Steve Madden, Ltd. (NASDAQ:SHOO) delivered better-than-expected earnings for the second quarter, though its revenue came in below analyst forecasts as the footwear and accessories brand faced mounting pressure from newly imposed U.S. tariffs.
The company reported adjusted earnings per share of $0.20, beating the $0.18 consensus estimate. Revenue rose 6.8% year-over-year to $559 million, missing the $578.41 million expected by analysts. The top-line growth was mainly driven by the recent acquisition of luxury brand Kurt Geiger, while the company’s core operations showed signs of strain.
When excluding the contribution from Kurt Geiger, wholesale revenue declined 12.8%, and direct-to-consumer sales slipped 3.0% compared to the year-ago period. Adjusted gross margin narrowed slightly to 41.9% from 41.5% in Q2 2024, largely due to cost pressures from tariffs.
“As anticipated, the second quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States,” said Edward Rosenfeld, Chairman and Chief Executive Officer. “Our team continues to act with agility to mitigate near-term impacts while remaining focused on positioning the company for long-term growth.”
By segment, wholesale revenue declined 6.4% to $360.6 million, while direct-to-consumer revenue surged 43.3% to $195.5 million, lifted significantly by the Kurt Geiger acquisition.
The company announced it will maintain its quarterly cash dividend of $0.21 per share, with payment scheduled for September 23, 2025. However, citing ongoing uncertainty surrounding tariff-related impacts, Steve Madden has withheld full-year 2025 financial guidance.
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