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

Second Quarter Results

In the second quarter of the 2025 financial year, Steve Madden reported a revenue of 559.0 million US dollars, an increase of 6.8% on a comparable basis to the same period of the last financial year. 

The direct-to-consumer business contributed 195.5 million US dollars to the second quarter’s total revenue, up by 43.3% year-on-year. Excluding Kurt Geiger, direct-to-consumer revenue fell by 3.0%, with declines in both brick-and-mortar and e-commerce channels.

Meanwhile, the wholesale business contributed 360.6 million US dollars to the second quarter’s total revenue, down by 6.4% year-on-year. Excluding Kurt Geiger, wholesale revenue fell by 12.8%. 

In the three months to the 30^th of June, the company’s gross profit margin contracted from 41.5% to 40.4%, as compared to the same quarter of the previous year. The second quarter adjusted gross profit margin was 41.9%.

“Wholesale customers canceled orders and reduced open-to-buys, shipment delays led to lost sales and pushed deliveries to later periods and organic gross margins declined due to the significant increase in our landed costs, resulting in substantial pressure on both revenue and earnings,” explained Rosenfeld during a conference call.

Steve Madden posted a second quarter operating loss of 40.3 million US dollars, on a comparable basis to an operating income of 46.9 million US dollars in the same prior-year period. On an adjusted basis, operating income fell to 22.6 million US dollars from 54.5 million US dollars in the same prior year period.

In the second quarter of the current financial year, the company’s net loss totalled 39.5 million US dollars, as compared to a net income of 35.4 million US dollars in the same period of 2024. The second quarter adjusted net income was 13.9 million US dollars, as compared to an adjusted net income of 41.2 million US dollars in the same period of 2024. 

Outlook

“Due to continued macroeconomic uncertainty related to the impact of new tariffs on goods imported into the United States”, the company has once again chosen not to provide guidance for the 2025 financial year.