• Steve Madden Announces Second Quarter 2025 Results

    Source: Nasdaq GlobeNewswire / 30 Jul 2025 03:59:00   America/Los_Angeles

    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 SUBSIDIARIES

    CONDENSED 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  $1,072,276
    Licensing fee income  2,910   1,844  5,062   3,658
    Total revenue  559,000   523,553  1,112,534   1,075,934
    Cost of sales  332,973   306,424  660,240   633,990
    Gross profit  226,027   217,129  452,294   441,944
    Operating expenses  263,865   163,709  441,128   328,428
    Change in valuation of contingent payment liability  2,420   6,550  (2,075)  8,200
    Impairment of intangibles  —   —  —   1,700
    (Loss) / income from operations  (40,258)  46,870  13,241   103,616
    Gain 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   106,525
    Provision for income taxes  3,911   11,276  16,979   25,015
    Net (loss) / income  (38,712)  36,948  2,548   81,510
    Less: net income attributable to noncontrolling interest  765   1,572  1,602   2,200
    Net (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 SUBSIDIARIES

    CONDENSED 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 $180,457
    Short-term investments  140  13,484  11,761
    Accounts receivable, net of allowances  86,211  45,653  36,624
    Factor accounts receivable  289,942  348,659  341,967
    Inventories  436,968  257,625  241,643
    Prepaid expenses and other current assets  54,002  34,463  28,448
    Income tax receivable and prepaid income taxes  18,799  4,887  19,208
    Total current assets  997,776  894,695  860,108
    Property and equipment, net  104,423  57,388  49,056
    Operating lease right-of-use asset  220,089  139,695  143,480
    Deposits and other  21,641  22,214  15,553
    Deferred tax assets  2,175  610  609
    Goodwill  266,602  183,737  183,374
    Intangibles, net  282,372  113,432  122,884
    Total Assets $1,895,078 $1,411,771 $1,375,064
    LIABILITIES      
    Current liabilities:      
    Accounts payable $235,716 $206,889 $189,772
    Accrued expenses and other current liabilities  184,249  142,452  143,127
    Operating leases - current portion  56,179  43,172  44,961
    Income taxes payable  11,419  6,147  7,204
    Current portion of long-term debt  5,625  —  —
    Contingent payment liability - current portion  —  —  11,957
    Accrued incentive compensation  3,404  15,061  8,909
    Total current liabilities  496,592  413,721  405,930
    Contingent payment liability - long-term portion  5,490  7,565  9,543
    Operating leases - long-term portion  189,404  109,816  112,988
    Long-term debt  287,865  —  —
    Deferred tax liabilities  38,574  4,628  9,078
    Other liabilities  13,790  44  5,169
    Total Liabilities  1,031,715  535,774  542,708
           
    STOCKHOLDERS’ EQUITY      
    Total Steven Madden, Ltd. stockholders’ equity  833,230  847,719  808,279
    Noncontrolling interest  30,133  28,278  24,077
    Total stockholders’ equity  863,363  875,997  832,356
    Total Liabilities and Stockholders’ Equity $1,895,078 $1,411,771 $1,375,064



    STEVEN MADDEN, LTD. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (In thousands)
    (Unaudited)
       
      Six Months Ended
      June 30, 2025 June 30, 2024
    Cash 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 SUBSIDIARIES

    NON-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 $441,944
    Non-GAAP Adjustments  8,251  126  8,530  333
    Adjusted 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 $103,616
    Non-GAAP Adjustments  62,887   7,633  65,467  11,855
    Adjusted 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) $2,909
    Non-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 $25,015
    Non-GAAP Adjustments  1,117  1,799  1,729  2,793
    Adjusted 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 $2,200
    Non-GAAP Adjustments  —  —  —  130
    Adjusted 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 $79,310
    Non-GAAP Adjustments  53,357   5,835  55,326  8,931
    Adjusted 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 Relations
    Danielle McCoy
    718-308-2611
    InvestorRelations@stevemadden.com


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