Q4 2025 Steven Madden Ltd Earnings Call

February 25, 2026

Operator: Good day. Thank you for standing by. Welcome to the Q4 and full year 2025 Steven Madden, Ltd. Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press *11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your first speaker today, Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.

Speaker #2: Thanks, Antoine, and good morning, everyone. Thank you for joining our fourth quarter and full year 2025 earnings call and webcast. Before we begin, I'd like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the private securities litigation reformact.

Danielle McCoy: Thanks, Antoine. Good morning, everyone. Thank you for joining our Q4 and full year 2025 Earnings Call and webcast. Before we begin, I'd like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have described in our press release issued earlier today and filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. The financial results discussed on today's call are on an adjusted basis, unless otherwise noted.

Speaker #2: These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements. These risks include, among other matters, those that we have described in our press release issued earlier today and in filings we make with the SEC.

Speaker #2: We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. The financial results discussed on today's call are on adjusted basis unless otherwise noted.

Danielle McCoy: A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release. Joining me on the call today is Ed Rosenfeld, Chairman and Chief Executive Officer, and Zine Mazouzi, Chief Financial Officer and Executive Vice President of Operations. With that, I'll turn the call over to Ed. Ed?

Speaker #2: A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release. Joining me on the call today are Ed Rosenfeld, Chairman and Chief Executive Officer, and Zine Mazouzi, Chief Financial Officer and Executive Vice President of Operations.

Speaker #2: With that, I'll turn the call over to Ed. Ed?

Edward Rosenfeld: All right. Thank you, Danielle, and good morning, everyone, and thank you for joining us to review Steve Madden's Q4 and full year 2025 results. Pleased to have delivered above guidance earnings results for the Q4, driven by improved performance in our core Steve Madden footwear business, as well as a strong contribution from the newly acquired Kurt Geiger. Overall, 2025 was a challenging year, driven largely by the disruption and negative impacts resulting from new tariffs on goods imported into the US. I'm proud of how our team responded, acting quickly to mitigate the near-term impacts while staying focused on executing our strategy for long-term growth. At the center of that strategy is deepening connections with consumers through the combination of compelling product and effective marketing.

Speaker #3: All right. Thank you, Danielle. And good morning, everyone. Thank you for joining us to review Steven Madden's fourth quarter and full year 2025 results.

Speaker #3: Pleased to have delivered above guidance earnings results for the fourth quarter, driven by improved performance in our core STEVEN MADDEN footwear business, as well as a strong contribution from the newly acquired Kirk Geiger.

Speaker #3: Overall, 2025 was a challenging year, driven largely by the disruption and negative impacts resulting from new tariffs on goods imported into the United States.

Speaker #3: I'm proud of how our team responded, acting quickly to mitigate the near-term impacts while staying focused on executing our strategy for long-term growth. At the center of that strategy is deepening connections with consumers through the combination of compelling product and effective marketing.

Speaker #3: And despite the difficult environment, our team made meaningful progress on those initiatives across our brand portfolio. In our flagship brand, STEVEN MADDEN, Steve and his design team created outstanding product assortments that resonated with consumers and led to a significant acceleration in demand in the back half, , particularly in our core category of women's footwear.

Edward Rosenfeld: Despite the difficult environment, our team made meaningful progress on those initiatives across our brand portfolio. In our flagship brand, Steve Madden, Steve and his design team created outstanding product assortments that resonated with consumers and led to a significant acceleration in demand in the back half, particularly in our core category of women's footwear. Momentum that has continued into early 2026. We are encouraged by the breadth of this strength, with robust demand across various silhouettes, materials, and trends. We've also elevated quality and materials, enabling higher average unit retails while maintaining a strong price-value proposition. Our marketing team is amplifying these assortments with richer brand and product storytelling and an integrated, always-on, full-funnel strategy designed to deepen emotional connections with our key Gen Z and millennial consumers. Our marketing investments, combined with our trend-right product, are driving measurable brand heat.

Speaker #3: Momentum that has continued into early 2026. We are encouraged by the breadth of this strength, with robust demand across various silhouettes, materials, and trends.

Speaker #3: We've also elevated quality and materials enabling higher average unit retails while maintaining a strong price-value proposition. Our marketing team is amplifying these assortments with richer brand and product storytelling and an integrated, always-on full-funnel strategy designed to deepen emotional connections with our key Gen Z and millennial consumers.

Speaker #3: And our marketing investments, combined with our trend-right product, are driving measurable brand heat. Online searches for STEVEN MADDEN increased 10% year over year in Q4 and have accelerated further in early 2026.

Edward Rosenfeld: Online searches for Steve Madden increased 10% year-over-year in Q4 and have accelerated further in early 2026. After revenue declines in Q2 and Q3, the Steve Madden brand returned to growth in Q4, and we expect to build on that momentum in 2026, with mid to high single-digit revenue growth. A highlight in 2025 was our acquisition of Kurt Geiger, which closed on 6 May. In Kurt Geiger London, we added a brand with a unique brand image, distinctive design aesthetic, and compelling value proposition that have driven success across multiple categories, led by handbags. Its differentiated and elevated positioning, and its alignment with our strategic initiatives of expanding in international markets, accessories, categories, and direct-to-consumer channels, make it a highly attractive and complementary addition to our portfolio.

Speaker #3: And after revenue declines in Q2 and Q3, the STEVEN MADDEN brand returned to growth in Q4, and we expect to build on that momentum in 2026 with mid to high single-digit revenue growth.

Speaker #3: A highlight in 2025 was our acquisition of Kirk Geiger, which closed on May 6th. In Kirk Geiger London, we added a brand with a unique brand image, distinctive design aesthetic, and compelling value proposition that have driven success across multiple categories, led by handbags.

Speaker #3: Its differentiated and elevated positioning and its alignment with our strategic initiatives of expanding an international market, accessories categories, and direct-to-consumer channels make it a highly attractive and complementary addition to our portfolio.

Speaker #3: Integration is progressing as planned, and we are more confident than ever in Kirk Geiger's potential to be a significant growth driver in the years ahead.

Edward Rosenfeld: Integration is progressing as planned. We are more confident than ever in Kurt Geiger's potential to be a significant growth driver in the years ahead. Importantly, the Kurt Geiger London brand continues to have strong momentum. On a pro forma basis, revenue in the Kurt Geiger London brand grew 11% in 2025. We expect similar growth in 2026. We also continued to make meaningful progress with our fastest-growing brand since the pandemic, Dolce Vita. In 2025, we built on the outstanding success we've had over the last several years in our US footwear business by expanding in international markets and gaining traction in adjacent categories like handbags. Turning to 2026, consumers are responding favorably to our new spring products. We expect high single-digit revenue growth in Dolce Vita for the year.

Speaker #3: Importantly, the Kirk Geiger London brand continues to have strong momentum. On a pro forma basis, revenue in the Kirk Geiger London brand grew 11% in 2025, and we expect similar growth in 2026.

Speaker #3: We also continue to make meaningful progress with our fastest-growing brand since the pandemic, Dolce Vita. In 2025, we built on the outstanding success we've had over the last several years in our U.S. footwear business by expanding into international markets and gaining traction in adjacent categories like handbags.

Speaker #3: Turning to 2026, consumers are responding favorably to our new spring products, and we expect high single-digit revenue growth in Dolce Vita for the year.

Speaker #3: In summary, all three of our lead brands are poised for growth, and as we look ahead to 2026, we are particularly encouraged by the momentum-building in STEVEN MADDEN and the opportunity for growth in Kirk Geiger London.

Edward Rosenfeld: In summary, all three of our lead brands are poised for growth. As we look ahead to 2026, we are particularly encouraged by the momentum building in Steve Madden and the opportunity for growth in Kurt Geiger London. On the other hand, we anticipate significant pressure in our private label business, which is primarily conducted in the mass channel. We believe the negative impact of tariffs on revenue has been most severe here, where price sensitivity is highest, and we don't have the benefit of brand leverage for pricing actions. Private label revenue decreased 15% in 2025, and we expect a further decline of nearly 20% in 2026. We also expect higher SG&A, driven by the normalization of incentive compensation and the restoration of senior executive salaries.

Speaker #3: On the other hand, we anticipate significant pressure in our private label business, which is primarily conducting our last channel. We believe the negative impact of tariffs on revenue has been most severe here, where price sensitivity is highest and we don't have the benefit of brand leverage for pricing actions.

Speaker #3: Private label revenue decreased 15% in 2025, and we expect a further decline of nearly 20% in 2026. We also expect higher SG&A, driven by the normalization of incentive compensation and the restoration of senior executive salaries.

Speaker #3: But overall, while we continue to face pressure and uncertainty related to tariffs, we are heartened that the fundamentals of our business are strong. Our product assortments and marketing campaigns are resonating with consumers, our brands are powerful and gaining relevance, and our strategy provides multiple levers for growth and long-term value creation.

