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01/11 03:18
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with positive growth in the direct-to-consumer segment and international expansion. Kurt Geiger's integration is expected to drive growth, and the strategic plan shows promising diversification and pricing strategies. Despite some margin pressures, the company is optimistic about recovery and long-term growth. The market's positive reception of price increases and reduced promotional days suggests strong demand. Overall, these factors combined with the company's market cap suggest a positive stock price movement, likely in the 2% to 8% range.
Consolidated Revenue $667.9 million, a 6.9% increase compared to Q3 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased 14.8%. The increase was driven by the acquisition of Kurt Geiger, while the decline excluding Kurt Geiger was due to tariff-related order reductions, shipment delays, and production disruptions.
Wholesale Revenue $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased 19%. The decline was attributed to tariff-related order reductions, shipment delays, and production disruptions.
Wholesale Footwear Revenue $266.5 million, a 10.9% decrease from Q3 2024 or down 16.7% excluding Kurt Geiger. The decline was due to tariff-related order reductions and production disruptions.
Wholesale Accessories and Apparel Revenue $176.2 million, down 10.3% compared to Q3 2024 or down 22.5% excluding Kurt Geiger. The decline was attributed to tariff-related order reductions and production disruptions.
Direct-to-Consumer Revenue $221.5 million, a 76.6% increase compared to Q3 2024. Excluding Kurt Geiger, direct-to-consumer revenue increased 1.5%. The increase was driven by the acquisition of Kurt Geiger and strong consumer demand.
License and Royalty Income $3.7 million compared to $3.5 million in Q3 2024, showing a slight increase.
Consolidated Gross Margin 43.4%, up from 41.6% in Q3 2024. The increase was due to the impact of Kurt Geiger, which has a higher mix of direct-to-consumer business.
Wholesale Gross Margin 33.6% compared to 35.5% in Q3 2024. The decline was due to pressure from tariffs, partially offset by mitigation efforts.
Direct-to-Consumer Gross Margin 61.9% compared to 64% in Q3 2024. The decline was due to pressure from tariffs and the addition of Kurt Geiger, which had lower direct-to-consumer margins driven by the concessions business.
Operating Expenses $243.4 million or 36.4% of revenue compared to $174.2 million or 27.9% of revenue in Q3 2024. The increase was driven by the acquisition of Kurt Geiger and higher costs.
Operating Income $46.3 million or 6.9% of revenue compared to $85.4 million or 13.7% of revenue in Q3 2024. The decline was due to higher operating expenses and tariff-related impacts.
Net Income $30.4 million or $0.43 per diluted share compared to $64.8 million or $0.91 per diluted share in Q3 2024. The decline was due to higher operating expenses and tariff-related impacts.
Inventory $476 million compared to $268.7 million in Q3 2024. Excluding Kurt Geiger, inventory was $275.6 million, a 2.6% increase compared to the same period last year. The increase was driven by the acquisition of Kurt Geiger.
Steve Madden Fall Product Assortment: Strong consumer demand for boots, dress shoes, and casuals like loafers, Mary Janes, and Mules. Enhanced marketing efforts on platforms like YouTube, TikTok, Snapchat, and Pinterest have driven awareness and conversion among Gen Z and Millennials.
Kurt Geiger London: Mid-teens comp sales growth in Q3 2025. Integration on track with revenue synergies from international expansion and cost savings in freight and logistics.
Dolce Vita: Expansion into international markets and new categories like handbags. On track for revenue gains in 2025.
Betsey Johnson: Renewed cultural relevance through talent partnerships, community engagement, and differentiated merchandise. Expected revenue growth in 2025.
International Expansion: Kurt Geiger is expanding through the Steve Madden network, while Steve Madden is growing in the U.K. via the Kurt Geiger platform.
Tariff Mitigation: Shifted production out of China to reduce tariff impact. Strategic pricing and sourcing initiatives implemented to offset gross margin pressure.
Direct-to-Consumer Growth: Revenue increased 76.6% to $221.5 million in Q3 2025, driven by the addition of Kurt Geiger and a 1.5% organic growth.
Brand Strengthening: Focused on deepening consumer connections through compelling products and effective marketing. Enhanced storytelling and investment in digital platforms have improved brand awareness and sales.
