Steven Madden’s total revenues increased by 3.4 per cent Y-o-Y to $1.11 billion in H1, FY25 ending June 30, 2025. Despite a rise in gross profit to $452.3 million, the company's net income plummeted to just $2.5 million during the period. This could be attributed largely to a steep increase in operating expenses, which increased from $328.4 million to $441.1 million.

In Q2, FY25, the company's revenue increased by 6.8 per cent Y-o-Y to $559 million. However, its gross profit margin slightly declined to 40.4 per cent, while adjusted gross margin was 41.9 per cent. Operating expenses of the brand increased to 47.2 per cent of revenue, compared to 31.3 per cent a year ago.

This spike in expenses led to a reported operating loss of 7.2 per cent totaling $40.3 million, a sharp contrast to the operating income of $46.9 million reported in the same period last year. The company posted a net loss of $39.5 million during the quarter.

In Q2, revenue from the company’s wholesale business declined by 6.4 per cent Y-o-Y to $360.6 million. Excluding the newly acquired Kurt Geiger, wholesale revenue declined even further by 12.8 per cent. Revenues from the wholesale footwear and apparel business also declined by 7.1 per cent and 5.3 per cent, respectively.

In contrast, direct-to-consumer (DTC) revenue increased by 43.3 per cent to $195.5 million, primarily driven by the Kurt Geiger acquisition. Excluding this, DTC revenue decreased by 3 per cent across both brick-and-mortar and e-commerce channels.

By Q2-end, the company operated 392 retail stores and seven e-commerce websites, along with 130 international concessions. This includes 73 Kurt Geiger stores and two e-commerce sites. Edward Rosenfeld, Chairman and CEO, affirms, the quarter was challenging, largely due to new tariffs on imported goods into the United States. The company is acting with agility to mitigate near-term impacts while focusing on long-term growth, he notes.