Edward Rosenfeld: Overall, while we continue to face pressure and uncertainty related to tariffs, we are heartened that the fundamentals of our business are strong. Our product assortments and marketing campaigns are resonating with consumers, our brands are powerful and gaining relevance, and our strategy provides multiple levers for growth and long-term value creation. Now, I'll turn it over to Zine to review our Q4 and full year 2025 financial results in more detail and provide our initial revenue outlook for 2026.

Speaker #3: And now I'll turn it over to Zine, to review our fourth quarter and full year 2025 financial results in more detail and provide our initial revenue outlook for 2026.

Speaker #4: Thanks, Ed. And good morning, everyone. In the fourth quarter, our consolidated revenue was $753.7 million, a 29.4% increase compared to the fourth quarter of 2024.

Zine Mazouzi: Thanks, Ed. Good morning, everyone. In Q4, our consolidated revenue was $753.7 million, a 29.4% increase compared to Q4 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased 1.4%. Our wholesale revenue was $433.3 million, up 7.5% compared to Q4 2024. Excluding Kurt Geiger, our wholesale revenue decreased 2.6%. Wholesale footwear revenue was $252.4 million, an 11% increase from the comparable period in 2024, or up 5.5% excluding Kurt Geiger, driven by double-digit increases in Steve Madden and Dolce Vita, partially offset by a double-digit decline in our private label business.

Speaker #4: Excluding the newly acquired Kirk Geiger, consolidated revenue decreased 1.4%. Our wholesale revenue was $433.3 million, up 7.5% compared to the fourth quarter of 2024.

Speaker #4: Excluding Kirk Geiger, our wholesale revenue decreased 2.6%. Wholesale footwear revenue was $252.4 million, an 11% increase from the comparable period in 2024, or up 5.5% excluding Kirk Geiger, driven by double-digit increases in STEVEN MADDEN and Dolce Vita, partially offset by a double-digit decline in our private label business.

Zine Mazouzi: Wholesale accessories and apparel revenue was $180.9 million, up 3.1% compared to Q4 in the prior year, or down 13% excluding Kurt Geiger, due primarily to declines in Steve Madden handbags and private label. In our direct-to-consumer segment, revenue was $316.6 million, a 79.9% increase compared to Q4 of 2024. Excluding Kurt Geiger, our direct-to-consumer revenue increased 1.6%, with modest increases in both our brick-and-mortar and e-commerce businesses. Steve Madden US DTC returned to comp growth in Q4. A strong performance in our full price channels offset continued weakness in our outlets.

Speaker #4: Wholesale accessories and apparel revenue was $180.9 million, up 3.1% compared to the fourth quarter in the prior year, or down 13% excluding Kirk Geiger, due primarily to declines in STEVEN MADDEN handbags and private label.

Speaker #4: In our direct-to-consumer segment, revenue was $316.6 million, a 79.9% increase compared to the fourth quarter of 2024. Excluding Kirk Geiger, our direct-to-consumer revenue increased 1.6%, with modest increases in both our brick-and-mortar and e-commerce businesses.

Speaker #4: STEVEN MADDEN US DTC returned to comp growth in Q4, a strong performance in our full-price channels, offset continued weakness in our outlets. We ended the year with $399 company-operated brick-and-mortar retail stores, including 98 outlets, as well as 7 e-commerce websites, and 133 company-operated concessions in international markets.

Zine Mazouzi: We ended the year with 399 company-operated brick-and-mortar retail stores, including 98 outlets, as well as 7 e-commerce websites and 133 company-operated concessions in international markets. Our licensing royalty income was $3.9 million in Q4, compared to $3.5 million in Q4 of 2024. Consolidated gross margin was 43.8% in Q4, compared to 40.4% in the comparable period of 2024. Wholesale gross margin was 31.5% compared to 30.5% in Q4 of 2024, driven by the addition of Kurt Geiger business, partially offset by the impact of new tariffs on goods imported into the United States.

Speaker #4: Our licensing royalty income was $3.9 million in the quarter, compared to $3.5 million in the fourth quarter of 2024. Consolidated gross margin was 43.8% in the quarter, compared to 40.4% in the comparable period of 2024.

Speaker #4: Wholesale gross margin was 31.5% compared to 30.5% in the fourth quarter of 2024. Driven by the addition of Kirk Geiger business, partially offset by the impact of new tariffs on goods imported into the United States.

Zine Mazouzi: Direct-to-consumer gross margin was 59.8%, compared to 62% in the comparable period in 2024, as a result of the addition of the relatively lower margin Kurt Geiger concession business and the impact of new tariffs on goods imported into the United States. Operating expenses were $278.9 million, or 37% of revenue in the quarter, compared to $182.9 million, or 31.4% of revenue in Q4 2024. Operating income for the quarter totaled $50.9 million, or 6.8% of revenue, compared to $52.6 million, or 9% of revenue in the comparable period in the prior year. The effective tax rate for the quarter was 23.1%, compared to 21.4% in Q4 2024.

Speaker #4: Direct-to-consumer gross margin was 59.8%, compared to 62% in the comparable period in 2024, as a result of the addition of the relatively lower-margin Kirk Geiger concession business and the impact of new tariffs on goods imported into the United States.

Speaker #4: Operating expenses were $278.9 million, or 37% of revenue in the quarter, compared to $182.9 million, or 31.4% of revenue in the fourth quarter of 2024.

Speaker #4: Operating income for the quarter totaled $50.9 million, or $6.8% of revenue, compared to $52.6 million, or 9% of revenue in the comparable period in the prior year.

Speaker #4: The effective tax rate for the quarter was 23.1%, compared to 21.4% in the fourth quarter of 2024. Finally, net income attributable to Steven Madden Ltd. for the quarter was $34.3 million, or $0.48 per diluted share, compared to $39.3 million, or $0.55 per diluted share in the fourth quarter of 2024.

Zine Mazouzi: Finally, net income attributable to Steven Madden, Ltd. for the quarter was $34.3 million, or $0.48 per diluted share, compared to $39.3 million, or $0.55 per diluted share in Q4 2024. Now I would like to touch briefly on our full year results. Total revenue for 2025 increased 11% to $2.5 billion, compared to $2.3 billion in 2024. Excluding Kurt Geiger, revenue declined 6.6% compared to 2024. Net income attributable to Steven Madden, Ltd. was $120.9 million, or $1.70 per diluted share for the full year of 2025, compared to $192.4 million, or $2.67 per diluted share for 2024. Moving to the balance sheet.

Speaker #4: Now I'd like to touch briefly on our full-year results. Total revenue for 2025 increased 11% to $2.5 billion, compared to $2.3 billion in 2024.

Speaker #4: Excluding Kirk Geiger, revenue declined 6.6% compared to 2024. Net income attributable to STEVEN MADDEN Limited was $120.9 million, or $1.70 per diluted share, for the full year of 2025, compared to $192.4 million, or $2.67 per diluted share for 2024.

Speaker #4: Moving to the balance sheet, our financial foundation remained strong, and as of December 31, 2025, we had $234.2 million of outstanding debt and $112.4 million in cash, cash equivalents, and short-term investments, for a net debt of $121.7 million.

Zine Mazouzi: Our financial foundation remains strong. As of December 31st, 2025, we had $234.2 million outstanding debt and $112.4 million in cash equivalents, and short-term investment, for a net debt of $121.7 million. Inventory at December 31st, 2025, was $417 million, compared to $257.6 million at the end of 2024. Excluding Kurt Geiger, inventory was $261.9 million, a 1.6% increase compared to the same time last year. Our CapEx in Q4 was $10.3 million, and for the year was $42.6 million. The company did not purchase or repurchase any shares of its common stock in the open market in 2025.

Speaker #4: Inventory at December 31, 2025, was $417 million, compared to $257.6 million at the end of 2024. Excluding Kirk Geiger, inventory was $261.9 million, a 1.6% increase compared to the same time last year.

Speaker #4: Our CAPEX in the fourth quarter was $10.3 million, and for the year was $42.6 million. The company did not purchase or repurchase any shares of its common stock in the open market in 2025.

Speaker #4: During the fourth quarter and full year 2025, the company spent $5.2 million, and $13.5 million respectively, on shares acquired through the net settlement of employee stock awards.

Zine Mazouzi: During the Q4 and full year 2025, the company spent $5.2 million and $13.5 million, respectively, on shares acquired through the net settlement of employee stock awards. The company's board of directors approved a quarterly cash dividend of $0.21 per share. The dividend will be payable on 20 March 2026, to stockholders of record as of the close of business on 11 March 2026. Turning to our outlook, we expect revenue for the full year 2026 to increase 9% to 11% compared to 2025. For the Q1 of 2026, we expect revenue to increase 15% to 17%. Due to the uncertainty related to recent developments with respects to tax policy in the United States, the company is not providing earnings guidance at this time. Now I would like to turn the call over to the operator for questions. Antoine?

