Latest news with #EdwardRosenfeld
Fibre2Fashion
13-05-2025
- Business
- Fibre2Fashion
US' Steven Madden reports modest Q1 growth, withdraws FY25 outlook
American designer and marketer of fashion-forward footwear and apparel Steven Madden, Ltd in its first quarter (Q1) of 2025 ended March 31, has reported a revenue of $553.5 million, a slight increase of 0.2 per cent year-over-year (YoY). The gross profit margin improved to 40.9 per cent from 40.7 per cent in the same period last year, and the operating expenses rose to 32 per cent of revenue, while adjusted operating expenses stood at 30.8 per cent. The income from operations declined to $53.5 million, or 9.7 per cent of revenue. Adjusted operating income was $56.1 million, down from $61 million. Net income attributable to Steven Madden, Ltd was $40.4 million, or $0.57 per diluted share. On an adjusted basis, net income was $42.4 million, or $0.60 per share, Steven Madden said in a press release. Steven Madden, Ltd has a reported revenue of $553.5 million in Q1 2025, up 0.2 per cent YoY, with wholesale gains and a slight DTC dip. Net income stood at $40.4 million. The company withdrew its FY25 guidance due to tariff-related uncertainty. CEO Rosenfeld highlighted adaptability and the Kurt Geiger acquisition as key to future growth and market share opportunities. In Q1 2025, Steven Madden Ltd's wholesale business generated revenues of $439.3 million, reflecting a 0.2 per cent increase from Q1 2024. This included a 0.2 per cent rise in wholesale footwear revenue and a 0.4 per cent gain in wholesale accessories and apparel revenue. The gross profit margin for wholesale improved to 35.7 per cent from 35.1 per cent, with gains across both categories. Direct-to-consumer (DTC) revenue declined slightly by 0.2 per cent to $112.1 million, with gross profit margin falling to 60.1 per cent from 61.9 per cent due to heightened promotional activity. The company ended the quarter with 314 retail stores, five e-commerce websites, and 61 company-operated international concessions. 'We were pleased with our performance in the first quarter, as our team's strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations. Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States,' said Edward Rosenfeld, chairman and chief executive officer (CEO) at Steven Madden. 'We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth. We believe our agile business model—combined with our fortress balance sheet – gives us a competitive advantage in dynamic environments, and we are optimistic that the current disruption will create opportunities for market share gains over time.' 'We are also thrilled to have completed the acquisition of Kurt Geiger, which adds a powerful new growth engine to our company. The Kurt Geiger London brand continues to demonstrate outstanding momentum, as its unique brand image, high-quality and statement-making styles and compelling value proposition drive success across multiple product categories, led by handbags,' added Rosenfeld. Due to macroeconomic uncertainty stemming from the impact of new tariffs on goods imported into the United States, Steven Madden, Ltd has withdrawn its 2025 financial guidance previously issued on February 26, 2025. The company has announced that it will not be providing updated guidance at this time. Fibre2Fashion News Desk (SG)
Yahoo
09-05-2025
- Business
- Yahoo
Steve Madden Has Moved Nearly All Fall '25 Shoe Production for Its Core Brands Out of China Amid Trump Tariff War
Steve Madden Ltd. has moved incredibly fast to limit the potential impact of tariffs on imports from China. Excluding the Kurt Geiger acquisition, Madden's chairman and CEO Edward Rosenfeld detailed in a Wednesday conference call on first quarter earnings the steps the team took to mitigate the damage from tariffs. He previously said in the company's fourth quarter earnings conference call in February that Madden planned to cut the percentage of goods produced in China, and noted it was in early talks with factories on price concessions, but hadn't provided specific details. More from Footwear News Steve Madden Closes Kurt Geiger Deal - But Tariffs Remain a Headwind as Q1 Sales Miss Expectations Keen Footwear Won't Raise Prices Because of Tariffs in 2025, But It Could Be A Shoe Sector Outlier 'The stuff that was far along in the production process or done, we are taking the majority of that in, but we have worked with our factory partners and suppliers to negotiate price concessions on those goods, so we can at least mitigate some of the damage in the near-term, and again, keep those goods flowing and make sure we're still delivering fashion to our customers and consumers,' Rosenfeld said, emphasizing that whatever was early enough in the production process that could be shifted has been moved. 