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Steven Madden, Ltd. SHOO reported first-quarter 2025 results, wherein the top line lagged the Zacks Consensus Estimate, while the bottom line surpassed the same. Total revenues increased and earnings decreased from the year-ago period.
SHOO’s first-quarter results were driven by strong execution of strategic initiatives despite challenges from new tariffs on U.S. imports. Focused on adapting to market changes, the company aims to mitigate near-term impacts while positioning for long-term growth. The recent acquisition of Kurt Geiger is viewed as a key growth engine, aligning with strategic goals in international expansion, accessories and direct-to-consumer (DTC) channels.
Amid macroeconomic uncertainty stemming from new tariffs, the company has withdrawn its 2025 financial guidance, initially provided on Feb. 26, 2025. SHOO is not issuing any guidance at this time.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
Steven Madden’s Quarterly Performance: Key Insights
SHOO posted adjusted quarterly earnings of 60 cents per share, which beat the Zacks Consensus Estimate of 46 cents. The metric decreased 7.7% from 65 cents in the prior-year period. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Total revenues rose 0.2% year over year to $553.5 million. Net sales of $551.4 million went up 0.1%, and commission and licensing fee income of $2.2 million increased 18.6% from the year-ago period. The top line missed the consensus estimate of $562 million.
Adjusted gross profit rose 0.7% year over year to $226.5 million, which missed our estimate of $226.9 million. We note that the adjusted gross margin expanded 20 basis points (bps) to 40.9%.
The company’s adjusted operating expenses increased 3.9% year over year to $170.5 million. As a percentage of revenues, adjusted operating expenses increased 110 bps year over year to 30.8%.
Steven Madden reported an adjusted operating income of $56.1 million, down 8% from the prior-year quarter. The adjusted operating margin decreased 90 bps to 10.1%. We expected an adjusted operating margin of 7.6% for the quarter.
SHOO’s Segment-Wise Performance Details
The wholesale business recorded revenues of $439.3 million, which missed our estimate of $440.9 million but inched up 0.2% from the first quarter of 2024, driven by a 0.2% rise in wholesale footwear revenues and 0.4% growth in wholesale accessories/apparel revenues. Gross profit as a percentage of wholesale revenues improves to 35.7%, up 60 bps from 35.1% in the prior-year quarter, supported by gains in both footwear and accessories/apparel channels. We expected the gross margin to be 34.3%.
Meanwhile, DTC revenues edged down 0.2% to $112.1 million from the first quarter of 2024. Our model expected total DTC revenues of $121.4 million for the quarter. Gross profit as a percentage of DTC revenues fell 180 bps year over year to 60.1% due to increased promotional activities. We anticipated a 130-bps decline in the gross margin.
The company ended the first quarter with 314 brick-and-mortar retail outlets, five e-commerce websites and 61 company-operated concessions across the international markets.