Speaker #4: The company's board of directors approved a quarterly cash dividend of $0.21 per share, the dividend will be payable on March 20th, 2026, to stockholders of record as of the close of business on March 11th, 2026.

Speaker #4: Turning to our outlook, 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%.

Speaker #4: Due to the uncertainty related to recent developments with respect to tariff policy in the United States, the company is not providing earning guidance at this time.

Speaker #4: Now I'd like to turn the call over to the operator for questions. Antoine?

Speaker #3: Thank you. At this time, we'll conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 101 on your telephone, and wait for your name to be announced.

Operator: Thank you. At this time, we'll conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while I compile the Q&A roster. Our first question comes from Paul Lejuez from Citi. Please go ahead.

Speaker #3: To withdraw your question, please press star 101 again. Please stand by while I compile the Q&A roster. Our first question comes from Paul Azus.

Speaker #3: From Citi, please go ahead.

Paul Lejuez: Hey, thanks, guys. Curious if you were prepared to give guidance as of a week ago, and the Supreme Court decision and actions of the administration caused too much uncertainty that made you take this approach of not giving EPS guidance, or was there already uncertainty? Was it still too high already, where you didn't plan on giving guidance? Maybe just start there.

Speaker #4: Hey, thanks, guys. Curious if you were prepared to give guidance as of a week ago in the Supreme Court decision and actions of the administration caused too much uncertainty that made you take this approach of not giving EPS guidance, or was there already uncertainty?

Speaker #4: Was it still too high already? Where you didn't plan on giving guidance, maybe just start there.

Edward Rosenfeld: Yeah, no, we did plan. Prior to Friday, we were planning on giving guidance for the year, based on the policy that was in effect as of that time. Obviously, over the last, you know, few days, there's been an enormous amount that's changed, and a number of important questions remain unanswered. You know, there's genuine uncertainty about where things go from here. Obviously, we're talking about tariffs, which are a factor that have a significant impact on our earnings. Given that level of uncertainty, we just don't think it'd be responsible to put out earnings guidance right now. You know, ultimately, we view guidance as a commitment to the investment community, and we only want to provide it when we have the information and clarity necessary to stand behind it.

Speaker #5: Yeah, no, we did plan prior to Friday. We were planning on giving guidance for the year. Based on the policy that was in effect as of that time.

Speaker #5: But obviously, over the last few days, there's been an enormous amount that's changed, and a number of important questions remain unanswered. There's genuine uncertainty about where things go from here.

Speaker #5: And obviously, we're talking about tariffs, which are a factor that have a significant impact on our earnings. So given that level of uncertainty, we just don't think it'd be responsible to put out earnings guidance right now.

Speaker #5: And ultimately, we view guidance as a commitment to the investment community. And we only want to provide it when we have the information and clarity necessary to stand behind it.

Edward Rosenfeld: At this moment, we just don't have that.

Speaker #5: And at this moment, we just don't have that.

Edward Rosenfeld: At this moment, we just don't have that.

Paul Lejuez: Yeah. Got it. I guess, is it just the tariff uncertainty? Obviously, there's an impact on your cost of goods, maybe where you source, or is it also a function of already hearing something from your retail partners, you know, since Friday, that's resulted in higher uncertainty?

Speaker #4: Yeah, got it. And then I guess, was it just the tariff uncertainty? Obviously, there's an impact on your cost of goods. Maybe where you source.

Speaker #4: Or is it also a function of already hearing something from your retail partners since Friday that's resulted in higher uncertainty?

Speaker #5: No, it's really the impact of tariffs and how that affects our cost structure and our earnings. That's why we did provide revenue guidance, because we still feel that we have a nice visibility into demand trends.

Edward Rosenfeld: No, it's really, the impact of tariffs and how that affects our cost structure and our earnings. That's why we did provide revenue guidance, because we still feel that we have a nice visibility into demand trends.

Paul Lejuez: Got it. Just last one for me. If you could just, can you just give us an update on your sourcing dates, like how you ended the year in terms of country of origin, and if at this point, you're planning any changes for 2026?

Speaker #4: Got it. And then just last one for me, if you could, just can you just give us an update on your sourcing base? How you ended the year in terms of country of origin and if at this point, you're planning any changes for 2017?

Speaker #5: Yeah, in the fall, if we think typically, we've talked about this with China versus other. As you know, China back in 2024 was over 70% of our sourcing footprint.

Edward Rosenfeld: Yeah, in the fall, if we're, I mean, most typically, we've talked about this with China versus other. As you know, China back in 2024 was over 70% of our sourcing footprint. We got that into the high 30s in fall of 2025. Now, year-to-date, that's got a 4 in front of it. We're back in the 40s, given that, you know, towards the tail end of the year, China came essentially into parity with many of the other countries that we're sourcing from in terms of the tariff. That continues to be how we're thinking about it, at least for the near term. Obviously, we're gonna remain flexible.

Speaker #5: And we got that into the high 30s in fall of 2025. Now, year to date, that's got a 4 in front of it. We're back in the 40s.

Speaker #5: Given that towards the tail end of the year, China came essentially into parity with many of the other countries that we're sourcing from in terms of the tariff.

Speaker #5: And that's continues to be how we're thinking about it, at least for the near term. But obviously, we're going to remain flexible.

Speaker #4: Yeah, any other countries you can talk about?

Jay Sole: Any other countries you can talk about?

Paul Lejuez: Any other countries you can talk about?

Speaker #5: Yeah, sure. Jean, you want to go through the big ones?

Edward Rosenfeld: Yeah, sure. Gene, you wanna go through the big ones?

Zine Mazouzi: Sure. The first one that we diversified to is Cambodia. Vietnam comes right after it. Obviously Mexico, as we always emphasize Mexico for the Steve Madden brand. Given that Brazil now went from 50% to 10%, that really opens up the door for more production in Brazil as well for Steve Madden and Dolce Vita.

Speaker #6: Sure. The second one, I guess the first one that we diversified to is Cambodia. And Vietnam comes right after it. And obviously, Mexico, as we always emphasize, Mexico for the Steve Madden brand.

Speaker #6: And given that Brazil now went from 50% to 10%, that really opens up the door for more production in Brazil as well for Steve Madden and Dolce Vita.

Speaker #4: Okay, great. Thanks a lot, guys. Good luck.

Jay Sole: Okay. Thanks a lot, guys. Good luck.

Paul Lejuez: Okay. Thanks a lot, guys. Good luck.

Speaker #5: Thanks, Paul.

Edward Rosenfeld: Thanks, Bob.

Speaker #3: Thank you. Our next question comes from Anna Andreeva. From Piper Sandler. Please go ahead.

Operator: Thank you. Our next question comes from Anna Andreeva from Piper Sandler. Please go ahead.

Anna Andreeva: Great. Thanks so much for taking our question. The first one we had, just on the Q1 revenue guide, you said 15 to 17. It's lower than the growth you guys guided for the holiday, and obviously, you talked about strength in the core, you know, continuing here into 2026. Is the difference there private label or, you know, anything else going on, maybe something with concessions at KG? Just wanted to follow up on that. Just as we think about the margin recapture, back to low doubles, achieved previously for the core business, can you talk about that? Kurt Geiger was a 9% margin business pre-tariff.

Speaker #7: Great. Thanks so much for taking our question up. The first one we have just on the 1Q revenue guide, you said 15 to 17.

Speaker #7: It's lower than the growth you guys guided for the holiday. And obviously, you talked about strength in the core, continuing here into '26. So is the difference there private label, or anything else going on, maybe something with concessions that KG just wanted to follow up on that?

Speaker #7: And just as we think about the margin recapture back to low doubles, achieved previously for the core business, can you talk about that? Kurt Geiger was 9% margin business pre-tariff.

Anna Andreeva: I'm not sure if you mentioned what were margins in 25, and you talked about getting to high teens there over time. Can you maybe remind us on what revenue base that would be?

Speaker #7: I'm not sure if you mentioned what the margins were in '25. And you talked about getting to high teens there over time. Can you maybe remind us on what revenue base that would be?

Anna Andreeva: I'm not sure if you mentioned what were margins in 25, and you talked about getting to high teens there over time. Can you maybe remind us on what revenue base that would be?

Edward Rosenfeld: Sure. In terms of the Q1 revenue, I think you were comparing it to what we just delivered in Q4. I think one important factor to understand is that Kurt Geiger, because it's primarily a DTC business, is much more Q4 weighted. The impact of Kurt Geiger on the consolidated revenue growth rate is much more significant in Q4. That's a big part of that. The other thing is, you know, we are expecting the business, excluding Kurt Geiger, to be down about mid-singles in Q1. We expect it to grow each quarter thereafter. And the headwinds there, you hit the nail on the head. The biggest one is private label.

Speaker #5: Sure. In terms of the Q1 revenue, I think you were comparing it to what we just delivered in Q4. I think one important factor to understand is that Kurt Geiger, because it's primarily a DTC business, is much more Q4-weighted.

