Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding Kurt Geiger, revenue decreased by 14.8% [9] - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024, with a 19% decrease when excluding Kurt Geiger [9] - Direct-to-consumer revenue increased by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [9] - Net income attributable to Steve Madden Ltd. was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [13] Business Line Data and Key Metrics Changes - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from Q3 2024, or down 16.7% excluding Kurt Geiger [9] - Wholesale accessories and apparel revenue was $176.2 million, down 10.3% compared to the prior year, or down 22.5% excluding Kurt Geiger [9] - Direct-to-consumer gross margin was 61.9%, down from 64% in the comparable period in 2024 due to tariff pressures and the addition of Kurt Geiger [11] Market Data and Key Metrics Changes - Comp sales for Kurt Geiger London were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company operated 397 retail stores, including 99 outlets, and 7 e-commerce websites as of the end of the quarter [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - Strategic pricing actions and sourcing initiatives are being implemented to mitigate gross margin pressure [5] - The integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by new tariffs but expressed confidence that the worst is behind them [4] - There is optimism for improved financial performance in Q4 2025, with expectations of revenue growth of 27%-30% compared to Q4 2024 [14] - Management believes they have the brands and strategy to drive sustainable revenue and earnings growth over the long term [8] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [14] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [13] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [17][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [20][21] Question: How is the margin structure expected to recover? - Management believes all margin erosion is recoverable over time, with expectations to return to pre-tariff margins eventually [64][65] Question: What is the performance outlook for wholesale channels? - Strongest performance is seen in regular price channels, while value price channels have faced more pressure [85] Question: How is the international growth outlook for Steve Madden and Kurt Geiger? - Steve Madden is expected to see high single-digit revenue growth internationally, while Kurt Geiger is anticipated to achieve strong double-digit growth [73]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was $667.9 million, a 6.9% increase compared to Q3 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased by 14.8% [9] - Net income attributable to Steve Madden Ltd. for the quarter was $30.4 million, or $0.43 per diluted share, compared to $64.8 million, or $0.91 per diluted share in Q3 2024 [12] - Operating income for the quarter was $46.3 million, or 6.9% of revenue, compared to $85.4 million, or 13.7% of revenue in the comparable period in the prior year [11] Business Line Data and Key Metrics Changes - Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024. Excluding Kurt Geiger, wholesale revenue decreased by 19% [9] - Direct-to-consumer (DTC) revenue increased by 76.6% to $221.5 million. Excluding Kurt Geiger, DTC revenue increased by 1.5% [9] - Wholesale footwear revenue was $266.5 million, a 10.9% decrease from the comparable period in 2024, or down 16.7% excluding Kurt Geiger [9] Market Data and Key Metrics Changes - Comp sales for the new brand, Kurt Geiger London, were up mid-teens in Q3 2025, indicating strong consumer response [6] - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and 7 e-commerce websites [10] Company Strategy and Development Direction - The company is focused on deepening consumer connections through compelling products and effective marketing, particularly for the Steve Madden brand [5] - The acquisition integration of Kurt Geiger is on track, with progress on revenue synergies and cost savings opportunities [7] - The company plans to open a handful of stores in the U.S. for Kurt Geiger next year and is working on expanding its international presence [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in Q3 due to new tariffs on imports but expressed confidence that the worst is behind them [4] - The company expects revenue to increase by 27%-30% in Q4 2025 compared to Q4 2024, with earnings per share projected to be in the range of $0.41-$0.46 [13][14] - Management believes that the underlying consumer demand for their brands remains strong despite tariff-related challenges [5] Other Important Information - The company declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025 [13] - Inventory at the end of the quarter was $476 million, compared to $268.7 million in Q3 2024 [12] Q&A Session Summary Question: How is the fashion developing this fall and what are the inventory levels in the wholesale channel? - Management noted strong performance in the core Steve Madden women's shoe business, particularly in boots, and expressed confidence in spring prospects [16][18] Question: What is the expected revenue contribution from Kurt Geiger in Q4? - Management expects Kurt Geiger's revenue contribution to be between $182 million and $187 million, with over 70% coming from DTC [19][20] Question: How is the handbag business performing and what are the expectations for apparel? - The handbag business is expected to stabilize as demand improves, while apparel has been a growth story with good sell-throughs in key accounts [46][47] Question: What is the outlook for wholesale performance by channel? - Strongest performance is seen in regular price channels, while value price channels like off-price and mass have faced more pressure [82] Question: How is the company addressing margin recovery? - Management believes that all margin erosion is recoverable over time, with expectations to return to pre-tariff margins in the core business [64]

