Steve Madden, Ltd. reported a steep drop in adjusted earnings in the second quarter, citing the impact of tariffs. Earnings and sales were also short of analyst expectations.

Earnings on an adjusted basis in the quarter ended June 30 were $0.20 a share compared with the analysts’ consensus target of $0.24. Sales totaled $559 million versus the consensus estimate of $576.6 million

Second Quarter 2025 Results

  • Revenue increased 6.8 percent to $559.0 million, compared to $523.6 million in the same period of 2024.
  • Gross profit as a percentage of revenue was 40.4 percent, compared to 41.5 percent in the same period of 2024. Adjusted gross profit as a percentage of revenue was 41.9 percent in the second quarter of 2025.
  • Operating expenses as a percentage of revenue were 47.2 percent, compared to 31.3 percent in the same period of 2024. Adjusted operating expenses, as a percentage of revenue, were 37.9 percent, compared to 31.1 percent in the same period of 2024.
  • Loss from operations totaled $40.3 million, or 7.2 percent of revenue, compared to income from operations of $46.9 million, or 9.0 percent of revenue, in the same period of 2024. Adjusted income from operations totaled $22.6 million, or 4.0 percent of revenue, compared to Adjusted income from operations of $54.5 million, or 10.4 percent of revenue, in the same period of 2024.
  • Net loss was $39.5 million, or 56 cents per diluted share, compared to net income of $35.4 million, or 49 cents, in the same period of 2024. Adjusted net income attributable to Steve Madden, Ltd. was $13.9 million, or $0.20 cents per diluted share, compared to adjusted net income attributable to Steven Madden, Ltd. of $41.2 million, or 57 cents per diluted share, in the same period of 2024.

Edward Rosenfeld, chairman and chief executive officer, commented, “As anticipated, the second quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States. Our team continues to act with agility to mitigate near-term impacts while remaining focused on positioning the company for long-term growth by executing our strategy to deepen consumer connections through the combination of compelling product and effective marketing. The integration of Kurt Geiger 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. While tariffs have created near-term pressure and added uncertainty, we believe our key strengths — powerful brands, a robust balance sheet and a proven business model — position us well to navigate the current environment and deliver sustainable growth over time.”

Second Quarter 2025 Channel Results
Revenue for the wholesale business was $360.6 million; a 6.4 percent decrease compared to the second quarter of 2024. Excluding the newly acquired Kurt Geiger, wholesale revenue declined 12.8 percent. Wholesale footwear revenue decreased 7.1 percent, or 11.7 percent excluding Kurt Geiger. Wholesale accessories/apparel revenue decreased 5.3 percent, or 14.6 percent excluding Kurt Geiger. Gross profit, as a percentage of wholesale revenue, was 30.0 percent, compared to 33.1 percent in the second quarter of 2024. Adjusted gross profit as a percentage of wholesale revenue was 30.9 percent, compared to 33.1 percent in the second quarter of 2024, as a result of the impact of new tariffs on goods imported into the United States.

Direct-to-consumer revenue was $195.5 million, representing a 43.3 percent increase compared to the second quarter of 2024. Excluding Kurt Geiger, direct-to-consumer revenue decreased 3.0 percent, with declines in both brick-and-mortar and e-commerce channels. Gross profit, as a percentage of direct-to-consumer revenue, was 58.7 percent, compared to 64.3 percent in the second quarter of 2024. Adjusted Gross profit as a percentage of direct-to-consumer revenue was 61.3 percent, compared to 64.3 percent in the second quarter of 2024, driven primarily by the addition of the Kurt Geiger concessions business and the impact of new tariffs on goods imported into the United States.

The company ended the quarter with 392 company-operated brick-and-mortar retail stores, including 98 outlets, as well as seven e-commerce websites and 130 company-operated concessions in international markets. This includes 73 company-operated brick-and-mortar retail stores, comprising 27 outlets, as well as two e-commerce websites and 72 concessions operated by Kurt Geiger.

Balance Sheet and Cash Flow Highlights
As of June 30, 2025, total debt outstanding was $293.5 million, and cash, cash equivalents, and short-term investments totaled $111.9 million, resulting in net debt of $181.6 million.

During the second quarter of 2025, the company did not repurchase any shares of its common stock in the open market.

Quarterly Cash Dividend
The company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on September 23, 2025, to stockholders of record as of the close of business on September 12, 2025.

2025 Outlook
Due to continued macroeconomic uncertainty related to the impact of new tariffs on goods imported into the United States, the company is not providing 2025 financial guidance at this time.

Image courtesy Steve Madden