SHOO Q4 Earnings Top Estimates, Revenues Jump Y/Y on Kurt Geiger Boost

Steven Madden, Ltd. SHOO has reported fourth-quarter 2025 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Total revenues increased, while earnings decreased from the year-ago period.

Growth in the quarter was supported by the improved performance in the core Steve Madden footwear business and a meaningful contribution from the newly acquired Kurt Geiger brand. Management highlighted building momentum in its flagship brand and sees significant growth opportunities ahead, particularly within Kurt Geiger London. 

While the company anticipates some near-term pressure from its private-label operations, higher operating costs and ongoing tariff uncertainty, it emphasized that underlying fundamentals remain solid. With resonant product assortments, effective marketing and strong brand relevance, the company believes it is well-positioned to drive sustainable long-term growth and shareholder value.

Steven Madden’s Quarterly Performance: Key Insights

SHOO posted adjusted quarterly earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The metric fall 12.7% from 55 cents in the prior-year period.

Total revenues rose 29.4% year over year to $753.7 million. Net sales of $749.8 million grew 29.5%, and licensing fee income of $3.9 million increased 10.2% from the year-ago period. The top line surpassed the consensus estimate of $753 million.

Adjusted gross profit rose 40.1% year over year to $329.9 million, which surpassed our estimate of $310.1 million. We note that the adjusted gross margin expanded 340 basis points (bps) to 43.8%.

The company’s adjusted operating expenses increased 52.5% year over year to $278.9 million. Our estimate for the metric was $267.6 million. As a percentage of revenues, adjusted operating expenses increased 560 bps year over year to 37%.

Steven Madden has reported an adjusted operating income of $50.9 million, down 3.2% from the prior-year quarter. The adjusted operating margin decreased 220 bps to 6.8%. We expected an adjusted operating margin of 5.7% for the quarter.

SHOO’s Segmental Performance

In the fourth quarter of 2025, wholesale revenues totaled $433.3 million, representing a 7.5% surge from the year-ago period. When excluding the recently acquired Kurt Geiger business, wholesale revenues decreased 2.6% year over year. We expected wholesale revenues of $429.4 million in the fourth quarter.

Within the wholesale segment, footwear revenues were up 11%, or 5.5% excluding Kurt Geiger, while accessories and apparel revenues increased 3.1%, but declined 13%, excluding Kurt Geiger. The adjusted gross margin in this segment was 31.5%, up 100 basis points year over year, primarily reflecting the addition of the Kurt Geiger business, partially offset by the impacts of newly implemented tariffs on products imported into the United States.

Direct-to-consumer revenues for the quarter were $316.6 million, up 79.9% year over year. Excluding Kurt Geiger, direct-to-consumer sales grew 1.6%. The adjusted gross margin was 59.8%, down 220 basis points year over year, reflecting the effects of new import tariffs and the addition of the Kurt Geiger concessions business. We anticipated direct-to-consumer revenues of $312.2 million in the fourth quarter.

At the end of the fourth quarter, the company operated 399 brick-and-mortar retail stores, including 98 outlet locations, along with seven e-commerce websites and 133 company-operated concessions in international markets.

SHOO’s Financial Health Snapshot

As of Dec. 31, 2025, the company had total debt outstanding of $234.2 million, and cash and cash equivalents of $112.4 million, resulting in net debt of $121.7 million. The capital expenditure in 2025 was $42.7 million.

The company did not repurchase any shares of its common stock in the open market during 2025. In the fourth quarter and for 2025, the company used $5.2 million and $13.5 million, respectively, to acquire shares in connection with the net settlement of employees’ stock awards.

SHOO announced a cash dividend of 21 cents per share, payable on March 20, 2026, to stockholders of record as of the close of business on March 11.

SHOO Stock Past 3-Month Performance

SHOO’s 2026 Outlook

For 2026, the company expects revenues to increase 9-11% from that reported in 2025. However, given the uncertainty related to recent changes in U.S. tariff policy, the company is not issuing any earnings guidance at this time.

In the past three months, shares of this Zacks Rank #4 (Sell) company have lost 10.4% compared with the industry’s 0.4% decline.

Stocks to Consider

Some better-ranked stocks are FIGS Inc. FIGS, American Eagle Outfitters Inc. AEO and Boot Barn Holdings, Inc. BOOT.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 400% and 7.1%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for AEO’s current fiscal-year earnings and sales implies a decline of 20.7% and growth of 2.6%, respectively, from the year-ago actuals. American Eagle delivered a trailing four-quarter average earnings surprise of 35.1%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 26% and 17.6%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 4.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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