Company Overview - Steven Madden, Ltd. is a leading designer and marketer of fashion-forward footwear, accessories, and apparel [4] - The company markets products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo®, and ATM® [4] - Additionally, Steven Madden licenses products for the Anne Klein® brand and designs private label products for various retailers [4] Upcoming Earnings Release - The company plans to release its first quarter 2025 earnings results on May 7, 2025 [1] - A conference call will be hosted by management at 8:30 a.m. Eastern Time to review the results [1] Conference Call Details - The conference call will be webcast live on the company's investor relations website [2] - Participants can register for the call to receive dial-in information and a unique PIN [3] - It is recommended to join the call 10 minutes prior to the start time [3]

Steven Madden ((SHOO) was down over 34% after their Q4 earnings report on February 26 compelled analysts to lower EPS estimates nearly 8%.The Zacks Consensus fell from $2.53 to $2.33 for 2025. But this drop was on the heels of a 14% cut to EPS projections the month before from $2.95.While revenue estimates remain robust, with the 2025 consensus calling for 18% growth to $2.7 billion, the earnings outlook could result in a -12.7% annual slump.Tariff Tornado TouchdownThe above data points were as of Wednesday ...

Financial Performance - Total revenue for 2024 was $2,282,927, an increase of 15.2% compared to 2023[146] - Net income attributable to Steven Madden, Ltd. was $169,390 in 2024, down from $171,554 in 2023[146] - Diluted earnings per share in 2024 was $2.35 on 71,963 diluted weighted average shares outstanding, compared to $2.30 on 74,565 shares in 2023[146] - Gross profit in 2024 was $936,932, or 41.0% of total revenue, down from $832,414, or 42.0% in 2023, due to the acquisition of Almost Famous and a greater mix of private label footwear[155] - Operating expenses in 2024 were $698,936, or 30.6% of total revenue, compared to $612,672, or 30.9% in 2023, primarily due to expense leverage on a higher revenue base[156] - Income from operations in 2024 was $224,939, or 9.9% of total revenue, compared to $213,222, or 10.8% in 2023[157] - The effective tax rate for 2024 was 23.7%, up from 21.1% in 2023, primarily due to a lower tax benefit related to equity-based awards[157] Revenue Segmentation - Total revenue for 2024 increased by 15.2% to $2,282,927 compared to $1,981,582 in 2023, driven by growth in the Wholesale Accessories/Apparel, Direct-to-Consumer, and Wholesale Footwear segments[154] - Revenue from the Wholesale Footwear segment for 2024 was $1,059,440, or 46.4% of total revenue, a slight increase of 1.0% from $1,048,448 in 2023[158] - Revenue from the Wholesale Accessories/Apparel segment increased by 59.1% to $662,673, or 29.0% of total revenue, primarily due to the acquisition of Almost Famous[162] - Revenue from the Direct-to-Consumer segment for 2024 was $550,153, or 24.1% of total revenue, an increase of 8.6% from $506,494 in 2023[166] Store Operations - As of December 31, 2024, the company had 291 brick-and-mortar retail stores, an increase from 255 stores in 2023[147] - The company opened 54 new brick-and-mortar stores in 2024, primarily in international markets[147] - The company opened 54 brick-and-mortar stores and closed 18 in 2024, resulting in a total of 291 stores compared to 255 at the end of 2023[166] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $203,408 as of December 31, 2024, with no debt[148] - Cash provided by operating activities was $198,096 in 2024, down from $229,237 in the prior year, primarily due to unfavorable changes in inventories and receivables[178] - Cash used in investing activities totaled $39,493 in 2024, mainly for capital expenditures of $25,911 and acquisitions of $13,976[179] - Cash used in financing activities was $167,906 in 2024, primarily for share repurchases and dividends paid totaling $61,039[180] - As of December 31, 2024, working capital was $480,974, with cash and cash equivalents of $189,924 and no cash borrowing[174] Dividends and Shareholder Returns - A quarterly cash dividend of $0.21 per share was approved, with total cash dividends paid for the twelve months ended December 31, 2024, amounting to $61,039[145] - The company declared a quarterly cash dividend of $0.21 per share in February, May, July, and November 2024, totaling $15,416, $15,292, $15,172, and $15,159 respectively[185][186][187][188] Acquisitions and Joint Ventures - The company formed a joint venture with Luxury Ventures Pte. Ltd., acquiring a 51.0% interest in SM Distribution Singapore Pte. Ltd. for $1,020[134] - The company acquired the ATM Collection for approximately $9,783, enhancing its presence in the high-end fashion market[133] - The GREATS business was sold during the third quarter of 2024, leading to the write-off of remaining intangible assets[205] - The acquisition of Kurt Geiger is subject to closing conditions, and any delays could adversely affect the company's business and stock price[97] Impairments and Fair Value - The estimated fair value of the GREATS trademark was written down from $6,150 to $4,450, resulting in a pre-tax non-cash impairment charge of $1,700[204] - The Almost Famous trademark was impaired with an impairment charge of $8,635, representing the remaining carrying amount of the asset[206] - A hypothetical 5% increase to inventory reserves as of December 31, 2024, would have decreased gross profit by approximately $500[198] - The annual impairment tests concluded that the fair values of reporting units exceeded their carrying values, with no impairment charges recorded during the years presented[203] - The company reassessed the carrying amount of its Almost Famous trademark for impairment, resulting in an impairment charge due to lower estimated future cash flows[206] Risks and Challenges - The company is exposed to foreign exchange rate fluctuations, which may materially affect business and financial condition[89] - Economic conditions may negatively impact consumer confidence and discretionary spending, which could affect the company's financial condition and liquidity[98] - Ongoing litigation and legal proceedings could divert management resources and adversely impact operating results[99] - The company is subject to complex tax laws and audits, which could result in additional tax liabilities and affect operating results[100] - Changes in tax laws could increase tax liabilities and adversely affect after-tax profitability[101] - Foreign tax authorities may introduce new tax laws or adjust existing regulations, impacting tax liabilities and after-tax income[102] - Failure to maintain effective internal control over financial reporting could undermine investor confidence and negatively impact stock price[103] Corporate Expenses - Corporate operating expenses increased to $96,738 in 2024 from $91,743 in 2023, reflecting higher costs related to corporate functions[171] - Operating expenses in 2024 were $314,003, or 57.1% of Direct-to-Consumer revenue, up from $279,827, or 55.2% in 2023, due to higher marketing and occupancy costs[168] - Royalty income from the Licensing segment for 2024 was $10,661, maintaining 0.5% of total revenue, with operating expenses of $1,600[170]