'We have taken components from China, for instance, and moved them to other countries,' the CEO said, noting that for brands such as Steve Madden shoes or Dolce Vita shoes, fall production in China is 'going to be virtually nothing.' Some production, likely less than 5 percent, will still be in China but that's more due to value-priced apparel, which is taking longer to move. (On previous earnings calls, the company noted that in 2024, it sourced 71 percent of its U.S. imports from China, and forecasted that number to be in the mid-teens for fall '25 and not hit the mid single-digits until spring '26.) He also said that the shift to other countries — Cambodia, Vietnam, Mexico and Brazil — also means that deliveries for those goods will be pushed out by 30 to 45 days. Mexico and Brazil have become more important, as 'Mexico and Brazil did not receive reciprocal tariffs, so there is less risk when July 9 comes along with respect to tariffs in those countries.' American President Donald J. Trump on April 2 disclosed reciprocal tariffs in the double-digit percentage range, and a few days later put into place a 90-day pause to allow for negotiations with trade partners, with the exception of China, where some goods were hit with higher tariffs that spiked as high as 145 percent. It isn't clear what Trump will do when the 90 days expire on July 9. Rosenfeld also said that the company has 'selectively' raised prices to consumers and wholesale customers for fall items, but that it wasn't across the board. 'We have taken a surgical approach, raising prices by differing amounts and sometimes not at all depending on the brand, product category and style,' he said. While some items will see price increase by as much as 20 percent, the average is in the 10 percent range. The CEO also said there have been some cancelations, either importers who buy from Madden and are responsible for the tariffs, or by customers who weren't willing to accept the price increases, such as the off-price channel. But he also said that some who canceled may come back later after the goods get moved to the other countries. 'And even if the customers are taking those goods in, if the initial sets go in a month or 1.5 months later, we do think that will have an impact on reorder business,' he noted. Rosenfeld also said that certain wholesale customers are thinking more conservatively for their fall plans, in part due to the potential 'consumer demand impact from the turmoil here.' And Madden will likely see a revenue impact from that, it won't be 'because we just can't ship goods,' he emphasized. He also said the shift to countries has resulted in the company accepting lower margins than it has historically achieved, but added that there is 'price pressure on some of these other countries as everybody is trying to move so quickly out of China to these alternative countries.' Greater demand in some of these other countries has resulted in higher prices of as much as 10 to 15 percent, relative to where they were before, he disclosed. As for Kurt Geiger, the $360 million acquisition closed on Tuesday. Rosenfeld said that about 80 pecent is sourced out of China. About 35 percent of that business is in the U.S., making it more insulated from tariff impact due to a greater overseas business. 'But certainly, 80 percent sourcing out of China is an issue,' Rosenfeld said, noting that the No. 1 priority now that the company has closed on the deal is to rethink sourcing. 'We're already engage and moving the ball forward on that front. And you're going to see that number go down significantly for Spring 2026,' the CEO said. Madden has a good reason for rejiggering Geiger's sourcing out of China. Rosenfeld spoke about what the brand can be in the U.S. and said there is a 'very meaningful store rollout opportunity,' given that there is only 5 stateside retail doors. 