In This Article:
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Consolidated Revenue: $553.5 million, a 0.2% increase compared to Q1 2024.
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Wholesale Revenue: $439.3 million, up 0.2% compared to Q1 2024.
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Wholesale Footwear Revenue: $296.1 million, a 0.2% increase from Q1 2024.
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Wholesale Accessories and Apparel Revenue: $143.2 million, up 0.4% compared to Q1 2024.
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Direct-to-Consumer Revenue: $112.1 million, a 0.2% decline.
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Licensing Royalty Income: $2.2 million, compared to $1.8 million in Q1 2024.
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Gross Margin: 40.9%, a 20-basis-point increase from Q1 2024.
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Wholesale Gross Margin: 35.7%, compared to 35.1% in Q1 2024.
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Direct-to-Consumer Gross Margin: 60.1%, compared to 61.9% in Q1 2024.
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Operating Expenses: $170.5 million, or 30.8% of revenue.
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Operating Income: $56.1 million, or 10.1% of revenue.
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Net Income: $42.4 million, or $0.60 per diluted share.
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Cash and Cash Equivalents: $147.2 million as of March 31, 2025.
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Inventory: $238.6 million, compared to $202 million in Q1 2024.
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Capital Expenditures: $9.8 million in Q1 2025.
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Quarterly Cash Dividend: $0.21 per share, payable on June 20, 2025.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Steven Madden Ltd (NASDAQ:SHOO) exceeded earnings expectations for the first quarter of 2025.
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The company saw a strong improvement in sales in March due to favorable weather and effective spring fashion assortments.
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Steven Madden Ltd (NASDAQ:SHOO) successfully negotiated discounts with suppliers in China to mitigate the impact of new tariffs.
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The acquisition of Kurt Geiger is expected to enhance the company's growth profile, with Kurt Geiger showing strong momentum in multiple categories.
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The company has a strong financial foundation with $147.2 million in cash and no debt as of March 31, 2025.
Negative Points
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Steven Madden Ltd (NASDAQ:SHOO) faces significant headwinds due to new tariffs on goods imported into the United States.
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The company experienced a decline in direct-to-consumer revenue, with brick-and-mortar sales decreasing.
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Operating expenses increased to 30.8% of revenue, up from 29.7% in the first quarter of 2024.
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The company withdrew its 2025 financial guidance due to uncertainty related to tariffs.
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Net income decreased to $42.4 million, or $0.60 per diluted share, compared to $47 million, or $0.65 per diluted share, in the first quarter of 2024.
Q & A Highlights
Q: Can you elaborate on your strategy for moving production out of China and the impact on margins? A: Edward Rosenfeld, CEO, explained that they are taking in products that are far along in production from China but have negotiated price concessions to mitigate damage. Production that could be moved has been shifted to countries like Cambodia, Vietnam, Mexico, and Brazil. While this shift may delay deliveries, it helps reduce reliance on China. The margins from these countries are slightly lower due to higher FOB prices and increased demand, but they are managing through these challenges.
