US' Steven Madden sees H1, Q2 revenue climb, net income turns negative
The gross profit of the company rose to $452.3 million. Despite this, the net income fell sharply to $2.5 million, primarily due to a steep rise in operating expenses—from $328.4 million to $441.1 million, Steven Madden said in a press release.
Steven Madden, Ltd has reported revenue of $1.11 billion in H1 FY25, up 3.4 per cent YoY, but net income dropped to $946,000 due to higher expenses. Q2 revenue rose 6.8 per cent to $559 million. Wholesale declined, while DTC surged. Tariffs impacted performance, prompting the company to withhold 2025 guidance despite confidence in long-term growth and the Kurt Geiger integration.
The net income of the company stood at $946,000, with diluted earnings per share (EPS) declining from $1.09 to $0.01. It also recorded a $9.3 million gain on a derivative during the period, partially offsetting increased costs.
Meanwhile, the company reported a 6.8 per cent YoY increase in revenue to $559 million in the second quarter (Q2) of 2025. The gross profit margin declined slightly to 40.4 per cent, while adjusted gross margin stood at 41.9 per cent. The company's operating expenses surged to 47.2 per cent of revenue from 31.3 per cent last year; on an adjusted basis, operating expenses represented 37.9 per cent of revenue.
This sharp rise in costs contributed to a reported operating loss of $40.3 million, or 7.2 per cent of revenue, compared to an operating income of $46.9 million or 9 per cent a year earlier. The company posted a net loss of $39.5 million, or $0.56 per diluted share. Adjusted net income was $13.9 million, or $0.20 per diluted share.
In Q2, revenue for the wholesale business was $360.6 million, a decrease of 6.4 per cent YoY. Excluding the newly acquired Kurt Geiger, wholesale revenue declined 12.8 per cent. Wholesale footwear revenue decreased 7.1 per cent, or 11.7 per cent. Wholesale accessories/apparel revenue decreased 5.3 per cent, or 14.6 per cent. The gross profit as a percentage of wholesale revenue was 30 per cent. Adjusted gross profit as a percentage of wholesale revenue was 30.9 per cent.
Meanwhile, direct-to-consumer (DTC) revenue in this quarter was $195.5 million, a 43.3 per cent increase YoY. DTC revenue decreased 3 per cent, with declines in both brick-and-mortar and e-commerce channels. The gross profit as a percentage of DTC revenue was 58.7 per cent. The adjusted gross profit as a percentage of DTC revenue was 61.3 per cent.
The company ended the quarter with 392 company-operated brick-and-mortar retail stores, including 98 outlets, as well as seven e-commerce websites and 130 company-operated concessions in international markets. This includes 73 company-operated brick-and-mortar retail stores, including 27 outlets, as well as two e-commerce websites and 72 concessions related to Kurt Geiger.
'As anticipated, the second quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States. Our team continues to act with agility to mitigate near-term impacts while remaining focused on positioning the company for long-term growth by executing our strategy to deepen consumer connections through the combination of compelling product and effective marketing,' said Edward Rosenfeld, chairman and CEO at Steve Madden.
'The integration of Kurt Geiger is proceeding smoothly, and we are more confident than ever in its potential to be a significant driver of growth for the company in the years ahead. While tariffs have created near-term pressure and added uncertainty, we believe our key strengths—powerful brands, a robust balance sheet and a proven business model—position us well to navigate the current environment and deliver sustainable growth over time,' added Rosenfeld.
Due to continued macroeconomic uncertainty related to the impact of new tariffs on goods imported into the United States, the company said that it is not providing 2025 financial guidance at this time.
Fibre2Fashion News Desk (SG)
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