Steve Madden Announces Second Quarter 2025 Results

July 30, 2025 06:59 ET | Source: Steve Madden LONG ISLAND CITY, N.Y., July 30, 2025 (GLOBE NEWSWIRE) -- Steven Madden, Ltd. (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel, today announced financial results for the second quarter ended June 30, 2025. Amounts referred to as “Adjusted” are non-GAAP measures that exclude the items defined as “Non-GAAP Adjustments” in the “Non-GAAP Reconciliation” section. Second Quarter 2025 Results Revenue increased 6.8% 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%, compared to 41.5% in the same period of 2024. Adjusted gross profit as a percentage of revenue was 41.9% in the second quarter of 2025.Operating expenses as a percentage of revenue were 47.2%, compared to 31.3% in the same period of 2024. Adjusted operating expenses as a percentage of revenue were 37.9%, compared to 31.1% in the same period of 2024.Loss from operations totaled ($40.3) million, or (7.2%) of revenue, compared to income from operations of $46.9 million, or 9.0% of revenue, in the same period of 2024. Adjusted income from operations totaled $22.6 million, or 4.0% of revenue, compared to Adjusted income from operations of $54.5 million, or 10.4% of revenue, in the same period of 2024.Net loss attributable to Steven Madden, Ltd. was ($39.5) million, or ($0.56) per diluted share, compared to net income attributable to Steven Madden, Ltd. of $35.4 million, or $0.49 per diluted share, in the same period of 2024. Adjusted net income attributable to Steven Madden, Ltd. was $13.9 million, or $0.20 per diluted share, compared to Adjusted net income attributable to Steven Madden, Ltd. of $41.2 million, or $0.57 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% decrease compared to the second quarter of 2024. Excluding the newly acquired Kurt Geiger, wholesale revenue declined 12.8%. Wholesale footwear revenue decreased 7.1%, or 11.7% excluding Kurt Geiger. Wholesale accessories/apparel revenue decreased 5.3%, or 14.6% excluding Kurt Geiger. Gross profit as a percentage of wholesale revenue was 30.0%, compared to 33.1% in the second quarter of 2024. Adjusted gross profit as a percentage of wholesale revenue was 30.9%, compared to 33.1% 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, a 43.3% increase compared to the second quarter of 2024. Excluding Kurt Geiger, direct-to-consumer revenue decreased 3.0%, with declines in both brick-and-mortar and e-commerce channels. Gross profit as a percentage of direct-to-consumer revenue was 58.7%, compared to 64.3% in the second quarter of 2024. Adjusted Gross profit as a percentage of direct-to-consumer revenue was 61.3%, compared to 64.3% 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, including 27 outlets, as well as two e-commerce websites and 72 concessions related to 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 were $111.9 million, for 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. Conference Call Information Interested stockholders are invited to listen to the conference call scheduled for today, July 30, 2025, at 8:30 a.m. Eastern Time, which will include a discussion of the company's second quarter 2025 earnings results. The call will be webcast live on the company’s website at https://investor.stevemadden.com. A webcast replay of the conference call will be available on the company's website or via the following webcast link https://edge.media-server.com/mmc/p/7ngfthjs beginning today at approximately 10:00 a.m. Eastern Time. About Steve Madden Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel. In addition to marketing products under its own brands including Steve Madden®, Kurt Geiger London®, Dolce Vita®, Betsey Johnson®, Carvela®, Blondo® and ATM®, Steve Madden licenses footwear, handbags and other accessory categories for the Anne Klein® brand. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores. Steve Madden also directly operates brick-and-mortar retail stores and e-commerce websites. In addition, Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products in the apparel, accessory and home categories. Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995 This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, “estimate”, or “confident” and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the company’s current beliefs, expectations, and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the company’s control. The company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. The company does not undertake, and disclaims, any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments, or otherwise. STEVEN MADDEN, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)(Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net sales $556,090 $521,709 $1,107,472 $1,072,276Licensing fee income 2,910 1,844 5,062 3,658Total revenue 559,000 523,553 1,112,534 1,075,934Cost of sales 332,973 306,424 660,240 633,990Gross profit 226,027 217,129 452,294 441,944Operating expenses 263,865 163,709 441,128 328,428Change in valuation of contingent payment liability 2,420 6,550 (2,075) 8,200Impairment of