Tariffs and wholesale slump weigh on results
US footwear and accessories retailer Steven Madden reported a surprise net loss of $39,5 million for the second quarter. The company cited canceled wholesale orders, delivery delays, and increased input costs due to tariffs—particularly in the value-oriented segment.
Quarterly revenue amounted to $559 million, falling short of market expectations of $580 million. While wholesale sales declined by 6,4 percent, direct sales through own channels performed better than expected.
CEO Edward Rosenfeld explained that the company is further diversifying its procurement strategy, implementing price increases selectively (averaging 10 percent), and negotiating supplier discounts to offset the additional costs. Due to temporarily reduced tariffs in China, some fall production was shifted back there. However, the share of Chinese imports is expected to decrease to 2025 percent by fall 30 – down from 71 percent last year.
The company is optimistic about the development of the British brand Kurt Geiger, whose acquisition was completed in May. The opening of its own stores is intended to increase brand awareness in the US. The company also sees potential in Europe – particularly through already established distribution points with strong demand.
