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persistent economic headwinds and the potential impact of new tariffs on goods imported into the U.S., Steve Madden has withdrawn its previously issued full-year financial guidance and does not plan to provide updated projections at this time.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.”

Kurt Geiger adds 'powerful new growth engine'

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.