US' Steven Madden reports modest Q1 growth, withdraws FY25 outlook

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.

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.

ALCHEMPro News Desk (SG)