Speaker #5: So the impact of Kurt Geiger on the consolidated revenue growth rate is much more significant. In Q4, so that's a big part of that.

Speaker #5: The other thing is we are expecting the business excluding Kurt Geiger to be down about mid-singles in Q1. We expect it to grow each quarter thereafter.

Speaker #5: And the headwinds there, you've hit the nail on the head. The biggest one is private label. About 95% of that decline is coming from private label, which we expect to be down about 30% in the quarter.

Edward Rosenfeld: About 95% of that decline is coming from private label, which we expect to be down about 30% in the quarter, or maybe even a little bit more. You know, obviously, still pressure on Steve Madden handbags, which we've called out previously. Again, that's a business that we expect to turn positive in terms of growth in Q2. In terms of KG operating margins, we came in at about, let's see, 6.8% for the period that we owned them in 2025. Obviously, we're not giving guidance for 2026 on an earnings basis, so we're not gonna provide an estimate of what that looks like in the near term.

Speaker #5: Or maybe even a little bit more. And then obviously, still pressure on Steve Madden handbags, which we've called out previously. And again, that's another business that we expect to turn positive in terms of growth in Q2.

Speaker #5: In terms of KG operating margins, we came in at about, let's see, 6.8% for the period that we own them in 2025. Obviously, we're not giving guidance for '26 on an earnings basis.

Speaker #5: So we're not going to provide an estimate of what that looks like. In the near term, but as you pointed out, we have committed to getting that into initially the low doubles.

Edward Rosenfeld: As you pointed out, we have committed to getting that into, you know, initially the low doubles, and we certainly think that brands business has the potential to be a mid-teens operating margin business over time.

Speaker #5: And we certainly think that brand's business has the potential to be a mid-teens operating margin business over time.

Speaker #7: Okay, that's very helpful. And just to follow up on the core business, do you think getting back to low doubles which you were just two years ago is pretty realistic over time?

Anna Andreeva: Okay. That's very, very helpful. Just a follow-up on the core business. Do you think getting back to low doubles, which you were, you know, just two years ago, is pretty realistic over time, or can you even do better?

Speaker #7: Or can you even do better?

Speaker #5: Yeah, I think getting back to where we were is realistic. Obviously, the timing on that is in flux with the all the uncertainty that we're facing right now.

Edward Rosenfeld: Yeah, I think the getting back to where we were is realistic. Obviously, the timing on that is in flux with all the uncertainty that we're facing right now.

Speaker #7: Thank you so much. Best of luck.

Anna Andreeva: Thank you so much. Best of luck.

Speaker #5: Thank you.

Edward Rosenfeld: Thank you.

Speaker #3: Thank you. Our next question comes from Jay Soul from UBS. Please go ahead.

Operator: Thank you. Our next question comes from Jay Sole from UBS. Please go ahead.

Jay Sole: Super. Thank you so much. Ed, maybe if we talk about the fiscal 2026 guidance, can you just help us understand the private label business? kind of like, can you size it for us, like, where it finished the end of 2025 and kind of where you see it trending for 2026?

Speaker #8: Super. Thank you so much. Ed, maybe if we talk about the fiscal '26 guidance, can you just help us understand the private label business?

Speaker #8: Kind of can you size it for us? Where it finished the end of 2025? And kind of where you see it trending for 2026?

Speaker #5: Yeah, that's clearly the biggest challenge that we're facing right now. So private label, just to take you back, was about 415 million dollars in '24.

Edward Rosenfeld: Yeah, that's clearly the biggest challenge that we're facing right now. Private label, just to take you back, was about $415 million in 2024. We had a pretty significant decline in 2025, down to about $355 million, around about $60 million decline. Where we sit today, we see an even bigger decline in 2026. I think that could approach a $70 million decline. That's why, I think we articulated, you know, approaching 20% decline in 2026. Again, you know, that's very different from what we're seeing in the branded business, where we are seeing a very nice recovery from the hit that we took in 2025.

Speaker #5: We had a pretty significant decline in '25, down to about 355 million. So around about 60 million dollar decline. Where we sit today, we see an even bigger decline in 2026.

Speaker #5: I think that could approach 70 million dollar decline. So that's why I think we articulated it approaching 20% decline in 2026. And again, that's very different from what we're seeing in the branded business, where we are seeing a very nice recovery from the hit that we took in 2025.

Edward Rosenfeld: As we mentioned in the prepared remarks, this is a business that has been affected much more severely by tariffs, because, you know, this is primarily done in those value channels, as you know, where our customers are most price sensitive and where, because it's private label and we don't have the benefit of our brands and the brand leverage, we don't have that power when we're looking to, you know, employ pricing actions. We have seen some of those customers pull back from us on a temporary basis. You know, we're confident that we'll be able to build that back over time. We still have good relationships with those customers.

Speaker #5: And as we mentioned in the prepared remarks, this is a business that really has been affected much more severely by tariffs, because this is primarily done in those value channels, as you know.

Speaker #5: Where our customers are most price sensitive. And because it's private label, and we don't have the benefit of our brands and the brand leverage, we don't have that power when we're looking to employ pricing actions.

Speaker #5: And so we have seen some of those customers pull back from us on a temporary basis. We're confident that we'll be able to build that back over time.

Speaker #5: We still have good relationships with those customers. We still feel that we bring something very compelling to them in terms of our styling, our fashion, and the information that we have about what's working in other channels.

Edward Rosenfeld: We still feel that we bring something very compelling to them in terms of our, of our styling, our fashion, and the information that we have about what's working in other channels. It's clearly a headwind for 2026.

Speaker #5: But it's clearly a headwind for 2026.

Speaker #8: Okay, that's clear and super helpful. Maybe if I can just ask a couple more. Can you also talk about the off-price business and kind of how you're viewing that for fiscal '26?

Marni Shapiro: Okay, that's clear and super helpful. Maybe if I can just ask a couple more. Can you also talk about the off-price business and kind of how you're viewing that for fiscal 26? Maybe, Zine, one for you, just on SG&A. You called it out in the press release, some higher incentive comp, but also maybe can you just talk about, maybe some other, you know, executive salaries, with the impact of lower private label sales or, you know, some of the other, you know, some of the other costs in the business? Like, can you give us an idea of how you expect the SG&A dollar growth to be in fiscal 26 would be helpful. Thank you.

Jay Sole: Okay, that's clear and super helpful. Maybe if I can just ask a couple more. Can you also talk about the off-price business and kind of how you're viewing that for fiscal 26? Maybe, Zine, one for you, just on SG&A. You called it out in the press release, some higher incentive comp, but also maybe can you just talk about, maybe some other, you know, executive salaries, with the impact of lower private label sales or, you know, some of the other, you know, some of the other costs in the business? Like, can you give us an idea of how you expect the SG&A dollar growth to be in fiscal 26 would be helpful. Thank you.

Speaker #8: And maybe, Zine, one for you, just on SG&A. You called it out in the press release some higher incentive comp. But also maybe can you just talk about maybe some other executive salaries, what the impact of lower private label sales or some of the other costs in the business?

Speaker #8: Can you give us an idea of how you expect SG&A dollar growth to be in fiscal '26 would be helpful. Thank you.

Speaker #5: Yeah, I'll start with the OP and then I'll turn it over to Zine. So the off-price business is recovering. We took a significant hit there in '25 as well with all the tariff disruption.

Edward Rosenfeld: I'll start with the OP, and then I'll turn it over to Zine. The off-price business is recovering. You know, we took a significant hit there in 2025 as well, with all the tariff disruption, and we should see nice growth in that channel in 2026. I don't expect to get, in that channel, all the way back to where we were in 2024. Which is in contrast to our first-tier retailers, our department stores, pure-play e-commerce retailers, specialty stores, et cetera, where we expect the growth in 2026 to recapture everything we lost in 2025 and then some. Essentially first tier, we're gonna be above 2024 and 2025. Off-price will be below 2024, but above 2025, and mass will be below 2024 and 2025.

Speaker #5: And we should see nice growth in that channel in '26. I don't expect to get in that channel all the way back to where we were in '24.

Speaker #5: Which is in contrast to our first-tier retailers, our department stores, pure play e-commerce retailers, specialty stores, etc. Where we expect the growth in 2026 to recapture everything we lost in '25 and then some.

Speaker #5: So essentially, first year, we're going to be above '24 and '25 off-price. We'll be below '24, but above '25. And mass will be below '24 and '25.

Speaker #8: So Jay, from an OPEX perspective, obviously, in addition to the inclusion of Code Geiger for a full year versus just having them for eight months the prior year, we'll also see some pressure in our SG&A.

