What Happened?
Shares of shoe and apparel company Steven Madden (NASDAQ: SHOO) fell 7.6% in the morning session after the company reported disappointing second-quarter financial results that missed analyst expectations and withdrew its full-year guidance due to tariff impacts.
The footwear company's earnings per share came in at $0.20, missing analyst estimates and falling significantly from $0.57 in the same quarter last year. While total revenue grew slightly thanks to the acquisition of Kurt Geiger, the company's core business segments showed weakness. Revenue from the wholesale business declined 6.4%, and the direct-to-consumer segment saw a 3.0% drop, excluding the acquisition's impact. The company swung to a net loss of approximately $39.5 million, a stark reversal from the net income reported a year prior. Citing uncertainty from new tariffs, management also withdrew its financial guidance for 2025, adding to investor concerns about future profitability.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Steven Madden? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Steven Madden’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 21 hours ago when the stock dropped 3.1% on the news that the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending. While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases.
Steven Madden is down 41.8% since the beginning of the year, and at $24.43 per share, it is trading 50.9% below its 52-week high of $49.70 from September 2024. Investors who bought $1,000 worth of Steven Madden’s shares 5 years ago would now be looking at an investment worth $1,090.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