'And then I think we can continue to grow the wholesale business. The distribution there is really Nordstrom, Dillard's and Bloomingdale's primarily. They have very successful businesses with each of those and I think there's room for growth there,' he said. The CEO also noted the opportunity for international expansion, whether in Europe or in Mexico, where he said 'they're doing great.' But he also said the company won't be abandoning China because it does produce goods there that are sold in China and elsewhere in the world. 'If we find ourselves in a situation where tariffs go away and there's a little bit more clarity and certainty that we can work in China again, then we will certainly be positioned to pivot back, if that makes sense.' He also said that sales trends across the industry were somewhat sluggish in January and February, and the company 'saw a strong improvement in March as weather turned warmer and more consumers began to look for spring fashion.' Rosenfeld also noted that so far, 'consumer demand still looks okay.' And having moved almost all of the company's shoes and accessories outside of China for Fall 2025, Rosenfeld said there could be opportunity for the company to take share from competitors — for both its branded and private label mix — that 'are not able to deliver goods or can't deliver as much.' He also said that recent review of expense savings and operational efficiencies, including a 'reduction in force,' will result in over $12 million in annual savings. Given the tariff uncertainties, the company has decided withdraw its prior 2025 guidance. For the first quarter ended March 31, net income fell 8 percent to $40.4 million on a slight uptick in net sales by 0.1 percent to $551.4 million. Jefferies analyst Corey Tarlowe said that Steve Madden's business remains 'well position, despite tariff headwinds,' but noted that with wholesale ordering patterns 'in flux,' there's still some uncertainty ahead. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You
Fashion United
08-05-2025
- Business
- Fashion United
Steve Madden withdraws full-year guidance amid economic uncertainty and tariffs
Apparel and footwear retailer Steve Madden reported its financial results for the first quarter ended March 31, 2025, showing modest revenue growth but a decline in net income as macroeconomic uncertainty and new tariffs weigh on the business outlook. The company reported revenue of 553.5 million dollars, a slight increase from the same period last year. However, net income fell to 40.4 million dollars, or 57 cents per diluted share. Gross profit margin improved marginally, rising to 40.9 percent from the prior-year period. Due to persistent economic headwinds and the potential impact of new tariffs on goods imported into the U.S., Steve Madden has withdrawn its previously issued full-year financial guidance and does not plan to provide updated projections at this time. 'Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States,' said Edward Rosenfeld, Chairman and CEO. 'We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth.' Rosenfeld also highlighted a major strategic development: the company's acquisition of UK-based fashion brand Kurt Geiger, which was finalized on May 6. 'We are also thrilled to have completed the acquisition of Kurt Geiger, which adds a powerful new growth engine to our company,' he said. 'Its differentiated and elevated positioning in the market – and its alignment with our strategic initiatives of expanding in international markets, accessories categories and direct-to-consumer channels – make it a highly attractive and complementary addition to our portfolio.' In terms of segment performance, the wholesale business posted a 0.2 percent increase in revenue, totaing 439.3 million dollars, with gross margin improving to 35.7 percent. Meanwhile, the direct-to-consumer segment experienced a 0.2 percent decline in revenue, falling to 112.1 million dollars. The segment's gross margin dropped to 60.1 percent, impacted by increased promotional activity. The Kurt Geiger acquisition, valued at approximately 289 million dollars in cash, supports Steve Madden's long-term strategy of international expansion and category diversification. The London-based brand generated approximately 400 million pounds in revenue for the twelve months ending February 1, 2025. In addition, Steve Madden declared a quarterly cash dividend of 21 cents per share, payable on June 20, 2025, to shareholders of record as of June 9.
