Steven Madden Slides On Tariff Uncertainty Despite EPS Beat - Steven Madden (NASDAQ:SHOO)

Steven Madden, Ltd. (NASDAQ:SHOO) shares are trading lower after the company reported mixed fourth-quarter results and declined to provide FY26 earnings guidance due to a lack of clarity in U.S. tariff policy.

Earnings Snapshot

The apparel company reported adjusted earnings per share of 48 cents, beating the analyst consensus estimate of 47 cents.

Quarterly sales of $753.7 million, up 29.4% year-over-year, missed the Street view of $753.9 million.

Adjusted income from operations declined to $50.9 million from $52.6 million a year ago quarter.

The company ended the quarter with 399 company-operated brick-and-mortar retail stores, including 98 outlets, as well as seven e-commerce websites and 133 company-operated concessions in international markets.

As of Dec. 31, total debt outstanding was $234.2 million.

Cash and cash equivalents totaled $112.4 million.

The company approved a quarterly cash dividend of 21 cents per share payable on March 20 to stockholders of record as of March 11, 2026.

The company did not repurchase any common shares in 2025.

Channel Performance

Wholesale revenue was $433.3 million, up 7.5% Y/Y; down 2.6% Y/Y excluding Kurt Geiger.
Wholesale footwear revenue increased 11% Y/Y; up 5.5% Y/Y excluding Kurt Geiger.
Wholesale accessories/apparel revenue rose 3.1% Y/Y but dipped 13% Y/Y excluding Kurt Geiger.
Direct-to-consumer revenue was $316.6 million, a 79.9% Y/Y increase compared to the fourth quarter of 2024.
Adjusted gross profit as a percentage of wholesale revenue expanded to 31.5% from 30.5% in the year-ago quarter, on the addition of the Kurt Geiger business.
Adjusted gross profit as a percentage of direct-to-consumer revenue contracted to 59.8% from 62% a year ago quarter due to the addition of the Kurt Geiger concessions business and the impact of new tariffs on goods imported into the U.S.

Outlook

For FY26, Steven Madden projects revenue growth of 9% to 11%.

Due to uncertainty related to the U.S. tariff policy, the company is not providing earnings guidance at this time.

Management Commentary

“Looking to 2026, we are encouraged by the momentum building in our flagship Steve Madden brand and the opportunity for growth in Kurt Geiger London,” said chairman and CEO Edward Rosenfeld.

”That said, we expect pressure on our private label business as well as higher SG&A driven by the normalization of incentive compensation and the restoration of senior executive salaries. While we continue to face uncertainty related to tariffs, the fundamentals of our business are strong.”

SHOO Price Action: Steve Madden shares are trading lower by 6.56% at $34.91 at publication on Wednesday.

Photo: Hiram Rios via Shutterstock

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Overview

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