PART I – FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Steven Madden reported a Q2 2025 net loss of $39.5 million despite 6.8% revenue growth to $559.0 million, driven by the Kurt Geiger acquisition which also increased operating expenses and expanded the balance sheet [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1.90 billion and liabilities to $1.03 billion by June 30, 2025, primarily due to the Kurt Geiger acquisition and related long-term debt Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,895,078** | **$1,411,771** | **+34.2%** | | Cash and cash equivalents | $111,714 | $189,924 | -41.2% | | Inventories | $436,968 | $257,625 | +69.6% | | Goodwill | $266,602 | $183,737 | +45.1% | | Intangibles, net | $282,372 | $113,432 | +148.9% | | **Total Liabilities** | **$1,031,715** | **$535,774** | **+92.6%** | | Long-term debt | $287,865 | $0 | N/A | | **Total Stockholders' Equity** | **$863,363** | **$875,997** | **-1.4%** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenue grew 6.8% to $559.0 million, but a 61.2% surge in operating expenses, mainly from the Kurt Geiger acquisition, led to a net loss of $39.5 million Q2 2025 vs. Q2 2024 Statement of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $559,000 | $523,553 | +6.8% | | Gross Profit | $226,027 | $217,129 | +4.1% | | (Loss) / Income from Operations | ($40,258) | $46,870 | N/A | | Net (Loss) / Income Attributable to Steven Madden, Ltd. | ($39,477) | $35,376 | N/A | | Diluted (Loss) / Income Per Share | ($0.56) | $0.49 | N/A | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, cash from operations decreased to $47.6 million, while investing activities used $377.9 million for the Kurt Geiger acquisition, resulting in a $78.2 million net decrease in cash Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $47,635 | $93,801 | | Net cash used in investing activities | ($377,856) | ($10,185) | | Net cash provided by / (used in) financing activities | $249,466 | ($105,508) | | **Net decrease in cash and cash equivalents** | **($78,210)** | **($24,183)** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the May 6, 2025 Kurt Geiger acquisition for $405.3 million, funded by new debt, which contributed $88.0 million in revenue and a $45.7 million net loss, alongside mixed segment performance and other financial disclosures - On May 6, 2025, the Company acquired Kurt Geiger (MATL) for a preliminary purchase price of **$405.3 million**, funded by a combination of debt and cash. This acquisition is intended to expand the company's international footprint and direct-to-consumer business[28](index=28&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - For the period from the acquisition date to June 30, 2025, the acquired Kurt Geiger business contributed **$88.0 million** in revenue and a net loss of **$45.7 million**[32](index=32&type=chunk) - In connection with the acquisition, the company entered into a new credit agreement on May 6, 2025, which includes a **$300 million** term loan facility and a **$250 million** revolving credit facility[101](index=101&type=chunk) Q2 2025 Revenue by Segment (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Wholesale Footwear | $220,139 | $237,024 | -7.1% | | Wholesale Accessories/Apparel | $140,449 | $148,276 | -5.3% | | Direct-to-Consumer | $195,502 | $136,409 | +43.3% | | Licensing | $2,910 | $1,844 | +57.8% | | **Total** | **$559,000** | **$523,553** | **+6.8%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 6.8% Q2 revenue increase to $559.0 million to the Kurt Geiger acquisition, which offset organic declines, resulting in a $39.5 million net loss due to acquisition costs and a reduced gross margin, while maintaining strong liquidity [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q2 2025 consolidated revenue rose 6.8% to $559.0 million due to the Kurt Geiger acquisition, but gross margin declined and operating expenses surged, leading to an operating loss, with Direct-to-Consumer growth offsetting wholesale declines - Q2 2025 total revenue increased **6.8%** YoY, primarily due to incremental revenue from the newly acquired Kurt Geiger business, which was partially offset by declines in the organic business attributed to tariff-related impacts[147](index=147&type=chunk) - Operating expenses increased significantly to **47.2%** of revenue in Q2 2025, up from **31.3%** in Q2 2024. This was mainly due to acquisition-related costs, including **$38.8 million** in compensation expense from reallocated seller proceeds[149](index=149&type=chunk) - Direct-to-Consumer segment revenue increased **43.3%** in Q2 2025, driven by the Kurt Geiger acquisition. In contrast, Wholesale Footwear and Wholesale Accessories/Apparel revenues