Feb 25 (Reuters) - Shoe and handbag maker Steven Madden on Wednesday withheld its 2026 earnings forecast, citing recent tariff uncertainty, in the first visible signs of fresh turmoil for companies as they brace for Washington's next move following last week's Supreme Court defeat.
In a landmark ruling that could have major implications for the global economy, the Supreme Court struck down President Donald Trump's sweeping tariffs that he pursued under a law meant for use in national emergencies.
Following the ruling, the United States began collecting a temporary new 10% global import tariff on Tuesday, but the Trump administration was working to increase it to 15%, a White House official said.
Consumer companies have been among the worst hit from President Donald Trump's flip-flop on tariffs, with several resorting to withdrawing their financial guidance or slashing forecasts last year.
"The limited visibility is understandable given the fluidity of the U.S. tariff environment and uncertainty as to where rates will settle," analysts with Telsey Advisory Group said in a note.
Steven Madden shares were down about 2% in early trading on Wednesday after the company forecast a 9% to 11% rise in revenue for the year. That compared with an 11% rise in 2025, while analysts were expecting a 10.5% increase, according to data compiled by LSEG.
Steven Madden shifted significant production out of China in April and May last year after 145% tariffs were imposed on Chinese imports, a move that prompted retailers to scale back orders and pressured the company’s gross margin in the third quarter.
The maker of shoes and handbags currently sources about 40% of its products from China, up slightly from 30% it saw in the fall of 2025, CEO Edward Rosenfeld said on a post-earnings call, adding that back in 2024, it sourced over 70% of its products from China.
The company has also been diversifying its production in regions including Cambodia, Vietnam, Mexico and Brazil.
Steven Madden had also refrained from providing its fiscal 2025 annual forecast in July last year.
The New York-based company posted fourth-quarter revenue of $753.7 million, compared with estimates of $753.9 million.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Vijay Kishore and Anil D'Silva)