Long-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies that we would like to hold independently of how the price moves in the future. Most QC calls will be holds, and that is by design. Only a very sm ...

Steven Madden, Ltd. (SHOO) reported fourth-quarter 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. Total revenues increased, while earnings decreased from the year-ago period’s actuals.Management attributed the strong performance in 2024 to robust gains in international markets, expansion in non-footwear categories and strength in direct-to-consumer (“DTC”) channels, along with a return to revenue growth in the U.S. wholesale footwear business.Looking ahead to 2025, the co ...

Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue was $582.3 million, a 12% increase compared to Q4 2023 [17] - Full-year revenue for 2024 increased 15.2% to $2.3 billion compared to $2 billion in 2023 [22] - Diluted EPS for 2024 was $2.67, up from $2.45 in 2023 [22] - Consolidated gross margin was 40.4%, down from 41.7% in Q4 2023 [19] - Net income for Q4 2024 was $39.3 million, or $0.55 per diluted share, compared to $45 million, or $0.61 per diluted share in Q4 2023 [21] Business Line Data and Key Metrics Changes - Accessories and apparel revenue increased 35.4% in Q4 2024, driven by strong growth across categories [18] - DTC revenue in 2024 was $550 million, a 9% increase versus 2023 [10] - Wholesale revenue was $402.9 million, up 13.6% compared to Q4 2023 [17] - The handbag business crossed the $300 million mark in revenue for the first time, increasing 31% compared to the prior year [8] Market Data and Key Metrics Changes - International revenue grew 12% in 2024, with EMEA region revenue increasing 18% [4][5] - Revenue in the Americas ex-US grew 9%, including mid-single-digit gains in Canada and Mexico [5] - The company transitioned from a distributor model to an ownership model in key markets, including new joint ventures in Latin America and Singapore [6] Company Strategy and Development Direction - The company aims to expand in international markets, accessories categories, and direct-to-consumer channels [14] - The acquisition of Kurt Geiger is expected to add a new growth engine, with a focus on expanding its brand portfolio and leveraging existing infrastructure [13][14] - The company plans to mitigate tariff impacts by diversifying production out of China and selectively raising prices [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook for 2025 due to near-term headwinds, including new tariffs and inventory pressures in the handbag business [12] - The company anticipates revenue growth of 17% to 19% in 2025, including contributions from Kurt Geiger [25] - Management noted a slow start to 2025, particularly in DTC sales, attributed to weather and consumer confidence issues [43][45] Other Important Information - The company returned nearly $160 million to shareholders through dividends and share repurchases in 2024 [11] - The effective tax rate for Q4 2024 was 21.4%, up from 14.3% in Q4 2023 [21] - The company ended 2024 with $203.4 million in cash and no debt [23] Q&A Session Summary Question: Can you talk about gross margin pressure and plans to mitigate it? - Management acknowledged tariff pressures and outlined strategies including diversifying production and selective price increases [30][32] Question: Can you provide insights on DTC performance in January versus February? - Management reported a slow start to the year, particularly in selling spring products, with weak store traffic attributed to weather [43][45] Question: Why is now the right time for the Kurt Geiger acquisition? - Management highlighted Kurt Geiger's strong growth potential and alignment with strategic initiatives [47][48] Question: What is the expected impact of tariffs on the business? - Management included impacts from both China and Mexico tariffs in their guidance, with plans to adjust sourcing strategies accordingly [128] Question: How is the inventory health and what is the outlook for boots? - Management expressed confidence in inventory composition, noting a successful boot season and ongoing focus on spring styles [104][106] Question: What are the plans for future M&A activity? - Management indicated a focus on integrating Kurt Geiger, with no immediate plans for additional acquisitions [72]

