Core Viewpoint - Investors are encouraged to consider Steven Madden (SHOO) due to improving earnings estimates and positive stock momentum [1][8] Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Steven Madden's earnings prospects, which is expected to positively impact its stock price [2] - The Zacks Rank system, which correlates earnings estimate revisions with stock price movements, supports this positive outlook [2][3] Current Quarter and Year Estimates - For the current quarter, Steven Madden is expected to earn $0.27 per share, reflecting a 50.9% decrease from the previous year, but the Zacks Consensus Estimate has increased by 83.16% due to one upward revision [5] - For the full year, the expected earnings are $1.60 per share, a 40.1% decline from the prior year, with two upward revisions contributing to a positive trend in consensus estimates [6] Zacks Rank - Steven Madden has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance compared to the S&P 500 [7] - Stocks with Zacks Rank 1 and 2 are shown to significantly outperform the S&P 500 [7] Stock Performance - The stock has gained 12.9% over the past four weeks, reflecting investor confidence in its earnings growth prospects [8]

Core Insights - Steven Madden, Ltd. (SHOO) reported third-quarter 2025 results with total revenues of $667.9 million, a 6.9% increase year over year, but earnings per share (EPS) of 43 cents missed the Zacks Consensus Estimate of 44 cents and fell 52.7% from the prior year [1][3][10] - The company provided strong forward guidance, expecting fourth-quarter revenues to rise by 27% to 30% year over year, driven by the addition of Kurt Geiger and improving momentum in its core footwear business [1][13] Financial Performance - Adjusted gross profit increased by 11.6% year over year to $289.7 million, surpassing estimates, with an adjusted gross margin expansion of 180 basis points to 43.4% [4] - Adjusted operating income fell 45.8% to $46.3 million, with an adjusted operating margin decreasing by 680 basis points to 6.9% [5] - Total revenues included $442.7 million from wholesale, down 10.7% year over year, while direct-to-consumer revenues surged 76.6% to $221.5 million [6][8] Segment Performance - Within the wholesale segment, footwear revenues declined by 10.9%, and accessories and apparel revenues fell by 10.3% [7] - Direct-to-consumer sales growth was primarily driven by the Kurt Geiger acquisition, which contributed significantly to overall revenue despite a slight decline in core operations [10][15] Future Outlook - For Q4 2025, the company anticipates revenues from Kurt Geiger to range between $182 million and $187 million, with a significant portion coming from direct-to-consumer operations [15] - Tariff-related challenges are expected to persist, impacting gross margins, but mitigation strategies are in place to alleviate some of the effects [16] Financial Health - At the end of Q3, the company had cash and cash equivalents of $108.7 million and stockholders' equity of $886.1 million [11] - A cash dividend of 21 cents per share is scheduled for payment on December 26, 2025 [12]

