Steven Madden, Ltd. reported that profits on an adjusted basis fell 9.8 percent in the first quarter, ended March 31, on flat sales. The on-trend fashion-forward footwear and accessories brand for men and women, said earnings “significantly exceeded expectations,” but noted that the company faces “meaningful near-term headwinds and heightened uncertainty” due to tariffs and withdrew its outlook for the year.

First Quarter 2025 Results

  • Revenue increased 0.2 percent to $553.5 million, compared to $552.4 million in the same period of 2024.
  • Gross profit, as a percentage of revenue, was 40.9 percent, compared to 40.7 percent in the same period of 2024.
  • Operating expenses, as a percentage of revenue, were 32.0 percent, compared to 29.8 percent in the same period of 2024. Adjusted operating expenses, as a percentage of revenue, were 30.8 percent, compared to 29.7 percent in the same period of 2024.
  • Income from operations totaled $53.5 million, or 9.7 percent of revenue, compared to $56.7 million, or 10.3 percent of revenue, in the same period of 2024. Adjusted income from operations totaled $56.1 million, or 10.1 percent of revenue, compared to $61.0 million, or 11.0 percent of revenue, in the same period of 2024.
  • Net income attributable to Steven Madden, Ltd. was $40.4 million, or $0.57 per diluted share, compared to $43.9 million, or $0.60 per diluted share, in the same period of 2024. Adjusted net income attributable to Steven Madden, Ltd. was $42.4 million, or $0.60 per diluted share, compared to $47.0 million, or $0.65 per diluted share, in the same period of 2024.

Edward Rosenfeld, chairman and chief executive officer, commented, “We were pleased with our performance in the first quarter, as our team’s strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations. Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States. We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth. We believe our agile business model, combined with our fortress balance sheet, gives us a competitive advantage in dynamic environments, and we are optimistic that the current disruption will create opportunities for market share gains over time.

We are also thrilled to have completed the acquisition of Kurt Geiger, which adds a powerful new growth engine to our company. The Kurt Geiger London brand continues to demonstrate outstanding momentum, as its unique brand image, high-quality and statement-making styles and compelling value proposition drive success across multiple product categories, led by handbags. Its differentiated and elevated positioning in the market 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 complementary addition to our portfolio.”

First Quarter 2025 Channel Results
Revenue for the wholesale business was $439.3 million, a 0.2 percent increase compared to the first quarter of 2024, including an increase in wholesale footwear revenue of 0.2 percent and an increase in wholesale accessories/apparel revenue of 0.4 percent. Gross profit as a percentage of wholesale revenue was 35.7 percent, up from 35.1 percent in the first quarter of 2024, with increases in wholesale footwear and wholesale accessories/apparel channels.

Direct-to-consumer revenue was $112.1 million, a 0.2 percent decrease compared to the first quarter of 2024. Gross profit as a percentage of direct-to-consumer revenue was 60.1 percent, compared to 61.9 percent in the first quarter of 2024, driven by increased promotional activity.

The company ended the quarter with 314 brick-and-mortar retail stores, 5 e-commerce websites and 61 company-operated concessions in international markets.

Balance Sheet and Cash Flow Highlights
As of March 31, 2025, cash, cash equivalents and short-term investments totaled $147.2 million. Inventory totaled $238.6 million as of the same date, compared to $202.0 million at the end of the first quarter 2024.

During the first quarter of 2025, the company did not repurchase any shares of its common stock in the open market. The company spent $7.8 million on repurchases of shares through the net settlement of employees’ stock awards.

Quarterly Cash Dividend
The company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on June 20, 2025, to stockholders of record as of the close of business on June 9, 2025.

Acquisition of Kurt Geiger
On May 6, 2025, the company completed its previously announced acquisition of UK-based Kurt Geiger from a group led by international private equity firm Cinven for an enterprise value of approximately £289 million in cash. For the twelve months ended February 1, 2025, Kurt Geiger had revenue of £400 million. In connection with the acquisition, the company entered into a new credit agreement providing a $300 million term loan facility and a $250 million revolving credit facility. The company funded the acquisition with borrowings under the new credit agreement and cash on hand.

2025 Outlook
Due to macroeconomic uncertainty related to the impact of new tariffs on goods imported into the U.S., the company has withdrawn its 2025 financial guidance provided in its earnings release on February 26, 2025, and is not providing guidance at this time.

Image courtesy Steve Madden