Executive Summary

Q4 revenue grew 12% to $582.3M, capping FY24 revenue +15.2% to $2.283B; Adjusted Q4 EPS was $0.55 vs $0.61 YoY, with management stating results were at the high end of guidance .
Mix and promo pressure trimmed margins: Q4 gross margin 40.4% (vs 41.7% adj. prior year) and wholesale gross margin 30.5% (mix shift to private label); DTC gross margin 62.0% (higher promotional concentration) .
2025 outlook: revenue +17% to +19% and EPS $2.30–$2.40, assuming May 1 close of Kurt Geiger; ex-KG, revenue low-single-digit growth and EPS $2.20–$2.30; Q1 EPS guided down ~30–35% YoY on tariffs, heavier Q1 marketing, and soft DTC quarter-to-date .
Strategic catalyst: pending Kurt Geiger acquisition (£289M EV; ~£400M LTM revenue), adding an “accessible luxury” handbag-led brand aligned with SHOO’s international, accessories, and DTC growth vectors; expected ~$0.10 EPS contribution in 2025 (partial-year) .

What Went Well and What Went Wrong

What Went Well

Broad-based top-line growth: Q4 revenue +12% to $582.3M, with wholesale +13.6% and DTC +8.4%; wholesale accessories/apparel +35.4% and wholesale footwear +1.0% YoY .
DTC and comps positive: DTC revenue $176.0M (+8.4% YoY) with comp sales +4.5% in Q4; full-year international momentum (EMEA +18%) and DTC growth supported results .
Management execution and positioning: “delivered earnings results at the high end of our guidance” and highlighted disciplined strategy across international, non-footwear, and DTC .

What Went Wrong

Margin compression: consolidated Q4 gross margin 40.4% (vs 41.7% adj. prior year) on wholesale mix shift to private label and DTC promo concentration; Q4 adjusted operating margin 9.0% (vs 10.2% prior year) .
Category pockets of pressure ahead: management expects Steve Madden handbags down double digits in 2025 given backed-up wholesale inventory; organic wholesale down low-single digits for 2025, though wholesale footwear seen up low-single digits .
Near-term headwinds intensifying: tariffs (China and Mexico) and manufacturing diversification will pressure 2025; management not giving gross margin guidance due to uncertainty; Q1 EPS down ~30–35% YoY guided .

Financial Results

Headline P&L vs Prior Quarters

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$523.6	$624.7	$582.3
Gross Margin %	41.5%	41.5%	40.4%
Operating Income ($USD Millions)	$46.9 (GAAP); $54.5 (Adj)	$74.6 (GAAP); $85.4 (Adj)	$46.7 (GAAP); $52.6 (Adj)
Operating Margin %	9.0% (GAAP); 10.4% (Adj)	11.9% (GAAP); 13.7% (Adj)	8.0% (GAAP); 9.0% (Adj)
Diluted EPS ($)	$0.49 (GAAP); $0.57 (Adj)	$0.77 (GAAP); $0.91 (Adj)	$0.49 (GAAP); $0.55 (Adj)

Notes: Non-GAAP adjustments in Q4 included severance, legal settlements, M&A/JV costs, and a benefit from contingent consideration revaluation .

Q4 2024 Segment and Channel Detail (YoY)

Segment/Channel	Q4 2024 Revenue ($M)	YoY Change	Gross Margin %
Wholesale (Total)	$402.9	+13.6%	30.5% (vs 31.7% LY)
• Footwear	$227.4	+1.0%	N/A
• Accessories/Apparel	$175.4	+35.4%	N/A
Direct-to-Consumer	$176.0	+8.4%	62.0% (vs 62.7% LY)
Licensing	$3.5	vs $2.7 LY	N/A

Additional Q4 items:

DTC comps +4.5% .
~$13M of mass-channel shipments pulled into late Q4 from Jan-2025, benefiting wholesale in the quarter .

KPIs and Balance Sheet

KPI	Q4 2024	Prior Year/Notes
Company-operated stores	291	N/A
E-commerce websites	5	N/A
Company-operated concessions	42	N/A
Cash, cash equivalents & ST investments	$203.4M	No debt; strong liquidity
Inventory	$257.6M (vs $229.0M LY)	Increase primarily due to longer transit times; +6 days average globally
Share repurchases	$2.6M in Q4; $98.4M in FY24
Quarterly dividend	$0.21 declared (paid 3/21/25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue growth	FY2025	N/A	+17% to +19% YoY (includes KG from 5/1 close)	New
Diluted EPS	FY2025	N/A	$2.30–$2.40 (incl. KG)	New
Revenue growth (ex-KG)	FY2025	N/A	Low-single-digit % increase	New
Diluted EPS (ex-KG)	FY2025	N/A	$2.20–$2.30	New
Q1 diluted EPS YoY	Q1 2025	N/A	Down ~30%–35% vs Q1’24	New
Gross margin	FY2025	N/A	No specific guidance; tariff uncertainty	New
Marketing investment	Q1 2025	N/A	Significant increase (House of Steve campaign)	New
Interest expense	FY2025	N/A	Term loan assumed at SOFR + 200 bps for KG financing	New
Mexico tariffs	Early FY2025	N/A	Included in guidance; plan to shift production out in fall if needed	New
Dividend	Ongoing	$0.21/qtr recently	$0.21 declared 2/26/25	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Tariffs & sourcing diversification	Ongoing execution; mix/margin pressure (Q2/Q3 2024)	Accelerated shift from China (71% → 58% of US imports since last call); selective pricing; no GM guidance due to uncertainty	Rising headwind; mitigation in progress
DTC health & comps	DTC +6.4% (Q2), +7.8% (Q3); stronger margins on lower promos	Q4 DTC +8.4%; comps +4.5%; Q1 DTC under pressure quarter-to-date	Mixed: Q4 good, Q1 softer start
Accessories/Apparel	Outsized growth in Q2/Q3; handbags strong; Almost Famous contribution	Wholesale A&A +35.4% in Q4; 2025: Steve Madden handbags expected down double digits	Growth decelerating near term
Wholesale footwear	Q2 +0.9%; Q3 -2.2% (branded softness)	Q4 +1.0%; branded down ~3% in Q4; expected up low-single digits in 2025	Stabilizing to modest growth
International expansion	Strong EMEA & Americas ex-US; JV transitions (Q2/Q3)	Continued JV expansion; APAC a key focus; JV/distributor shifts add ~$25M revenue but FX offsets >$25M	Positive, FX a headwind
AI/Tech & DTC enablement	Fast Simon AI partnership for ecommerce (9/18/24)	Buy with Prime launched on SteveMadden.com (11/26/24), enhancing checkout/delivery	Enhanced digital CX
M&A (Kurt Geiger)	N/A	£289M EV, ~£400M LTM revenue; ~50% UK (incl. concessions); ~$0.10 EPS accretion in 2025 partial-year	Strategic growth lever

