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]

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements detail the company's financial position, operations, and cash flows for Q1 2025, showing total assets of **$1.43 billion** and a **net income decrease to $40.4 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $144,762 | $189,924 | | Inventories | $238,641 | $257,625 | | Total current assets | $886,013 | $894,695 | | Total Assets | $1,427,201 | $1,411,771 | | Total current liabilities | $394,554 | $413,721 | | Total Liabilities | $523,525 | $535,774 | | Total stockholders' equity | $903,676 | $875,997 | Condensed Consolidated Statement of Income Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenue | $553,534 | $552,381 | | Gross profit | $226,267 | $224,815 | | Income from operations | $53,499 | $56,746 | | Net income attributable to Steven Madden, Ltd. | $40,423 | $43,934 | | Diluted net income per share | $0.57 | $0.60 | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($18,832) | ($15,705) | | Net cash used in investing activities | ($1,005) | ($4,618) | | Net cash used in financing activities | ($25,902) | ($52,531) | | Net decrease in cash and cash equivalents | ($45,162) | ($73,139) | [Note 3 – Joint Ventures and Acquisitions](index=8&type=section&id=Note%203%20%E2%80%93%20Joint%20Ventures%20and%20Acquisitions) The company expanded its distribution in Q1 2025 by forming a new joint venture in Australia and gaining control of its Malaysia joint venture, alongside a March 2024 hosiery business acquisition - In January 2025, the Company formed a joint venture in Australia by acquiring a **50.1% controlling interest** in SM Fashion Australia Pty Ltd. for a capital contribution of **$1,899**, resulting in **$1,393 of goodwill**[21](index=21&type=chunk) - In January 2025, the Company increased its equity interest in its Malaysia joint venture to **51.0% for $5**, gaining a controlling financial interest and consolidating its results, which resulted in **goodwill of $1,829**[22](index=22&type=chunk) - In March 2024, the Company acquired the Steve Madden and Betsey Johnson hosiery business from Gina Group LLC for **$4,259 in cash**, including inventories, reacquired rights, and goodwill[23](index=23&type=chunk) [Note 7 – Share Repurchase Program](index=12&type=section&id=Note%207%20%E2%80%93%20Share%20Repurchase%20Program) No shares were repurchased under the Share Repurchase Program in Q1 2025, with **$85.3 million** remaining available, though shares were withheld for employee tax obligations - No shares were repurchased under the Share Repurchase Program during the three months ended March 31, 2025[37](index=37&type=chunk) - During the three months ended March 31, 2024, the company repurchased **773,000 shares** for approximately **$32.6 million**[37](index=37&type=chunk) - As of March 31, 2025, approximately **$85.31 million** remained available for future repurchases under the program[37](index=37&type=chunk) - In Q1 2025, **201,000 shares** were withheld to satisfy employee tax-withholding requirements on vested restricted stock, at an aggregate price of approximately **$7.8 million**[38](index=38&type=chunk) [Note 14 – Operating Segment Information](index=20&type=section&id=Note%2014%20%E2%80%93%20Operating%20Segment%20Information) In Q1 2025, Wholesale Footwear led revenue and operating income, while Wholesale Accessories/Apparel saw increased operating income, and Direct-to-Consumer reported a wider operating loss Segment Revenue (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Wholesale Footwear | $296,145 | $295,660 | | Wholesale Accessories/Apparel | $143,173 | $142,576 | | Direct-to-Consumer | $112,064 | $112,331 | | Licensing | $2,152 | $1,814 | | **Total** | **$553,534** | **$552,381** | Segment Income/(Loss) from Operations (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Wholesale Footwear | $63,088 | $63,115 | | Wholesale Accessories/Apparel | $22,412 | $18,171 | | Direct-to-Consumer | ($6,228) | ($2,225) | | Licensing | $1,825 | $1,314 | - Total revenue from international operations increased to **$102.8 million** in Q1 2025 from **$97.6 million** in Q1 2024[72](index=72&type=chunk) [Note 18 – Subsequent Event](index=25&type=section&id=Note%2018%20%E2%80%93%20Subsequent%20Event) Post-quarter, on May 6, 2025, the company acquired Kurt Geiger for approximately **£289 