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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]

Financial Data and Key Metrics Changes - For the fourth quarter of 2024, consolidated revenue was $582.3 million, a 12% increase compared to Q4 2023 [19] - Full year revenue for 2024 increased 15.2% to $2.3 billion compared to $2.0 billion in 2023 [22] - Diluted EPS for Q4 2024 was $0.55, down from $0.61 in Q4 2023, while full year diluted EPS increased to $2.67 from $2.45 in 2023 [22][23] - Consolidated gross margin was 40.4% in Q4 2024, down from 41.7% in Q4 2023 [21] Business Line Data and Key Metrics Changes - Wholesale revenue for Q4 2024 was $402.9 million, up 13.6% year-over-year, with footwear revenue increasing by 1% to $227.4 million [19] - Accessories and apparel revenue surged 35.4% to $175.4 million in Q4 2024, driven by strong growth across categories [19] - Direct-to-Consumer (DTC) revenue was $176 million, an 8.4% increase compared to Q4 2023, with Steve Madden DTC revenue up 6% and Dolce Vita DTC revenue growing 36% [12][20] Market Data and Key Metrics Changes - International revenue grew 12% in 2024, with EMEA region revenue increasing 18% [9] - Revenue in the Americas excluding the U.S. grew 9%, supported by a new joint venture in Latin America [9] Company Strategy and Development Direction - The company aims to expand its international presence and diversify production away from China, targeting a reduction in goods sourced from China to the low 40% range by November 2025 [14][28] - The acquisition of Kurt Geiger is expected to enhance growth in international markets and accessories categories, aligning with the company's strategic initiatives [15][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook for 2025 due to new tariffs and inventory pressures in the handbag business [14] - The company anticipates revenue growth of 17% to 19% in 2025, including contributions from Kurt Geiger, but expects low single-digit growth excluding the acquisition [24] Other Important Information - The company returned nearly $160 million to shareholders through dividends and share repurchases [14] - Inventory at the end of 2024 was $257.6 million, up 12.5% year-over-year, attributed to longer transit times [23][96] 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 [26][28] Question: How is the DTC business performing in January versus February? - Management noted a slow start to the year, particularly in spring product sales, attributed to weather and consumer confidence [38][40] Question: Why is now the right time for the Kurt Geiger acquisition? - The acquisition is seen as an opportunity to leverage Kurt Geiger's growth potential and align with strategic initiatives [43][44] Question: What are the expectations for organic growth in 2025? - Management expects low single-digit growth in wholesale and high single-digit growth in DTC, with specific pressures noted in the handbag segment [54][55] Question: How is inventory health and performance of boots? - Inventory is considered healthy, with a strong boot season reported, but management is focused on transitioning consumers to spring styles [94][98]

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].

Core Viewpoint - Analysts project that Steven Madden (SHOO) will report quarterly earnings of $0.54 per share, reflecting an 11.5% decline year over year, while revenues are expected to reach $548.56 million, marking a 5.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 6.1% in the past 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Revenue Projections - Total Revenue - Net Sales is estimated at $546.24 million, representing a 5.6% increase year over year [5] - Total Revenue - Wholesale Accessories/Apparel is projected to reach $142.08 million, indicating a 9.6% year-over-year change [5] - Total Revenue - Wholesale is expected to be $370.96 million, reflecting a 4.6% increase from the prior year [5] - Revenue - Direct-to-Consumer is forecasted at $173.69 million, showing a 7% year-over-year change [6] - Total Revenue - Wholesale Footwear is estimated at $228.88 million, indicating a 1.7% increase year over year [6] Operational Income - Income from operations - Wholesale Accessories/Apparel is estimated at $16.35 million, down from $35.96 million reported in the same quarter last year [7] Stock Performance - Over the past month, shares of Steven Madden have declined by 6.6%, compared to a 1.8% decline in the Zacks S&P 500 composite [7] - Currently, SHOO holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance in the near future [7]

Core Viewpoint - Steven Madden, Ltd. (SHOO) is expected to report a year-over-year increase in revenues for the fourth quarter of 2024, with a consensus estimate of $548.6 million, reflecting a 5.6% increase from the previous year [1][2]. Revenue Performance - The company's revenues are projected to grow due to strategic initiatives, including a focus on direct-to-consumer (DTC) sales, diversification into accessories and apparel, and strengthening international presence [4][7]. - DTC channel revenues are anticipated to increase by 6.8% year over year in the fourth quarter, driven by enhancements in e-commerce and digital marketing strategies [5]. - Wholesale revenues are expected to grow by 4.7% year over year, with wholesale accessories projected to increase by 7.5% and wholesale footwear by 3% [6]. Earnings Performance - Despite the revenue growth, the earnings per share (EPS) is expected to decline by 11.5% year over year, with a consensus estimate of 54 cents [3]. - The company has delivered a trailing four-quarter earnings surprise of 9.8% on average, with the last quarter's earnings surpassing the Zacks Consensus Estimate by 2.3% [3]. Operating Environment - The operating environment remains challenging due to cautious consumer spending and rising operating expenses, which are expected to have deleveraged by 120 basis points as a percentage of sales in the fourth quarter [8]. Earnings Prediction Model - The current earnings prediction model does not indicate a strong likelihood of an earnings beat for Steven Madden, with an Earnings ESP of +4.67% and a Zacks Rank of 5 (Strong Sell) [9].