Management Commentary

“We are pleased to have delivered earnings results at the high end of our guidance range for the fourth quarter and full year 2024.”
“We are cautious on the near-term outlook… most notably the impact of new tariffs on goods imported into the United States… [and] the pending acquisition of Kurt Geiger… expected to close in the second quarter of 2025.”
On tariff mitigation: “Diversifying production out of China… down from 71% to 58%… seeking factory price concessions… selectively raising prices starting in fall.”
On Kurt Geiger: “Accessible luxury led by handbags… attractive fit with our initiatives… ~$0.10 EPS built in for this year (partial year).”

Q&A Highlights

Gross margin outlook and tariff mitigation: Management will not guide GM given uncertainty; mitigation via sourcing diversification (targeting low-40% China placement by late 2025), vendor concessions, surgical price increases .
DTC/Q1 setup: Slow start to spring (sandals), weak store traffic; weather and lower consumer sentiment cited; Q1 EPS down ~30–35% YoY; significant Q1 marketing push (“House of Steve”) .
Category/segment cadence: 2025 organic plan: wholesale down low single digits; DTC up high single digits; within wholesale, footwear up low single digits; accessories/apparel down mid single digits; Steve Madden handbags down double digits .
Inventory/transit: Inventory up 12.5% YoY largely due to +6 days average transit; adjusted for transit, inventory up low single digits; boots sold well; spring transition is focus .
Financing and leverage for KG: New term loan modeled at SOFR + 200 bps; expect small net debt at closing (~0.5x), targeting net debt ~0 over time before resuming buybacks .

Estimates Context

S&P Global Wall Street consensus estimates were unavailable at the time of analysis (tool limit exceeded), so we cannot provide definitive beat/miss versus consensus for Q4 or FY25 guidance. Management said Q4/FY24 earnings were at the high end of guidance, suggesting in-line to better-than-expected execution vs internal targets .
Given guided Q1 EPS down ~~30–35% and full-year tariff/mix pressures, Street EPS models may need to reflect lower near-term margins, heavier Q1 marketing, and partial-year KG accretion (~~$0.10) .

Financial Results vs Estimates (Reference)

Q4 2024	Actual	S&P Global Consensus
Revenue	$582.3M	Unavailable
Diluted EPS	$0.49 GAAP; $0.55 Adj	Unavailable

Note: S&P Global consensus data was unavailable at the time of retrieval (request limit).

Key Takeaways for Investors

Healthy top-line with margin pressure: Q4 revenue +12% but GM slipped to 40.4% on private-label mix and promo concentration; 2025 margins face tariff/mix headwinds with no GM guidance—focus on sourcing diversification and surgical pricing .
2025 reset before reacceleration: Q1 EPS down ~30–35% YoY; full-year EPS $2.30–$2.40 including KG; ex-KG $2.20–$2.30 suggests organic pressure, particularly in handbags and wholesale .
KG adds a differentiated growth leg: Accessible-luxury, handbag-led brand with international/DTC strengths; ~£400M LTM revenue; ~$0.10 EPS partial-year in 2025; synergy opportunities via SHOO’s global network .
Watch category/segment mix: 2025 plan calls for DTC high-single-digit growth and wholesale footwear returning to low-single-digit growth, offset by mid-single-digit decline in wholesale accessories/apparel and double-digit decline in Steve Madden handbags .
Inventory manageable; logistics a watch item: YoY inventory lift driven by longer transit; adjusted for transit, low-single-digit increase; speed-to-market remains a priority amid sourcing shifts .
Capital returns steady with disciplined leverage: Dividend maintained ($0.21); share repurchases ongoing; modest leverage for KG and path back to net debt ~0 over time .
Digital enablement continues: AI-driven ecommerce optimization (Fast Simon) and Buy with Prime integration enhance conversion and CX heading into 2025 .

Appendix: Non-GAAP Adjustments (Q4 2024)

Q4’24 adjustments included severance, legal settlements/fees, M&A/JV costs, and a favorable contingent consideration revaluation; adjusted operating expenses $182.9M, adjusted operating income $52.6M, adjusted diluted EPS $0.55 .

Sources: Q4/FY24 earnings press release and 8‑K (2/26/25) ; Q4 earnings call transcript (2/26/25) and duplicate source ; Q3 2024 8‑K (11/7/24) ; Q2 2024 8‑K (7/31/24) ; Kurt Geiger acquisition release (2/13/25) ; Digital/AI and DTC enablement (9/18/24; 11/26/24) .

STEVEN MADDEN, LTD. (SHOO)·Q4 2024 Earnings Summary