Steven Madden (SHOO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 0.2% year-over-year to $553.5 million, with gross margin improving to 40.9% despite industry-wide sluggish sales and tariff headwinds.

• Net income attributable to Steven Madden, Ltd. was $40.4 million ($0.57 per diluted share), down from $43.9 million ($0.60) in Q1 2024; adjusted net income was $42.4 million ($0.60), compared to $47.0 million ($0.65) last year.

• The company completed the acquisition of UK-based Kurt Geiger for approximately £289 million, funded by a new $300 million term loan, $250 million revolver, and cash on hand, expanding its international and accessories presence.

• Entered joint ventures in Australia and Malaysia, further expanding international reach and consolidating results.

• The company responded to new U.S. tariffs by negotiating supplier discounts, accelerating production shifts out of China, and implementing selective price increases.

Financial highlights

• Consolidated Q1 revenue was $553.5 million, up 0.2% year-over-year; wholesale revenue rose 0.2% to $439.3 million, direct-to-consumer revenue declined 0.2% to $112.1 million.

• Gross margin increased to 40.9% from 40.7% year-over-year, despite a 20 basis point negative tariff impact.

• Operating income was $56.1 million (10.1% of revenue, adjusted), down from $61.0 million (11.0%) in Q1 2024; reported operating margin was 9.7%.

• Operating expenses increased to $177.3 million (32.0% of revenue), up from $164.7 million (29.8%), driven by higher marketing, IT, severance, and acquisition costs.

• Cash, cash equivalents, and short-term investments totaled $147.2 million at quarter-end; inventory increased to $238.6 million from $202.0 million a year ago.

Outlook and guidance

• 2025 financial guidance has been withdrawn due to macroeconomic and tariff-related uncertainty; no new guidance provided.

• Management remains focused on product innovation, international expansion, digital growth, and operational efficiency amid macroeconomic and trade headwinds.

• Ongoing assessment of sourcing strategies and pricing to mitigate tariff and inflation impacts; full effect of new tariffs remains uncertain.