Core Insights - The performance in Q4 was driven by a recovery in the core Steve Madden footwear business and a strong contribution from the newly acquired Kurt Geiger brand [1] - Management anticipates challenges in 2025 primarily due to disruptions and negative impacts from new U.S. tariffs, particularly affecting price-sensitive segments [1] Company Performance - The Steve Madden brand returned to growth in Q4 after two quarters of decline, supported by a 10% year-over-year increase in online searches and robust demand across multiple silhouettes [1] - Strategic elevation of quality and materials enabled higher average unit retails (AUR) while maintaining a competitive price-value proposition [1] Acquisition Impact - The acquisition of Kurt Geiger is meeting strategic goals of expanding international presence, accessories categories, and direct-to-consumer channels [1] Revenue Trends - Private label revenue decreased by 15% in 2025 as the company lacked brand leverage to implement pricing actions necessary to offset tariff costs in mass channels [1]

Core 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].

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $753.7 million, a 29.4% increase compared to Q4 2024. Excluding Kurt Geiger, revenue decreased by 1.4% [11] - Full-year revenue for 2025 increased by 11% to $2.5 billion, compared to $2.3 billion in 2024. Excluding Kurt Geiger, revenue declined by 6.6% [15] - Net income for Q4 2025 was $34.3 million, or $0.48 per diluted share, compared to $39.3 million, or $0.55 per diluted share in Q4 2024 [15] - Gross margin for Q4 2025 was 43.8%, up from 40.4% in Q4 2024 [13] Business Line Data and Key Metrics Changes - Wholesale revenue was $433.3 million, up 7.5% compared to Q4 2024. Excluding Kurt Geiger, wholesale revenue decreased by 2.6% [11] - Direct-to-consumer revenue was $316.6 million, a 79.9% increase compared to Q4 2024. Excluding Kurt Geiger, DTC revenue increased by 1.6% [12] - Private label revenue decreased by 15% in 2025, with an expected further decline of nearly 20% in 2026 [9] Market Data and Key Metrics Changes - Online searches for Steve Madden increased by 10% year-over-year in Q4 and have accelerated further into early 2026 [6] - Kurt Geiger's pro forma revenue grew by 11% in 2025, with similar growth expected in 2026 [8] Company Strategy and Development Direction - The company aims to deepen connections with consumers through compelling products and effective marketing strategies [4] - The acquisition of Kurt Geiger is seen as a strategic move to expand in international markets and accessories categories [7] - The company plans to maintain marketing investments to support growth and international expansion [44] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of tariffs on revenue, particularly in the private label business, which is expected to face significant pressure [9] - Despite challenges, management is optimistic about the fundamentals of the business and expects mid to high single-digit revenue growth in 2026 [10] - The company is not providing earnings guidance due to uncertainties related to tariff policies [17] Other Important Information - The company ended 2025 with 399 company-operated retail stores and 133 company-operated concessions in international markets [13] - The board approved a quarterly cash dividend of $0.21 per share, payable on March 20, 2026 [17] Q&A Session Summary Question: Why is there no EPS guidance? - Management planned to provide guidance but decided against it due to recent uncertainties regarding tariffs [20][21] Question: What is the impact of tariffs on cost structure? - Tariffs significantly affect the cost structure and earnings, leading to the decision not to provide earnings guidance [22] Question: What is the outlook for the private label business? - The private label business is expected to decline significantly, with a projected decrease of nearly 20% in 2026 [9][38] Question: How is the off-price business expected to perform? - The off-price business is recovering, but not expected to return to 2024 levels [42] Question: What are the expectations for SG&A growth? - SG&A is expected to increase due to higher incentive compensation and other operational costs [43][80] Question: How did the DTC business perform? - DTC saw strong growth, particularly in full-price channels, while outlet performance remains weak [86] Question: What is the growth outlook for Dolce Vita? - Dolce Vita is expected to grow high single digits, with revenue now over $240 million [105]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $753.7 million, a 29.4% increase compared to Q4 2024. Excluding Kurt Geiger, revenue decreased by 1.4% [11] - Full-year revenue for 2025 increased by 11% to $2.5 billion, compared to $2.3 billion in 2024. Excluding Kurt Geiger, revenue declined by 6.6% [15] - Net income for Q4 2025 was $34.3 million, or $0.48 per diluted share, down from $39.3 million, or $0.55 per diluted share in Q4 2024 [15] - Gross margin for Q4 2025 was 43.8%, compared to 40.4% in Q4 2024 [13] Business Line Data and Key Metrics Changes - Wholesale revenue was $433.3 million, up 7.5% compared to Q4 2024. Excluding Kurt Geiger, wholesale revenue decreased by 2.6% [11] - Direct-to-consumer (DTC) revenue was $316.6 million, a 79.9% increase compared to Q4 2024. Excluding Kurt Geiger, DTC revenue increased by 1.6% [12] - Private label revenue decreased by 15% in 2025, with an expected further decline of nearly 20% in 2026 [9] Market Data and Key Metrics Changes - Online searches for Steve Madden increased by 10% year-over-year in Q4, with further acceleration into early 2026 [6] - Kurt Geiger's pro forma revenue grew by 11% in 2025, with