|
|
|
|
|||||
|
|
|
LONG ISLAND CITY, N.Y., July 30, 2025 (GLOBE NEWSWIRE) -- Steven Madden, Ltd. (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel, today announced financial results for the second quarter ended June 30, 2025.
Amounts referred to as “Adjusted” are non-GAAP measures that exclude the items defined as “Non-GAAP Adjustments” in the “Non-GAAP Reconciliation” section.
Second Quarter 2025 Results
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “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. 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.”
Second Quarter 2025 Channel Results
Revenue for the wholesale business was $360.6 million, a 6.4% decrease compared to the second quarter of 2024. Excluding the newly acquired Kurt Geiger, wholesale revenue declined 12.8%. Wholesale footwear revenue decreased 7.1%, or 11.7% excluding Kurt Geiger. Wholesale accessories/apparel revenue decreased 5.3%, or 14.6% excluding Kurt Geiger. Gross profit as a percentage of wholesale revenue was 30.0%, compared to 33.1% in the second quarter of 2024. Adjusted gross profit as a percentage of wholesale revenue was 30.9%, compared to 33.1% in the second quarter of 2024, as a result of the impact of new tariffs on goods imported into the United States.
Direct-to-consumer revenue was $195.5 million, a 43.3% increase compared to the second quarter of 2024. Excluding Kurt Geiger, direct-to-consumer revenue decreased 3.0%, with declines in both brick-and-mortar and e-commerce channels. Gross profit as a percentage of direct-to-consumer revenue was 58.7%, compared to 64.3% in the second quarter of 2024. Adjusted Gross profit as a percentage of direct-to-consumer revenue was 61.3%, compared to 64.3% in the second quarter of 2024, driven primarily by the addition of the Kurt Geiger concessions business and the impact of new tariffs on goods imported into the United States.
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.
Balance Sheet and Cash Flow Highlights
As of June 30, 2025, total debt outstanding was $293.5 million, and cash, cash equivalents and short-term investments were $111.9 million, for net debt of $181.6 million.
During the second quarter of 2025, the company did not repurchase any shares of its common stock in the open market.
Quarterly Cash Dividend
The company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on September 23, 2025 to stockholders of record as of the close of business on September 12, 2025.
2025 Outlook
Due to continued macroeconomic uncertainty related to the impact of new tariffs on goods imported into the United States, the company is not providing 2025 financial guidance at this time.
Conference Call Information
Interested stockholders are invited to listen to the conference call scheduled for today, July 30, 2025, at 8:30 a.m. Eastern Time, which will include a discussion of the company's second quarter 2025 earnings results. The call will be webcast live on the company’s website at https://investor.stevemadden.com. A webcast replay of the conference call will be available on the company's website or via the following webcast link https://edge.media-server.com/mmc/p/7ngfthjs beginning today at approximately 10:00 a.m. Eastern Time.
About Steve Madden
Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel. In addition to marketing products under its own brands including Steve Madden®, Kurt Geiger London®, Dolce Vita®, Betsey Johnson®, Carvela®, Blondo® and ATM®, Steve Madden licenses footwear, handbags and other accessory categories for the Anne Klein® brand. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores. Steve Madden also directly operates brick-and-mortar retail stores and e-commerce websites. In addition, Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products in the apparel, accessory and home categories.
Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, “estimate”, or “confident” and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the company’s current beliefs, expectations, and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the company’s control. The company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. The company does not undertake, and disclaims, any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments, or otherwise.
| STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||
| Net sales | $ | 556,090 | $ | 521,709 | $ | 1,107,472 | $ | 1,072,276 | ||||||
| Licensing fee income | 2,910 | 1,844 | 5,062 | 3,658 | ||||||||||
| Total revenue | 559,000 | 523,553 | 1,112,534 | 1,075,934 | ||||||||||
| Cost of sales | 332,973 | 306,424 | 660,240 | 633,990 | ||||||||||
| Gross profit | 226,027 | 217,129 | 452,294 | 441,944 | ||||||||||
| Operating expenses | 263,865 | 163,709 | 441,128 | 328,428 | ||||||||||
| Change in valuation of contingent payment liability | 2,420 | 6,550 | (2,075 | ) | 8,200 | |||||||||
| Impairment of intangibles | — | — | — | 1,700 | ||||||||||
| (Loss) / income from operations | (40,258 | ) | 46,870 | 13,241 | 103,616 | |||||||||
| Gain on derivative | 9,252 | — | 9,252 | — | ||||||||||
| Interest and other (expense) / income, net | (3,795 | ) | 1,354 | (2,966 | ) | 2,909 | ||||||||
| (Loss) / income before provision for income taxes | (34,801 | ) | 48,224 | 19,527 | 106,525 | |||||||||
| Provision for income taxes | 3,911 | 11,276 | 16,979 | 25,015 | ||||||||||
| Net (loss) / income | (38,712 | ) | 36,948 | 2,548 | 81,510 | |||||||||
| Less: net income attributable to noncontrolling interest | 765 | 1,572 | 1,602 | 2,200 | ||||||||||
| Net (loss) / income attributable to Steven Madden, Ltd. | $ | (39,477 | ) | $ | 35,376 | $ | 946 | $ | 79,310 | |||||
| Basic (loss) / income per share | $ | (0.56 | ) | $ | 0.50 | $ | 0.01 | $ | 1.10 | |||||
| Diluted (loss) / income per share | $ | (0.56 | ) | $ | 0.49 | $ | 0.01 | $ | 1.09 | |||||
| Basic weighted average common shares outstanding | 70,870 | 71,458 | 70,822 | 71,875 | ||||||||||
| Diluted weighted average common shares outstanding | 70,870 | 72,004 | 70,970 | 72,430 | ||||||||||
| Cash dividends declared per common share | $ | 0.21 | $ | 0.21 | $ | 0.42 | $ | 0.42 | ||||||
| STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||||||||
| As of | |||||||||
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||
| (Unaudited) | (Unaudited) | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 111,714 | $ | 189,924 | $ | 180,457 | |||
| Short-term investments | 140 | 13,484 | 11,761 | ||||||
| Accounts receivable, net of allowances | 86,211 | 45,653 | 36,624 | ||||||
| Factor accounts receivable | 289,942 | 348,659 | 341,967 | ||||||
| Inventories | 436,968 | 257,625 | 241,643 | ||||||
| Prepaid expenses and other current assets | 54,002 | 34,463 | 28,448 | ||||||
| Income tax receivable and prepaid income taxes | 18,799 | 4,887 | 19,208 | ||||||
| Total current assets | 997,776 | 894,695 | 860,108 | ||||||
| Property and equipment, net | 104,423 | 57,388 | 49,056 | ||||||
| Operating lease right-of-use asset | 220,089 | 139,695 | 143,480 | ||||||
| Deposits and other | 21,641 | 22,214 | 15,553 | ||||||
| Deferred tax assets | 2,175 | 610 | 609 | ||||||
| Goodwill | 266,602 | 183,737 | 183,374 | ||||||
| Intangibles, net | 282,372 | 113,432 | 122,884 | ||||||
| Total Assets | $ | 1,895,078 | $ | 1,411,771 | $ | 1,375,064 | |||
| LIABILITIES | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 235,716 | $ | 206,889 | $ | 189,772 | |||
| Accrued expenses and other current liabilities | 184,249 | 142,452 | 143,127 | ||||||
| Operating leases - current portion | 56,179 | 43,172 | 44,961 | ||||||
| Income taxes payable | 11,419 | 6,147 | 7,204 | ||||||
| Current portion of long-term debt | 5,625 | — | — | ||||||
| Contingent payment liability - current portion | — | — | 11,957 | ||||||
| Accrued incentive compensation | 3,404 | 15,061 | 8,909 | ||||||
| Total current liabilities | 496,592 | 413,721 | 405,930 | ||||||
| Contingent payment liability - long-term portion | 5,490 | 7,565 | 9,543 | ||||||
