Steve Madden Announces Third Quarter 2025 Results

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]