Zine Mazouzi: Jay, from an OpEx perspective, obviously, in addition to the inclusion of Kurt Geiger for a full year versus just having them for 8 months the prior year, we'll also see some pressure in our SG&A. I think we talked about the headwind from resetting the incentive compensation and restoring the salaries. That's about $0.14 to $0.15 right there. As you may recall, that was reduced for a good portion of fiscal 2025, the salary base. We're also expecting the warehouse and fulfillment cost pressures to continue into 2026. That's both from occupancy, from renewing 2 leases in 2 of our major warehouses, and labor costs. We still are seeing inefficiencies in labor and labor shortages that we have to react to on a daily basis in California.

Speaker #8: I think we talked about the headwind from resetting the incentive compensation and restoring the salaries. That's about 14 to 15 pennies right there. And as you may recall, that was reduced for a good portion of fiscal 2025.

Speaker #8: The salary base. We're also expecting the warehouse and fulfillment cost pressures to continue into 2026. That's both from occupancy from renewing two leases in two of our major warehouses.

Speaker #8: And labor cost. We're still seeing inefficiencies in labor and labor shortages that we have to react to on a daily basis in California. We're also expecting warehouse fulfillment costs to be high, as our business increases and our DDC increases.

Zine Mazouzi: We also expect warehouse fulfillment costs to be high, as our business increases and our DTC increases. Our plan is to maintain our investment in marketing, to capitalize on the good trends we're seeing on the product side and further support our international expansion. Also, we'll continue to invest in our IT system and store fleet, which has an impact on depreciation.

Speaker #8: And our plan is to maintain our investment in marketing to capitalize on the good trends we're seeing on the product side. And further support our international expansion.

Speaker #8: And also, we'll continue to invest in our IT system and store fleet, which has an impact on depreciation. Got it. All right, super helpful.

Marni Shapiro: Got it. All right, super helpful. Thank you so much.

Jay Sole: Got it. All right, super helpful. Thank you so much.

Speaker #8: Thank you so much.

Speaker #3: Thank you. Our next question comes from Marnie Sapiro from the retail tracker. Please go ahead.

Operator: Thank you. Our next question comes from Marni Shapiro from The Retail Tracker. Please go ahead.

Speaker #9: Hey guys, thanks for taking my call. And I have to say, congrats, because the product in your stores looks absolutely outstanding. So I'm curious if we could just run through the tariff numbers.

Aubrey Tianello: Hey, guys, thanks for taking my call. I have to say congrats because the product in your stores looks absolutely outstanding. I'm curious if we could just run through the tariff numbers. Based on forgetting the Supreme Court changes, based on where we were the hardest hits of tariffs, that product coming through, came through during the holiday season through the first half of 2026? Is that what it looked like prior to this? If you could just also talk a little bit about the sales trends. What percentage or what did it look like? How much were you able to pass through, either to the consumer or mitigate with what you were doing internally?

Marni Shapiro: Hey, guys, thanks for taking my call. I have to say congrats because the product in your stores looks absolutely outstanding. I'm curious if we could just run through the tariff numbers. Based on forgetting the Supreme Court changes, based on where we were the hardest hits of tariffs, that product coming through, came through during the holiday season through the first half of 2026? Is that what it looked like prior to this? If you could just also talk a little bit about the sales trends. What percentage or what did it look like? How much were you able to pass through, either to the consumer or mitigate with what you were doing internally?

Speaker #9: Based on forgetting the Supreme Court changes, but based on where we were, were the hardest hits of tariffs that product coming through came through during the holiday season, through the first half of '26?

Speaker #9: Is that what it looked like prior to this? And then if you could just also talk a little bit about the sales trends? What percentage or what did it look like?

Speaker #9: How much were you able to pass through either to the consumer or mitigate with what you were doing internally?

Speaker #5: Yeah, first of all, thank you for the comments on the product. That's ultimately the most important thing. The greatest driver of our financial performance is the strength of our product.

Edward Rosenfeld: Yeah. First of all, thank you for the comments on the product. That's ultimately the most important thing. The greatest driver of our financial performance is the strength of our product. We appreciate that. I guess I could start on the tariff question, Zine can fill in the gaps. In terms of when we were going to see the worst impact, throughout this year, you know, prior to the ruling. Look, I think we would have seen, on a gross impact, a significant impact from tariffs in every quarter. On a year-over-year basis, the worst would have been in Q1, because we didn't have, you know, a lot of pressure last year in Q1. What was the last part of the tariff thing?

Speaker #5: So we appreciate that. I guess I could start on the tariff question that Zine can fill in the gaps. In terms of when we were going to see the worst impact, throughout this year, prior to the ruling, look, I think we would have seen on a gross impact, a quarter.

Speaker #5: On a year-over-year basis, the worst would have been in Q1 because we didn't have a lot of pressure last year in Q1. What was the last part of the tariff thing?

Aubrey Tianello: The sales trends.

Marni Shapiro: The sales trends.

Speaker #9: And sales trends.

Zine Mazouzi: How much we were able to mitigate.

Speaker #8: How much were we able to mitigate?

Edward Rosenfeld: Then in terms of mitigate, yeah. Look, as you know, we have put through some price in Steve Madden in particular. It's about, I would say, 10% on, you know, like categories. And we felt, we've, you know, been successful in getting that through and maintaining nice full price selling. That's because we have the fashion right, I think, most importantly, and also because of what I mentioned earlier, which is that we have elevated quality and materials so that there's more perceived value in the product. Obviously, that was not enough to offset the full amount of the tariffs. Great. From a flow of tariffs, Marni, Q1 was definitely the highest.

Speaker #5: Oh, and then in terms of mitigate, yeah. Look, as you know, we have put through some price in Steve Madden in particular. It's about, I would say, 10% on light categories.

Speaker #5: And we've been successful in getting that through and maintaining nice full-price selling. That's because we have the fashion, right? I think most importantly, and also because of what I mentioned earlier, which is that we have elevated quality and material so that there's more perceived value in the product.

Speaker #5: Obviously, that was not enough to offset the full amount of the tariffs.

Speaker #9: Right.

Speaker #8: So from a flow of tariffs, Marnie, Q1 was definitely the highest. Q2, we started seeing that we're comping some of the tariffs from the prior year.

Aubrey Tianello: Yep.

Zine Mazouzi: Yep.

Edward Rosenfeld: Q2, we started seeing that work comp in some of the tariffs from the prior year. Q3 and Q4 had minimal impact.

Speaker #8: And Q3 and Q4 had minimal impact.

Speaker #9: Right. That's what I figured. Just wanted to confirm. And then could you just I know it's a smaller part of the business, but just curious how the apparel business has been going.

Aubrey Tianello: Great. That's what I figured. Just wanted to confirm. Then could you just I know it's a smaller part of the business, but, just curious how the apparel business has been going. You know, it looks very good, particularly in, you know, Macy's and some of the other stores. I'm curious, have the results there been good? Is the customer, you know, excited about the brand?

Marni Shapiro: Great. That's what I figured. Just wanted to confirm. Then could you just I know it's a smaller part of the business, but, just curious how the apparel business has been going. You know, it looks very good, particularly in, you know, Macy's and some of the other stores. I'm curious, have the results there been good? Is the customer, you know, excited about the brand?

Speaker #9: It looks very good, particularly in Macy's and some of the other stores. I'm curious how the results there have been good. Is the customer excited about the brand?

Edward Rosenfeld: Yeah. I thank you for asking about that because I'm really excited about what we're seeing in apparel. You know, we continue to do really well in that. You know, our largest category has been dresses, and we continue to perform well there. I'm excited about some of the traction that we're seeing in outerwear, too. In Q4, we had a lot of success there, anything with fur was really phenomenal for us. Even now, we're seeing some nice early reads on more lighter weight outerwear pieces. That's exciting. We're getting additional doors with some of our key department store customers, like Dillard's and Macy's. That's not only the contemporary sportswear departments, but also dress departments.

Speaker #5: Yeah, I thank you for asking about that because I'm really excited about what we're seeing in apparel. We continue to do really well in that our largest category has been dresses, and we continue to perform well there.

Speaker #5: But I'm excited about some of the traction that we're seeing in outerwear too. In Q4, we had a lot of success there. And anything with fur was really phenomenal for us.

Speaker #5: And even now, we're seeing some early, some nice early reads on more lighter weight outerwear pieces. So that's exciting. We're getting additional doors with some of our key department store customers like Dillard's and Macy's.

Speaker #5: And that's not only the contemporary sportswear departments, but also dress departments. And we're investing there. We brought on some high-level, very experienced talent last year into the organization.

Aubrey Tianello: Mm-hmm.

Marni Shapiro: Mm-hmm.

Edward Rosenfeld: We're investing there. You know, we brought on some high-level, very experienced talent last year into the organization and really feel good about that and about the path that we're on there. That should be a growth vehicle for us in the coming years.

Speaker #5: And really feel good about that. And about the path that we're on there. So we're that should be a growth vehicle for us in the coming years.

Speaker #9: Great. Thanks, guys. I'll leave it for someone else.

Aubrey Tianello: Great. Thanks, guys. I'll leave it for someone else.

