 revenue was $142.9 million, with DTC at $101.8 million. Tariff assumptions adjusted to 12.5% for Q4.

Steven Madden reported 3Q 2026 revenue of $772.61M, up 15.7% YoY, and net income of $52.42M, up 155.3% YoY. Growth was driven by wholesale and direct-to-consumer segments, with improved gross margins. The company attributed the results to strong operating performance and reduced tariff impacts, partly offset by higher freight costs.

BMO Capital reduced its price target for Steven Madden (SHOO) to $55 from $60, citing a Q4 guidance miss despite strong Q3 sales growth. The company's revenue grew 20% over the past year, but Q4 wholesale guidance was lowered. BMO maintains an Outperform rating, noting attractive valuation metrics. Steven Madden's Q3 earnings beat expectations but missed on revenue, leading to a 16% share drop. The company raised full-year guidance but warned of a weaker Q4.

Jefferies raised its rating on Steven Madden to Hold from Underperform, setting a $36 price target. This implies a 7.7% downside from the Nov 5 close of $38.99.

Steven Madden (SHOO) revised its full-year forecast, lowering Kurt Geiger brand revenue growth to low double digits and raising Dolce Vita to the same range. Q3 Kurt Geiger revenue was $142.9M, with direct-to-consumer sales up 6%. The company expects Q4 wholesale revenue to decline 6-7% due to shipment timing. Inventory decreased 12.8% YoY, and the board approved a $0.21 quarterly dividend.