decreased by **7.1%** and **5.3%** respectively, primarily due to tariff impacts[152](index=152&type=chunk)[156](index=156&type=chunk)[160](index=160&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by cash from operations and a new credit facility, with $111.9 million in cash and equivalents as of June 30, 2025, following the Kurt Geiger acquisition funded by a $300 million term loan and $250 million revolving facility - As of June 30, 2025, the company had **$111.9 million** in cash, cash equivalents, and short-term investments, and working capital of **$501.2 million**[189](index=189&type=chunk)[190](index=190&type=chunk) - To fund the Kurt Geiger acquisition, the company entered into a new credit agreement on May 6, 2025, with a **$300 million** term loan and a **$250 million** revolving credit facility[192](index=192&type=chunk) - Subsequent to the quarter end, on August 1, 2025, the company made a voluntary early repayment of **$7.5 million** on its term loan facility[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces increased interest rate risk from its new $300 million variable-rate term loan and heightened foreign currency risk, particularly with the British pound, following the Kurt Geiger acquisition, partially mitigated by forward contracts - The company has **$300 million** in outstanding borrowings under a variable-rate term loan. A hypothetical **100 basis point** increase in interest rates would increase annual interest expense by approximately **$3.0 million**[207](index=207&type=chunk) - The acquisition of UK-based Kurt Geiger significantly increases the company's exposure to foreign currency exchange rate risk, particularly fluctuations in the British pound sterling (GBP)[210](index=210&type=chunk) - As of June 30, 2025, the company held forward foreign exchange contracts with notional amounts totaling **$112.9 million** to mitigate currency risk[212](index=212&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with the assessment of internal control over financial reporting excluding the recently acquired Kurt Geiger business due to timing - Management evaluated and concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[216](index=216&type=chunk) - The assessment of internal control over financial reporting excluded the Kurt Geiger business, which was acquired on May 6, 2025. The acquired business constituted **30.8%** of consolidated total assets as of June 30, 2025[218](index=218&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none of which are expected to materially impact its financial condition or results of operations - The company is involved in various legal proceedings but does not expect them to have a **material impact** on its financial condition, results of operations, or liquidity[222](index=222&type=chunk) [Item 1A. Risk Factors](index=52&type=page&id=ITEM%201A.%20Risk%20Factors) New and heightened risks include challenges integrating Kurt Geiger, increased financial leverage, potential impairment of goodwill and intangibles, and ongoing adverse impacts from tariffs on imported goods - The company faces significant risks related to the integration of the newly acquired Kurt Geiger business, including operational, technological, and cultural challenges[224](index=224&type=chunk)[225](index=225&type=chunk) - Increased indebtedness from financing the acquisition could limit operational flexibility and exposes the company to interest rate risk on its new variable-rate debt[227](index=227&type=chunk)[228](index=228&type=chunk) - The acquisition resulted in over **$200 million** in goodwill and identifiable intangible assets, which are subject to impairment risk if the business underperforms[230](index=230&type=chunk)[231](index=231&type=chunk) - Tariffs on goods imported into the U.S. have had, and may continue to have, a **material adverse impact** on the business by increasing costs and reducing margins[233](index=233&type=chunk)[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the share repurchase program in Q2 2025, with $85.3 million remaining available, though 18,000 shares were acquired for employee tax obligations - No shares were repurchased under the Share Repurchase Program in the three months ended June 30, 2025[237](index=237&type=chunk) - As of June 30, 2025, approximately **$85.3 million** remained available for future repurchases under the authorized program[237](index=237&type=chunk) [Item 5. Other Information](index=55&type=section&id=ITEM%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during Q2 2025 - No directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the quarter[238](index=238&type=chunk) [Item 6. Exhibits](index=56&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Amended and Restated Credit Agreement, CEO and CFO certifications, and iXBRL data files

Core Insights - Steven Madden, Ltd. (SHOO) reported second-quarter 2025 results with total revenues increasing but earnings decreasing compared to the previous year, leading to a 9.3% drop in share price [1][4][9] - The company is facing challenges due to new tariffs on imported goods but remains focused on long-term growth and consumer engagement [2][3] Financial Performance - Adjusted quarterly earnings were 20 cents per share, missing the Zacks Consensus Estimate of 24 cents, and down 64.9% from 57 cents in the prior year [4][6] - Total revenues rose 6.8% year over year to $559 million, but missed the consensus estimate of $576 million; net sales grew 6.6% to $556.1 million, while licensing fee income increased 57.8% to $2.9 million [4][9] - Adjusted gross profit increased 7.8% to $234.3 million, surpassing estimates, with an adjusted gross margin of 41.9%, up 40 basis points [5] Operating Expenses and Margins - Adjusted operating expenses rose 30% year over year to $211.6 million, increasing as a percentage of revenues to 37.9%, up 680 basis points [5] - Adjusted operating income fell 58.5% to $22.6 million, with an adjusted operating margin decreasing 640 basis points to 4% [6] Segment Performance - Wholesale revenues declined 6.4% to $360.6 million, with a 12.8% drop excluding Kurt Geiger; footwear revenues decreased 7.1% and accessories and apparel revenues dropped 5.3% [7][9] - Direct-to-consumer revenues increased 43.3% to $195.5 million, but declined 3% when excluding Kurt Geiger, with a gross margin of 61.3%, down 300 basis points [8] Financial Health - At the end of the quarter, the company had cash and cash equivalents of $111.7 million and stockholders' equity of $863.4 million [12] - The company did not repurchase any shares during the quarter and announced a cash dividend of 21 cents per share [12] Guidance and Market Context - Due to macroeconomic uncertainty from new tariffs, the company has withheld financial guidance for 2025 [13] - Over the past month, SHOO shares gained 14.2%, compared to the industry’s growth of 33.6% [13]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2025 was $559 million, a 6.8% increase compared to 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased by 10% [9] - Wholesale revenue was $360.6 million, down 6.4% compared to Q2 2024, and down 12.8% excluding Kurt Geiger [10] - Direct-to-consumer (DTC) segment revenue increased by 43.3% to $195.5 million, but decreased by 3% excluding Kurt Geiger [10] - Consolidated gross margin was 41.9%, compared to 41.5% in Q2 2024, with tariffs impacting gross margin by approximately 230 basis points [12] - Operating income for the quarter was $22.6 million, or 4% of revenue, compared to $54.5 million, or 10.4% of revenue in the prior year [13] - Net income attributable to Steve Madden Limited was $13.9 million, or $0.20 per diluted share, compared to $41.2 million, or $0.57 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Wholesale footwear revenue was $220.1 million, a 7.1% decrease from Q2 2024, or down 11.7% excluding Kurt Geiger [10] - Wholesale accessories and apparel revenue was $140.4 million, down 5.3% compared to the prior year, or down 14.6% excluding Kurt Geiger [10] - The apparel business saw revenue growth, being one of the few segments that performed well during the quarter [38] Market Data and Key Metrics Changes - The company ended the quarter with 392 company-operated retail stores, including 98 outlets, and 130 company-operated concessions in international markets [11] - Licensing royalty income was $2.9 million in the quarter, compared to $1.8 million in 2024 [11] - International business, excluding Kurt Geiger, was up about 8% in revenue or about 10% in constant currency [88] Company Strategy and Development Direction - The company is focused on diversifying sourcing out of China due to tariff impacts, with plans to source approximately 30% of US imports from China for fall 2025, down from 71% in 2024 [5] - The integration of the newly acquired Kirk Geiger is progressing well, with strong momentum and potential for significant growth [8] - Marketing efforts are being amplified to deepen consumer connections, particularly targeting Gen Z and millennials through various channels [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the second quarter was challenging due to new tariffs, leading to order cancellations and lost sales [4] - The company expects continued impacts from tariff-related disruptions in Q3, but anticipates improvements in Q4 [20] - Management remains optimistic about long-term growth, citing strong brand positioning and