Steven Madden Ltd. said it will raise some prices in the fall to counter the higher cost of China tariffs.
“We will be selectively raising prices,” chief executive officer Edward Rosenfeld told analysts on an earnings call Wednesday. “Where we think that we can get a little bit more for the goods, we will do that starting in the fall,” he added.
The planned price increases are one part of the company’s strategy to counter the 10 percent additional levies on Chinese imports to the US that the White House put in place earlier this month. Steven Madden also began to accelerate the shift in its production outside of China after Donald Trump was elected president in November.
Since then, the company has reduced the goods it’s imported into the US from China to 58 percent from 71 percent. Executives are working to get that figure to around 40 percent by the end of this year.
“We’re marching toward that goal,” Rosenfeld said. Steven Madden is also in talks with the factories that manufacture its shoes and other products to try to lower prices, he added.
The company warned investors that it’s “cautious” on the near-term outlook because of tariffs. “We face meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the United States,” the company said in a statement when it reported quarterly earnings.
Other consumer companies have also raised concerns about the impact of President Donald Trump’s tariffs. On Tuesday, Kontoor Brands Inc. said that US shoppers were “confused” and feeling “under attack” amid all the uncertainty.
Steven Madden forecast revenue to increase as much as 19 percent this year. That includes a boost from its recent acquisition of footwear and fashion accessory brand Kurt Geiger Ltd.
The company sees earnings per share this year between $2.30 to $2.40, which is well below what analysts had been forecasting. That expected pressure on its profitability most likely “comes from a combo of China tariffs and lower margin” sales at Kurt Geiger, Citi analyst Paul Lejuez wrote in a research note.
The retailer’s stock fell 4 percent at 10:15 AM in Wednesday trading in New York. The shares had fallen about 11 percent this year through Tuesday’s close, trailing a roughly 1 percent advance by the Russell 1000 Index.
By Jeannette Neumann
Learn more:
Steve Madden to Buy UK Shoe Brand Kurt Geiger for $360 Million
The Long Island-based company will acquire fashion and accessory label Kurt Geiger from private equity firm Cinven, with the deal expected to close by the second quarter, pending regulatory approval.
