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Jefferies Downgrades Steven Madden to ‘Hold’

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Price movement

Steven Madden (SHOO) has a market cap of $2.2 billion. It fell 0.70% to close at $35.50 per share on January 3, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.98%, -6.3%, and -0.70%, respectively, on the same day.

SHOO is trading 5.6% below its 20-day moving average, 4.0% below its 50-day moving average, and 0.35% above its 200-day moving average.

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Related ETF and peers

The Vanguard Extended Market ETF (VXF) invests 0.05% of its holdings in Steven Madden. The YTD price movement of VXF was 0.62% on January 3.

The market caps of Steven Madden’s competitors are as follows:

  • Skechers USA (SKX) — $3.9 billion
  • Deckers Outdoor (DECK) — $1.8 billion
  • Guess (GES) — $1.0 billion

SHOO’s rating

On January 3, 2017, Jefferies downgraded Steven Madden’s rating from “buy” to “hold” and set the stock’s price target at $37.00 per share.

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Performance of Steven Madden in 3Q16

Steven Madden (SHOO) reported 3Q16 net sales of $408.4 million, a fall of 1.2% compared to net sales of $413.5 million in 3Q15. The company’s gross profit margin rose 180 basis points, and its operating margin narrowed 40 basis points in 3Q16 compared to 3Q15.

Its net income and EPS (earnings per share) rose to $43.8 million and $0.74, respectively, in 3Q16 compared to $42.9 million and $0.70, respectively, in 3Q15.

SHOO’s cash and cash equivalents fell 13.4%, and its inventories rose 9.7% between 4Q15 and 3Q16.

Projections

Steven Madden (SHOO) made the following projections for fiscal 2016:

  • net sales growth in the range of 0%–1%
  • EPS in the range of $1.98–$2.03

Now, we’ll look at Autoliv (ALV).

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