Steven Madden Reports Slight Revenue Increase to $553.5 Million in Q1 2025

Steven Madden, Ltd. reported a slight increase in total revenue for the first quarter of 2025, reaching $553.5 million, up 0.2% from $552.4 million in the same period last year. The company's net income attributable to Steven Madden, Ltd. was $40.4 million, a decrease from $43.9 million in the prior year. The diluted earnings per share were $0.57, down from $0.60 in the previous year. The effective tax rate for the quarter was 24.1%, compared to 23.6% in the first quarter of 2024. The company’s gross profit margin improved slightly to 40.9% from 40.7% year-over-year, driven by better performance in the Wholesale Footwear and Wholesale Accessories/Apparel segments.

In terms of operational changes, Steven Madden experienced a notable increase in operating expenses, which rose to $177.3 million, or 32.0% of total revenue, compared to $164.7 million, or 29.8% of total revenue, in the prior year. This increase was attributed to higher marketing and advertising investments, as well as costs associated with acquisitions and new joint ventures. The company also recognized a benefit of $4.5 million related to the change in valuation of contingent payment liabilities, contrasting with a charge of $1.7 million in the previous year.

Strategically, Steven Madden has made significant moves to expand its market presence. In January 2025, the company entered into joint ventures in Australia and Malaysia, acquiring controlling interests in both markets to enhance distribution capabilities. The joint venture in Australia was established with a capital contribution of $1.9 million, while the acquisition in Malaysia involved an additional 2% equity interest for $5. These initiatives are expected to bolster the company's direct-to-consumer and wholesale segments in these regions.

The company’s inventory turnover ratio decreased to 5.3 times as of March 31, 2025, compared to 5.7 times a year earlier, indicating a slower movement of inventory. Additionally, the average collection days for accounts receivable increased to 73 days from 68 days in the prior year, suggesting a potential slowdown in cash flow. As of the end of the quarter, Steven Madden held $144.8 million in cash and cash equivalents, with no outstanding debt, reflecting a solid liquidity position.

Looking ahead, Steven Madden aims to navigate the challenging macroeconomic environment characterized by inflation and geopolitical tensions. The company plans to focus on product innovation, marketing investments, and expanding its international footprint while managing costs effectively. The board of directors has also approved a quarterly dividend of $0.21 per share, payable in June 2025, signaling continued commitment to returning value to shareholders despite the current economic challenges.