Steve Madden Unconcerned About Tariffs Due To Common Supply Chain Strategy — Panjiva


Steve Madden Unconcerned About Tariffs Due To Common Supply Chain Strategy

China 1758 Cons. Discr. - Apparel 214 Tariffs 1169 U.S. 3297

Fashion designer Steve Madden reported second quarter revenues that increased by 5.8% on a year earlier,beating analysts’ estimates by 1.3% on a year earlier according to S&P Global Market Intelligence figures. Volume growth may have been stronger – the company referred to a shift to private label businesses – with U.S. seaborne imports having risen by 13.0% on a year earlier in the second quarter, Panjiva data shows.


Chart shows U.S. seaborne imports associated with Steve Madden. Lower panel indicates change vs. a year earlier.   Source: Panjiva

The challenge ahead for the firm may come from the – currently low – possibility of tariffs to be applied on Chinese exports of leather goods. As outlined in Panjiva research of the Trump administration’s proposed list of $200 billion of products to be targeted with 10% duties includes handbags as well as textiles and leather used in manufacturing such products.

Nonetheless Steve Madden management is confident those should not be insurmountable stating both that tariffs “are going to result in price increase on handbags” and that “everybody in our space is in the same boat”.

The former is a common strategy across industries facing duties. The latter is a reference to sourcing strategies. Steve Madden sourced 58.4% of its U.S. imports from mainland China in the past 12 months, accounting for 58.3% of shoes (which were 92.2% of all shipments) and 58.0% of handbags.

By comparison on an industry-wide basis China accounted for 50.3% of shoe imports and 55.8% of luggage imports. It’s worth noting that shoes are not yet included in the list of products targeted.


Chart segments U.S. seaborne imports associated with Steve Madden by shipment origin.   Source: Panjiva

PANJIVA RESEARCH is a service provided by Panjiva, Inc. ("Panjiva") to relevant global subscribers, and are deemed to be Panjiva "Services" subject to the Panjiva Terms & Conditions of Use. Information contained within or made available via the Services is for informational purposes only and nothing in the Services shall constitute or be construed as an offering of financial instruments, or as investment advice or recommendations by Panjiva, Inc. or its affiliates of an investment strategy or whether to "buy", "sell" or "hold" an investment. The Services may include views and commentary about customers of Panjiva. No aspect of the Services is based on consideration of your individual circumstances, and you should determine on your own whether you agree with the information contained within or made available via the Services. Employees involved in Panjiva Research may hold positions in securities analyzed or discussed in the Services. Panjiva does not make any express or implied warranties, representations, endorsements or conditions with respect to the Services and the information contained within or made available via the Services, including without limitation, warranties as to the usefulness, completeness, accuracy, currentness, reliability or sufficiency of any information (including, without limitation, conclusions, statements, opinions, estimates, forecasts or projections of any kind) and expressly disclaims any implied warranties. Neither this disclaimer nor any of its contents may be forwarded or redistributed without the prior written consent of Panjiva. © 2019 Panjiva, Inc. All Rights Reserved.