Steven Madden (SHOO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 6.9% year-over-year to $667.9M, driven by the Kurt Geiger acquisition, but net income fell to $20.5M due to higher operating expenses, acquisition-related costs, and new 145% tariffs on Chinese imports.

• Adjusted net income was $30.4M ($0.43 per diluted share), down from $64.8M ($0.91) in Q3 2024; diluted EPS was $0.29, down from $0.77.

• Despite headwinds, consumer demand for core brands remained strong, with boots and dress shoes outperforming, and marketing investments driving Gen Z and millennial engagement.

• Kurt Geiger London showed strong momentum, with comp sales up mid-teens and successful integration efforts underway.

• Strategic focus remains on product innovation, international expansion, direct-to-consumer growth, and operational efficiency.

Financial highlights

• Q3 2025 total revenue: $667.9M (+6.9% YoY); nine months ended September 30, 2025: $1.78B (+4.7% YoY).

• Gross margin increased to 43.4% (adjusted) from 41.6% due to higher DTC mix from Kurt Geiger; reported gross margin was 41.5%.

• Operating expenses rose to $246.0M (36.8% of revenue), up from $178.9M (28.6%) YoY, mainly due to acquisition and integration costs.

• Net income was $20.5M (3.1% margin), down from $55.3M (8.8% margin) YoY; adjusted net income was $30.4M.

• Net debt at quarter-end was $185M (total debt $293.8M, cash and equivalents $108.9M).

Outlook and guidance

• Q4 2025 revenue expected to increase 27%–30% year-over-year, with adjusted diluted EPS guidance of $0.41–$0.46.

• Core business (excluding Kurt Geiger) Q4 revenue projected down 2%–4%, with increases in wholesale footwear and DTC, but continued decline in wholesale accessories and apparel.

• Kurt Geiger Q4 revenue expected at $182M–$187M, with over 70% from DTC.

• Management expects continued focus on international expansion, direct-to-consumer growth, and cost management amid macroeconomic uncertainty.