Companies

Steve Madden posts modest first quarter and signals cautious approach to the year

May 9, 2025 United States

The US-based company has reported a modest first quarter performance, withdrawing its full year outlook due to macroeconomic uncertainty surrounding the impact of Trump’s new tariffs. Kurt Geiger acquisition completed

“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. 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”, commented Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden.

First Quarter Results

In the first quarter of fiscal 2025, the company’s revenue reached 553.5 million US dollars, an increase of 0.2% on a comparable basis to the same period of the previous year.

The wholesale business contributed 439.3 million US dollars to the total first quarter revenue, up by 0.2% year-on-year, and the direct-to-consumer business contributed 112.1 million US dollars, down by 0.2% year-on-year.

In the first quarter of the current year, Steve Madden’s gross profit increased slightly to 40.9%, as compared to 40.7% in the same quarter of fiscal 2024.

The company’s first quarter income from operations was 53.5 million US dollars and adjusted income from operations was 56.1 million US dollars, on a comparable basis to 56.7 million US dollars and 61.0 million US dollars, respectively, in the same period of the prior year.

Steve Madden reported a net income attributable to the company of 40.1 million US dollars, or 0.57 US dollars per diluted share, in the first quarter, as compared to 43.9 million US dollars, 0.60 US dollars per diluted share in the same period of 2024.

Similarly, first quarter adjusted net income attributable to Steven Madden was 42.4 million US dollars, or 0.60 US dollars per diluted share, as compared to 47.0 million US dollars, or 0.65 US dollars per diluted share, in the same period of last year.

Despite beating earnings expectations, macroeconomic uncertainty surrounding the impact of new tariffs on goods imported into the US led Steve Madden to announce that it was withdrawing previously provided financial guidance for 2025. For the time being, the company will provide no guidance.

Kurt Geiger Acquisition

The US company also announced that it completed the acquisition of UK-based Kurt Geiger from a group led by international private equity firm Cinven for an enterprise value of approximately 289 million British pounds (384.4 million US dollars) in cash on the 6th of May.

“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. 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”, highlighted Rosenfeld.

For the twelve months ending on the 1^st of February 2025, Kurt Geiger had a revenue of 400 million British pounds (532 million US dollars).

1 GBP = 1.33 USD

Image Credits: yahoo.com

United States Acquisitions Companies Kurt Geiger Quarter Results Results Steve Madden