Tariff headwinds impact Steve Madden profitability despite 6.9 percent revenue growth

Steven Madden, Ltd. reported that third-quarter revenue increased by 6.9 percent to 667.9 million dollars. However, the quarter was "challenging," as noted by chairman and CEO Edward Rosenfeld, due largely to the impact of new tariffs on imported goods, which severely compressed profitability.

Adjusted net income fell to 30.4 million dollars or 43 cents per diluted share, down from 64.8 million dollars or 91 cents per diluted share in the prior year. The wholesale business, excluding the recent acquisition of Kurt Geiger, saw a 19 percent decline in revenue, while direct-to-consumer revenue in the third quarter of 2025 increased 1.5 percent excluding the acquisition. Adjusted gross margin for both wholesale and direct-to-consumer segments was negatively affected by tariffs.

Nevertheless, Rosenfeld expressed satisfaction with the underlying demand for its products, particularly the flagship Steve Madden brand's favourable response to fall assortments.

The company expects stronger financial results beginning in the fourth quarter, forecasting revenue to jump 27 percent to 30 percent, aided by tariff mitigation strategies and the contribution from the Kurt Geiger acquisition. Steve Madden's board approved a quarterly cash dividend of 21 cents per share payable on December 26, 2025.

The company ended the quarter with 397 company-operated brick-and-mortar retail stores, including 99 outlets, as well as seven e-commerce websites and 133 company-operated concessions in international markets.