Steven Madden Q4 Performance Beats Expectations But CEO Cautions About 2025 Profit Impact From Tariff Headwinds

Zinger Key Points

Steven Madden's Q4 revenue grew 12% year over year, with wholesale sales up 13.6% and direct-to-consumer sales rising 8.4%.
CEO remains cautious on 2025 due to tariff impact but sees growth potential from Kurt Geiger acquisition set to close in Q2.
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On Wednesday, Steven Madden SHOO reported fourth-quarter 2024 financial results.

It clocked a fourth-quarter adjusted EPS of 55 cents, beating the Wall Street View of 53 cents. Quarterly revenues of $582.32 million increased 12.0% year over year, surpassing the analyst consensus of $548.50 million.

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Revenue from direct-to-consumer was $176.0 million, an 8.4% increase year over year. Revenue from the wholesale business was $402.9 million, a 13.6% increase year over year.

Gross profit as a percentage of revenue was 40.4% compared to 41.3% in the same period of 2023. Adjusted operating expenses as a percentage of revenue were 31.4% compared to 31.5% in the same period of 2023.

The footwear company ended the quarter with 291 company-operated brick-and-mortar retail stores, five e-commerce websites, and 42 company-operated concessions in international markets.

As of December 31, cash and equivalents and short-term investments totaled $203.4 million, and inventory totaled $257.6 million.

Chair and CEO Edward Rosenfeld remains cautious on the near-term outlook, as it faced meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the U.S.

However, he expressed optimism over the pending acquisition of Kurt Geiger, likely to close in the second quarter of 2025, whose differentiated and elevated positioning, expanding in international markets, accessories categories, and direct-to-consumer channels make it a highly attractive and complementary addition to the company’s portfolio.

FY25 Outlook: Steven Madden expects revenue growth of 17%-19%, implying revenue of $2.67 billion-$2.72 billion against the consensus of $2.33 billion.

It expects EPS of $2.30-$2.40. The consensus estimate for EPS is $2.58.

Price Action: SHOO stock traded lower by 5.22% at $35.91 at the last check on Wednesday.

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