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]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - The majority of recommendations will be holds, indicating a cautious approach to market conditions and a belief that only a small fraction of companies are suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Company Performance - Steven Madden, Ltd. (SHOO) reported a sharp revenue decline in Q2, leading to a decrease in profitability and a drop in stock price [1] - The footwear company's performance has raised concerns among investors regarding its financial health [1] Market Reaction - The stock experienced a decline on the day of the earnings report, reflecting market apprehension about the company's future prospects [1]

Core Viewpoint - Steven Madden's Q2 2025 earnings report highlighted challenges from new tariffs on U.S. imports and the integration of the Kurt Geiger acquisition, leading to operational headwinds and margin compression, with management withdrawing guidance for fiscal 2025 due to macroeconomic uncertainty [1][18]. Financial Performance - Adjusted earnings per share were $0.20, a significant decline of 64.9% from $0.57 in Q2 2024 [2] - GAAP revenue increased by 6.8% year-over-year to $559.0 million, but fell short of analyst estimates of $578.94 million [2] - Non-GAAP net income dropped to $13.9 million, down 66.3% from $41.2 million in Q2 2024 [2][8] - Gross profit margin was 41.9%, slightly up from 41.5% in Q2 2024, while operating margin fell sharply to 4.0% from 10.4% [2][7] Business Overview - Steven Madden is known for its trend-focused footwear, handbags, and accessories, with a diverse brand portfolio including Steve Madden, Dolce Vita, Betsey Johnson, and Kurt Geiger [3] - The company emphasizes creative design, rapid market response, and a mix of wholesale and direct-to-consumer channels [3] Strategic Focus - Recent priorities include accelerating product design, expanding international markets, and managing a multi-channel distribution network [4] - Key success factors involve staying close to consumer trends, maintaining supply chain flexibility, and managing costs [4] Acquisition Impact - The acquisition of Kurt Geiger contributed to top-line growth but introduced complexities, particularly due to its reliance on China for sourcing [6][12] - Management believes Kurt Geiger will be a long-term growth driver despite the challenges posed by tariffs [6] Revenue Breakdown - Wholesale revenue declined by 6.4%, with a 12.8% drop when excluding Kurt Geiger; DTC revenue surged 43.3% including Kurt Geiger, but organic DTC revenue fell 3% [5] - Licensing fee income grew 57.8% to $2.9 million year-over-year [5] Margin and Cost Analysis - Gross profit margin compressed due to rising input costs and tariffs, with wholesale adjusted gross margin falling to 30.9% from 33.1% in Q2 2024 [7] - Operating expenses rose to 47.2% of revenue, driven by acquisition-related costs, with a reported loss from operations of $40.3 million [8] Supply Chain Adjustments - The company is shifting sourcing away from China, expecting U.S. imports from China to fall to the mid-teens percentage of total production by fall 2025 [14] - New sourcing locations include Vietnam, Cambodia, Mexico, and Brazil, which may increase costs due to higher FOB prices [14] Brand Strategy - The integration of Kurt Geiger into Steven Madden's portfolio is a major focus, leveraging international and U.S. retail networks to scale the brand [17] Outlook - Management did not provide financial guidance for fiscal 2025 due to ongoing uncertainty regarding tariffs and trade conditions [18]

Core Insights - Steven Madden reported revenue of $559 million for the quarter ended June 2025, reflecting a 6.8% increase year-over-year, but fell short of the Zacks Consensus Estimate of $575.92 million by 2.94% [1] - The company's EPS was $0.20, down from $0.57 in the same quarter last year, resulting in an EPS surprise of -16.67% against the consensus estimate of $0.24 [1] Revenue Breakdown - Total Revenue (Net Sales) was $556.09 million, compared to the estimated $573.58 million, marking a 6.6% increase year-over-year [4] - Total Wholesale revenue was $360.6 million, below the estimated $395.65 million, representing a decline of 6.4% year-over-year [4] - Direct-to-Consumer revenue reached $195.5 million, exceeding the estimate of $142.39 million, with a significant year-over-year increase of 43.3% [4] - Licensing fee income totaled $2.91 million, surpassing the estimated $2.36 million, and showed a year-over-year growth of 57.8% [4] Stock Performance - Over the past month, Steven Madden's shares returned +4.4%, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

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)