Core Insights - Steven Madden reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.91 per share a year ago, representing an earnings surprise of -2.27% [1] - The company posted revenues of $667.88 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 4.44%, compared to $624.67 million in the same quarter last year [2] - Steven Madden shares have declined approximately 22.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $690.07 million, and for the current fiscal year, it is $1.51 on revenues of $2.5 billion [7] - The estimate revisions trend for Steven Madden was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Shoes and Retail Apparel industry, to which Steven Madden belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Revenue Performance - Third quarter 2025 revenue increased by 6.9% to $667.9 million compared to $624.7 million in the same period of 2024[7] - Direct-to-consumer revenue surged by 76.6% to $221.5 million compared to the third quarter of 2024, while wholesale revenue decreased by 10.7% to $442.7 million[4][5] - The company expects fourth quarter 2025 revenue to increase by 27% to 30% compared to the same period of 2024, with diluted EPS projected in the range of $0.30 to $0.35[11] Profitability - Net income attributable to Steven Madden, Ltd. was $20.5 million, or $0.29 per diluted share, down from $55.3 million, or $0.77 per diluted share, in the same period of 2024[7] - Adjusted income from operations totaled $46.3 million, or 6.9% of revenue, compared to $85.4 million, or 13.7% of revenue, in the same period of 2024[7] - For the nine months ended September 30, 2025, net income was $24,366,000, a decrease from $138,099,000 in the same period of 2024[20] - The adjusted diluted net income per share for the nine months ended September 30, 2025, was $1.22, compared to $2.12 for the same period in 2024, reflecting a decrease of approximately 42.5%[25] - The company expects GAAP diluted net income per share for Q4 2025 to be between $0.30 and $0.35, with adjusted diluted net income per share projected between $0.41 and $0.46[25] Expenses and Debt - Operating expenses as a percentage of revenue increased to 36.8% from 28.6% in the same period of 2024[7] - GAAP operating expenses for the nine months ended September 30, 2025, were $687,145,000, up from $507,343,000 in 2024, indicating a significant increase of about 35.4%[23] - Total debt outstanding as of September 30, 2025, was $293.8 million, with cash and cash equivalents totaling $108.9 million, resulting in net debt of $185.0 million[8] Cash Flow and Investments - The company reported a net cash provided by operating activities of $67,630,000 for the nine months ended September 30, 2025, down from $94,245,000 in the prior year[20] - Capital expenditures for the nine months ended September 30, 2025, totaled $29,079,000, compared to $16,642,000 in 2024, representing an increase of approximately 74.5%[20] - The company experienced a net cash used in investing activities of $389,419,000 for the nine months ended September 30, 2025, compared to $16,715,000 in the same period of 2024[20] - The company reported a significant acquisition activity with a net cash outflow of $371,554,000 for the acquisition of businesses during the nine months ended September 30, 2025[20] Store Operations - The company ended the quarter with 397 company-operated retail stores, including 99 outlets, and seven e-commerce websites[6] Dividends - A quarterly cash dividend of $0.21 per share was approved, payable on December 26, 2025[10] Gross Profit - Gross profit as a percentage of revenue was 41.5%, unchanged from the same period of 2024, while adjusted gross profit increased to 43.4% from 41.6%[7]

Core Insights - The company reported challenging third-quarter results primarily due to new tariffs impacting imported goods, but underlying demand for its brands remains strong, particularly for the Steve Madden brand [3][4] - The company anticipates stronger financial performance in the fourth quarter, expecting revenue growth of 27% to 30% compared to the same period in 2024 [11] Financial Performance - Total revenue for the third quarter of 2025 was $667.9 million, a 6.9% increase from $624.7 million in the same period of 2024 [8] - Gross profit as a percentage of revenue was 41.5%, unchanged from the same period in 2024, while adjusted gross profit increased to 43.4% from 41.6% [8] - Net income attributable to Steven Madden, Ltd. was $20.5 million, or $0.29 per diluted share, down from $55.3 million, or $0.77 per diluted share, in the same period of 2024 [8] Revenue Breakdown - Wholesale revenue decreased by 10.7% to $442.7 million compared to the third quarter of 2024, with a 19.0% decline when excluding the recently acquired Kurt Geiger [4] - Direct-to-consumer revenue surged by 76.6% to $221.5 million, with a 1.5% increase when excluding Kurt Geiger [5] Operational Highlights - The company operated 397 retail stores, including 99 outlets, and maintained seven e-commerce websites and 133 concessions in international markets [6] - As of September 30, 2025, total debt was $293.8 million, with cash and short-term investments totaling $108.9 million, resulting in net debt of $185.0 million [7] Future Outlook - For the fourth quarter of 2025, the company expects diluted EPS to be in the range of $0.30 to $0.35, with adjusted diluted EPS projected between $0.41 and $0.46 [11]