| Operating leases - long-term portion | 189,404 | 109,816 | 112,988 | ||||||
| Long-term debt | 287,865 | — | — | ||||||
| Deferred tax liabilities | 38,574 | 4,628 | 9,078 | ||||||
| Other liabilities | 13,790 | 44 | 5,169 | ||||||
| Total Liabilities | 1,031,715 | 535,774 | 542,708 | ||||||
| STOCKHOLDERS’ EQUITY | |||||||||
| Total Steven Madden, Ltd. stockholders’ equity | 833,230 | 847,719 | 808,279 | ||||||
| Noncontrolling interest | 30,133 | 28,278 | 24,077 | ||||||
| Total stockholders’ equity | 863,363 | 875,997 | 832,356 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 1,895,078 | $ | 1,411,771 | $ | 1,375,064 | |||
| STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 2,548 | $ | 81,510 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Stock-based compensation | 14,690 | 12,579 | ||||||
| Depreciation and amortization | 13,926 | 9,569 | ||||||
| Amortization of debt issuance costs | 480 | — | ||||||
| Loss on disposal of fixed assets | 1 | 75 | ||||||
| Impairment of intangibles | — | 1,700 | ||||||
| Deferred taxes | — | — | ||||||
| Change in valuation of contingent payment liability | (2,075 | ) | 8,200 | |||||
| Other operating activities | (550 | ) | 238 | |||||
| Changes, net of acquisitions, in: | ||||||||
| Accounts receivable | (7,197 | ) | 2,787 | |||||
| Factor accounts receivable | 59,110 | (22,988 | ) | |||||
| Inventories | 35,004 | (10,938 | ) | |||||
| Prepaid expenses, income tax receivables, prepaid taxes, and other assets | (7,119 | ) | (4,700 | ) | ||||
| Accounts payable, accrued expenses, and other current liabilities | (31,441 | ) | 18,122 | |||||
| Accrued incentive compensation | (11,721 | ) | (3,109 | ) | ||||
| Leases and other liabilities | (3,126 | ) | 756 | |||||
| Net cash provided by operating activities | 62,530 | 93,801 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (17,516 | ) | (9,272 | ) | ||||
| Purchases of short-term investments | — | (10,510 | ) | |||||
| Maturity / sale of short-term investments | 13,410 | 13,485 | ||||||
| Acquisition of businesses, net of cash acquired | (386,449 | ) | (4,259 | ) | ||||
| Other investing activities | (2,196 | ) | 371 | |||||
| Net cash used in investing activities | (392,751 | ) | (10,185 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Common stock repurchased and net settlements of stock awards | (8,198 | ) | (75,549 | ) | ||||
| Proceeds from exercise of stock options | — | 749 | ||||||
| Borrowings, net of repayments | 300,000 | — | ||||||
| Financing costs paid | (8,955 | ) | — | |||||
| Cash dividends paid on common stock | (30,435 | ) | (30,708 | ) | ||||
| Distribution of noncontrolling interest | (2,946 | ) | — | |||||
| Net cash provided by / (used in) financing activities | 249,466 | (105,508 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | 2,545 | (2,291 | ) | |||||
| Net decrease in cash and cash equivalents | (78,210 | ) | (24,183 | ) | ||||
| Cash and cash equivalents – beginning of period | 189,924 | 204,640 | ||||||
| Cash and cash equivalents – end of period | $ | 111,714 | $ | 180,457 | ||||
| STEVEN MADDEN, LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION (In thousands, except per share amounts) (Unaudited) |
The company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the company conducts and views its business. Additionally, the company believes the information assists investors in comparing the company’s performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business. The non-GAAP financial information is provided in addition to, and not as an alternative to, the company’s reported results prepared in accordance with GAAP.
