Q4 2024 Steven Madden Ltd Earnings Call Transcript
Key Points
- Steven Madden Ltd (SHOO) delivered earnings results at the high end of their guidance range for Q4 2024, with a 15% revenue growth and a 9% increase in diluted EPS compared to 2023.
- The company saw a 12% increase in international revenue, with notable growth in the EMEA region and a strong start for their new joint venture in Latin America.
- Accessories and apparel revenue increased by 53% in 2024, with the Steve Madden handbag business crossing the $300 million mark for the first time.
- Direct-to-consumer revenue grew by 9% in 2024, with Dolce Vita DTC revenue increasing by 36%.
- The acquisition of Kurt Geiger is expected to add a powerful new growth engine, with the brand showing exceptional growth and aligning with strategic initiatives in international markets and accessories categories.
- The company faces near-term headwinds in 2025 due to new tariffs on goods imported into the United States and efforts to diversify production out of China.
- Handbag business is expected to face pressure due to backed-up inventories in certain parts of the wholesale channel, leading to more cautious ordering from key wholesale customers.
- Gross margin was pressured in Q4 2024, primarily due to a greater mix of private-label businesses and increased promotional activity.
- The effective tax rate for Q4 2024 was higher at 21.4% compared to 14.3% in Q4 2023, driven by lower discrete benefits related to stock-based compensation.
- The company expects diluted EPS to decline approximately 30% to 35% in Q1 2025 compared to Q1 2024, due to increased marketing investment and pressure on the DTC business.
Good day and thank you for standing by. Welcome to the fourth-quarter 2024 Steve Madden Limited earnings conference call. (Operator Instructions) Please be advised, today's conference is being recorded.
I would now like to hand the console over to your speaker today. Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.
Thanks, Kevin. And good morning, everyone. Thank you for joining our fourth-quarter and full-year 2024 earnings call and webcast. Before we begin, I'd like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meeting of the Private Securities Litigation Reform Act.
These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have
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