SHOO Q3 Earnings Lag Estimates, Shares Up on Promising Q4 Guidance

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]