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 U.S. 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.
“We did plan prior to Friday. We were planning on giving guidance for the year based on the policy that was in effect as of that time,” CEO Edward Rosenfeld said on a post-earnings call.
“There’s genuine uncertainty about where things go from here,” he added.
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,” Telsey Advisory Group analysts wrote in a note.
Steven Madden shares were down about 6% in morning trading on Wednesday after the company also 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, which has posted five straight quarters of declines in adjusted earnings per share, also refrained from providing its fiscal 2025 annual forecast in July last year amid uncertainty.
The company shifted a major portion of its production base from China last year following an imposition of 145% tariffs on Chinese imports.
It currently sources about 40% of its products from China, up slightly from 30% it saw in the fall of 2025, Rosenfeld said, 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.
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)
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