Steven Madden, Ltd.

Good day and thank you for standing by. Welcome to the Q1 2025 Steve Madden Limited Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.

Thanks, Lauren, and good morning, everyone. Thank you for joining our first quarter 2025 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 meaning 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 described in our press release issued earlier today and filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. The financial results discussed on today's call are on an adjusted basis unless otherwise noted. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release. Joining me on the call today is Ed Rosenfeld, Chairman and Chief Executive Officer, and Dean Rizzuzzi, Chief Financial Officer and Executive Vice President of Operations. With that, I'll turn the call over to Ed.

Ed? All right. Thank you, Danielle, and good morning, everyone, and thank you for joining us to review Steve Madden's first quarter 2025 results. We were pleased with our performance in the first quarter, with earnings results significantly exceeding expectations. While sales trends across the industry were somewhat sluggish in January and February, we saw a strong improvement in March as weather turned warmer and more consumers began to look for spring fashion. Our product teams did an outstanding job of creating on-trend spring assortments that resonated with consumers, and we supported these assortments with increased investment in our full-funnel marketing strategy, highlighted by our global marketing campaign, House of Steve, featuring social media sensation, Teffy, and the iconic Salt-N-Pepa song, Shoot. Overall, our team's disciplined execution of our strategy continues to create deeper consumer connections and drive demand for our brands and products. That said, it's no secret that in the near term, we face meaningful headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States. After the most recent additional tariffs were implemented in early April, Our team moved swiftly to adapt to the changing landscape with a focus on mitigating near-term impacts while positioning the company for long-term growth. We leveraged our strong and long-standing supplier relationships to negotiate meaningful discounts on products coming from China to the U.S. so we could limit the negative impact to earnings in the short term while keeping goods flowing, continuing to deliver the most important fashion items, and protecting market share. Simultaneously, we sharply accelerated our shift of production out of China, capitalizing on the groundwork we've laid in alternative countries of production over the last several years to move quickly and minimize disruption as we did so. Due to the foundation we have built in these other countries, combined with our model of working close to season, we have been able to significantly reduce the amount of fall 2025 production out of China. On previous earnings calls, we disclosed that in 2024, we sourced 71% of our U.S. imports from China. For fall 2025, we expect the comparable figure excluding Kurt Geiger to be in the mid-teens, and by spring 2026, down to the mid-single digits. Additionally, we have begun selectively raising prices to consumers and wholesale customers. We have taken a surgical approach, raising prices by differing amounts, and sometimes not at all, depending on the brand, product category, and style. The first adjustments to retail prices were made over the last several days, so it's too early to assess the impact, but we will monitor the elasticity of demand carefully and react accordingly. Finally, we are also looking for expense savings and operational efficiencies where we can, and recently completed a reduction in force that will result in over $12 million in annual savings. While the tariffs and the related uncertainty are undeniably challenging in the short term, we believe that we are well positioned relative to many of our closest competitors, most of whom do not have the ability to shift production as quickly as we can and or are not as well capitalized. We will continue to invest in marketing and the other strategic initiatives that position us for long-term growth, and we believe that the current disruption will create opportunities for us to take market share over time. The most important investment we've made this year is the acquisition of Kirk Geiger, which we were excited to close yesterday. The Kirk Geiger London brand continues to demonstrate outstanding momentum as its unique brand image, distinctive design aesthetic, and compelling value proposition drives success across multiple categories led by handbags. Its differentiated and elevated position and its alignment with our strategic initiatives of expanding in international markets, accessories categories, and direct-to-consumer channels make it a highly attractive and complimentary addition to our portfolio. With the 12 months ended February 1st, 2025, Kurt Geiger had revenue of 400 million pounds, and a purchase price in the transaction reflected an enterprise value of 289 million pounds, of which approximately 14 million pounds is deferred and payable to management over a five-year period upon achievement of certain financial targets. In connection with the acquisition, the company entered into a new credit agreement which provides for a $300 million term loan facility and a $250 million revolving credit facility. And we funded the acquisition with borrowings under the new credit agreement and cash on hand. With the transaction consummated, we are thrilled to get to work in supporting the Kurt Geiger management team led by CEO Neil Clifford in their journey to making Kurt Geiger London a billion dollar brand. So in sum, we delivered solid results in the first quarter in a tough environment. Looking ahead, we are clear-eyed about the challenges and uncertainty we face due to the impact of tariffs. But our team has moved quickly to adapt, and we believe the agility of our business model, combined with our Fortress balance sheet, gives us a competitive advantage in dynamic environments like this one. We are confident that we are well-positioned to navigate the current disruption and to return to profitable and sustainable growth when the dust settles. And with the acquisition of Kirk Iger, we have added a powerful brand to our portfolio that meaningfully enhances the growth profile of our company going forward. And now, I'll turn it over to Zeen to review our first quarter 2025 financial results in more detail.