The gross profit increased to $277.4 million, with the gross margin stable at 41.5 per cent. On an adjusted basis, gross margin expanded to 43.4 per cent from 41.6 per cent, reflecting underlying pricing power and mix, partly offsetting tariff pressures.
Steven Madden has reported revenue of $667.9 million in Q3 2025, up 6.9 per cent, driven by Kurt Geiger and strong direct-to-consumer growth, while wholesale declined.
Tariffs and higher costs cut operating margin to 4.7 per cent and net income to $20.5 million.
The company maintains dividends and backed by omni-channel momentum and mitigation efforts, forecasts 27–30 per cent Q4 revenue growth.
The operating expenses rose sharply, driven by integration, store and concession expansion and higher costs linked to strategic initiatives. Operating expenses grew to $246 million from $178.9 million, rising to 36.8 per cent of revenue from 28.6 per cent. Adjusted operating expenses were 36.4 per cent of revenue, compared with 27.9 per cent a year earlier, Steven Madden said in a press release.
The income from operations dropped to $31.4 million, or 4.7 per cent of revenue, from $74.6 million, or 11.9 per cent, in the third quarter of 2024. On an adjusted basis, operating income was $46.3 million, or 6.9 per cent of revenue, versus $85.4 million, or 13.7 per cent, a year ago.
The net income attributable to Steven Madden, Ltd fell to $20.5 million, or $0.29 per diluted share, compared with $55.3 million, or $0.77 per diluted share, in the prior-year quarter. Adjusted net income was $30.4 million, or $0.43 per diluted share, down from $64.8 million, or $0.91 per diluted share.
Channel-wise, wholesale revenue declined 10.7 per cent to $442.7 million. Excluding Kurt Geiger, wholesale revenue was down 19 per cent. Wholesale footwear revenue fell 10.9 per cent, or 16.7 per cent excluding Kurt Geiger, while wholesale accessories and apparel revenue declined 10.3 per cent, or 22.5 per cent excluding Kurt Geiger. Wholesale gross margin contracted to 32.7 per cent from 35.5 per cent, with adjusted wholesale gross margin at 33.6 per cent, reflecting tariff impacts.
Direct-to-consumer (DTC) revenue surged 76.6 per cent to $221.5 million. Excluding Kurt Geiger, direct-to-consumer revenue still edged up 1.5 per cent, signalling resilient consumer demand for core brands. DTC gross margin stood at 58.3 per cent, down from 64 per cent a year earlier; on an adjusted basis it was 61.9 per cent, pressured by tariffs and the addition of Kurt Geiger’s concessions business.
At quarter-end, Steve Madden operated 397 brick-and-mortar stores, including 99 outlets, alongside 7 e-commerce platforms and 133 company-operated concessions in international markets, underlining its expanding omni-channel footprint.
The balance sheet reflected the strategic acquisition-led expansion. Total assets rose to $2 billion from $1.41 billion at year-end 2024, driven by higher inventories, right-of-use assets, goodwill and intangibles tied to acquisitions. Long-term debt increased to $293.8 million, with cash, cash equivalents and short-term investments at $108.9 million, resulting in net debt of approximately $185 million. Total liabilities climbed to $1.11 billion, while total stockholders’ equity improved modestly to $886.1 million.
“As anticipated, the third quarter was challenging, driven largely by the impact of new tariffs on goods imported into the United States. That said, we are pleased with underlying demand for our brands and products. Consumers have responded favourably to our Fall assortments, particularly in our flagship Steve Madden brand,” said Edward Rosenfeld, chairman and chief executive officer (CEO) at Steve Madden.
In the first nine months (9M) of 2025, net cash provided by operating activities was $67.6 million, down from $94.2 million in the same period of 2024, reflecting lower earnings and working capital movements. Net cash used in investing activities rose significantly to $389.4 million, while financing activities provided $237.5 million, primarily from new borrowings, partly offset by dividends and limited share repurchases.
The company did not repurchase any shares in the open market during the quarter, signalling a preference to preserve liquidity and support strategic investments. The board of directors declared a quarterly cash dividend of $0.21 per share, payable on December 26, 2025, added the release.
For the fourth quarter of 2025, the company forecasts revenue growth of 27 to 30 per cent versus the prior-year period. Reported diluted EPS is guided in the range of $0.30 to $0.35, with adjusted diluted EPS projected between $0.41 and $0.46. The outlook embeds non-GAAP adjustments of $0.11 per diluted share.
Fibre2Fashion News Desk (SG)