Marni Shapiro: Great. Thanks, guys. I'll leave it for someone else.

Speaker #5: Thank you.

Edward Rosenfeld: Thank you.

Speaker #3: Thank you. Our next question comes from Sam Poser from Williams Trading. Please go ahead.

Operator: Thank you. Our next question comes from Sam Poser from Williams Trading. Please go ahead.

Sam Poser: Thanks for taking my questions. You talked about the factors that you know, the tariff factors. Can you walk through sort of specifically what's concerning you? Because theoretically, especially with, you know, you're 5%, 4% better in a lot of countries, and you're a lot better in Brazil than you anticipated for the time being. Can you talk about, sort of, in any detail as you can, about, you know, the factors that have precluded you from giving guidance, maybe, you know, what may happen with the 301 tariffs and things like that? Then I have one more.

Speaker #8: Thanks for taking my questions. What you talked about the factors that the tariff factors. Can you walk through sort of specifically what's concerning you?

Speaker #8: Because theoretically, especially with your few base your 5%, 4% better in a lot of countries, and you're a lot, lot better in Brazil than you anticipated for the time being.

Speaker #8: Can you talk, in as much detail as you can, about the factors that have precluded you from giving guidance? Maybe what may happen with the 301 tariffs and things like that?

Speaker #8: And then I have one more.

Speaker #5: I mean, Sam, we can talk about this all day, but I think the headline is there's just a tremendous amount of uncertainty. We don't have clarity on, or any stability in terms of, the policy environment here.

Edward Rosenfeld: I mean, Sam, we can talk about this all day, but I think the headline is there's just a tremendous amount of uncertainty. We don't have clarity on or any stability in terms of the policy environment here, and so we don't know what it's gonna look like from day to day. There have been multiple changes within the last five days. I think even yesterday, we got some new information that we have not yet confirmed, about where we are. You know, obviously, we have a responsibility to give investors information that's accurate and reliable. Until there's more clarity around tariffs, we don't think earnings guidance would meet that standard.

Speaker #5: And so we don't know what it's going to look like from day to day. There have been multiple changes within the last five days.

Speaker #5: I think even yesterday, we got some new information that we have not yet confirmed about where we are. So obviously, we have a responsibility to give information investors information that's accurate and reliable.

Speaker #5: And until there's more clarity around tariffs, we don't think earnings guidance would meet that standard.

Speaker #8: No, I understand that. So let me ask it another way. If we take today versus Thursday, just in that factor, it's better than you thought it would be.

Sam Poser: No, I understand. I understand that. Let me ask it another way. If we take today versus Thursday, just in that factor, it's better than you thought it would be. There's other factors that could make it coming, possibly coming soon, that could make it the same or worse than it was on Thursday. Is that a fair way to think about-

Speaker #8: But there's other factors that could make it coming possibly coming soon that could make it the same or worse. Than it was on Thursday.

Speaker #8: Is that a fair way to think about it?

Edward Rosenfeld: I think that's accurate.

Speaker #5: I think that's accurate. I think that's accurate. Yeah.

Sam Poser: The overall?

Edward Rosenfeld: Yes, I think that's accurate.

Sam Poser: Okay.

Edward Rosenfeld: Yeah.

Speaker #8: And then with the weakness or with the plan with conceptually with the plan down business or not plan down the private label business that's going to be down, that structurally sends your gross margin up.

Sam Poser: With the weakness or with the plan, with, you know, conceptually with the plan down business or not planned down, the private label business, it's gonna be down. That structurally sends your gross margin up, and the other factors you've already talked about with SG&A up as well, as a percent of sales, because it doesn't use very much SG&A. Conceptually, your gross margin is going up, SG&A is going up a little bit more because of the incentive comp and the other factors that Zine just walked through. Is that a fair? Like, in dollars, it goes up because of those factors. As a percent, it would go up anyway because there's virtually no SG&A attached to the private label.

Speaker #8: But your and the other factors you've already talked about with SG&A up as well. So as a percent of sales. So because it doesn't use very much SG&A.

Speaker #8: So conceptually, your gross margin is going up. And SG&A is going up a little bit more because of the incentive comp and the other factors that Zine just walked through.

Speaker #8: Is that a fair in dollars? It goes up because of those factors as a percent, and it would go up anyway because there's virtually no SG&A attached to the private label?

Speaker #5: Yeah, it is. There was a lot there. But it is true that as private label shrinks, that that is a mixed benefit to our gross margin.

Edward Rosenfeld: Yeah, it is. There was a lot there. It is true that as private label shrinks, that is a mixed benefit to our gross margin. It's also true that there's not a lot of SG&A that goes away when that business comes down.

Speaker #5: It's also true that there's not a lot of SG&A that goes away when that business comes down.

Speaker #8: And what is the timeframe between the orders written, let's say, by the mass, by Walmart Target, versus everything else? So what is your visibility right now on orders from them?

Sam Poser: What is the timeframe between the orders written, let's say, by the mass, by Walmart, Target versus everything else? Like, where, how, what is your visibility right now on orders from them? When does, when did the, you know, you've mentioned at one of the meetings that some of these guys are gonna go direct. When do you think that product that they do themselves start hitting their shelves, so they can see how well it did or does compare to what you've delivered over the years?

Speaker #8: And when does you mentioned at one of the meetings that some of these guys are going to go direct. When do you think that product that they do themselves start hitting their shelves?

Speaker #8: So they can see how well it did or does compared to what you've delivered over the years.

Edward Rosenfeld: We're seeing declines throughout this year, so there are, we assume, products coming from other places, that they're filling in spring and then some more in fall. I think that's the answer. In terms of the timing, in terms of the visibility, it's not that different from what we see in the balance of the business.

Speaker #5: Well, we're seeing declines throughout this year. So there are we assume products coming from other places that they're filling in in spring, and then some more in fall.

Speaker #5: So I think that's the answer. In terms of the timing, in terms of the visibility, it's not that different from what we see in the balance of the business.

Speaker #5: They do work a little farther out. But because of the first cost nature of the business, that means that where we're delivering the product earlier to them, because they're picking it up overseas, and then they're responsible to bring it to the United States and get it through the warehouse into their floors, we then are essentially the time between when we take the order and when we ship it is very similar to the brand of business.

Edward Rosenfeld: They do work a little farther out, but because of the first cost nature of the business, that means that, you know, where we're delivering the product earlier to them because they're picking it up overseas, and then they're responsible to bring it to the United States and get it to the warehouse and to their floors, you know, we then are essentially, the time between when we take the order and when we ship it is very similar to the branded business.

Jay Sole: Great. Thanks very much. Good luck.

Sam Poser: Great. Thanks very much. Good luck.

Speaker #8: Thanks very much. Good luck.

Speaker #5: Thank you.

Edward Rosenfeld: Thank you.

Speaker #3: Thank you. Our next question comes from Tom Nikkig. From Needham, please go ahead.

Operator: Thank you. Our next question comes from Tom Nikic from Needham. Please go ahead.

Tom Nikic: Hey, thanks for taking my question. I think you made a comment before about the decline in private label, and you characterized it as temporary. Is that based on, you know, kind of conversations you've had with partners who've, you know, kind of told you that, in a more normal environment, you know, you'd get that business back? Or, you know, is there any risk there that chunk of the revenue base has, you know, kind of been structurally reduced?

Speaker #8: Hey, thanks for taking my question. And I think you made a comment before about the decline in private label, and you characterized it as temporary.

Speaker #8: Is that based on kind of conversations you've had with the partners who've kind of told you that in a more normal environment, you'd get that business back?

Speaker #8: Or is there any risk there that a chunk of the revenue base has kind of been structurally reduced?

Speaker #5: Yeah, no, I think hopefully what I said is that I hope it's temporary. We believe it will be temporary because we believe that we offer these customers something that they can't get from other folks.

Edward Rosenfeld: Yeah. No, hopefully, what I said is that I hope it's temporary. We believe it will be temporary because we believe that we offer these customers something that they can't get from other folks, and that's why we've been able to build a very successful business with them over decades. Frankly, we have seen this movie before. There are periods where, you know, I think they get new management or whatever, and somebody comes in and says, "Hey, there's maybe a lower cost provider or a, or we could go direct or whatever." We've seen our business contract.

Speaker #5: And that's why we've been able to build a very successful business with them over decades. But frankly, we have seen this movie before there are periods think they get new management or whatever, and somebody comes in and says, "Hey, there's maybe a lower cost provider or a or we could go direct or whatever." And we've seen our business contract, but typically, after a season or two, when they maybe perhaps they don't get the fashion as right as we've gotten it for them in the past, we've seen them come back to us and that business has come back.

Edward Rosenfeld: Typically, after a season or two, when they maybe perhaps they don't get the fashion as right as we've gotten it for them in the past, we've seen them come back to us and that business has come back, and certainly that's what we will be working very hard to make happen here.

Speaker #5: And certainly, that's what we will be working very hard to make happen here.