| Table 1 - Reconciliation of GAAP gross profit to Adjusted gross profit | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| GAAP gross profit | $ | 226,027 | $ | 217,129 | $ | 452,294 | $ | 441,944 | ||||
| Non-GAAP Adjustments | 8,251 | 126 | 8,530 | 333 | ||||||||
| Adjusted gross profit | $ | 234,278 | $ | 217,255 | $ | 460,824 | $ | 442,277 | ||||
| Table 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| GAAP operating expenses | $ | 263,865 | $ | 163,709 | $ | 441,128 | $ | 328,428 | ||||||||
| Non-GAAP Adjustments | (52,216 | ) | (958 | ) | (59,012 | ) | (1,623 | ) | ||||||||
| Adjusted operating expenses | $ | 211,649 | $ | 162,751 | $ | 382,116 | $ | 326,805 | ||||||||
| Table 3 - Reconciliation of GAAP (loss) / income from operations to Adjusted income from operations | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||
| GAAP (loss) / income from operations | $ | (40,258 | ) | $ | 46,870 | $ | 13,241 | $ | 103,616 | ||||
| Non-GAAP Adjustments | 62,887 | 7,633 | 65,467 | 11,855 | |||||||||
| Adjusted income from operations | $ | 22,629 | $ | 54,503 | $ | 78,708 | $ | 115,471 | |||||
| Table 4 - Reconciliation of GAAP interest and other (expense) / income, net to Adjusted interest and other (expense) / income, net | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||
| GAAP interest and other (expense) / income, net | $ | (3,795 | ) | $ | 1,354 | $ | (2,966 | ) | $ | 2,909 | ||||
| Non-GAAP Adjustments | 840 | — | 840 | — | ||||||||||
| Adjusted interest and other (expense) / income, net | $ | (2,955 | ) | $ | 1,354 | $ | (2,126 | ) | $ | 2,909 | ||||
| Table 5 - Reconciliation of GAAP provision for income taxes to Adjusted provision for income taxes | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| GAAP provision for income taxes | $ | 3,911 | $ | 11,276 | $ | 16,979 | $ | 25,015 | ||||
| Non-GAAP Adjustments | 1,117 | 1,799 | 1,729 | 2,793 | ||||||||
| Adjusted provision for income taxes | $ | 5,028 | $ | 13,075 | $ | 18,708 | $ | 27,808 | ||||
| Table 6 - Reconciliation of GAAP net income attributable to noncontrolling interest to Adjusted net income attributable to noncontrolling interest | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| GAAP net income attributable to noncontrolling interest | $ | 765 | $ | 1,572 | $ | 1,602 | $ | 2,200 | ||||
| Non-GAAP Adjustments | — | — | — | 130 | ||||||||
| Adjusted net income attributable to noncontrolling interest | $ | 765 | $ | 1,572 | $ | 1,602 | $ | 2,330 | ||||
| Table 7 - Reconciliation of GAAP net (loss) / income attributable to Steven Madden, Ltd. to Adjusted net income attributable to Steven Madden, Ltd. | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||||||||||
| GAAP net (loss) / income attributable to Steven Madden, Ltd. | $ | (39,477 | ) | $ | 35,376 | $ | 946 | $ | 79,310 | ||||
| Non-GAAP Adjustments | 53,357 | 5,835 | 55,326 | 8,931 | |||||||||
| Adjusted net income attributable to Steven Madden, Ltd. | $ | 13,880 | $ | 41,211 | $ | 56,272 | $ | 88,241 | |||||
| GAAP diluted net (loss) / income per share | $ | (0.56 | ) | $ | 0.49 | $ | 0.01 | $ | 1.09 | ||||
| GAAP diluted weighted shares outstanding | 70,870 | 72,004 | 70,970 | 72,340 | |||||||||
| Adjusted diluted net income per share | $ | 0.20 | $ | 0.57 | $ | 0.79 | $ | 1.22 | |||||
| Adjusted diluted weighted average shares outstanding | 70,911 | 72,004 | 70,970 | 72,430 | |||||||||
Non-GAAP Adjustments include the items below.
For the second quarter of 2025:
For the second quarter of 2024:
Contact
Steven Madden, Ltd.
VP of Corporate Development & Investor Relations
Danielle McCoy
718-308-2611
[email protected]
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-30 | |
| Jul-29 | |
| Jul-29 | |
| Jul-28 | |
| Jul-25 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite