Steven Madden(US:SHOO) ZACKS·2026-02-25 17:10Core Insights - Steven Madden, Ltd. (SHOO) reported fourth-quarter 2025 results with revenues and earnings exceeding the Zacks Consensus Estimate, although earnings decreased compared to the previous year [1][4]. Financial Performance - Adjusted quarterly earnings were 48 cents per share, surpassing the estimate of 46 cents, but down 12.7% from 55 cents in the prior year [4][10]. - Total revenues increased by 29.4% year over year to $753.7 million, with net sales growing 29.5% to $749.8 million, exceeding the consensus estimate of $753 million [4][10]. - Adjusted gross profit rose 40.1% year over year to $329.9 million, surpassing the estimate of $310.1 million, with an adjusted gross margin expanding 340 basis points to 43.8% [5][10]. - Adjusted operating income was $50.9 million, down 3.2% from the prior year, with an adjusted operating margin decreasing 220 basis points to 6.8% [6][10]. Segment Performance - Wholesale revenues totaled $433.3 million, a 7.5% increase year over year, but decreased by 2.6% when excluding the newly acquired Kurt Geiger business [7]. - Direct-to-consumer revenues reached $316.6 million, up 79.9% year over year, with a 1.6% increase when excluding Kurt Geiger [9]. Strategic Outlook - The company anticipates near-term pressure from private-label operations, higher operating costs, and tariff uncertainties, but believes in solid underlying fundamentals and growth opportunities, particularly with the Kurt Geiger brand [2][3]. - For 2026, the company expects revenue growth of 9-11% but is withholding earnings guidance due to tariff uncertainty [10][15]. Financial Health - As of December 31, 2025, total debt was $234.2 million, with cash and cash equivalents of $112.4 million, resulting in net debt of $121.7 million [12]. - The company did not repurchase any shares in 2025 but announced a cash dividend of 21 cents per share payable on March 20, 2026 [13].