intangibles — — — 1,700(Loss) / income from operations (40,258) 46,870 13,241 103,616Gain on derivative 9,252 — 9,252 —Interest and other (expense) / income, net (3,795) 1,354 (2,966) 2,909(Loss) / income before provision for income taxes (34,801) 48,224 19,527 106,525Provision for income taxes 3,911 11,276 16,979 25,015Net (loss) / income (38,712) 36,948 2,548 81,510Less: net income attributable to noncontrolling interest 765 1,572 1,602 2,200Net (loss) / income attributable to Steven Madden, Ltd. $(39,477) $35,376 $946 $79,310 Basic (loss) / income per share $(0.56) $0.50 $0.01 $1.10 Diluted (loss) / income per share $(0.56) $0.49 $0.01 $1.09 Basic weighted average common shares outstanding 70,870 71,458 70,822 71,875 Diluted weighted average common shares outstanding 70,870 72,004 70,970 72,430 Cash dividends declared per common share $0.21 $0.21 $0.42 $0.42 STEVEN MADDEN, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) As of June 30, 2025 December 31, 2024 June 30, 2024 (Unaudited) (Unaudited)ASSETS Current assets: Cash and cash equivalents $111,714 $189,924 $180,457Short-term investments 140 13,484 11,761Accounts receivable, net of allowances 86,211 45,653 36,624Factor accounts receivable 289,942 348,659 341,967Inventories 436,968 257,625 241,643Prepaid expenses and other current assets 54,002 34,463 28,448Income tax receivable and prepaid income taxes 18,799 4,887 19,208Total current assets 997,776 894,695 860,108Property and equipment, net 104,423 57,388 49,056Operating lease right-of-use asset 220,089 139,695 143,480Deposits and other 21,641 22,214 15,553Deferred tax assets 2,175 610 609Goodwill 266,602 183,737 183,374Intangibles, net 282,372 113,432 122,884Total Assets $1,895,078 $1,411,771 $1,375,064LIABILITIES Current liabilities: Accounts payable $235,716 $206,889 $189,772Accrued expenses and other current liabilities 184,249 142,452 143,127Operating leases - current portion 56,179 43,172 44,961Income taxes payable 11,419 6,147 7,204Current portion of long-term debt 5,625 — —Contingent payment liability - current portion — — 11,957Accrued incentive compensation 3,404 15,061 8,909Total current liabilities 496,592 413,721 405,930Contingent payment liability - long-term portion 5,490 7,565 9,543Operating leases - long-term portion 189,404 109,816 112,988Long-term debt 287,865 — —Deferred tax liabilities 38,574 4,628 9,078Other liabilities 13,790 44 5,169Total Liabilities 1,031,715 535,774 542,708 STOCKHOLDERS’ EQUITY Total Steven Madden, Ltd. stockholders’ equity 833,230 847,719 808,279Noncontrolling interest 30,133 28,278 24,077Total stockholders’ equity 863,363 875,997 832,356Total Liabilities and Stockholders’ Equity $1,895,078 $1,411,771 $1,375,064 STEVEN MADDEN, LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)(Unaudited) Six Months Ended June 30, 2025 June 30, 2024Cash flows from operating activities: Net income $2,548 $81,510 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 14,690 12,579 Depreciation and amortization 13,926 9,569 Amortization of debt issuance costs 480 — Loss on disposal of fixed assets 1 75 Impairment of intangibles — 1,700 Deferred taxes — — Change in valuation of contingent payment liability (2,075) 8,200 Other operating activities (550) 238 Changes, net of acquisitions, in: Accounts receivable (7,197) 2,787 Factor accounts receivable 59,110 (22,988)Inventories 35,004 (10,938)Prepaid expenses, income tax receivables, prepaid taxes, and other assets (7,119) (4,700)Accounts payable, accrued expenses, and other current liabilities (31,441) 18,122 Accrued incentive compensation (11,721) (3,109)Leases and other liabilities (3,126) 756 Net cash provided by operating activities 62,530 93,801 Cash flows from investing activities: Capital expenditures (17,516) (9,272)Purchases of short-term investments — (10,510)Maturity / sale of short-term investments 13,410 13,485 Acquisition of businesses, net of cash acquired (386,449) (4,259)Other investing activities (2,196) 371 Net cash used in investing activities (392,751) (10,185) Cash flows from financing activities: Common stock repurchased and net settlements of stock awards (8,198) (75,549)Proceeds from exercise of stock options — 749 Borrowings, net of repayments 300,000 — Financing costs paid (8,955) — Cash dividends paid on common stock (30,435) (30,708)Distribution of noncontrolling interest (2,946) — Net cash provided by / (used in) financing activities 249,466 (105,508)Effect of exchange rate changes on cash and cash equivalents 2,545 (2,291)Net decrease in cash and cash equivalents (78,210) (24,183)Cash and cash equivalents – beginning of period 189,924 204,640 Cash and cash equivalents – end of period $111,714 $180,457 STEVEN MADDEN, LTD. AND SUBSIDIARIESNON-GAAP RECONCILIATION(In thousands, except per share amounts)(Unaudited) The company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the company conducts and views its business. Additionally, the company believes the information assists investors in comparing the company’s performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business. The non-GAAP financial information is provided in addition