Tom Nikic: Understood. Very helpful. A quick follow-up on SG&A. I know there's a bunch of headwinds this year. You know, I think, Vinnie, you mentioned something like $0.15 from incentive comp, and I know that there's a wraparound of the Geiger acquisition. When we just kinda think of when you, when you layer it all together, like, I guess, what order of magnitude should we think about for SG&A growth for the year? I mean, I think you've got high single-digit revenue growth for the year. Should we think like something, you know, in the teens for SG&A growth this year?

Speaker #8: I'm just saying very helpful. And a quick follow-up on SG&A. So I know there's a bunch of headwinds this year. I think Zine, you mentioned something like 15 cents from incentive comp.

Speaker #8: And I know that there's a wraparound of the Geiger acquisition. When we just kind of think of just when you layer it all together, I guess what order of magnitude should we think about for SG&A growth for the year?

Speaker #8: I mean, I think you've got high single-digit revenue growth for the year. Should we think like something in the teens for SG&A growth this year?

Speaker #5: Yeah, I'll step in there. I think given that we're not providing earnings guidance, we're not going to also guide all the line items down the P&L.

Edward Rosenfeld: Yeah, I'll step in there. I think given that we're not providing earnings guidance, we're not gonna also guide all the line items down the P&L. We'll have to postpone that one until we put out the earnings guidance.

Speaker #5: So we had to postpone that one until we put out the earnings guidance.

Tom Nikic: That's it. Fair, fair enough. All right, thanks very much, and best of luck this year.

Speaker #8: That's fair enough. All right, thanks very much, and best of luck this year.

Speaker #5: Thank you.

Edward Rosenfeld: Thank you.

Speaker #3: Our next question comes from Dana Tailsy. From Tailsy Advisory Group. Please go ahead.

Operator: Our next question comes from Dana Telsey, from Telsey Advisory Group. Please go ahead.

Dana Telsey: Good morning, everyone. As you think about the DTC business, any unpacking of how e-commerce did relative to stores, what you're seeing full price and outlet, and plans for opening stores this year, and remodels and refreshes? Also just touching on international, how did that do for the Kurt Geiger brand, and how did it do for the Steve Madden brand? Thank you.

Speaker #9: Good morning, everyone. As you think about the DTC business, any unpacking of how e-commerce did relative to stores, what you're seeing full price and outlet, and plans for opening stores this year and remodels and refreshes?

Speaker #9: And then also just touching on international, how did that do for the Kirk Geiger brand and how did it do for the Steve Madden brand?

Speaker #9: Thank you.

Edward Rosenfeld: Sure. Yeah, in terms of stores, you know, we saw a nice acceleration in DTC overall, nice acceleration in Q4 in Steven Madden. Now, that was driven by full price channels. We still had a double-digit decline in outlets, we had a nice increase in our full price stores and an even stronger increase in our e-commerce business. All of those businesses have actually improved further going into Q1, feel good about the momentum there. Outlet is still running negative, although we've gotten that into the single digits quarter to date, and we actually even are positive for the month, which we haven't seen for a little while. That's a positive story.

Speaker #5: Sure. Yeah. So in terms of stores, we saw a nice acceleration in our DTC overall, nice acceleration in Q4 in Steve driven by full-price channels.

Speaker #5: We still had a double-digit decline in outlets. But we had a nice increase in our full-price stores, and an even stronger increase in our e-commerce business.

Speaker #5: And all of those businesses have actually improved further going into Q1. So feel good about the momentum there. Outlet is still running negative, although we've gotten that into the single digits.

Speaker #5: Quarter to date, and we actually even are positive for the month, which we haven't seen for a little while. So that's a positive story.

Edward Rosenfeld: Kurt Geiger, they had a very strong comp performance of high teens in Q4 in the Kurt Geiger brand, driven primarily by digital, but also a healthy performance in stores. As we look ahead, yeah, we will have some store growth in Geiger. As we talked about, one of the initiatives is to open more stores in the US. We view that as a revenue and profit opportunity, but also as a vehicle for us to build brand awareness and really tell the Kurt Geiger story, because, as we've said, we think the stores are the best expression of the brand. So right now, I think we're looking at about five stores opening this year in the US.

Speaker #5: Kirk Geiger, they had a very strong comp performance of high teens in Q4 in the Kirk Geiger brand. Driven primarily by digital, but also a healthy performance in stores.

Speaker #5: And as we look ahead, yeah, we will have some store growth in Geiger as we've talked about. One of the initiatives is to open more stores in the United States.

Speaker #5: We view that as a revenue and profit opportunity, but also as a vehicle for us to build brand awareness and really tell the Kirk Geiger story because, as we've said, we think the stores are the best expression of the brand.

Speaker #5: So right now, I think we're looking at about five stores opening this year in the United States. And we're excited about those. One of those will be an outlet.

Edward Rosenfeld: We're excited about those. One of those will be an outlet, the balance will be full price. In terms of Steve Madden, I think, you know, we'll probably open, you know, maybe 18 stores around the world, but we'll close a similar amount, maybe even a little bit more. I think the store base there is not going to grow. We've got a handful of remodels as well. I don't know the number. I don't know, Steve, if you have that off the top of your head, but.

Edward Rosenfeld: We're excited about those. One of those will be an outlet, the balance will be full price. In terms of Steve Madden, I think, you know, we'll probably open, you know, maybe 18 stores around the world, but we'll close a similar amount, maybe even a little bit more. I think the store base there is not going to grow. We've got a handful of remodels as well. I don't know the number. I don't know, Zine, if you have that off the top of your head, but.

Speaker #5: The balance will be full price. In terms of Steve Madden, I think we'll be we'll probably open maybe 18 stores around the world, but we'll close a similar amount, maybe even a little bit more.

Speaker #5: So I think the store base there is not going to grow. And then we've got a handful of remodels as well. I don't know the number.

Speaker #5: I don't know if, Zine, if you have that off the top of your head, but—

Janine Stichter: No, I don't have the exact number, but for major remodels, we're probably over 10.

Zine Mazouzi: No, I don't have the exact number, but for major remodels, we're probably over 10.

Speaker #8: No, I don't have the exact number, but for major remodels, we're probably over 10.

Dana Telsey: Got it. Marketing spend this year, how are you thinking about it?

Speaker #9: Got it. And then marketing spend this year, how are you thinking about it?

Speaker #5: I think you'll see we're going to continue to invest in marketing. Obviously, we're growing the top line. Over the past several years, we've seen a really significant increase in the percentage of revenue.

Edward Rosenfeld: I think you'll see we're going to continue to invest in marketing. Obviously, we're growing the top line. You know, over the past several years, we've seen a really significant increase in the percentage of revenue. This year, I think we're planning that more flat as a percentage of revenue. Up in dollars, on the growing sales, but really pretty similar in terms of percentage of revenue.

Speaker #5: This year, I think we're planning that more flat as a percentage of revenue. So up in dollars, on the growing sales, but really pretty similar in terms of percentage of revenue.

Dana Telsey: Got it. Thank you.

Speaker #9: Got it. Thank you.

Speaker #3: Thank you.

Operator: Thank you.

Speaker #5: Thanks.

Edward Rosenfeld: Thanks.

Speaker #3: As a reminder, to ask a question, please press star 11 and wait for your name to be announced. Our next question comes from Aubrey Tianillo.

Operator: As a reminder, to ask a question, please press star one one and wait for your name to be announced. Our next question comes from Aubrey Tenillo from BNP. Please go ahead.

Operator: As a reminder, to ask a question, please press star one one and wait for your name to be announced. Our next question comes from Aubrey Tianello from BNP. Please go ahead.

Speaker #3: From BNP, please go ahead.

[Analyst]: Hey, good morning. Thanks for taking the questions. I wanted to go back to the annual revenue guidance of 9% to 11%. Could you maybe break that down in terms of what you're expecting from the core business in wholesale footwear, accessories, apparel, and DTC, and then also what you expect Kurt Geiger to contribute in terms of revenues?

Aubrey Tianello: Hey, good morning. Thanks for taking the questions. I wanted to go back to the annual revenue guidance of 9% to 11%. Could you maybe break that down in terms of what you're expecting from the core business in wholesale footwear, accessories, apparel, and DTC, and then also what you expect Kurt Geiger to contribute in terms of revenues?

Speaker #10: Hey, good morning. Thanks for taking the questions. I wanted to go back to the annual revenue guidance of 9% to 11%. Could you maybe break that down in terms of what you're expecting from the core business in wholesale footwear, accessories, apparel, DTC, and then also what you expect Kirk Geiger to contribute in terms of revenues?

Speaker #5: Sure. Yeah. So I guess I'll start off by saying that the business excluding Kirk Geiger we're looking to be up low singles. Kirk Geiger, and again, just to point out, that includes that private label pullback.