expectations for similar growth in 2026 [8] Company Strategy and Development Direction - The company aims to deepen connections with consumers through compelling products and effective marketing strategies [4] - The acquisition of Kurt Geiger is seen as a strategic move to expand in international markets and accessories categories [7] - The company plans to maintain marketing investments to support growth and international expansion [44] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of tariffs on revenue, particularly in the private label business, which is expected to face significant pressure [9] - Despite challenges, management is optimistic about the fundamentals of the business and expects mid to high single-digit revenue growth in 2026 [10] - The company is not providing earnings guidance due to uncertainty surrounding tariff policies [17] Other Important Information - The company ended 2025 with 399 company-operated retail stores and 133 company-operated concessions in international markets [13] - The board approved a quarterly cash dividend of $0.21 per share, payable on March 20, 2026 [17] Q&A Session Summary Question: Why is there no EPS guidance? - Management planned to provide guidance but decided against it due to recent uncertainties regarding tariffs [20][21] Question: What is the impact of tariffs on cost structure? - Tariffs significantly affect the cost structure and earnings, leading to the decision not to provide earnings guidance [22] Question: What is the outlook for the private label business? - The private label business is expected to decline significantly, with a projected decrease of nearly 20% in 2026 [9][38] Question: How is the off-price business expected to perform? - The off-price business is recovering, but not expected to return to 2024 levels [42] Question: What are the expectations for SG&A growth? - SG&A is expected to increase due to higher incentive compensation and other operational costs [44] Question: How did the DTC business perform? - DTC saw strong growth, particularly in full-price channels, while outlet performance remains weak [86] Question: What is the growth outlook for Dolce Vita? - Dolce Vita is expected to grow high single digits, with revenue over $240 million in 2025 [104]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $753.7 million, a 29.4% increase compared to Q4 2024. Excluding Kurt Geiger, revenue decreased by 1.4% [9] - Full-year revenue for 2025 increased by 11% to $2.5 billion, compared to $2.3 billion in 2024. Excluding Kurt Geiger, revenue declined by 6.6% [13][14] - Net income for Q4 2025 was $34.3 million, or $0.48 per diluted share, compared to $39.3 million, or $0.55 per diluted share in Q4 2024 [13] - Full-year net income was $120.9 million, or $1.70 per diluted share for 2025, down from $192.4 million, or $2.67 per diluted share for 2024 [14] Business Line Data and Key Metrics Changes - Wholesale revenue was $433.3 million, up 7.5% compared to Q4 2024. Excluding Kurt Geiger, wholesale revenue decreased by 2.6% [9] - Direct-to-consumer revenue was $316.6 million, a 79.9% increase compared to Q4 2024. Excluding Kurt Geiger, DTC revenue increased by 1.6% [10] - Private label revenue decreased by 15% in 2025, with expectations of a further decline of nearly 20% in 2026 [7] Market Data and Key Metrics Changes - Online searches for Steve Madden increased by 10% year-over-year in Q4 and have accelerated further into early 2026 [5] - Kurt Geiger's pro forma revenue grew by 11% in 2025, with expectations of similar growth in 2026 [6] Company Strategy and Development Direction - The company aims to deepen connections with consumers through compelling products and effective marketing strategies [4] - The acquisition of Kurt Geiger is seen as a strategic move to expand in international markets and accessories categories [5] - The company plans to maintain marketing investments to support growth and brand relevance, particularly among Gen Z and millennial consumers [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite challenges from tariffs and economic uncertainty [8] - The company expects revenue growth of 9%-11% for the full year 2026, with a 15%-17% increase anticipated for Q1 2026 [16] - Due to tariff uncertainties, the company is not providing earnings guidance at this time [16] Other Important Information - The company ended 2025 with 399 company-operated retail stores and 133 concessions in international markets [11] - SG&A expenses were $278.9 million, or 37% of revenue in Q4 2025, compared to $182.9 million, or 31.4% of revenue in Q4 2024 [12] Q&A Session Summary Question: Why is there no EPS guidance? - Management indicated that recent tariff policy changes created too much uncertainty to provide earnings guidance [18][19] Question: What is the impact of tariffs on cost structure? - The primary concern is the impact of tariffs on cost structure and earnings, which has led to the decision not to provide earnings guidance [21] Question: Update on sourcing and country of origin? - The company has diversified sourcing away from China, which was over 70% in 2024 to the high 30s in 2025, now back in the 40s due to tariff parity [23][24] Question: What is the outlook for the private label business? - The private label business is expected to decline significantly, with a projected decrease of nearly $70 million in 2026 [36] Question: How is the DTC business performing? - DTC showed strong growth, particularly in full-price channels, while outlet performance remains weak [86] Question: What are the plans for store openings and remodels? - The company plans to open five new Kurt Geiger stores in the U.S. and remodel over 10 stores for Steve Madden [87][88]