Tariffs on Chinese Imports: New tariffs on Chinese imports reaching 145% caused wholesale customers to cut back on orders, leading to shipment delays and increased landed costs, which negatively impacted revenue and earnings.
Production Disruption: Shifting production out of China midstream to mitigate tariff impacts caused shipment delays and operational inefficiencies.
Gross Margin Pressure: Significant increase in landed costs due to tariffs led to gross margin pressure, partially mitigated by strategic pricing actions and sourcing initiatives.
Wholesale Revenue Decline: Wholesale revenue decreased by 10.7% compared to Q3 2024, with a 19% decline excluding the newly acquired Kurt Geiger, primarily due to tariff-related order reductions and shipment delays.
Direct-to-Consumer Margin Pressure: Direct-to-consumer gross margin decreased due to tariffs and the addition of Kurt Geiger, which had lower DTC margins driven by its concessions business.
Inventory Management: Inventory levels increased significantly, with potential risks of overstocking or inefficiencies in inventory turnover.
Operating Expense Increase: Operating expenses rose to 36.4% of revenue compared to 27.9% in Q3 2024, impacting profitability.
Revenue Growth: The company expects revenue to increase by 27% to 30% in the fourth quarter of 2025 compared to the fourth quarter of 2024.
Earnings Per Share (EPS): Projected EPS for the fourth quarter of 2025 is expected to range between $0.41 and $0.46.
Tariff Impact Mitigation: The company anticipates continued negative impacts from tariffs but believes the worst is behind them. They are mitigating gross margin pressure through strategic pricing actions and sourcing initiatives.
Consumer Demand: Underlying consumer demand for the company's brands and products remains strong, with expectations of improved financial performance in the fourth quarter of 2025.
Brand and Product Expansion: The company is focusing on expanding its owned brands, including Dolce Vita into international markets and new categories like handbags, and Kurt Geiger into international markets through the Steve Madden network.
Long-Term Growth: The company is confident in its ability to drive sustainable revenue and earnings growth over the long term through its brands, business model, and strategy.
Quarterly Cash Dividend: The company's Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend will be payable on December 26, 2025, to stockholders of record as of the close of business on December 15, 2025.
Share Repurchase Program: During the third quarter, the company did not repurchase any shares of its common stock in the open market.
The earnings call indicates strong financial performance with positive growth in the direct-to-consumer segment and international expansion. Kurt Geiger's integration is expected to drive growth, and the strategic plan shows promising diversification and pricing strategies. Despite some margin pressures, the company is optimistic about recovery and long-term growth. The market's positive reception of price increases and reduced promotional days suggests strong demand. Overall, these factors combined with the company's market cap suggest a positive stock price movement, likely in the 2% to 8% range.
The earnings call summary presents mixed signals: strong basic financial performance and a positive shareholder return plan with a dividend. However, concerns arise from the withdrawal of revenue guidance due to tariff uncertainties and the impact of tariffs on operations. Product development and market strategy show promise with international growth and the Kurt Geiger acquisition, yet challenges remain with sourcing shifts and wholesale disruptions. The Q&A section highlights analysts' concerns about tariffs and unclear management responses, leading to a balanced sentiment. Given the market cap, a neutral stock price movement is expected over the next two weeks.
The earnings call presents a mixed picture. Financial performance is relatively flat with slight revenue increases and margin improvements, but higher operating expenses and a decline in net income. The Q&A reveals concerns about production shifts from China and tariff impacts, with management providing vague responses on inventory and margin recovery timelines. The dividend remains stable, but share repurchase activity is low. Given the market cap of $3.1 billion, the stock is likely to experience a neutral reaction, with minor fluctuations due to the lack of strong positive or negative catalysts.
The earnings call indicates strong financial performance with a 13% revenue increase and raised revenue guidance, particularly in wholesale accessories. Despite a slight decline in gross margin, the company is expanding its sourcing base to mitigate tariff risks. The share repurchase program and dividend maintain shareholder value. Positive trends in the handbag and footwear segments, alongside successful marketing efforts, bolster the outlook. Given the company's $3.1 billion market cap, the stock is likely to experience a positive movement of 2% to 8% over the next two weeks.
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