~ Provides 2026 Revenue Outlook ~ LONG ISLAND CITY, N.Y., Feb. 25, 2026 (GLOBE NEWSWIRE) -- Steven Madden, Ltd. (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel, today announced financial results for the fourth quarter and full year ended December 31, 2025 and provided its 2026 revenue outlook. Amounts referred to as “Adjusted” are non-GAAP measures that exclude the items defined as “Non-GAAP Adjustments” in the “Non-GAAP Reconciliation” section. Fourth Q ...

Group 1 - The company, Steven Madden, Ltd., plans to release its fourth quarter and fiscal year end 2025 earnings results on February 25, 2026 [1] - A conference call will be hosted by management at 8:30 a.m. Eastern Time to review the earnings results [1] - The live webcast of the management call can be accessed through the company's investor relations website [2] Group 2 - Participants can register for the conference call to receive the dial-in number and a unique PIN [3] - An online archive of the broadcast will be available on the company's investor relations website [3] Group 3 - Steven Madden designs, sources, and markets fashion-forward footwear, accessories, and apparel under various brands [4] - The company has a diverse distribution network that includes department stores, mass merchants, and online retailers [4] - Steven Madden also operates brick-and-mortar retail stores and e-commerce websites, and licenses certain brands to third parties [4]

Core Viewpoint - Steven Madden (SHOO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Steven Madden's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Steven Madden has increased by 14.8%, indicating a favorable trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Steven Madden's upgrade places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Core Insights - Steven Madden's Q3 2025 earnings report showed a decline in earnings and a mixed performance in revenues, with total revenues increasing but earnings per share (EPS) falling significantly [3][4]. Financial Performance - Adjusted quarterly earnings were reported at 43 cents per share, missing the Zacks Consensus Estimate of 44 cents, and down 52.7% from 91 cents in the prior-year period [4]. - Total revenues rose 6.9% year over year to $667.9 million, but this figure missed the consensus estimate of $699 million [4]. - Adjusted gross profit increased by 11.6% year over year to $289.7 million, surpassing the estimate of $278.5 million, with an adjusted gross margin expanding 180 basis points to 43.4% [5]. - Adjusted operating income fell to $46.3 million, down 45.8% from the prior-year quarter, with an adjusted operating margin decreasing 680 basis points to 6.9% [6]. Segment Performance - Wholesale revenues totaled $442.7 million, a decline of 10.7% year over year, with a 19% decrease when excluding the recently acquired Kurt Geiger business [7]. - Direct-to-consumer revenues increased significantly by 76.6% year over year to $221.5 million, although this growth was only 1.5% when excluding Kurt Geiger [9]. Financial Health - As of the end of the quarter, the company had cash and cash equivalents of $108.7 million and stockholders' equity of $886.1 million [10]. - A cash dividend of 21 cents per share was announced, payable on December 26, 2025 [11]. Future Outlook - For Q4 2025, the company expects revenues to rise by 27% to 30% year over year, with EPS forecasted between 30 cents and 35 cents [13]. - The contribution from Kurt Geiger is anticipated to range between $182 million and $187 million in revenues for Q4, with a significant portion coming from direct-to-consumer operations [14]. Market Sentiment - Since the earnings release, there has been an upward trend in estimates, with the consensus estimate shifting by 66.67% [15]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [17].

