Steven Madden(US:SHOO)2026-02-25 14:30Financial 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]