The American clothing and shoe retailer Steve Madden published its financial results for the first quarter of the 2025 financial year on Wednesday. The parent company Steven Madden Ltd. therefore recorded moderate sales growth, but a decline in net profit. Macroeconomic uncertainty and new tariffs also put a strain on the prospects.
The company reported sales of $ 553.5 million (489.8 million euros) for the quarter concluded at the end of March, which corresponded to a slight increase compared to the same period last year (+0.2 percent). However, the net profit attributable to the shareholder fell by 8.0 percent to $ 40.4 million (35.8 million euros). The diluted profit per share went back to 57 US cent. The gross margin slightly improved from 40.7 to 40.9 percent.
Due to the ongoing economic uncertainties and the potential effects of new tariffs imported into the United States, Steve Madden pulled his previous annual forecasts back and refrained from updating.
“With a view to the future, we are faced with considerable headwind and increased uncertainty due to the effects of new tariffs imported into the USA,” said Chairman and CEO Edward Rosenfeld in a statement. “We quickly adapt to the changing landscape, whereby we focus on alleviating the short -term effects and at the same time positioning the company for long -term growth.”
Kurt Geiger ensures a “strong new growth engine”
Rosenfeld also emphasized an important strategic development: the takeover of the British fashion brand Kurt Geiger by the company was carried out on May 6th. “We are very happy about the completion of Kurt Geiger’s acquisition, which adds a strong new growth engine to our company,” he referred. “Your different, upscale positioning in the market-and your agreement with our strategic goals in expansion into international markets, accessories categories and direct-to-consumer channels-make you an extremely attractive addition to our portfolio.”
With regard to the sales channels, the wholesale business recorded an increase in sales by 0.2 percent in the past quarter to a total of $ 439.3 million, with the gross margin improved to 35.7 percent. However, the own retail had to accept a decline in sales by 0.2 percent to $ 112.1 million. The gross margin of this segment fell to 60.1 percent due to extensive price reductions.
The takeover of Kurt Geiger for around 289 British pound is intended to advance Steven Madden’s long -term strategy for international expansion and diversification of product categories. The brand based in London generated sales of around £ 400 million in the twelve months before February 1, 2025.
In addition, the company announced a quarterly dividend of 21 US cents per share, which will be paid out on June 20, 2025 to the shareholders registered on June 9: inside.
This article was used with digital tools translated.
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