Core Insights - Steven Madden reported $667.88 million in revenue for Q3 2025, a year-over-year increase of 6.9%, but fell short of the Zacks Consensus Estimate of $698.91 million by 4.44% [1] - The company's EPS for the quarter was $0.43, down from $0.91 a year ago, and also missed the consensus estimate of $0.44 by 2.27% [1] Revenue Breakdown - International revenue reached $255.88 million, exceeding the average estimate of $182.76 million, representing a year-over-year increase of 110.8% [4] - Domestic revenue was $411.99 million, below the average estimate of $515.62 million, reflecting an 18.1% decline year-over-year [4] - Direct-to-Consumer revenue was $221.5 million, surpassing the average estimate of $173.97 million, with a year-over-year increase of 76.5% [4] - Total Wholesale revenue was $442.7 million, below the average estimate of $476.94 million, showing a 10.7% decrease year-over-year [4] - Total Revenue from Net Sales was $664.2 million, slightly above the average estimate of $650.91 million, marking a 6.3% year-over-year increase [4] Operational Performance - Income from operations in Wholesale was $55.72 million, below the average estimate of $66.36 million [4] - Income from operations in Direct-to-Consumer was -$4.44 million, better than the average estimate of -$7.44 million [4] - Income from operations in Wholesale Accessories/Apparel was $15.6 million, below the average estimate of $21.07 million [4] - Income from operations in Wholesale Footwear was $40.11 million, below the average estimate of $45.29 million [4] Stock Performance - Steven Madden's shares have returned +9.9% over the past month, outperforming the Zacks S&P 500 composite's +4.4% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Total revenue for Q3 2025 increased by 6.9% to $667,875 compared to $624,675 in Q3 2024, driven by the acquisition of Kurt Geiger[154] - Net income attributable to Steven Madden, Ltd. was $20,528 in Q3 2025, down from $55,278 in Q3 2024[154] - Diluted earnings per share for Q3 2025 was $0.29, compared to $0.77 in the same period last year[156] - Gross profit for Q3 2025 was $277,375, maintaining a gross margin of 41.5%, despite tariff-related impacts[161] - Income from operations for Q3 2025 decreased to $31,358, or 4.7% of total revenue, down from $74,578, or 11.9% in Q3 2024[163] - Total revenue for the nine months ended September 30, 2025 increased 4.7% to $1,780,409 compared to $1,700,609 in the prior year, primarily due to incremental revenue from the acquisition of Kurt Geiger[181] - Gross profit for the nine months ended September 30, 2025 was $729,669, or 41.0% of total revenue, down from $701,488, or 41.2% in the prior year, impacted by tariff-related issues[182] - Income from operations for the nine months ended September 30, 2025 was $44,599, or 2.5% of total revenue, significantly lower than $178,194, or 10.5% in the prior year[184] - Net income attributable to Steven Madden, Ltd. for the nine months ended September 30, 2025 was $21,474, compared to $134,589 in the prior year[185] Revenue Segmentation - Revenue from the Wholesale Footwear segment decreased by 10.9% to $266,543, representing 39.9% of total revenue, primarily due to tariff-related impacts[165] - Revenue from the Direct-to-Consumer segment surged by 76.6% to $221,505, driven by the acquisition of Kurt Geiger and expansion in brick-and-mortar stores[173] - Revenue from the Wholesale Footwear segment for the nine months ended September 30, 2025 was $782,827, or 44.0% of total revenue, down 5.9% from $832,000 in the prior year[186] - Revenue from the Direct-to-Consumer segment for the nine months ended September 30, 2025 was $529,071, or 29.7% of total revenue, an increase of 41.4% from $374,194 in the prior year[194] - Loss from operations for the Direct-to-Consumer segment for the nine months ended September 30, 2025 was $55,002, or (10.4)% of revenue, compared to income of $14,564, or 3.9% in the prior year[197] - Royalty income from the Licensing segment for the nine months ended September 30, 2025 was $8,737, or 0.5% of total revenue, up from $7,163, or 0.4% in the prior year[198] Expenses and Costs - Operating expenses for Q3 2025 rose to $246,017, or 36.8% of total revenue, compared to $178,915, or 28.6% in Q3 2024, primarily due to the acquisition of Kurt Geiger[162] - Operating expenses for the nine months ended September 30, 2025 were $687,145, or 38.6% of total revenue, compared to $507,343, or 29.8% in the prior year, largely due to acquisition-related costs[183] - Corporate operating expenses for Q3 2025 were $23,377, or 3.5% of total revenue, down from $25,065, or 4.0% in Q3 2024[179] - Corporate operating expenses were $80,070 million, representing 4.5% of total revenue, compared to $72,781 million or 4.3% in the prior year[200] Taxation - The effective tax rate for Q3 2025 was 17.4%, down from 25.5% in Q3 2024[154] - The effective tax rate for the nine months ended September 30, 2025 was 47.0%, compared to 24.3% in the prior year, primarily due to non-deductible expenses related to the acquisition of Kurt Geiger[184] Cash Flow and Investments - Cash, cash equivalents, and short-term investments totaled $108,862 as of September 30, 2025[157] - Working capital increased to $520,512 as of September 30, 2025, compared to $491,880 a year earlier[157] - Cash provided by operating activities decreased to $71,072 million from $94,245 million, primarily due to lower net income[210] - Cash used in investing activities totaled $392,861 million, mainly due to the acquisition of Kurt Geiger for $371,554 million[211] - Cash provided by financing activities was $237,540 million, primarily from net borrowings of $300,000 million[212] Acquisitions and Strategic Initiatives - The company acquired a 50% controlling interest in MG Distribution Hong Kong Limited to expand distribution in China, Hong Kong, and Macau[145] - The company completed the acquisition of Kurt Geiger for a preliminary purchase price of $403,348 million on May 6, 2025[203] - Strategic initiatives include expanding international markets and growing non-footwear categories[155] Dividends and Borrowings - A quarterly cash dividend of $0.21 per share was approved, payable on December 26, 2025[216] - The company has outstanding borrowings of $277,500 million under its senior secured term loan facility, with interest rates subject to market fluctuations[220]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach emphasizes understanding the long-term earnings power of companies and the competitive dynamics of their industries [1] - Most recommendations will be holds, indicating a cautious stance in a bullish market [1] Group 2 - The articles aim to provide important information for future investors while maintaining a healthy skepticism [1] - A very small fraction of companies are considered a buy at any point in time, highlighting a selective investment approach [1]

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]

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]