Peter Allan Davis, a director at Steven Madden , Ltd. (NASDAQ:), has sold 500 shares of the company’s common stock. The transaction, which took place on November 25, 2024, was executed at a price of $45.393 per share, amounting to a total value of $22,696. Following this sale, Davis holds 7,757 shares of Steven Madden stock. The sale was disclosed in a recent SEC filing.
In other recent news, Steven Madden Limited exhibited strong growth in the third quarter of 2024, with a revenue increase of 13% to $624.7 million. This surge was primarily driven by robust sales in apparel and accessories, especially handbags, and contributions from the newly incorporated Almost Famous brand. Despite a slight dip in wholesale footwear, the overall wholesale revenue saw an uptick, and the company reported a net income of $64.8 million. Steven Madden also revised its 2024 revenue guidance to a 13%-14% increase and anticipates diluted EPS between $2.62 and $2.67.
Recently, Needham initiated coverage on Steven Madden shares with a Hold rating, citing concerns over potential tariffs and challenging macro conditions. The firm highlighted the company’s significant exposure to China-to-U.S. imports, which could be impacted by tariffs. They also pointed out that Steven Madden’s high reliance on these imports compared to other companies under their coverage, combined with challenging macro conditions, is expected to influence demand.
In response to these concerns, Steven Madden is actively working to diversify its supply chain, aiming to reduce reliance on Chinese sourcing by 40%-45%. The company also announced a quarterly dividend of $0.21 per share and plans to continue its store enhancement investments, including the opening of a flagship store in Times Square. These are recent developments that investors will be closely monitoring.
InvestingPro Insights
While Peter Allan Davis’s recent sale of 500 shares might raise eyebrows, it’s important to contextualize this transaction within Steven Madden’s broader financial landscape. According to InvestingPro data, the company boasts a market capitalization of $3.28 billion, suggesting a robust market presence in the footwear and accessories industry.
Steven Madden’s financial health appears solid, with InvestingPro Tips indicating that the company’s liquid assets exceed its short-term obligations and it operates with a moderate level of debt. This financial stability could provide reassurance to investors concerned about the director’s stock sale.
The company’s revenue growth of 14.89% over the last twelve months, coupled with a healthy gross profit margin of 41.27%, demonstrates Steven Madden’s ability to generate sales and maintain profitability in a competitive market. Furthermore, the company’s return on assets of 12.74% suggests efficient use of its resources.
Interestingly, InvestingPro Tips reveal that five analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for the company’s future performance. This optimism is further supported by analysts’ predictions that Steven Madden will remain profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide deeper insights into Steven Madden’s investment potential. These additional tips, along with real-time metrics and expert analysis, are available to InvestingPro subscribers, offering a more nuanced understanding of the company’s financial position and market outlook.
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