a robust balance sheet [8] Other Important Information - The company did not repurchase any shares during the quarter and declared a quarterly cash dividend of $0.21 per share [14] - Due to ongoing uncertainties regarding tariffs, the company will not provide financial guidance for 2025 [15] Q&A Session Summary Question: Which wholesale channels saw significant order cancellations? - The mass and off-price channels experienced the most significant order cancellations, with approximately 95% of the wholesale revenue shortfall coming from these areas [18] Question: What is the expected gross margin pressure for Q3 and Q4? - Continued pressure on gross margins is expected in Q3, with hopes for improvement by Q4 [20] Question: How has consumer response been to price increases? - The company is seeing a positive consumer response to average price increases of about 10%, particularly in trending categories like dress shoes and summer boots [26] Question: What is the current margin profile for Kurt Geiger? - Kurt Geiger's EBIT margins were about 9.3% prior to acquisition, expected to decrease slightly this year due to tariff pressures [71] Question: How did the Nordstrom anniversary sale perform? - The Nordstrom anniversary event performed very well, indicating strong sell-through and optimism for future sales [93]

Company Performance - Steven Madden reported quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.57 per share a year ago, representing an earnings surprise of -16.67% [1] - The company posted revenues of $559 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.94%, compared to year-ago revenues of $523.55 million [2] - Over the last four quarters, Steven Madden has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Steven Madden shares have lost approximately 38.1% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The current status of estimate revisions has resulted in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $715.74 million, and for the current fiscal year, it is $1.47 on revenues of $2.52 billion [7] - The outlook for the Shoes and Retail Apparel industry is currently in the bottom 24% of over 250 Zacks industries, which may impact the performance of Steven Madden's stock [8] Industry Comparison - Wolverine World Wide, another company in the same industry, is expected to report quarterly earnings of $0.22 per share, reflecting a year-over-year change of +46.7%, with revenues expected to be $446.48 million, up 5% from the year-ago quarter [9][10]

Steven Madden said tariffs are making it too hard to gauge how its business will perform, so it’s not providing an outlook for the rest of the year https://t.co/86vglS3kCn ...

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Executive Summary](index=1&type=section&id=Executive%20Summary) Q2 2025 was challenging due to new U.S. tariffs, resulting in a net loss despite revenue growth driven by the Kurt Geiger acquisition - Q2 performance was significantly impacted by new U.S. tariffs[4](index=4&type=chunk) - Integration of Kurt Geiger is smooth, expected to drive future growth[4](index=4&type=chunk) - Company focuses on core strategies and consumer connections to navigate current environment[4](index=4&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Q2 2025 revenue grew 6.8% to **$559.0 million**, but GAAP net loss was **$39.5 million** due to tariffs and acquisition costs [Consolidated Results](index=1&type=section&id=Consolidated%20Results) Q2 2025 Consolidated Financial Highlights (GAAP) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $559.0M | $523.6M | +6.8% | | Gross Profit Margin | 40.4% | 41.5% | -110 bps | | (Loss) / Income from Operations | ($40.3M) | $46.9M | N/A | | Net (Loss) / Income | ($39.5M) | $35.4M | N/A | | Diluted (Loss) / EPS | ($0.56) | $0.49 | N/A | Q2 2025 Consolidated Financial Highlights (Adjusted) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted Gross Profit Margin | 41.9% | N/A | N/A | | Adjusted Income from Operations | $22.6M | $54.5M | -58.5% | | Adjusted Net Income | $13.9M | $41.2M | -66.3% | | Adjusted Diluted EPS | $0.20 | $0.57 | -64.9% | [Channel Performance](index=1&type=section&id=Channel%20Performance) - **Wholesale revenue decreased 6.4% to $360.6 million**, with gross margin contracting to **30.0%** due to tariffs[5](index=5&type=chunk) - **DTC revenue grew 43.3% to $195.5 million** driven by Kurt Geiger, though gross margin fell to **58.7%** due to tariffs[7](index=7&type=chunk) - Company ended Q2 with **392** company-operated stores and **130** concessions, including Kurt Geiger additions[8](index=8&type=chunk) [Balance Sheet and Cash Flow](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of June 30, 2025, cash