Steven MaddenNASDAQ: SHOO

Steven Madden (SHOO) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

Steve Madden results posted top line growth, driven by new initiatives in apparel and international. The company's core wholesale footwear US channel is more challenged, down 4%, as a mix of retailer cautiousness and bad trend reads. Steve Madden is also exposed to US-China tariffs on about half its revenues, a problem that will probably damage gross margins next year.

Steven Madden, Ltd. (NASDAQ:SHOO ) Q3 2024 Results Conference Call November 7, 2024 8:30 AM ET Company Participants Danielle McCoy - Vice President, Corporate Development and Investor Relations Edward Rosenfeld - Chairman and Chief Executive Officer Zine Mazouzi - Chief Financial Officer Conference Call Participants Kelly Crago - Citi Aubrey Tianello - BNP Paribas Dana Telsey - Telsey Advisory Group Laura Champine - Loop Capital Janine Stichter - BTIG Operator Good day, and thank you for standing by.

Steve Madden's CEO said the company will reduce the goods it imports from China by as much as 45% over the next year. On the campaign trail, President-elect Donald Trump said he would impose a 10% to 20% tariff on all imports, with tariffs as high as 60% to 100% on goods from China.

Steven Madden (SHOO) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.88 per share a year ago.

SHOO's Q3 results are likely to reflect DTC growth and new category entries, driven by strategic initiatives and digital efforts.

SHOO is poised for continued growth, driven by strong operational performance and strategic expansions in its DTC and wholesale segments.

Steven Madden offers an attractive investment opportunity due to its undervaluation compared with industry peers and strong operational efficiency.

Steven Madden's stock stands out on its strong growth momentum, driven by diversification, international expansion and a solid DTC focus.