Steven Madden posts Q2 net loss of $39.5 mln on tariff impact
Overview
Steven Madden Q2 revenue rises 6.8% to $559 mln, missing analyst expectations
Adjusted EPS for Q2 meets analyst expectations, per LSEG data
Co reports net loss of $39.5 mln due to new tariffs on imports
Outlook
Company not providing 2025 financial guidance due to tariff uncertainty
Steven Madden cites tariffs as creating near-term pressure
Company confident in navigating current environment despite tariff impacts
Integration of Kurt Geiger seen as significant growth driver
Result Drivers
TARIFF IMPACT - New tariffs on imported goods significantly affected gross profit margins and led to a net loss, per CEO Edward Rosenfeld
KURT GEIGER INTEGRATION - Integration of Kurt Geiger is progressing well and is expected to be a significant growth driver, according to CEO Edward Rosenfeld
WHOLESALE DECLINE - Wholesale revenue decreased 6.4%, with footwear and accessories/apparel both declining, excluding Kurt Geiger
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $556.09 mln | $580 mln (9 Analysts) |
Q2 Adjusted EPS | Meet | $0.2 | $0.2 (9 Analysts) |
Q2 Net Income |
| -$38.71 mln |
|
Q2 EBIT |
| -$40.26 mln |
|
Q2 Gross Profit |
| $226.03 mln |
|
Q2 Operating Expenses |
| $263.86 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for Steven Madden Ltd is $28.00, about 6% above its July 29 closing price of $26.32
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago
Press Release: ID:nGNX3Ywkmt
