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Steve Madden one of the most consistent executors in the footwear space - BTIG

EditorPollock Mondal
Published 09/19/2023, 08:48 AM
Updated 09/19/2023, 08:49 AM
© Reuters.  Steve Madden (SHOO) one of the most consistent executors in the footwear space - BTIG
SHOO
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BTIG analysts started shares of Steven Madden (NASDAQ:SHOO) at Buy with a $40 price target in a note to clients on Tuesday.

They told investors that SHOO is one of the most consistent executors in the footwear space and has been a continual share gainer.

Analysts note that retailers are increasingly concentrating their bets on brands that have a strong track record. "However, with ~75% of sales from wholesale, tepid industry-wide demand from wholesale partners has weighed on shares," they noted.

"Our call is very simple: wholesale demand will not stay depressed in perpetuity, and we see SHOO as an early and outsized beneficiary of a wholesale recovery, given their industry-leading speed-to-market and ability to chase into a trend, much like we saw post-COVID," said analysts.

In addition, as demand ramps, BTIG expects SHOO earnings growth to accelerate and the company to benefit from multiple expansion, "at least back toward historical levels."

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