Steven Madden, Ltd. Q4 FY2025 earnings call

• Edward R. Rosenfeld noted above-guidance earnings in Q4 driven by Steve Madden and Kurt Geiger. 2025 was challenging due to tariffs, but team focused on product and marketing. Steve Madden had strong product assortments, marketing driving brand heat. Acquisition of Kurt Geiger added growth driver. Dolce Vita had international expansion and adjacent category growth. - Zine Mazouzi reviewed Q4 and full year financials, mentioned inventory, debt, cash, CapEx, and dividend.

Consolidated revenue in Q4 2025 was $753.7 million, up 29.4% y-o-y. Excluding Kurt Geiger, consolidated revenue decreased 1.4%. Wholesale revenue was $433.3 million, up 7.5% y-o-y; excluding Kurt Geiger, it decreased 2.6%. Wholesale footwear revenue was $252.4 million, up 11% y-o-y (up 5.5% excluding Kurt Geiger) due to double-digit increases in Steve Madden and Dolce Vita, offset by private label decline. Wholesale accessories and apparel revenue was $180.9 million, up 3.1% y-o-y; excluding Kurt Geiger, it was down 13% due to Steve Madden handbags and private label declines. Direct-to-consumer revenue was $316.6 million, up 79.9% y-o-y; excluding Kurt Geiger, it increased 1.6%. Full year 2025 total revenue was $2.5 billion, up 11% y-o-y; excluding Kurt Geiger, revenue declined 6.6%. Net income for full year 2025 was $120.9 million, or $1.70 per diluted share.

Expects 2026 revenue to increase 9% to 11% vs 2025. Q1 2026 revenue expected to increase 15% to 17%. Due to tariff uncertainty, not providing earnings guidance.

Uncertainty related to tariff policy in the US, which impacts cost structure and earnings. Private label business severely affected by tariffs in value channels with price-sensitive customers and lack of brand leverage.

Q: Curious about guidance and tariff uncertainty, A: Edward R. Rosenfeld said tariff uncertainty made them not give EPS guidance.

Q: Update on sourcing dates, A: China sourcing down, diversified to Cambodia, Vietnam, Mexico, etc.

Q: Q1 revenue guide difference, A: Kurt Geiger DTC weighted, private label down.

Q: Private label business size and trend, A: Private label declined from $415M in 2024 to $355M in 2025, expected to decline further in 2026.

Q: Off-price business and SG&A, A: Off-price recovering, SG&A has headwinds from incentive comp, salary restoration, warehouse costs.

Q: Tariff impact and sales trends, A: Q1 highest tariff impact, Q2-Q4 minimal, Steve Madden price increases partially mitigated tariffs.

Q: Apparel business, A: Apparel doing well, sweaters and outerwear strong.

Q: Factors precluding guidance, A: Tariff policy uncertainty.

Q: Private label temporary decline, A: Hoped to be temporary as offer unique value.

Q: SG&A growth, A: Not guiding specific line items yet.

Q: DTC business, A: DTC accelerated, Steve Madden full-price up, outlet down; Kurt Geiger strong DTC and store performance.

Q: Annual revenue guidance breakdown, A: Business excluding Kurt Geiger up low singles, Kurt Geiger up 50% pro forma.

Q: AURs, A: AURs have nice benefit from price, mix, reduced promo, expected to moderate.

Q: Wholesale footwear outside private label, A: Steve Madden had strong momentum, good initial and chase orders.

Q: Dolce Vita business, A: Dolce Vita over $240M revenue, expanding categories and international markets