Shares of Steven Madden Ltd. fell Tuesday, after Wedbush analyst Tom Nikic backed away from his yearlong bullish stance one day before the footwear, clothing and accessories company reports quarterly results, saying he expects the company to lower its earnings outlook as the selling environment has deteriorated. Nikic cut his rating on the stock to neutral, after being at outperform since October 2021. He lowered his price target by 33%, to $29 from $43, with the new target nearly 1% below current prices.
lost 0.5% in morning trading, after rallying 5.6% the past week leading up to results. “Our move to the sidelines is due to the deteriorating macro environment, difficult compares, high exposure to the challenging U.S. wholesale channel and a highly discretionary category focus that may come under pressure now that consumers have ‘refreshed’ their closets (amidst the COVID reopening in late-2021/early-2022),” Nikic wrote in a note to clients. Nikic’s concerns come as recent data showed that retail sales fell flat in September, and consumer sentiment remained at historically negative levels, as inflation and rising interest rates crimped spending. Steven Madden is scheduled to report third-quarter results on Wednesday, before the market opens. Analysts surveyed by FactSet project the compa …