Jefferies Downgrades Steve Madden, Cuts Target by $3 on Wholesale Destocking
Jefferies downgraded Steve Madden to Hold and reduced its target price by $3, citing accelerating inventory destocking by wholesale partners. The firm now forecasts mid-single-digit full-year revenue growth and warns of margin pressure from higher logistics costs, noting headwinds will intensify through 2026.
1. Jefferies Downgrade Details
Jefferies analysts downgraded Steve Madden from Buy to Hold and cut its 12-month target price by $3 to $25, noting that weakening wholesale demand and elevated inventory levels among key retail partners have reduced the stock’s upside potential.
2. Inventory Destocking Trends
The downgrade reflects accelerating inventory destocking across major wholesale accounts, as partners seek to clear excess merchandise; this shift has led to a projected contraction in wholesale shipments over the next several quarters.
3. Updated Financial Forecasts and Risks
Jefferies now expects mid-single-digit revenue growth for fiscal 2026, down from prior high-single-digit projections, and warns that rising logistics and distribution costs could compress operating margins by at least 100 basis points if these headwinds persist.