Steven Madden Ltd. (SHOO) reported fourth‑quarter 2025 results that included revenue of $753.7 million, a 29.4% year‑over‑year increase, and adjusted earnings per share of $0.48, beating the consensus estimate of $0.47. The company also confirmed a quarterly dividend of $0.21 per share, payable on March 20, 2026.
Revenue growth was largely driven by the integration of the Kurt Geiger acquisition, which contributed an 11% increase in its London brand and offset a 1.4% decline in the core Steve Madden business when the acquisition is excluded. The company’s gross margin improved to 43.8% from 40.4% in the prior year, reflecting higher mix and pricing power, while operating margin contracted to 6.8% from 9.0% due to higher SG&A and integration costs.
Management attributed the EPS beat to disciplined cost control and a favorable product mix, noting that “Pleased to have delivered above guidance earnings results for the fourth quarter, driven by improved performance in our core Steve Madden footwear business as well as a strong contribution from the newly acquired Kurt Geiger.” The company also highlighted that “On a pro forma basis, revenue in the Kurt Geiger London brand grew 11% in 2025, and we expect similar growth in 2026.”
The company declined to provide EPS guidance for 2026, citing ongoing tariff uncertainty. However, it reiterated a revenue outlook of 9% to 11% growth for the full year, and a 15% to 17% increase for the first quarter, as stated by CFO Zine Mazouzi: “We expect revenue for the full year 2026 to increase 9% to 11% compared to 2025. For the first quarter of 2026, we expect revenue to increase 15% to 17%.”
Headwinds remain, with private‑label sales falling 15% in 2025 and expected to decline nearly 20% in 2026, and the company’s debt load rising due to the Kurt Geiger acquisition. The CEO also noted, “We just don't think it'd be responsible to put out earnings guidance right now.” These factors have tempered investor enthusiasm, despite the earnings beat.
Investors reacted cautiously, reflecting concerns about tariff volatility, margin compression, and the company’s growing debt. The positive revenue outlook and the continued strength of the Steve Madden and Kurt Geiger brands, however, suggest a resilient top‑line trajectory that management believes can be supported by cost discipline and strategic focus on high‑margin footwear.
Overall, the results underscore a company that is successfully expanding its revenue base through acquisitions while managing the associated cost and margin pressures. The lack of EPS guidance signals uncertainty, but the firm’s confidence in a 9%‑11% revenue growth for 2026 indicates a belief that the business model can sustain profitability once tariff and integration challenges are mitigated.
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