Core Viewpoint - Steven Madden, Ltd. is set to release its third quarter 2025 earnings results on November 5, 2025, with a management conference call scheduled for 8:30 a.m. Eastern Time [1]. Company Overview - Steven Madden, Ltd. designs, sources, and markets fashion-forward footwear, accessories, and apparel under various brands including Steve Madden, Kurt Geiger London, and Dolce Vita [4]. - The company also licenses products for the Anne Klein brand and operates under private label brand names for various retailers [4]. - Its distribution network includes department stores, mass merchants, online retailers, and specialty retailers, alongside direct operations of retail stores and e-commerce websites [4].

Group 1 - The core viewpoint is that Steven Madden (SHOO.US) is expected to benefit from the shift in fashion trends towards more formal styles, leading Piper Sandler to upgrade its rating from "neutral" to "overweight" and raise the target price to $40 [1] - Piper Sandler's optimism is largely based on the potential of the Kurt Geiger brand, which is seen as unique with significant future growth potential despite its low market penetration in the U.S. [1] - The expectation is that Kurt Geiger could become a $1 billion annual sales brand, as consumer awareness is expected to increase significantly once they experience the brand [1] Group 2 - Crocs (CROX.US) has had its rating downgraded from "overweight" to "neutral" with a 21% reduction in target price due to changing consumer preferences towards more formal footwear and declining interest in the HEYDUDE line [1] - Crocs' sales of slippers are expected to stagnate in 2024, with a projected 12% decline in North America this year, while Birkenstock is gaining market share [2] - Interest in Crocs has decreased by 23% according to Google search trends, indicating a weakening growth momentum for the brand [2]

Group 1 - Piper Sandler upgraded Steven Madden from Neutral to Overweight and raised its price target from $25 to $40, resulting in a 3% increase in shares [1] - The firm noted that Steven Madden's fast inventory turnover had amplified tariff impacts more than its peers, but the company is now positioned for a stronger recovery [1] - Piper Sandler forecasts EBIT margins of 6% for this year, with potential to return to 11-12% over time [1] Group 2 - The firm highlighted the Kurt Geiger brand, expecting it to become a mid-teens margin business, which would provide further upside [2] - Piper Sandler estimated earnings power of more than $4 per share for Steven Madden, arguing that 2026 Street forecasts are too low [2]

Core Insights - Steven Madden, Ltd. (SHOO) reported second-quarter fiscal 2025 results, indicating ongoing tariff impacts on profitability despite solid consumer demand for the brand [1][10] - Order cancellations and shipment delays, particularly in mass and off-price channels, negatively affected performance, pushing deliveries into later periods and creating pressure on earnings [1][5] Financial Performance - Gross margin remained at 41.9%, an increase of 40 basis points year over year, but tariffs reduced profitability by approximately 230 basis points after supplier discounts [2][10] - Wholesale gross margin decreased to 31% from 33.1%, while direct-to-consumer margin fell to 61.3% from 64.3%, influenced by higher landed costs and the lower-margin Kurt Geiger concessions business [2][10] - Operating income dropped to 4% of revenues compared to over 10% a year ago, leading to adjusted quarterly earnings declining 64.9% from $0.57 to $0.20 per share [2][10] Supply Chain Management - To address supply-chain pressures, the company diversified production to countries like Vietnam and Cambodia while shifting some orders back to China to ensure timely delivery and maintain quality [3][10] - Global trade uncertainty continues to inflate inventory costs and lengthen transit times, making sourcing diversification an ongoing process [3] Pricing Strategy - The company implemented average price increases of about 10% to counter rising costs, with early consumer acceptance being encouraging in categories like boots and dress shoes [4] - Price-sensitive items, such as sandals and sneakers, remain under pressure, and the full impact of pricing strategies is expected to be clearer in the fall season [4] Future Outlook - Management anticipates margin pressure to persist through the fiscal third quarter, with potential easing later in the year if trade conditions stabilize [5] - Until the tariff environment becomes clearer, EBIT margins are unlikely to return to historical double-digit levels, but the company remains confident in brand strength and consumer demand for new assortments [5] Stock Performance and Valuation - Shares of the company have gained 13.6% in the past six months, outperforming the industry's 5.5% growth [8] - From a valuation perspective, Steven Madden is trading at a forward 12-month price-to-sales ratio of 0.87X, significantly lower than the industry average of 1.96X [9]

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