Steven Madden (SHOO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 6.8% year-over-year to $559M, driven by the Kurt Geiger acquisition, but net loss was $39.5M versus net income of $35.4M last year; adjusted net income was $13.9M ($0.20/share), down from $41.2M ($0.57/share) YoY.

• Results were impacted by new U.S. tariffs, order cancellations, shipment delays, and significant acquisition-related expenses.

• Sourcing diversification out of China accelerated, but some production returned to China after a temporary tariff reduction.

• The Kurt Geiger acquisition closed in May for $405M, funded by a $300M term loan and $250M revolver, and is integrating smoothly, contributing to revenue growth.

• Marketing efforts focused on Gen Z and Millennials, with strong product response in dress, shoe, and boot categories.

Financial highlights

• Consolidated revenue was $559M, up 6.8% YoY; excluding Kurt Geiger, revenue declined 10%.

• Gross margin was 40.4% (GAAP), down from 41.5% YoY; adjusted gross margin was 41.9%.

• Operating expenses rose to 47.2% of revenue (GAAP), up from 31.3%; adjusted operating expenses were 37.9%.

• Operating income was $22.6M (4% of revenue) vs. $54.5M (10.4%) YoY; operating loss (GAAP) was $40.3M.

• Net loss attributable to shareholders was $39.5M (GAAP); adjusted net income was $13.9M.

Outlook and guidance

• No 2025 financial guidance provided due to tariff and macroeconomic uncertainty.

• Continued pressure expected in Q3, especially in value and off-price wholesale channels.

• Price increases averaging 10% are being monitored for consumer elasticity.

• Management remains focused on product innovation, international expansion, and DTC growth.