Core Insights - Steven Madden reported revenue of $582.32 million for the quarter ended December 2024, marking a year-over-year increase of 12.1% [1] - The earnings per share (EPS) for the same period was $0.55, down from $0.61 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $548.56 million by 6.15%, while the EPS surpassed the consensus estimate of $0.54 by 1.85% [1] Revenue Breakdown - Total revenue (net sales) was $578.82 million, exceeding the four-analyst average estimate of $546.24 million, with a year-over-year change of +12% [4] - Total wholesale revenue reached $402.90 million, surpassing the estimated $370.96 million by three analysts, reflecting a year-over-year increase of +13.6% [4] - Direct-to-consumer revenue was reported at $176 million, slightly above the average estimate of $173.69 million, representing an 8.4% year-over-year change [4] Stock Performance - Over the past month, shares of Steven Madden have returned -8.7%, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1 - Steven Madden reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, but down from $0.61 per share a year ago, representing an earnings surprise of 1.85% [1] - The company achieved revenues of $582.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.15% and increasing from $519.71 million year-over-year [2] - Over the last four quarters, Steven Madden has consistently surpassed consensus EPS and revenue estimates [2] Group 2 - The stock has underperformed, losing approximately 10.9% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $577.04 million, and for the current fiscal year, it is $2.81 on revenues of $2.35 billion [7] - The Shoes and Retail Apparel industry, to which Steven Madden belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8]