million**, funded by a new **$300 million** term loan and **$250 million** revolving credit facility - On May 6, 2025, the Company completed the acquisition of Kurt Geiger for an enterprise value of approximately **£289 million**[90](index=90&type=chunk)[92](index=92&type=chunk) - The acquisition was funded with borrowings under a new Amended and Restated Credit Agreement and cash on hand[94](index=94&type=chunk)[95](index=95&type=chunk) - The new credit agreement provides for a **$300 million** term loan facility and a **$250 million** revolving credit facility, maturing on May 6, 2030[95](index=95&type=chunk)[96](index=96&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, noting a **0.2% revenue increase** to **$553.5 million**, improved gross margin, but decreased operating income and diluted EPS due to higher expenses and macroeconomic challenges - Key strategic initiatives include winning with product, investing in marketing, expanding internationally, growing non-footwear categories, and expanding the direct-to-consumer business led by digital[114](index=114&type=chunk) Q1 2025 Key Financial Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $553,534 | $552,381 | +0.2% | | Net Income (attributable to SHOO) | $40,423 | $43,934 | -8.0% | | Diluted EPS | $0.57 | $0.60 | -5.0% | - The company is navigating macroeconomic challenges including new tariffs across key sourcing jurisdictions, elevated inflation, high interest rates, and geopolitical instability[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - On May 6, 2025, the company acquired Kurt Geiger and entered into a new credit agreement with a **$300 million** term loan and a **$250 million** revolving credit facility to fund the transaction[109](index=109&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Q1 2025 saw a **0.2% consolidated revenue increase**, with wholesale segments showing growth and margin expansion, while Direct-to-Consumer experienced a wider operating loss due to lower gross margin and higher expenses - Consolidated gross margin increased to **40.9%** from **40.7%**, driven by margin expansion in both wholesale segments[124](index=124&type=chunk) - Operating expenses increased to **32.0% of revenue** from **29.8%**, due to investments in marketing, higher IT expenses, acquisition costs (**$3.2 million**), severance (**$2.4 million**), and legal settlements (**$1.2 million**)[125](index=125&type=chunk) - Wholesale Accessories/Apparel operating income grew to **$22.4 million** from **$18.2 million**, aided by a **$4.5 million** benefit from a change in valuation of contingent payment liabilities[135](index=135&type=chunk)[136](index=136&type=chunk) - Direct-to-Consumer operating loss widened to **$6.2 million** from **$2.2 million**, driven by lower gross margin and higher operating expenses, including marketing and occupancy costs[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company maintained **$147.2 million** in cash with no debt, and subsequently funded the Kurt Geiger acquisition via a new **$300 million** term loan and **$250 million** revolving credit facility - Cash, cash equivalents, and short-term investments totaled **$147.2 million** at March 31, 2025, down from **$203.4 million** at December 31, 2024[143](index=143&type=chunk) - Cash used in operating activities was **$18.8 million** for the quarter, an increase from **$15.7 million** in the prior-year period, primarily due to a decline in net income[152](index=152&type=chunk) - Cash used in financing activities was **$25.9 million**, mainly for dividends (**$15.2 million**) and net settlements of stock awards (**$7.8 million**)[154](index=154&type=chunk) - Subsequent to quarter-end, the company entered into a new credit agreement with a **$300 million** term loan and a **$250 million** revolving facility to finance the Kurt Geiger acquisition[150](index=150&type=chunk)[157](index=157&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and inflation, with minimal interest rate exposure and **$282.1 million** in forward exchange contracts to mitigate currency risk - Interest rate risk is low as the company had no cash borrowings under its credit facility as of March 31, 2025[162](index=162&type=chunk) - The company uses forward foreign exchange contracts to mitigate currency risk on inventory purchases, with a notional amount of **$282.1 million** as of March 