Steven Madden Ltd. warned investors that the company is “cautious” on the near-term outlook due to tariffs.
“We face meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the United States,” the company said Wednesday in a statement when it reported quarterly earnings.
The shoe retailer joined other consumer companies in raising 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.
Despite the cautious approach, Steve Madden forecast revenue to increase as much as 19% this year. Meanwhile, the company’s profit in the most recent quarter beat estimates.
The retailer’s stock was little changed in trading before US markets opened. The shares had fallen about 11% this year through Tuesday’s close, trailing a roughly 1% advance by the Russel 1000 Index.
The company said in November, after Donald Trump was elected president, that it was accelerating plans to shift production from China because it anticipated higher tariffs. The White House enacted additional 10% levies on Chinese imports earlier this month.
U.S. President Donald Trump on Wednesday raised hopes for another month-long pause on steep new tariffs on imports from Mexico and Canada, saying they could take effect on April 2, and floated a 25% “reciprocal” tariff on European cars and other goods.
Reuters
A White House official, however, said Trump’s previous March 4 deadline for the 25% tariffs on Mexican and Canadian goods remained in effect “as of this moment,” pending his review of Mexican and Canadian actions to secure their borders and halt the flow of migrants and the opioid fentanyl into the U.S.
Trump sowed confusion during his first cabinet meeting on Wednesday, when he was asked about the timing for the start of the duties for Canada and Mexico and replied that it would be April 2.
“I have to tell you that, you know, on April 2, I was going to do it on April 1,” Trump said. “But I’m a little bit superstitious, I made it April 2, the tariffs go on. Not all of them but a lot of them.”
Trump’s comments prompted jumps in the value of the Canadian dollar and Mexican peso versus the greenback.
Canadian Innovation Minister Francois-Philippe Champagne told reporters that Canada would wait for signed executive orders from Trump before reacting.
“Our mission is still to avoid the tariffs, extend the suspension if we need to,” Champagne said. “We are prepared – there will be a targeted, strategic but a firm response” if Trump imposes tariffs.
Mexico’s Economy Ministry declined to comment on Trump’s remarks, but said Economy Minister Marcelo Ebrard will meet on Thursday with newly confirmed U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Friday.
Lutnick told the cabinet meeting that the fentanyl-related actions were paused for 30 days but referred to “overall” tariffs on April 2. He did not specify whether the March 4 deadline remained in effect.
“So the big transaction is April 2, but the fentanyl-related things, we’re working hard on the border,” Lutnick said. “At the end of that 30 days, they have to prove to the president that they’ve satisfied him in that regard. If they have, he’ll give them a pause, or he won’t.”
Trump has targeted early April for imposing reciprocal tariffs matching import duty rates of other countries and offseting their other restrictions. His trade advisers consider European countries’ value added taxes to be akin to a tariff.
Trump, asked whether he has decided on a tariff rate for goods from the European Union, replied: “We have made a decision, and we’ll be announcing it very soon, and it’ll be 25%, generally speaking, and that’ll be on cars, and all of the things.”
He said the EU is a “different case” from Canada and takes advantage of the U.S. in different ways.
“They don’t accept our cars. They don’t accept, essentially our farm products,” Trump said, adding that the EU was formed “in order to screw the United States.”
A European Commission spokesperson said the EU “will react firmly and immediately against unjustified barriers to free and fair trade,” including for tariffs that challenge legal and non-discriminatory policies.
“The European Union is the world’s largest free market. And it has been a boon for the United States,” the spokesperson said.
Roberta Metsola, president of the European Parliament, was planning to meet with U.S. lawmakers in Washington on Wednesday, but not with any Trump administration officials.
Also on Wednesday, the U.S. Senate voted 56-43 to confirm Greer as U.S. Trade Representative, putting a veteran of the Republican president’s first-term trade wars fully on the job.
Greer, who served as chief of staff to former USTR Robert Lighthizer, won the support of five Democrats, including both senators from Michigan, the center of the U.S. auto industry.
Trade groups welcomed Greer’s confirmation, lauding his commitment to consulting with industry and standing up for U.S. businesses, farmers and workers. “We share Ambassador Greer’s desire for an active and pragmatic trade policy that creates U.S. jobs and more resilient supply chains,” said Jake Colvin, president of the National Foreign Trade Council.
Greer told senators during his Senate confirmation hearing that he wanted to quickly renegotiate the U.S.-Mexico-Canada Agreement on trade to ensure China does not use it as a back door to the U.S. market to avoid other tariffs.
“Right out of the gate, I expect that we’ll be taking a second look at the USMCA,” Greer said.
Asked what changes he would like to see in the pact, Greer zeroed in on further tightening automotive content rules.
“I think we should look at the rule of origin for automobiles and aerospace and other things to look and see if we need to have any kind of restriction on content or value added from foreign countries of concern, or non-market economies,” he said, using language that U.S. trade officials often use to describe China.
Washington’s push to swiftly end the conflict in Ukraine has sparked speculation that Western brands may want to return to Russia, but from fashion to cars, the markets they vacated now look more competitive than three years ago.
