Steven Madden’s third quarter saw revenue growth, but the company missed Wall Street’s sales and non-GAAP profit expectations. The quarter was shaped by new tariffs on Chinese imports, which disrupted supply chains and led to order reductions from wholesale customers. CEO Edward Rosenfeld cited significant shipment delays and increased landed costs, which together put notable pressure on revenue and profit margins. Management focused on mitigating these headwinds through targeted pricing and sourcing efforts, while highlighting strong consumer demand for key product categories, particularly boots and dress shoes under the flagship Steve Madden brand.
Is now the time to buy SHOO? Find out in our full research report (it’s free for active Edge members).
Steven Madden (SHOO) Q3 CY2025 Highlights:
- Revenue: $667.9 million vs analyst estimates of $695.6 million (6.9% year-on-year growth, 4% miss)
- Adjusted EPS: $0.43 vs analyst expectations of $0.44 (3.4% miss)
- Adjusted EBITDA: $56.88 million vs analyst estimates of $50.39 million (8.5% margin, 12.9% beat)
- Revenue Guidance for Q4 CY2025 is $748.3 million at the midpoint, above analyst estimates of $688.7 million
- Adjusted EPS guidance for Q4 CY2025 is $0.44 at the midpoint, above analyst estimates of $0.30
- Operating Margin: 4.7%, down from 11.9% in the same quarter last year
- Locations: 397 at quarter end, up from 282 in the same quarter last year
- Market Capitalization: $2.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Steven Madden’s Q3 Earnings Call
- Kelly Crago (Citi): Asked about the drivers of accelerating fashion trends and inventory levels. CEO Edward Rosenfeld explained boots and dress shoes led demand, and inventory front-loading helped address supply chain delays, particularly with diversified sourcing from Mexico.
- Anna Andreeva (Piper Sandler): Inquired about stockouts, DTC versus brick-and-mortar performance, and impacts of reduced sourcing from China. Rosenfeld highlighted the ability to chase demand through Mexico and emphasized e-commerce outpacing stores, while remaining cautious about over-concentrating sourcing in China.
- Jay Sole (UBS): Sought details on wholesale footwear and accessories performance excluding Kurt Geiger, and order book visibility. Rosenfeld noted wholesale footwear is recovering, with positive growth expected, and that Kurt Geiger provides earlier order visibility compared to the core business.
- Tom Nikic (Needham): Questioned margin recovery potential post-tariffs and after the Kurt Geiger acquisition. Rosenfeld stated margin recovery is possible over time, but acknowledged it will not be immediate, pointing to further pricing and operational improvements as key levers.
- Dana Telsey (Telsey Advisory Group): Asked about channel performance differences and marketing plans. Rosenfeld said regular price channels outperformed value and outlet segments, and that marketing will continue focusing on digital storytelling and brand engagement for the holiday season.
Catalysts in Upcoming Quarters
Our analysts will closely monitor (1) the pace of wholesale order normalization as supply chain and tariff disruptions abate, (2) the continued acceleration of direct-to-consumer and e-commerce sales, and (3) the progress of Kurt Geiger’s U.S. store expansion and international growth. Execution of margin recovery initiatives and ongoing product innovation will also be key indicators of sustainable performance.
Steven Madden currently trades at $38.10, up from $32.86 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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