Steve Madden Q2: Revenue up, profitability down due to tariffs

Steven Madden, Ltd., a designer and marketer of fashion-forward footwear, accessories, and apparel, today announced its financial results for the second quarter ended June 30, 2025. The company reported an increase in overall revenue but faced significant challenges to profitability, largely attributed to the impact of new tariffs on goods imported into the United States.

For the second quarter of 2025, total revenue increased by 6.8 percent to 559 million dollars, however, gross profit as a percentage of revenue declined to 40.4 percent from 41.5 percent in the prior year quarter. Adjusted gross profit as a percentage of revenue stood at 41.9 percent. The company experienced a loss from operations totalling 40.3 million dollars, or 7.2 percent of revenue, a stark contrast to an income from operations of 46.9 million dollars, or 9 percent of revenue, in the second quarter of 2024. Adjusted income from operations was 22.6 million dollars, or 4 percent of revenue, compared to 54.5 million dollars, or 10.4 percent of revenue, in the year-ago period.

Consequently, net loss attributable to Steven Madden, Ltd. was 39.5 million dollars, or 56 cents per diluted share and adjusted net income declined to 13.9 million dollars, or 20 cents per diluted share.

Edward Rosenfeld, chairman and CEO, commented on the results, stating, "As anticipated, the second quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States." Despite the near-term pressures, Rosenfeld highlighted the team's agility in mitigating these impacts and the company's focus on long-term growth through compelling product and effective marketing. He expressed confidence in the ongoing integration of Kurt Geiger, noting it is "proceeding smoothly, and we are more confident than ever in its potential to be a significant driver of growth for the company in the years ahead."

Delving into channel performance, revenue for the wholesale business was 360.6 million dollars, a 6.4 percent decrease compared to the second quarter of 2024. Excluding the newly acquired Kurt Geiger, wholesale revenue declined by 12.8 percent. Wholesale footwear revenue decreased by 7.1 percent (11.7 percent excluding Kurt Geiger), while wholesale accessories/apparel revenue decreased by 5.3 percent (14.6 percent excluding Kurt Geiger). Gross profit as a percentage of wholesale revenue was 30 percent, primarily impacted by new tariffs.

In contrast, direct-to-consumer revenue saw a substantial 43.3 percent increase to 195.5 million dollars. However, excluding Kurt Geiger, direct-to-consumer revenue decreased by 3 percent, with declines observed in both brick-and-mortar and e-commerce channels. Gross profit as a percentage of direct-to-consumer revenue was 58.7 percent, driven by the addition of Kurt Geiger's concessions business and the impact of tariffs.

The company concluded the quarter with 392 company-operated brick-and-mortar retail stores, including 98 outlets, seven e-commerce websites, and 130 company-operated concessions in international markets, with Kurt Geiger contributing 73 retail stores, two e-commerce websites, and 72 concessions to these figures.