Reuters
As Ukraine marked the anniversary of Russian troops flooding across its border, U.S. President Donald Trump suggested that the conflict could end within weeks, though it is not yet clear how.
Western sanctions that complicate cross-border payments and trade flows would probably need softening for companies to return in large numbers. Those that do take the plunge will find markets now dominated by domestic – or in the case of cars, Chinese – brands.
Henderson, a men’s clothing chain that listed on Moscow Exchange in late 2023, said the departure of foreign retailers had given it a development boost, mainly by making better locations within shopping centres available.
That has helped the company grow its sales three times faster than the overall 8% annual growth of the menswear market, even though Western brands are still available in some places.
“The market itself has not changed significantly, as the majority of foreign brands (60-80% of global manufacturers, according to our estimates) did not leave,” Henderson’s press office said in response to Reuters questions.
“(They) just transformed sales channels, using the services of local, multi-brand stores to sell products, or by changing the signage on their stores and introducing new trademarks.”
Consumer goods are not under sanctions, but as many companies refused to do business with Russia, Moscow legalised grey imports through third countries that allow retailers to sell foreign goods without the trademark owner’s permission.
The difference is that shopping malls’ prime locations, in the past reserved for Western flagship stores, are now taken by Russian rivals. “The best spots, where Western brands used to be stationed, are already filled,” said Pavel Lyulin, vice president of the Shopping Centres Association of Russia, Belarus and Kazakhstan.
“These are long-term contracts, so every such venue will be battled for.”
Moscow is unlikely to greet returning brands with open arms. President Vladimir Putin on Friday said Russian manufacturers must be treated preferentially if foreign firms return.
Kirill Dmitriev, Putin’s special envoy on international economic and investment cooperation, last week said he expected a number of U.S. companies to return as early as the second quarter of this year, without giving further details.
More than a thousand Western companies have exited Russia since Moscow sent troops into Ukraine. Some left because of costs and disruptions brought by sanctions and payment issues while others, particularly retailers, in protest against Russia’s actions.
The retail sector has yet to fully recover, with shopping centres still welcoming 20% fewer visitors than in 2019, according to Lyulin. But Russian shoppers have taken to local brands.
“In the very beginning, it was really hard because the Russian retail market for clothing and footwear was underdeveloped,” Moscow resident Anna, 29, told Reuters on one of the Russian capital’s main shopping streets.
“But now, absolutely not. Our local brands produce things that are absolutely no worse (than Western ones).”
Stockmann, a retailer which sells foreign and domestic clothes and acquired Hugo Boss‘ Russian business last year, has noted an increase in domestic brands’ sales, Darya, a salesperson in one of the company’s Moscow stores, said.
Moscow resident Anastasia Efremova told Reuters that Russian brands had raised prices, but otherwise the impact had been minimal. “I am talking not only about clothing or cosmetics but also about spare car parts, for instance,” Efremova, 38, said. “There were fears we would not be able to buy something for cars, but everything is in stock.”
Foreign carmakers helped grow Russia’s car market when they began building factories in Russia in the early 2000s.
The sudden departure of automakers like Renault, Volkswagen and Nissan left a gap that was filled primarily by Chinese competitors, which now account for more than 50% of new car sales compared with less than 10% before the start of the conflict.
Domestic carmakers account for about 30% of sales, up from closer to 20% before February 2022.
For now, Western companies are ruling out imminent returns. Executives from Arla Foods, maker of Lurpak Butter, and InterContinental Hotels last week said there were no plans to re-enter the Russian market for now. France’s Renault said returning under the terms agreed when exiting in 2022 was “very unlikely”.
Russian brands will want to defend the market share they gained and feel confident they are strong enough to compete should international players come back, said Valeria, a salesperson in a central Moscow fashion store.
Ultimately, consumers want to be free to decide for themselves, said Moscow resident Laysen Faskhutdinova. “I’d rather they return. Russians should have a choice.”
Quiksilver to relaunch womenswear in U.S. and Canada. – Quiksilver
Under the agreement, Velocity will oversee the design, manufacturing, and distribution of the collection, set to debut in spring 2025.
The upcoming line will feature high-quality, timeless, versatile pieces inspired by nature, adventure and the free spirit. The line is expected to include boardshorts, dresses, swimwear, t-shirts, outerwear, woven tops, denim, knitwear, fleece and sweaters.
“We are thrilled to expand our partnership with Authentic to bring the Quiksilver women’s line back to life,” said Chris Laurita, co-CEO of Velocity Global Brands.
“Through this launch, we will honor Quiksilver’s rich legacy while looking ahead. We will blend surf culture with refined sophistication, bringing the best of the past and future together.”
In 2023, Authentic inked a partnership with Centric Brands to design, manufacture and distribute kids apparel for Quiksilver, as well as established an agreement with Liberated Brands to be the retail and e-commerce operator for the brand, across North America.
“Velocity has proven time and again its talent for translating brand vision into standout products,” added David Brooks, EVP, action & outdoor sports, lifestyle, Authentic. “We’re eager to work together to drive growth and meet our increasing consumer demand for the Quiksilver brand.”
Entertainment8 years ago