What Steven Madden, Ltd. told the SEC could break it.

Steven Madden's sourcing is concentrated in China: vendors located in China accounted for 56.1% of total product purchases in 2025, down from 76.6% in 2024 and 78.7% in 2023, as the company actively diversifies (Cambodia rose to 24.6% from 13.8%/9.9%). It owns no foreign manufacturing and has no long-term manufacturing or supply contracts, competing with other companies for raw materials and production capacity. Heavy single-country (China) dependence leaves it exposed to China-specific tariffs, work stoppages, transportation delays, public-health emergencies and political/economic shifts, which is precisely why it is shifting volume toward Cambodia, Vietnam and elsewhere.

“Total product purchases from vendors located in China for the years ended December 31, 2025, 2024, and 2023, were 56.1 %, 76.6 %, and 78.7 %, respectively.”

Steven Madden imports virtually all of its footwear and accessories from Asian third-party manufacturers (no owned factories) and sells 66.2% of its product in the U.S., making it directly exposed to the 2025 U.S. tariff and reciprocal-tariff escalation and foreign retaliation. The impact is realized, not hypothetical: total 2025 revenue rose 11% only because of the Kurt Geiger acquisition, while the organic business declined primarily due to tariff-related impacts; Wholesale Footwear revenue fell 2.3% 'primarily driven by tariff-related impacts on our off-price and mass merchant businesses,' and gross margin and net income (which dropped to $44.7M from $169.4M) were pressured by tariffs alongside acquisition costs. Because products are sourced from China, Cambodia and Vietnam, further tariff changes could continue to raise landed costs and compress margins.

“The decrease of 2.3% was primarily driven by tariff-related impacts on our off-price and mass merchant businesses, partially offset by incremental revenue from the acquisition of Kurt Geiger.”