What Happened?
Shares of shoe and apparel company Steven Madden (NASDAQ: SHOO) fell 5.4% in the morning session after it reported fourth-quarter results that showed a significant decline in profitability, overshadowing a strong beat on adjusted EBITDA.
The company's revenue grew 29.4% year-over-year to $753.7 million, which was roughly in line with Wall Street's expectations, while adjusted earnings per share of $0.48 also narrowly beat estimates. However, investors focused on contracting margins, as the company's operating margin fell to 4.8% from 8% in the same quarter last year, indicating expenses were growing faster than sales. This profit pressure was also reflected in adjusted EPS declining from $0.55 in the prior year. Looking ahead, analysts expect Steven Madden's revenue growth to slow, which likely contributed to the negative sentiment.
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What Is The Market Telling Us
Steven Madden’s shares are very volatile and have had 27 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 2 days ago when the stock dropped 8.7% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty.
The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Steven Madden is down 15.7% since the beginning of the year, and at $35.57 per share, it is trading 23.1% below its 52-week high of $46.23 from January 2026. Investors who bought $1,000 worth of Steven Madden’s shares 5 years ago would now be looking at an investment worth $942.30.
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