Core Insights - The company believes the worst impacts from tariffs are behind them, with order patterns from wholesale customers normalizing and strong underlying consumer demand for their brands [1][2] - The third quarter of 2025 was challenging due to new tariffs on Chinese imports, leading to reduced orders and shipment delays, which negatively affected revenue and earnings [2][9] - The company is seeing strong performance in its flagship Steve Madden brand, particularly in boots and dress shoes, supported by effective marketing strategies targeting Gen Z and millennials [4][5] Financial Performance - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to 2024, but a 14.8% decrease when excluding the newly acquired Kurt Geiger [9] - Wholesale revenue decreased by 10.7% to $442.7 million, with footwear revenue down 10.9% and accessories and apparel down 10.3% [9][10] - Direct-to-consumer revenue increased by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [10] Gross Margin and Operating Expenses - Consolidated gross margin improved to 43.4% from 41.6% in the prior year, primarily due to the higher mix of direct-to-consumer sales from Kurt Geiger [11] - Wholesale gross margin decreased to 33.6% from 35.5% due to tariff pressures, while direct-to-consumer gross margin fell to 61.9% from 64% [11] - Operating expenses rose to $243.4 million, or 36.4% of revenue, compared to 27.9% in 2024, leading to operating income of $46.3 million [12] Future Outlook - The company expects revenue growth of 27% to 30% in Q4 2025 compared to 2024, with earnings per share projected between $0.41 and $0.46 [14] - The integration of Kurt Geiger is on track, with mid-teens comp sales growth and plans for expansion in international markets [5][30] - The company aims to recover gross margins over time, with expectations of improved performance in 2026 [49][65] Brand Performance and Marketing - The Steve Madden brand is experiencing strong sell-through rates, particularly in boots and dress shoes, with a focus on fashion-forward products [4][16] - The marketing strategy includes increased investment in social media platforms, driving awareness and conversion among younger consumers [4][60] - The company is seeing improved performance in full-price channels compared to value price channels, which have been more affected by tariff-related disruptions [60] Inventory and Supply Chain - Inventory at the end of Q3 was $476 million, a significant increase from $268.7 million in 2024, with efforts to manage stock levels amid supply chain disruptions [13] - The company is diversifying its sourcing strategy to reduce reliance on any single country, particularly in light of tariff changes [24] - The ability to chase demand has been impacted by supply chain disruptions, but the company has managed to front-load merchandise effectively [22][23]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, down from $85.4 million, or 13.7% of revenue in the prior year [12] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the Kurt Geiger brand were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and expects growth in both retail and wholesale channels [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but believes the worst is behind them, with order patterns from wholesale customers normalizing [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected in the range of $0.41-$0.46 [14] - Management expressed confidence in improved financial performance in Q4 and the long-term growth potential of their brands and business model [8] Other Important Information - Consolidated gross margin was 43.4%, up from 41.6% in the comparable period of 2023, primarily due to the higher mix of DTC from Kurt Geiger [10] - The company approved a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] Q&A Session Summary Question: How is the fashion developing this fall and inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with tariffs expected to be reflected in retail prices [64][65] Question: What is the outlook for the wholesale business by type? - Management indicated the strongest performance is in regular price channels, while value price channels have faced more pressure [85] Question: How is Kurt Geiger performing by region? - Kurt Geiger is growing in all core regions, including the U.K., U.S., and Europe [42] Question: What are the expectations for international brand growth? - Management anticipates high single-digit revenue growth for Steve Madden internationally in 2025 and strong double-digit growth for Kurt Geiger [73]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024, with a 19% decrease when excluding Kurt Geiger [9] - Direct-to-consumer revenue increased by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [9] - Net income attributable to Steve Madden Ltd. was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] Business Line Data and Key Metrics Changes - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from Q3 2024, or down 16.7% excluding Kurt Geiger [9] - Wholesale accessories and apparel revenue was $176.2 million, down 10.3% compared to the prior year, or down 22.5% excluding Kurt Geiger [9] - Direct-to-consumer gross margin was 61.9%, down from 64% in the comparable period in 2024 due to tariff pressures and the addition of Kurt Geiger [11] Market Data and Key Metrics Changes - Comp sales for Kurt Geiger London were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company operated 397 retail stores, including 99 outlets, and 7 e-commerce websites as of the end of the quarter [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - Strategic pricing actions and sourcing initiatives are being implemented to mitigate gross margin pressure [5] - The integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but expressed confidence that the worst is behind them [4] - There is optimism for improved financial performance in Q4 2025, with expectations of revenue growth of 27%-30% compared to Q4 2024 [14] - Management believes they have the brands and strategy to drive sustainable revenue and earnings growth over the long term [8] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [13] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with expectations to return to pre-tariff margins eventually [64][65] Question: What is the performance outlook for wholesale channels? - Strongest performance is seen in regular price channels, while value price channels have faced more pressure [85] Question: How is the international growth outlook for Steve Madden and Kurt Geiger? - Steve Madden is expected to see high single-digit revenue growth internationally, while Kurt Geiger is anticipated to achieve strong double-digit growth [73]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [12] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, compared to $85.4 million, or 13.7% of revenue in the comparable period in the prior year [11] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the new brand, Kurt Geiger London, were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and is working on expanding its international presence [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q3 due to new tariffs on imports but expressed confidence that the worst is behind them [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected to be in the range of $0.41-$0.46 [13][14] - Management believes that the underlying consumer demand for their brands remains strong despite tariff-related challenges [5] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [13] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [12] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [16][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [19][20] Question: How is the handbag business performing and what are the expectations for apparel? - The handbag business is expected to stabilize as demand improves, while apparel has been a growth story with good sell-throughs in key accounts [46][47] Question: What is the outlook for wholesale performance by channel? - Strongest performance is seen in regular price channels, while value price channels like off-price and mass have faced more pressure [82] Question: How is the company addressing margin recovery? - Management believes that all margin erosion is recoverable over time, with expectations to return to pre-tariff margins in the core business [64]

