Steven Madden, Ltd. (NASDAQ:SHOO) reported fourth-quarter results on Wednesday that topped analyst expectations, helped by stronger performance in its core footwear operations and added revenue from the recently acquired Kurt Geiger brand.
Despite the earnings beat, shares declined 2.30% in pre-market trading following the release.
The company delivered adjusted earnings per share of $0.48, narrowly exceeding the consensus forecast of $0.47.
Quarterly revenue rose 29.4% year over year to $753.7 million, slightly ahead of the $752.2 million estimate and up from $582.3 million recorded in the same period last year.
Management attributed most of the revenue growth to the Kurt Geiger acquisition, while wholesale sales excluding the brand fell 2.6%.
“We are pleased to have delivered above-guidance earnings results for the fourth quarter, driven by improved performance in our core Steve Madden footwear business as well as a strong contribution from the newly acquired Kurt Geiger,” said Edward Rosenfeld, Chairman and Chief Executive Officer.
Looking ahead, Steven Madden expects fiscal 2026 revenue to grow between 9% and 11% compared with 2025 levels, implying sales of roughly $2.76 billion to $2.81 billion. The company did not issue earnings guidance, pointing to uncertainty surrounding recent U.S. tariff policy developments.
Adjusted gross margin improved to 43.8%, compared with 40.4% a year earlier, while adjusted operating margin declined to 6.8% from 9.0%, reflecting increased operating costs.
The company also warned that its private label segment may face continued pressure and that selling, general and administrative expenses are likely to rise in 2026 as incentive compensation normalizes and senior executive salaries return to prior levels.