Steven Madden, Ltd. reported a challenging second quarter ended June 30, 2025, with GAAP revenue increasing 6.8% to $559.0 million, below analyst projections of $578.94 million. Adjusted earnings per share were $0.20, missing consensus estimates by 17%, and the company posted a GAAP loss from operations of $40.3 million. Edward Rosenfeld, Chairman and CEO, attributed the difficult quarter primarily to the impact of new tariffs on goods imported into the United States.
The wholesale business experienced a 6.4% revenue decrease to $360.6 million compared to Q2 2024, with a 12.8% decline when excluding the newly acquired Kurt Geiger. Wholesale gross profit margin contracted to 30.0% from 33.1% in the prior-year period, directly impacted by the new tariffs. Direct-to-consumer revenue, while up 43.3% including Kurt Geiger, saw a 3.0% decline organically, with both brick-and-mortar and e-commerce channels experiencing decreases.
Due to continued macroeconomic uncertainty and the impact of tariffs, Steven Madden reaffirmed its decision to not provide 2025 financial guidance. The company is implementing a three-pronged mitigation strategy, including negotiating factory cost concessions, accelerating sourcing diversification out of China to countries like Vietnam, Cambodia, Mexico, and Brazil, and selective price increases. Inventory increased to $238.6 million, partly due to accelerated shipments ahead of tariff changes, and the company moved to a net debt position of $181.6 million after financing the Kurt Geiger acquisition.
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