Core Insights - Steven Madden reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.91 per share a year ago, representing an earnings surprise of -2.27% [1] - The company posted revenues of $667.88 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.44%, compared to $624.67 million in the same quarter last year [2] - Steven Madden shares have declined approximately 22.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $690.07 million, and for the current fiscal year, it is $1.51 on revenues of $2.5 billion [7] - The estimate revisions trend for Steven Madden was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Shoes and Retail Apparel industry, to which Steven Madden belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Revenue Performance - Third quarter 2025 revenue increased by 6.9% to $667.9 million compared to $624.7 million in the same period of 2024[7] - Direct-to-consumer revenue surged by 76.6% to $221.5 million compared to the third quarter of 2024, while wholesale revenue decreased by 10.7% to $442.7 million[4][5] - The company expects fourth quarter 2025 revenue to increase by 27% to 30% compared to the same period of 2024, with diluted EPS projected in the range of $0.30 to $0.35[11] Profitability - Net income attributable to Steven Madden, Ltd. was $20.5 million, or $0.29 per diluted share, down from $55.3 million, or $0.77 per diluted share, in the same period of 2024[7] - Adjusted income from operations totaled $46.3 million, or 6.9% of revenue, compared to $85.4 million, or 13.7% of revenue, in the same period of 2024[7] - For the nine months ended September 30, 2025, net income was $24,366,000, a decrease from $138,099,000 in the same period of 2024[20] - The adjusted diluted net income per share for the nine months ended September 30, 2025, was $1.22, compared to $2.12 for the same period in 2024, reflecting a decrease of approximately 42.5%[25] - The company expects GAAP diluted net income per share for Q4 2025 to be between $0.30 and $0.35, with adjusted diluted net income per share projected between $0.41 and $0.46[25] Expenses and Debt - Operating expenses as a percentage of revenue increased to 36.8% from 28.6% in the same period of 2024[7] - GAAP operating expenses for the nine months ended September 30, 2025, were $687,145,000, up from $507,343,000 in 2024, indicating a significant increase of about 35.4%[23] - Total debt outstanding as of September 30, 2025, was $293.8 million, with cash and cash equivalents totaling $108.9 million, resulting in net debt of $185.0 million[8] Cash Flow and Investments - The company reported a net cash provided by operating activities of $67,630,000 for the nine months ended September 30, 2025, down from $94,245,000 in the prior year[20] - Capital expenditures for the nine months ended September 30, 2025, totaled $29,079,000, compared to $16,642,000 in 2024, representing an increase of approximately 74.5%[20] - The company experienced a net cash used in investing activities of $389,419,000 for the nine months ended September 30, 2025, compared to $16,715,000 in the same period of 2024[20] - The company reported a significant acquisition activity with a net cash outflow of $371,554,000 for the acquisition of businesses during the nine months ended September 30, 2025[20] Store Operations - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and seven e-commerce websites[6] Dividends - A quarterly cash dividend of $0.21 per share was approved, payable on December 26, 2025[10] Gross Profit - Gross profit as a percentage of revenue was 41.5%, unchanged from the same period of 2024, while adjusted gross profit increased to 43.4% from 41.6%[7]

Core Insights - The company reported challenging third-quarter results primarily due to new tariffs impacting imported goods, but underlying demand for its brands remains strong, particularly for the Steve Madden brand [3][4] - The company anticipates stronger financial performance in the fourth quarter, expecting revenue growth of 27% to 30% compared to the same period in 2024 [11] Financial Performance - Total revenue for the third quarter of 2025 was $667.9 million, a 6.9% increase from $624.7 million in the same period of 2024 [8] - Gross profit as a percentage of revenue was 41.5%, unchanged from the same period in 2024, while adjusted gross profit increased to 43.4% from 41.6% [8] - Net income attributable to Steven Madden, Ltd. was $20.5 million, or $0.29 per diluted share, down from $55.3 million, or $0.77 per diluted share, in the same period of 2024 [8] Revenue Breakdown - Wholesale revenue decreased by 10.7% to $442.7 million compared to the third quarter of 2024, with a 19.0% decline when excluding the recently acquired Kurt Geiger [4] - Direct-to-consumer revenue surged by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [5] Operational Highlights - The company operated 397 retail stores, including 99 outlets, and maintained seven e-commerce websites and 133 concessions in international markets [6] - As of September 30, 2025, total debt was $293.8 million, with cash and short-term investments totaling $108.9 million, resulting in net debt of $185.0 million [7] Future Outlook - For the fourth quarter of 2025, the company expects diluted EPS to be in the range of $0.30 to $0.35, with adjusted diluted EPS projected between $0.41 and $0.46 [11]

Core Viewpoint - Steven Madden, Ltd. is set to release its third quarter 2025 earnings results on November 5, 2025, with a management conference call scheduled for 8:30 a.m. Eastern Time [1]. Company Overview - Steven Madden, Ltd. designs, sources, and markets fashion-forward footwear, accessories, and apparel under various brands including Steve Madden, Kurt Geiger London, and Dolce Vita [4]. - The company also licenses products for the Anne Klein brand and operates under private label brand names for various retailers [4]. - Its distribution network includes department stores, mass merchants, online retailers, and specialty retailers, alongside direct operations of retail stores and e-commerce websites [4].