Steven Madden(SHOO) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenue for Q3 2025 increased by 6.9% to $667,875 compared to $624,675 in Q3 2024, driven by the acquisition of Kurt Geiger[154] - Net income attributable to Steven Madden, Ltd. was $20,528 in Q3 2025, down from $55,278 in Q3 2024[154] - Diluted earnings per share for Q3 2025 was $0.29, compared to $0.77 in the same period last year[156] - Gross profit for Q3 2025 was $277,375, maintaining a gross margin of 41.5%, despite tariff-related impacts[161] - Income from operations for Q3 2025 decreased to $31,358, or 4.7% of total revenue, down from $74,578, or 11.9% in Q3 2024[163] - Total revenue for the nine months ended September 30, 2025 increased 4.7% to $1,780,409 compared to $1,700,609 in the prior year, primarily due to incremental revenue from the acquisition of Kurt Geiger[181] - Gross profit for the nine months ended September 30, 2025 was $729,669, or 41.0% of total revenue, down from $701,488, or 41.2% in the prior year, impacted by tariff-related issues[182] - Income from operations for the nine months ended September 30, 2025 was $44,599, or 2.5% of total revenue, significantly lower than $178,194, or 10.5% in the prior year[184] - Net income attributable to Steven Madden, Ltd. for the nine months ended September 30, 2025 was $21,474, compared to $134,589 in the prior year[185] Revenue Segmentation - Revenue from the Wholesale Footwear segment decreased by 10.9% to $266,543, representing 39.9% of total revenue, primarily due to tariff-related impacts[165] - Revenue from the Direct-to-Consumer segment surged by 76.6% to $221,505, driven by the acquisition of Kurt Geiger and expansion in brick-and-mortar stores[173] - Revenue from the Wholesale Footwear segment for the nine months ended September 30, 2025 was $782,827, or 44.0% of total revenue, down 5.9% from $832,000 in the prior year[186] - Revenue from the Direct-to-Consumer segment for the nine months ended September 30, 2025 was $529,071, or 29.7% of total revenue, an increase of 41.4% from $374,194 in the prior year[194] - Loss from operations for the Direct-to-Consumer segment for the nine months ended September 30, 2025 was $55,002, or (10.4)% of revenue, compared to income of $14,564, or 3.9% in the prior year[197] - Royalty income from the Licensing segment for the nine months ended September 30, 2025 was $8,737, or 0.5% of total revenue, up from $7,163, or 0.4% in the prior year[198] Expenses and Costs - Operating expenses for Q3 2025 rose to $246,017, or 36.8% of total revenue, compared to $178,915, or 28.6% in Q3 2024, primarily due to the acquisition of Kurt Geiger[162] - Operating expenses for the nine months ended September 30, 2025 were $687,145, or 38.6% of total revenue, compared to $507,343, or 29.8% in the prior year, largely due to acquisition-related costs[183] - Corporate operating expenses for Q3 2025 were $23,377, or 3.5% of total revenue, down from $25,065, or 4.0% in Q3 2024[179] - Corporate operating expenses were $80,070 million, representing 4.5% of total revenue, compared to $72,781 million or 4.3% in the prior year[200] Taxation - The effective tax rate for Q3 2025 was 17.4%, down from 25.5% in Q3 2024[154] - The effective tax rate for the nine months ended September 30, 2025 was 47.0%, compared to 24.3% in the prior year, primarily due to non-deductible expenses related to the acquisition of Kurt Geiger[184] Cash Flow and Investments - Cash, cash equivalents, and short-term investments totaled $108,862 as of September 30, 2025[157] - Working capital increased to $520,512 as of September 30, 2025, compared to $491,880 a year earlier[157] - Cash provided by operating activities decreased to $71,072 million from $94,245 million, primarily due to lower net income[210] - Cash used in investing activities totaled $392,861 million, mainly due to the acquisition of Kurt Geiger for $371,554 million[211] - Cash provided by financing activities was $237,540 million, primarily from net borrowings of $300,000 million[212] Acquisitions and Strategic Initiatives - The company acquired a 50% controlling interest in MG Distribution Hong Kong Limited to expand distribution in China, Hong Kong, and Macau[145] - The company completed the acquisition of Kurt Geiger for a preliminary purchase price of $403,348 million on May 6, 2025[203] - Strategic initiatives include expanding international markets and growing non-footwear categories[155] Dividends and Borrowings - A quarterly cash dividend of $0.21 per share was approved, payable on December 26, 2025[216] - The company has outstanding borrowings of $277,500 million under its senior secured term loan facility, with interest rates subject to market fluctuations[220]