Financial Data and Key Metrics Changes - For the fourth quarter, sales were $695.1 million, up 8.7% year-over-year, while organic sales decreased 0.1% excluding Stuart Weitzman [19] - Consolidated gross margin was 42.9%, down 10 basis points from the previous year, reflecting lower margins in the brand portfolio [20] - SG&A expenses increased by $48.3 million or 18.3% to $310 million, primarily due to expenses related to Stuart Weitzman [21] - Fourth quarter earnings per diluted share were a loss of $0.36, while excluding Stuart Weitzman, the loss was $0.06 [23] Business Line Data and Key Metrics Changes - Brand portfolio sales increased 1.5% on an organic basis and 20.3% including Stuart Weitzman, with lead brands growing about 2% [5][19] - Famous Footwear sales decreased 1.2%, with comparable sales up 0.1% [20] - Sam Edelman and Allen Edmonds showed strong performance, with Sam Edelman exceeding expectations and Allen Edmonds experiencing broad-based growth across all channels [9][10] Market Data and Key Metrics Changes - The brand portfolio gained significant market share in both women's fashion footwear and total footwear during the quarter [5] - Famous Footwear saw market share gains driven by strong performance from brands like Skechers and Jordan during the holiday season [45] Company Strategy and Development Direction - The company aims to build back earnings power in 2026, focusing on strategic growth vectors and initiatives already in place [5] - Plans to expand the FLAIR format at Famous Footwear, with expectations to increase locations from 57 to a range of 65-75 by year-end 2026 [13] - The company is committed to elevating and editing brand and product assortments to enhance consumer experience [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026 as a build-back year, with expectations of modest organic sales growth and meaningful earnings recovery [16] - The company is monitoring geopolitical risks and tariff changes, which could impact future performance [27] - Management noted that the integration of Stuart Weitzman is on track and is expected to contribute positively to profitability [60] Other Important Information - The company ended the fourth quarter with $282.9 million in cash and $296.5 million in borrowings, with inventory at $610.5 million [26] - The company is maintaining a flexible approach to sourcing amid evolving tariff environments [27] Q&A Session Summary Question: Concerns about sales volatility and tax impacts - Management acknowledged that expected sales volatility did not materialize, with strong performance in other business areas offsetting minor impacts [34] Question: Wholesale planning and market share gains - Management indicated that the order book is in line with guidance, and they are seeing positive trends in e-commerce and international sales [43] Question: Category performance and sandal sales - Management reported strong sales in sandals, particularly from brands like Birkenstock and Crocs, and noted good performance in the thong category [57] Question: Stuart Weitzman break-even expectations - Management confirmed that significant cost-saving measures have been implemented, positioning Stuart Weitzman to return to break-even in 2026 [60]