STEVEN MADDEN LTD (NASDAQ:SHOO) Misses Q3 2025 Revenue and Earnings Estimates

Third Quarter 2025 Financial Results

STEVEN MADDEN LTD (NASDAQ:SHOO) reported financial results for the third quarter ending September 30, 2025, delivering a performance characterized by revenue growth that fell short of analyst expectations, a significant contraction in profitability, and a forward outlook that suggests a potential rebound.

Revenue and Earnings Versus Estimates

The company posted a 6.9% year-over-year increase in revenue, reaching $667.9 million. While this demonstrates top-line growth, it fell short of the market's expectations.

• Reported Revenue: $667.9 million
• Analyst Estimate: $710.7 million
• Variance: Miss by approximately 6.0%

On the bottom line, the company's adjusted earnings per share also came in below consensus.

• Reported Adjusted EPS: $0.43
• Analyst Estimate: $0.45
• Variance: Miss by approximately 3.4%

Market Reaction

The market's initial reaction to the earnings miss appears to be negative. In pre-market trading following the release, the stock is indicating a decline. This price action suggests investor disappointment with the quarterly results, particularly the earnings and revenue shortfall and the sharp drop in profitability compared to the prior year.

Key Takeaways from the Earnings Release

The earnings report highlighted several critical factors influencing the quarter's results:

• Profitability Pressure: The company experienced a substantial decline in net income, which fell to $20.5 million from $55.3 million in the same quarter last year. Operating income also saw a significant drop to $31.4 million from $74.6 million.
• Impact of New Tariffs: Management cited new tariffs on goods imported into the United States as a primary challenge, negatively impacting gross margins, particularly in the wholesale segment.
• Channel Divergence: The wholesale business saw a 10.7% decline in revenue, while the direct-to-consumer channel experienced a 76.6% increase, largely driven by the recent acquisition of Kurt Geiger.
• Increased Operating Expenses: Operating expenses as a percentage of revenue rose to 36.8% from 28.6% in the prior year, reflecting costs associated with recent acquisitions and other one-time items.

Fourth Quarter 2025 Outlook

Despite the challenging third quarter, the company provided an optimistic outlook for the final quarter of the year. Management expects revenue to increase between 27% to 30% compared to Q4 2024. This guidance midpoint of approximately $748.3 million exceeds the current analyst consensus estimate of $702.6 million. Similarly, the adjusted diluted EPS guidance range of $0.41 to $0.46 brackets the analyst estimate of $0.44 per share. CEO Edward Rosenfeld expressed confidence, pointing to strong underlying demand for the flagship Steve Madden brand, tariff mitigation strategies, and the contribution from the Kurt Geiger acquisition as drivers for a stronger finish to the year.

Conclusion

Steven Madden's third-quarter results reflect a company navigating significant external headwinds, leading to an earnings and revenue miss and a subsequent negative market reaction. However, the robust guidance for the fourth quarter provides a counter-narrative, suggesting management believes the current challenges are surmountable and that growth will reaccelerate. Investors will be watching closely to see if the company can execute on its optimistic forecast and return to a path of sustained profitability.

For a more detailed look at historical earnings and future analyst estimates for Steven Madden Ltd., you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be taken as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.