Edward Rosenfeld: Sure. Yeah. I guess I'll start off by saying that the business excluding Kurt Geiger, we're looking to be up low singles. Kurt Geiger, and again, just to point out, that includes that private label pullback. If you exclude private label, we're looking to be up around 6% to 7% at the towards the middle of the guidance. Kurt Geiger, on a reported basis, will be up, you know, 50%. If you're looking that, at that on a pro forma basis, just so you can understand the underlying growth there, that's up really high singles, with the brands growing in the low double digits, and then concessions pulling down the overall consolidated number there.

Speaker #5: So if you exclude private label, we're looking to be up around 6 to 7 percent at the towards the middle of the guidance. Kirk Geiger, on a reported basis, will be up 50 percent.

Speaker #5: And then if you're looking at that on a pro forma basis, just so you can understand the underlying growth there, that's up really high singles with the brands growing in the low double digits and then concessions pulling down the overall consolidated number there.

Speaker #5: In terms of the segments, branded and branded wholesale footwear and wholesale accessories excluding Kirk Geiger should show nice growth, kind of mid to high singles.

Edward Rosenfeld: In terms of the segments, you know, branded and branded wholesale footwear and wholesale accessories, excluding Kurt Geiger, should show nice growth, kind of mid to high singles, positives there, with again, private label down significantly in each of wholesale footwear and wholesale accessories. DTC, I think we've got that, excluding Kurt Geiger, growing around 7.5% at the midpoint.

Speaker #5: Positives there, with, again, private label down significantly in each of wholesale footwear and wholesale accessories. And then DTC, I think we've got that excluding Kurt Geiger, growing around 7.5 percent at the midpoint.

[Analyst]: Perfect. Thank you. Ed, I think you mentioned on the last call that for Q4, there would be something like mid-teens AUR increases, with about 10% of that coming from like for like, and the rest from product mix. How should we be thinking about AURs going into 2026, and particularly on the product mix side of things?

Aubrey Tianello: Perfect. Thank you. Ed, I think you mentioned on the last call that for Q4, there would be something like mid-teens AUR increases, with about 10% of that coming from like for like, and the rest from product mix. How should we be thinking about AURs going into 2026, and particularly on the product mix side of things?

Speaker #10: Perfect. Thank you. And then Ed, I think you mentioned on the last call that for 4Q, there would be something like mid-teens at your increases with about 10 percent of that coming from like-for-like and the rest from product mix.

Speaker #10: How should we be thinking about AURs going into 2026, and particularly on the product mix side of things?

Speaker #5: Yeah. We continue to see nice benefit there. I think in the Steve Madden business, Steve Madden DTC business, have the numbers in the US in front of me.

Edward Rosenfeld: Yeah, we continue to see nice benefit there. I think in the Steve Madden business, Steve Madden DTC business, I have the numbers in the US in front of me, we were up about 18%, actually, is where we ended for Q4, and we're trending pretty similar to that in Q1. Again, it's really three factors. It's roughly 10% price increases, and then, you've got the mix and then a little bit of reduced promo activity as well. You know, as we move throughout the year, I do expect that to moderate somewhat. I don't think we're going to provide specific guidance around AUR, but I still think it should be a tailwind in the coming quarters.

Speaker #5: We were up about 18 percent, actually, is where we ended for Q4. And we're trending pretty similar to that in Q1. And again, it's really three factors.

Speaker #5: It's roughly 10 percent price increases, and then you've got the mix, and then a little bit of reduced promo activity as well. As we move throughout the year, I do expect that to moderate somewhat.

Speaker #5: I don't think we're going to provide specific guidance around AUR, but I still think it should be a tailwind in the coming quarters.

[Analyst]: Very helpful. Thank you.

Aubrey Tianello: Very helpful. Thank you.

Speaker #10: Very helpful. Thank you.

Speaker #5: Thank you.

Edward Rosenfeld: Thank you.

Speaker #3: Our last question comes from Janine Stitcher. From BTIG, please go ahead.

Operator: Our last question comes from Janine Stichter from BTIG. Please go ahead.

Speaker #9: Hey, good morning. Can you talk a little bit more about your wholesale footwear business outside of the private label? It came in a bit better than expectations.

Janine Stichter: Hey, good morning. Could you talk a little bit more about your wholesale footwear business outside of the private label? It came in a bit better than expectations. Maybe just speak to what you're seeing in terms of initial orders and reorders. You know, given where your supply chain position right now, are you in a position to chase if additional demand come through?

Speaker #9: Maybe just speak to what you're seeing in terms of initial orders and reorders and given where your supply chain is positioned right now. Are you in a position to chase some additional demand come through?

Speaker #5: Yeah. We're really excited about the momentum that we have there. And again, specifically in that Steve Madden, of course, Steve Madden women's business, it feels better than it has in quite some time, frankly.

Edward Rosenfeld: Yeah. We're really excited about the momentum that we have there. Again, specifically in that Steve Madden women's business, it feels better than it has in quite some time, frankly. You know, we saw a really significant acceleration in our sell-throughs in the back half of the year. They were actually negative in the first part of 2025, turned positive in Q3. We're up, have been up sort of mid-teens. This is our sell-throughs to the end consumer, you know, in Q4 so far in 2026. Our wholesale customers are really reacting. We're seeing, you know, we're seeing better initial orders, we're seeing chase activity.

Speaker #5: We saw a really significant acceleration in our sell-throughs in the back half of the year. They were actually negative in the first part of '25, turned positive in Q3.

Speaker #5: We're up and then have been up sort of mid-teens this is our sell-throughs to the end consumer in Q4 and so far in 2026.

Speaker #5: And our wholesale customers are really reacting and so we're seeing better initial orders. We're seeing chase activity. As we look at sort of plans going forward, obviously, those are getting better.

Edward Rosenfeld: You know, as we look at sort of plans going forward, obviously those are getting better based on the momentum. I will say most of our big customers, they seem to want to really position themselves to chase, though. You know, I think they're trying to leave a little bit of room in the way that they plan to chase hot items. Obviously, you know, we continue to have a speed advantage over our competitors. We have the right product right now. We feel like we should be well positioned to win in that environment.

Speaker #5: Based on the momentum, I will say most of our big customers, they seem to want to really position themselves to chase, though. I think they're trying to leave a little bit of room in the way that they plan to chase hot items.

Speaker #5: And obviously, we continue to have a speed advantage over our competitors. We have the right product right now. And so we feel like we should be well positioned to win in that environment.

Speaker #9: Great. And then just quickly, you mentioned Dolce Vita in the beginning of the call. I'm playing it up high single digits for the year.

Janine Stichter: Great. Just quickly, you mentioned Dolce Vita in the beginning of the call and planning it up high single digits for the year. Maybe just remind us how big that business is and anything else you can speak to around the growth opportunity there?

Speaker #9: Maybe just remind us how big that business is and anything else you can speak to around the growth opportunity there.

Speaker #5: Yeah. I mean, Dolce Vita has been a really great story for us over the last five years or so and as we said, I think been the most the strongest growing business for us in the company as a brand since the pandemic and most consistent.

Edward Rosenfeld: Yeah, I mean, Dolce Vita has been a really great story for us over the last five years or so. As we said, it's, I think, been the strongest growing business for us in the company as a brand since the pandemic, and most consistent. It's now finished the year over $240 million in revenue. You know, it's a, you know, we feel like we just continue to build that brand. As we said, you know, it was primarily all footwear in the US. You know, it was historically primarily a wholesale business, then we built this very successful dolcevita.com business.

Speaker #5: It's now finished the year over 240 million dollars in revenue. And it's a we feel like we just continue to build that brand as we said.

Speaker #5: It was primarily all footwear in the U.S. It was historically primarily a wholesale business. Then we built this very successful DolceVita.com business. Now we've opened a handful of stores, which are performing well.

Edward Rosenfeld: Now we've opened a handful of stores which are performing well, and we've started to now extend the brand into other categories. We're getting some nice traction in handbags, and we're also seeing some growth in international markets. It's a good story and one we wanna keep, you know, keep fueling.

Speaker #5: And we've started to now extend the brand into other categories. We're getting some nice traction in handbags. And we're also seeing some growth in international markets.

Speaker #5: So, it's a good—it's a good story, and one we want to keep feeling.

Janine Stichter: Great. Thanks so much.

Speaker #9: Great. Thanks so much.

Operator: I am showing no further questions at this time. I will now turn it over to Mr. Rosenfeld for closing remarks.

Speaker #3: I am showing no further questions at this time. I will now turn it over to Mr. Rosenfeld for closing remarks.

Operator: I am showing no further questions at this time. I will now turn it over to Mr. Rosenfeld for closing remarks.

Speaker #5: Great. Thank you so much for joining us on the call today. We hope you have a great day. We look forward to speaking with you on the Q1 call.

Edward Rosenfeld: Great. Thank you so much for joining us on the call today. We hope you have a great day. We look forward to speaking with you on the Q1 call.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Q4 2025 Steven Madden Ltd Earnings Call

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