was **$111.9 million**, total debt **$293.5 million**, resulting in **$181.6 million** net debt Balance Sheet Summary (as of June 30, 2025) | Metric | Amount | | :--- | :--- | | Cash, Cash Equivalents & Short-term Investments | $111.9M | | Total Debt Outstanding | $293.5M | | Net Debt | $181.6M | - No share repurchases were made during Q2 2025[10](index=10&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) Board approved a quarterly cash dividend of **$0.21 per share**, payable in September 2025 - A quarterly cash dividend of **$0.21 per share** was approved, payable September 23, 2025[11](index=11&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) Company refrains from providing 2025 financial outlook due to ongoing macroeconomic uncertainty and new U.S. tariffs - No 2025 financial guidance provided due to macroeconomic uncertainty and new tariffs[12](index=12&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue grew to **$559.0 million**, but increased operating expenses led to a **$40.3 million** operating loss and **$39.5 million** net loss Q2 Statement of Operations Highlights (In thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $559,000 | $523,553 | | Gross profit | $226,027 | $217,129 | | (Loss) / income from operations | $(40,258) | $46,870 | | Net (loss) / income attributable to Steven Madden, Ltd. | $(39,477) | $35,376 | | Diluted (loss) / income per share | $(0.56) | $0.49 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$1.90 billion** as of June 30, 2025, with liabilities rising to **$1.03 billion** due to acquisition-related debt Balance Sheet Highlights (In thousands) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $111,714 | $180,457 | | Inventories | $436,968 | $241,643 | | Total Assets | $1,895,078 | $1,375,064 | | Long-term debt | $287,865 | $— | | Total Liabilities | $1,031,715 | $542,708 | | Total stockholders' equity | $863,363 | $832,356 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$62.5 million**, while investing activities used **$392.8 million** for acquisitions, resulting in a **$78.2 million** cash decrease Six-Month Cash Flow Summary (In thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $62,530 | $93,801 | | Net cash used in investing activities | $(392,751) | $(10,185) | | Net cash provided by / (used in) financing activities | $249,466 | $(105,508) | | Net decrease in cash and cash equivalents | $(78,210) | $(24,183) | [Non-GAAP Reconciliation](index=7&type=section&id=Non-GAAP%20Reconciliation) [Reconciliation Summary](index=7&type=section&id=Reconciliation%20Summary) Non-GAAP adjustments for Q2 2025, primarily acquisition-related, reconciled GAAP loss to **$22.6 million** adjusted operating income Q2 2025 GAAP to Non-GAAP Reconciliation (In thousands) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $226,027 | $8,251 | $234,278 | | (Loss) / Income from Operations | $(40,258) | $62,887 | $22,629 | | Net (Loss) / Income Attributable to Steven Madden, Ltd. | $(39,477) | $53,357 | $13,880 | [Detailed Non-GAAP Adjustments](index=8&type=section&id=Detailed%20Non-GAAP%20Adjustments) Q2 2025 pre-tax adjustments included **$38.8 million** for acquisition compensation and **$8.3 million** for inventory fair value - Key pre-tax adjustments for Q2 2025 included: - **$38.8 million** in acquisition-related compensation expense - **$8.3 million** expense for purchase accounting fair value adjustment of inventory - **$8.1 million** expense for acquisition and joint venture formation - **$9.3 million** benefit from the settlement of a foreign exchange hedging contract[26](index=26&type=chunk) - Q2 2024 adjustments were smaller, including a **$6.6 million** pre-tax expense for contingent consideration valuation change[27](index=27&type=chunk)

Core Insights - Steven Madden, Ltd. reported challenging financial results for Q2 2025, primarily due to new tariffs impacting imported goods [3][4][11] - The company is focused on long-term growth through strategic consumer engagement and the integration of Kurt Geiger, which is expected to drive future growth [3][4] Financial Performance - Total revenue for Q2 2025 increased by 6.8% to $559.0 million compared to $523.6 million in Q2 2024 [8] - Gross profit as a percentage of revenue decreased to 40.4% from 41.5% in the same period last year [8] - The company reported a net loss of $39.5 million, or $0.56 per diluted share, compared to a net income of $35.4 million, or $0.49 per diluted share, in Q2 2024 [8][27] Revenue Breakdown - Wholesale revenue was $360.6 million, a decrease of 6.4% year-over-year, with a 12.8% decline when excluding Kurt Geiger [4] - Direct-to-consumer revenue rose by 43.3% to $195.5 million, although it decreased by 3.0% when excluding