Steven Madden, Ltd. (SHOO) Shows Strong Bullish Potential

Waterboy Investing shared a bullish thesis on Steven Madden, Ltd. (SHOO) with the stock trading at $23.35. The company boasts high returns on capital, consistent free cash flow, and shareholder-friendly capital allocation. Despite tariff concerns, SHOO trades at just 8.93x trailing earnings and offers a 3.52% dividend yield.

Founded in 1990 by Steve Madden, SHOO has grown through a nimble strategy, quickly scaling popular designs online and in 314 stores. With industry-leading inventory turns, stable gross margins, and strong brand relevance, SHOO has avoided expensive celebrity endorsements. CEO Ed Rosenfeld has exercised disciplined capital allocation, recently acquiring UK-based Kurt Geiger for $384 million.

Bulls On Parade previously highlighted Birkenstock Holding plc (BIRK)’s strong expansion in Asia and premium brand positioning. While BIRK’s stock price has depreciated, Waterboy Investing sees a similar upside potential in SHOO, emphasizing disciplined capital allocation and acquisition opportunities. Investors may find value in these footwear companies.

Read more at Yahoo Finance: Steven Madden, Ltd. (SHOO): A Bull Case Theory