Workflow
SHOO Q2 Earnings Lag Estimates, Wholesale Revenues Decline Y/Y
Steven MaddenSteven Madden(US:SHOO) ZACKS·2025-07-31 17:21

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]