Steven Madden(US:SHOO)2026-02-25 14:32Financial 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]