to, and not as an alternative to, the company’s reported results prepared in accordance with GAAP. Table 1 - Reconciliation of GAAP gross profit to Adjusted gross profit Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP gross profit $226,027 $217,129 $452,294 $441,944Non-GAAP Adjustments 8,251 126 8,530 333Adjusted gross profit $234,278 $217,255 $460,824 $442,277 Table 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP operating expenses $263,865 $163,709 $441,128 $328,428 Non-GAAP Adjustments (52,216) (958) (59,012) (1,623)Adjusted operating expenses $211,649 $162,751 $382,116 $326,805 Table 3 - Reconciliation of GAAP (loss) / income from operations to Adjusted income from operations Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP (loss) / income from operations $(40,258) $46,870 $13,241 $103,616Non-GAAP Adjustments 62,887 7,633 65,467 11,855Adjusted income from operations $22,629 $54,503 $78,708 $115,471 Table 4 - Reconciliation of GAAP interest and other (expense) / income, net to Adjusted interest and other (expense) / income, net Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP interest and other (expense) / income, net $(3,795) $1,354 $(2,966) $2,909Non-GAAP Adjustments 840 — 840 —Adjusted interest and other (expense) / income, net $(2,955) $1,354 $(2,126) $2,909 Table 5 - Reconciliation of GAAP provision for income taxes to Adjusted provision for income taxes Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP provision for income taxes $3,911 $11,276 $16,979 $25,015Non-GAAP Adjustments 1,117 1,799 1,729 2,793Adjusted provision for income taxes $5,028 $13,075 $18,708 $27,808 Table 6 - Reconciliation of GAAP net income attributable to noncontrolling interest to Adjusted net income attributable to noncontrolling interest Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP net income attributable to noncontrolling interest $765 $1,572 $1,602 $2,200Non-GAAP Adjustments — — — 130Adjusted net income attributable to noncontrolling interest $765 $1,572 $1,602 $2,330 Table 7 - Reconciliation of GAAP net (loss) / income attributable to Steven Madden, Ltd. to Adjusted net income attributable to Steven Madden, Ltd. Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 GAAP net (loss) / income attributable to Steven Madden, Ltd. $(39,477) $35,376 $946 $79,310Non-GAAP Adjustments 53,357 5,835 55,326 8,931Adjusted net income attributable to Steven Madden, Ltd. $13,880 $41,211 $56,272 $88,241 GAAP diluted net (loss) / income per share $(0.56) $0.49 $0.01 $1.09 GAAP diluted weighted shares outstanding 70,870 72,004 70,970 72,340 Adjusted diluted net income per share $0.20 $0.57 $0.79 $1.22 Adjusted diluted weighted average shares outstanding 70,911 72,004 70,970 72,430 Non-GAAP Adjustments include the items below. For the second quarter of 2025: $8.3 million pre-tax ($6.2 million after-tax) expense in connection with the purchase accounting fair value adjustment of inventory from acquired businesses, included in cost of goods sold.$38.8 million pre-tax ($38.8 million after-tax) expense in connection with acquisition-related compensation paid to management sellers and certain employees of Kurt Geiger, as determined by the institutional shareholders as part of the sellers’ negotiated transaction waterfall, included in operating expenses.$8.1 million pre-tax ($8.9 million after-tax) expense in connection with an acquisition and formation of joint ventures, included in operating expenses.$4.7 million pre-tax ($3.6 million after-tax) expense in connection with legal settlements and related fees, included in operating expenses.$0.5 million pre-tax ($0.4 million after-tax) expense in connection with severances and related charges, included in operating expenses.$2.4 million pre-tax ($1.8 million after-tax) net expense in connection with the change in valuation of contingent payment liabilities related to the acquisitions of Almost Famous and ATM.$9.3 million pre-tax ($7.1 million after-tax) benefit in connection with the settlement of a foreign exchange hedging contract entered into as part of the company's acquisition of Kurt Geiger.$0.8 million pre-tax ($0.6 million after-tax) expense in connection with the write-off of unamortized debt issuance costs associated with the replacement of the company's previous revolving credit facility, included in interest expense. For the second quarter of 2024: $0.1 million pre-tax ($0.1 million after-tax) expense in connection with the purchase accounting fair value adjustment of inventory from acquired businesses, included in cost of goods sold.$1.0 million pre-tax ($0.7 million after-tax) expense in connection with an acquisition and formation of joint ventures, included in operating expenses.$6.6 million pre-tax ($5.0 million after-tax) expense in connection with the change in valuation of a contingent consideration in connection with the acquisition of Almost Famous. Contact Steven Madden, Ltd.VP of Corporate Development & Investor RelationsDanielle McCoy718-308-2611InvestorRelations@stevemadden.com

Steve Madden Announces Second Quarter 2025 Results

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