A globally recognized leader in fashion-forward footwear, accessories, and apparel, reported that revenue increased 6.8% to $559.0 million in the second quarter of 2025. Direct-to-consumer sales increased 43.3% from the second quarter of 2024 to $195.5 million, showcasing the impact of recent acquisitions and changing consumer behaviors. However, the brand also wrestled with new tariff expenses and a challenging wholesale environment, culminating in a net loss of $39.5 million for the quarter.
Adjusted Performance Metrics Reflect Resilience
Gross profit as a percentage of revenue stood at 40.4%, compared to 41.5% in the same period of 2024. Adjusted gross profit as a percentage of revenue reached 41.9% in the second quarter of 2025. Operating expenses, impacted by tariffs, rose significantly with an adjusted operating expense ratio of 37.9% up from 31.1% in the 2024 period.
Loss from operations totaled $40.3 million, or 7.2% of revenue, compared to income from operations of $46.9 million, or 9.0% of revenue, in 2024. Adjusted income from operations was $22.6 million, or 4.0% of revenue, versus $54.5 million, or 10.4% of revenue, last year.
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.”
Channel Performance Highlights
Wholesale revenue totaled $360.6 million, a 6.4% decrease year-over-year. Excluding the newly acquired Kurt Geiger, wholesale revenue dropped 12.8%. Wholesale footwear declined 7.1% or 11.7%, while accessories and apparel fell 5.3%. Wholesale gross profit as a percentage of revenue was 30.0%, reflecting pressure from tariffs and changing cost structures.
On the other hand, direct-to-consumer revenue jumped by 43.3%, to $195.5 million, largely due to the inclusion of Kurt Geiger’s concessions business. Without Kurt Geiger’s addition, direct-to-consumer revenue decreased 3.0%, with brick-and-mortar and e-commerce channels both seeing declines. Direct-to-consumer gross profit stood at 58.7%, down from 64.3% the prior year, driven by business mix changes and tariff impact. The company now operates 392 brick-and-mortar retail stores, 7 e-commerce websites, and 130 international concessions, including 73 stores and 72 concessions related to Kurt Geiger.
Financial Position and Dividends
As of June 30, 2025, total debt was $293.5 million, and Steve Madden held $111.9 million in cash, cash equivalents, and short-term investments. Net debt totaled $181.6 million. The Board of Directors approved a quarterly cash dividend of $0.21 per share, payable September 23, 2025, to stockholders of record as of September 12, 2025.No shares were repurchased during the quarter.
Outlook and Confidence
The company is not providing 2025 financial guidance at this time, citing ongoing macroeconomic uncertainty, especially regarding new tariffs on imported goods.
Steve Madden’s comprehensive brand portfolio—including Steve Madden, Kurt Geiger London, Dolce Vita, Betsey Johnson, Carvela, Blondo, ATM, and Anne Klein remains globally respected. As the executive team continues to prioritize agility and innovation, the integration of Kurt Geiger stands out as a major driver for future expansion.
In summary, despite a net loss and margin pressure due to tariffs, Steve Madden’s $559 million revenue, 43.3% direct-to-consumer growth, and operational expansion position the company confidently for long-term success.