Kurt Geiger [5] Operational Metrics - The company ended the quarter with 392 retail stores, including 98 outlets, and seven e-commerce websites [6] - Operating expenses as a percentage of revenue increased to 47.2% from 31.3% in Q2 2024 [8] Balance Sheet and Cash Flow - As of June 30, 2025, total debt was $293.5 million, with cash and short-term investments totaling $111.9 million, resulting in net debt of $181.6 million [9] - The company did not repurchase any shares during the quarter [9] Dividend Announcement - The Board of Directors approved a quarterly cash dividend of $0.21 per share, payable on September 23, 2025 [10] Future Outlook - Due to ongoing macroeconomic uncertainties related to tariffs, the company is not providing financial guidance for 2025 [11]

Core Viewpoint - Steven Madden, Ltd. is set to release its second quarter 2025 earnings results on July 30, 2025, with a conference call scheduled for 8:30 a.m. Eastern Time to discuss the results [1]. Company Overview - Steven Madden, Ltd. is a prominent designer and marketer of fashion-forward footwear, accessories, and apparel, operating under various brands including Steve Madden, Kurt Geiger London, and Dolce Vita [4]. - The company engages in wholesale distribution through department stores, mass merchants, and online retailers, while also operating its own retail stores and e-commerce platforms [4]. - Additionally, Steven Madden licenses certain brands for marketing and sales in apparel, accessory, and home categories [4].

Core Insights - The article emphasizes the importance of taking proactive steps towards career advancement by starting a business rather than waiting for promotions that may not materialize [1]. Group 1 - The quote from Sallie Krawcheck suggests that individuals should focus on creating their own opportunities instead of relying on traditional career paths [1].

Summary of Key Points Core Viewpoint - Numerous companies are lowering their profit forecasts for 2025 due to the impact of tariffs and economic uncertainty, indicating a broader trend of caution across various industries. Group 1: Retail Sector - Abercrombie & Fitch lowered its full-year profit forecast for 2025, citing a $50 million hit from tariffs, including a 30% tariff on imports from China and a 10% tariff on other imports [1][2] - Macy's also reduced its earnings per share outlook for the year, attributing it to tariffs, moderation in consumer spending, and increased competition [3] - Target expects sales to decline throughout 2025, previously projecting a 1% growth, due to weaker spending linked to tariff uncertainties [3] Group 2: Consumer Goods and Food & Beverage - Diageo warned of a $150 million hit to annual profits in 2025 but plans to offset half of this impact through unspecified actions [4] - PepsiCo lowered its earnings forecast for 2025, facing higher supply chain costs due to tariffs and a volatile consumer environment [15] - Kraft Heinz also lowered its outlook, citing a volatile operating environment influenced by tariffs and inflation [13] Group 3: Automotive Industry - Ford expects tariffs to reduce its earnings before interest and taxes by about $1.5 billion in 2025 and has suspended its full-year guidance [8] - General Motors lowered its earnings forecast to between $10 billion and $12.5 billion, down from $13.7 billion to $15.7 billion, due to the impact of tariffs [12] - Toyota estimated a $1.25 billion profit loss in April and March due to U.S. tariffs, forecasting a nearly 21% dip in operating income through 2025 [5] Group 4: Technology and Electronics - AMD anticipates a $1.5 billion revenue loss in 2025 due to restrictions on chip shipments to China [7] - Apple expects a $900 million hit to its bottom line in the second quarter due to tariffs, complicating future predictions [10] - Logitech withdrew its outlook for the 2026 fiscal year due to ongoing tariff uncertainties [17] Group 5: Airlines and Transportation - JetBlue and Alaska Airlines both pulled their full-year guidance for 2025 due to macroeconomic uncertainty [13][17] - Delta Airlines withdrew its full-year guidance, citing broad macro uncertainty [18] - United Airlines issued a second guidance featuring significantly lower earnings for 2025, reflecting the unpredictable economic environment [17] Group 6: Miscellaneous - Steve Madden withdrew its financial guidance for 2025, facing heightened uncertainty from new tariffs [6] - Rivian lowered its targets for vehicle deliveries and capital spending for 2025 due to significant uncertainty in the global economic landscape [6] - Snap declined to issue guidance for its second quarter, citing uncertainty in macroeconomic conditions affecting advertising demand [14]