Yahoo
07-05-2025
- Business
- Yahoo
Steve Madden reports revenue up in Q1 FY25 and withdraws guidance
Footwear, accessories and apparel retailer Steve Madden has recorded a marginal revenue increase in the first quarter (Q1) of fiscal year 2025 (FY25), reaching $553.53m compared to $552.38m in the corresponding quarter of the previous year. The company's wholesale segment saw a 0.2% uptick in revenue, while direct-to-consumer revenues experienced a 0.2% drop. In the quarter ending 31 March 2025, Steve Madden maintained a physical presence with 314 retail stores and five e-commerce platforms. The brand operated 61 concessions internationally. The company's gross profit witnessed an increase to $226.27m in Q1 FY25, from $224.82m in the same quarter of the previous year. Its gross profit margin also saw a slight improvement, reaching 40.9% compared to 40.7% in Q1 FY24. However, operating expenses as a percentage of revenue rose to 32.0%, from 29.8% in the same period of 2024. Steve Madden suffered a decline in income from operations to $53.49m from $56.75m reported in Q1 FY24. Net income attributable to the company also decreased to $40.42m, or $0.57 per diluted share, compared to $43.94m, or $0.60 per diluted share, recorded in the same period of the previous year. Steve Madden chairman and chief executive officer Edward Rosenfeld stated: "We were pleased with our performance in the first quarter, as our team's strong execution of our strategy enabled us to deliver earnings results that significantly exceeded expectations." In light of economic uncertainties and new tariffs affecting imports into the US, Steve Madden has withdrawn its financial guidance for 2025 initially issued on 26 February 2025, and refrained from providing current guidance. 'Looking ahead, we face meaningful near-term headwinds and heightened uncertainty due to the impact of new tariffs on goods imported into the United States. We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth,' Rosenfeld added. Steve Madden recently completed its previously announced acquisition of UK-based Kurt Geiger, for an enterprise value of £289m. "Steve Madden reports revenue up in Q1 FY25 and withdraws guidance" was originally created and published by Retail Insight Network, a GlobalData owned brand.
Yahoo
07-05-2025
- Business
- Yahoo
Steve Madden Closes Kurt Geiger Deal — But Tariffs Remain a Headwind as Q1 Sales Miss Expectations
Steve Madden Ltd. completed its acquisition of Kurt Geiger on Tuesday, but first quarter results were mixed as sales missed Wall Street's consensus expectations. 'We are also thrilled to have completed the acquisition of Kurt Geiger, which adds a powerful new growth engine to our company,' the company's chairman and CEO Edward Rosenfeld said in a statement. More from Footwear News The company disclosed in February that it was acquiring the London-based footwear and accessories brand for $360 million. He said Kurt Geiger continues to demonstrate 'outstanding momentum,' noting also that its differentiated and elevated positioning in the market makes it a 'complementary addition' to the company, given Madden's 'strategic initiatives of expanding in international markets, accessories categories and direct-to-consumer channels.' Looking ahead, the CEO said the company faces 'meaningful near-term headwinds' and uncertainty because of the impact of new tariffs. 'We are moving swiftly to adapt to the changing landscape, with a focus on mitigating near-term impacts while positioning the company for long-term growth,' Rosenfeld said. The CEO said in the fourth quarter earnings conference call in February that the company's goal is to cut the percentage of goods produced in China by 40 to 45 percent. Rosenfeld reiterated in a statement Wednesday how the company's strength — its agile business model and 'fortress balance sheet' — gives it a competitive advantage, and said the company is 'optimistic that the current disruption will create opportunities for market share gains over time.' The company also withdrew its 2025 earnings guidance and said it would not be providing financial estimates due to macroeconomic uncertainty connected to the impact of new tariffs on imported goods to the U.S. For the three months ended March 31, net income fell 8 percent to $40.4 million, or 57 cents a diluted share, versus net income of $43.9 million, or 60 cents, in the same year-ago period. On an adjusted basis, net income was 42.4 million, or 60 cents a diluted share for the quarter. Net sales inched up 0.1 percent to $551.4 million from $550.6 million a year ago. The company easily bested Wall Street's expectation of an adjusted diluted share of 46 cents, but missed on its revenue forecast of $556.3 million. Madden's wholesale revenue rose 0.2 percent to $439.3 million from year-ago levels, which included a 0.2 percent increase in footwear revenue, the company said. Direct-to-consumer revenue slipped 0.2 percent to $112.1 million, which was attributed in part to an increase in promotional activity.