Revenue Growth - Full Year 2024 revenue increased by 15.2% to $2,282.9 million, compared to $1,981.6 million in 2023[7] - Fourth Quarter 2024 revenue rose by 12.0% to $582.3 million, compared to $519.7 million in the same period of 2023[7] - The wholesale business revenue in Q4 2024 was $402.9 million, a 13.6% increase year-over-year[8] - Direct-to-consumer revenue in Q4 2024 was $176.0 million, an 8.4% increase compared to Q4 2023[9] Earnings and Profitability - Adjusted diluted EPS for 2024 increased by 9% to $2.67, compared to $2.45 in 2023[7] - Adjusted diluted income per share for the twelve months ended December 31, 2024, was $2.67, up from $2.45 in 2023, an increase of 9.0%[28] - Net income for the twelve months ended December 31, 2024, was $175,902 thousand, a slight increase from $173,975 thousand in 2023, reflecting a growth of 1.1%[24] - Adjusted net income attributable to Steven Madden, Ltd. for the twelve months ended December 31, 2024, was $192,390 thousand, compared to $182,683 thousand in 2023, marking a 5.9% increase[28] Financial Position - As of December 31, 2024, cash and short-term investments totaled $203.4 million, with inventory at $257.6 million[11] - Total assets increased to $1,411,771 thousand as of December 31, 2024, up from $1,347,943 thousand in 2023, representing a growth of 4.7%[22] - Total stockholders' equity increased to $875,997 thousand in 2024 from $848,032 thousand in 2023, a growth of 3.3%[22] - Cash and cash equivalents decreased to $189,924 thousand at the end of 2024 from $204,640 thousand in 2023, a decline of 7.3%[24] - Total current liabilities rose to $413,721 thousand in 2024, up from $377,624 thousand in 2023, indicating an increase of 9.5%[22] Capital Expenditures - Capital expenditures for the year were $25,911 thousand, compared to $19,470 thousand in 2023, representing a 33.4% increase[24] Future Outlook - The company expects 2025 revenue to increase by 17% to 19% compared to 2024, with diluted EPS projected between $2.30 and $2.40[13] - The company plans to close the acquisition of Kurt Geiger in Q2 2025, which is expected to enhance growth in international markets and direct-to-consumer channels[6] Dividends - A quarterly cash dividend of $0.21 per share was approved, payable on March 21, 2025[12] Operating Expenses - For Q4 2024, the company incurred a pre-tax expense of $1.8 million ($1.3 million after-tax) related to severances and related charges, included in operating expenses[29] - The company reported a pre-tax expense of $3.4 million ($2.6 million after-tax) for legal settlements and related fees in Q4 2024, included in operating expenses[29] - A pre-tax expense of $3.6 million ($2.8 million after-tax) was recorded for acquisitions, joint ventures, and reorganization of foreign entities in Q4 2024, included in operating expenses[29] - The company recognized a pre-tax benefit of $2.9 million ($2.2 million after-tax) from the change in valuation of a contingent consideration liability related to the acquisition of Almost Famous[29] Historical Expenses - For the full year 2023, the company reported a pre-tax expense of $6.5 million ($5.0 million after-tax) due to trademark impairment[31] - The company incurred a pre-tax expense of $2.4 million ($1.9 million after-tax) for acquisitions and joint ventures in the full year 2023, included in operating expenses[31] - A pre-tax expense of $2.7 million ($2.3 million after-tax) was recorded for the write-off of an investment in a subsidiary in Asia during the full year 2023[31] - The company reported a pre-tax expense of $3.8 million ($2.9 million after-tax) related to severances, termination benefits, and corporate office relocation in the full year 2023[31] - A pre-tax expense of $10.3 million ($7.9 million after-tax) was incurred for trademark impairments in Q4 2023[30] - The company recognized a pre-tax expense of $2.0 million ($1.5 million after-tax) for the purchase accounting fair value adjustment of inventory acquired in the Almost Famous acquisition, included in cost of goods sold for the full year 2023[31]

Core Viewpoint - Steve Madden reported strong financial results for 2024, with a revenue increase of 15% and an adjusted diluted EPS growth of 9% compared to 2023, while providing a cautious outlook for 2025 due to anticipated headwinds from new tariffs and the pending acquisition of Kurt Geiger [5][6]. Full Year 2024 Results - Revenue for 2024 was $2,282.9 million, a 15.2% increase from $1,981.6 million in 2023 [7]. - Adjusted diluted EPS for 2024 was $2.67, compared to $2.45 in 2023 [7]. - Gross profit margin decreased to 41.0% from 42.0% in 2023 [7]. - Operating expenses as a percentage of revenue improved to 30.0% from 30.6% in 2023 [7]. Fourth Quarter 2024 Results - Fourth quarter revenue was $582.3 million, a 12.0% increase from $519.7 million in Q4 2023 [7]. - Net income for the fourth quarter was $34.8 million, or $0.49 per diluted share, compared to $35.9 million, or $0.49 per diluted share in Q4 2023 [7]. - Direct-to-consumer revenue increased by 8.4% in Q4 2024, driven by both brick-and-mortar and e-commerce sales [9]. Channel Performance - Wholesale revenue in Q4 2024 was $402.9 million, a 13.6% increase year-over-year, with wholesale accessories/apparel revenue up 35.4% [8]. - Direct-to-consumer gross profit margin was 62.0%, down from 62.7% in Q4 2023 due to increased promotional activity [9]. Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents totaled $203.4 million, with inventory at $257.6 million [11]. - The company repurchased approximately $98.4 million of its common stock during the year [11]. 2025 Outlook - For 2025, the company expects revenue growth of 17% to 19% compared to 2024, with diluted EPS projected between $2.30 and $2.40 [13]. - The outlook assumes the acquisition of Kurt Geiger will close on May 1, 2025, which is expected to enhance growth opportunities [6][13].