Steven Madden (SHOO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 6.9% year-over-year to $667.9M, driven by the Kurt Geiger acquisition, but net income fell to $20.5M ($0.29 per diluted share) due to higher operating expenses, acquisition-related costs, and new tariffs on Chinese imports.

• Adjusted net income was $30.4M ($0.43 per diluted share), both down from Q3 2024.

• The company completed the $403.3M acquisition of Mercury Acquisitions Topco Limited (Kurt Geiger) in May 2025, funded by a $300M term loan and $250M revolving credit facility.

• Strategic focus remains on product innovation, international expansion, direct-to-consumer growth, and operational efficiency, with strong demand for core brands.

• Integration of Kurt Geiger is progressing, with revenue synergies and cost savings underway.

Financial highlights

• Q3 2025 consolidated revenue: $667.9M (+6.9% YoY); net income: $20.5M (3.1% margin), down from $55.3M; adjusted net income: $30.4M.

• Gross margin: 41.5% (adjusted: 43.4%), up from 41.6% YoY; operating margin: 4.7% (adjusted: 6.9%), down from 11.9%.

• Operating expenses: $246.0M (36.8% of revenue; adjusted: 36.4%), up from $178.9M (28.6%; adjusted: 27.9%).

• Direct-to-consumer revenue rose 76.6% to $221.5M; wholesale revenue declined 10.7% to $442.7M.

• Net debt at quarter-end was $185M (total debt $293.8M, cash and equivalents $108.9M).

Outlook and guidance

• Q4 2025 revenue expected to increase 27%–30% year-over-year, with adjusted diluted EPS guidance of $0.41–$0.46.

• Core business (excluding Kurt Geiger) Q4 revenue expected down 2%–4%, with increases in wholesale footwear and DTC, but continued decline in wholesale accessories and apparel.

• Kurt Geiger Q4 revenue contribution projected at $182M–$187M, with about $135M from DTC.

• Management remains focused on international expansion, DTC growth, and cost management amid macroeconomic uncertainty.