31, 2025[164](index=164&type=chunk)[165](index=165&type=chunk) - The company is exposed to translation risk from its foreign subsidiaries and joint ventures, as their financial results are translated into U.S. dollars for reporting[166](index=166&type=chunk) - Inflationary factors can reduce consumer spending and increase costs; the company attempts to mitigate these impacts through price adjustments, cost negotiations, and operational efficiencies[167](index=167&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated disclosure controls and procedures and concluded they were effective as of March 31, 2025[169](index=169&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[170](index=170&type=chunk) [PART II – OTHER INFORMATION](index=39&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings, which management does not expect to materially impact its financial condition or results - The company is involved in various legal matters including contractual disputes, employment matters, and intellectual property infringement[173](index=173&type=chunk) - Management does not expect these legal proceedings to have a material impact on the company's financial condition or results[173](index=173&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=ITEM%201A.%20Risk%20Factors) A material risk factor is the potential imposition of additional tariffs on imported goods, which could significantly increase costs, reduce margins, and lower consumer demand - A key risk is the imposition of additional tariffs on products imported to the U.S. and retaliatory trade actions, which could materially increase costs and reduce margins[175](index=175&type=chunk) - A substantial amount of products are sourced from China, Vietnam, Cambodia, and other Asian countries impacted by reciprocal tariffs[175](index=175&type=chunk) - The company is analyzing mitigation strategies like diversifying sourcing, negotiating with suppliers, and adjusting pricing, but their success is not guaranteed[176](index=176&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, no shares were repurchased under the Share Repurchase Program, but **201,000 shares** worth **$7.8 million** were withheld for employee tax obligations, with **$85.3 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q1 2025, in thousands) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 121,000 | $41.95 | 0 | $85,310,000 | | Feb 2025 | 16,000 | $37.57 | 0 | $85,310,000 | | Mar 2025 | 64,000 | $32.49 | 0 | $85,310,000 | | **Total** | **201,000** | **$38.58** | **0** | **$85,310,000** | - No shares were repurchased under the Share Repurchase Program in Q1 2025. The **201,000 shares** purchased represent shares withheld to satisfy employee tax obligations on vested stock awards[180](index=180&type=chunk) [Item 5. Other Information](index=40&type=section&id=ITEM%205.%20Other%20Information) No directors or officers adopted, modified, or terminated any Rule 10b5-1 or other trading arrangements during Q1 2025 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan or other non-Rule 10b5-1 trading arrangement during Q1 2025[181](index=181&type=chunk) [Item 6. Exhibits](index=41&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Kurt Geiger acquisition deed, CEO/CFO certifications, and iXBRL data files - Lists exhibits filed with the Form 10-Q, including CEO/CFO certifications (**31.1, 31.2, 32.1, 32.2**) and iXBRL data files (**101, 104**)[182](index=182&type=chunk)

Core Viewpoint - Steven Madden Ltd (SHOO) reported a significant earnings beat but withdrew its full-year guidance due to tariff-related uncertainties [1][2] Company Performance - Analyst Dana Telsey maintained a Market Perform rating with a price target of $24 [1] - Shares of Steven Madden rose by 2% to $23.90 at the time of publication [3] Strategic Initiatives - The company completed the acquisition of Kurt Geiger, enhancing its product offerings towards higher-end handbags [1] - Management withdrew its 2025 guidance due to uncertainties associated with tariffs, particularly given the company's sourcing exposure to China [2] Tariff Mitigation Strategy - Steven Madden plans a three-pronged tariff mitigation strategy, which includes: - Moving production out of China [4] - Negotiating with suppliers for price concessions [4] - Taking price on products [4] - These changes are expected to position the company for long-term growth [2]