Growth was largely driven by Kurt Geiger's newly acquired business, but profits declined as operating costs rose and tariff-related headwinds pressured profitability. The company issued a revenue outlook for 2026, although it withheld its profit forecasts amid continued uncertainty over US tariff policy.
Steven Madden has reported revenue growth of 11 percent to $2,534.1 million in 2025, but profitability declined due to higher operating costs and tariff pressures. Fourth-quarter sales rose 29.4 percent, while profits softened year-over-year. The company expects 2026 revenue growth of 9 to 11 percent, citing brand momentum and Kurt Geiger expansion, although rising SG&A expenses and tariff uncertainty remain concerns.
However, profitability was substantially lower year-on-year as operating expenses increased. Operating expenses rose to 38.2 percent of revenue from 30.6 percent in 2024; On an adjusted basis, operating expenses were 35.7 percent compared to 30 percent a year earlier, Steven Madden said in a news release.
Revenue from operations fell to $80.8 million (3.2 percent margin) from $224.9 million (9.9 percent margin) in 2024. On an adjusted basis, operating income was $175.9 million (6.9 percent margin) versus $253.5 million (11.1 percent margin) a year earlier.
Net income attributable to the company decreased to $44.7 million, or $0.63 per diluted share, from $169.4 million, or $2.35 per diluted share, in 2024. Adjusted net income attributable to Steven Madden was $120.9 million, or $1.70 per diluted share, compared to $192.4 million, or $2.67 per diluted share, a year earlier.
The company ended 2025 with total debt of $234.2 million and cash and cash equivalents of $112.4 million, resulting in net debt of $121.7 million. Cash flow from operations was $162.2 million in 2025 versus $198.1 million in 2024, while investment outflows increased sharply due to acquisitions, with $371.6 million spent on buying companies during the year.
In the fourth quarter (Q4) of 2025, revenue increased 29.4 percent to $753.7 million from $582.3 million in the same period of 2024. Gross margin expanded to 42.4 percent from 40.4 percent; Adjusted gross margin further improved to 43.8 percent, compared to 40.4 percent a year earlier.
Operating costs rose faster than sales. Operating expenses accounted for 37.3 percent of revenue compared to 32.9 percent in the prior-year quarter; On an adjusted basis, operating expenses were 37 percent versus 31.4 percent.
Operating income decreased to $36.2 million (4.8 percent margin) from $46.7 million (8.0 percent margin) in the fourth quarter of 2024. Adjusted operating income was $50.9 million (6.8 percent margin) compared to $52.6 million (9 percent margin) a year earlier.
Net income attributable to Steven Madden fell to $23.2 million, or $0.32 per diluted share, from $34.8 million, or $0.49 per diluted share, in the fourth quarter of 2024. Adjusted net income was $34.3 million, or $0.48 per diluted share, compared to $39.3 million, or $0.55 per diluted share. diluted share, in the previous year's quarter.
Steve Madden's wholesale revenue in the fourth quarter of 2025 was $433.3 million, an increase of 7.5 percent year-over-year. Excluding Kurt Geiger, wholesale revenue decreased 2.6 percent. Within wholesale, footwear revenue rose 11.0 percent (or 5.5 percent excluding Kurt Geiger), while accessories and apparel rose 3.1 percent but fell 13 percent excluding Kurt Geiger.
Wholesale gross margin was 30.7 percent versus 30.5 percent in the fourth quarter of 2024; Adjusted wholesale gross margin improved to 31.5 percent, and the company noted that the addition of Kurt Geiger was partially offset by the impact of new tariffs on goods imported into the United States.
Direct-to-consumer (DTC) revenue increased 79.9 percent to $316.6 million. Excluding Kurt Geiger, DTC revenue increased 1.6 percent. DTC gross margin decreased to 57.7 percent from 62 percent, while adjusted DTC gross margin was 59.8 percent versus 62 percent, reflecting the addition of Kurt Geiger's concessions business and tariff impacts.
At the end of the quarter, the company operated 399 company-owned stores (including 98 outlets), seven e-commerce websites, and 133 company-operated concessions in international markets.
Edward Rosenfeld, president and CEO of the company, commented: “We are pleased to have delivered better-than-expected earnings results for the fourth quarter, driven by improved performance in our core Steve Madden footwear business, as well as strong contribution from the newly acquired Kurt Geiger. Looking ahead to 2026, we are encouraged by the momentum generated in our flagship Steve Madden brand and the growth opportunity at Kurt Geiger London. That said, we expect pressure on our private label business, as well as higher SG&A expenses driven by the normalization of the incentive compensation and restoration of senior executive salaries. “We continue to face uncertainty related to tariffs, the fundamentals of our business are strong, our product range and marketing campaigns are resonating with consumers, our brands are powerful and gaining relevance, and we have a solid strategy for long-term value creation with multiple levers for growth.”
By 2026, Steven Madden expects revenue to increase between 9 and 11 percent year-on-year. The company is not providing earnings guidance at this time due to uncertainty related to recent developments in US tariff policy.
Fiber2Fashion News Desk (SG)
