Steven Madden (NASDAQ:SHOO) reported fourth-quarter and full-year 2025 results that management said came in above its guidance for the quarter, supported by improved performance in the core Steve Madden footwear business and a strong contribution from newly acquired Kurt Geiger.
Chairman and CEO Ed Rosenfeld described 2025 as a “challenging year,” pointing primarily to disruption and negative impacts from new tariffs on goods imported into the United States. He said the company moved quickly to mitigate near-term impacts while continuing to execute its long-term strategy of deepening consumer connections through product and marketing.
Brand momentum and category performance
As one indicator of brand interest, Rosenfeld said online searches for Steve Madden increased 10% year-over-year in the fourth quarter and accelerated further in early 2026. After revenue declines in the second and third quarters, the Steve Madden brand returned to growth in the fourth quarter. Management said it expects the Steve Madden brand to deliver mid- to high-single-digit revenue growth in 2026.
Management also highlighted progress at Dolce Vita, which Rosenfeld called the company’s fastest-growing brand since the pandemic. The company said it is expanding Dolce Vita internationally and gaining traction in adjacent categories such as handbags. For 2026, management expects high-single-digit revenue growth at Dolce Vita.
On the call, Rosenfeld also expressed optimism about the company’s apparel business, citing continued strength in dresses and traction in outerwear. He noted additional doors at department store partners including Dillard’s and Macy’s across both contemporary sportswear and dress departments, and said the company has invested in experienced talent to support growth.
Kurt Geiger acquisition and integration
A key 2025 development was Steve Madden’s acquisition of Kurt Geiger, which closed May 6. Rosenfeld said Kurt Geiger London brings a distinctive brand image and design aesthetic, with success across multiple categories led by handbags. He added that the brand’s positioning supports Steve Madden’s strategy to expand internationally, grow accessories, broaden categories, and increase direct-to-consumer exposure.
Integration is “progressing as planned,” Rosenfeld said, and he expressed confidence that Kurt Geiger can be a significant growth driver. On a pro forma basis, he said revenue in the Kurt Geiger London brand grew 11% in 2025, with expectations for similar growth in 2026.
In response to questions, management said Kurt Geiger is more fourth-quarter weighted because it is primarily a DTC business, which makes its impact on consolidated growth more significant in Q4. The company also said it expects to open about five Kurt Geiger stores in the United States in 2026, including one outlet and the remainder full-price locations, describing stores as important for brand awareness and storytelling.
Fourth-quarter results: revenue grew, profitability pressured
Chief Financial Officer Zine Mazouzi reported fourth-quarter consolidated revenue of $753.7 million, up 29.4% versus the fourth quarter of 2024. Excluding Kurt Geiger, consolidated revenue decreased 1.4%.
- Wholesale revenue was $433.3 million, up 7.5% year-over-year; excluding Kurt Geiger, wholesale revenue declined 2.6%.
- Wholesale footwear revenue was $252.4 million, up 11% (up 5.5% excluding Kurt Geiger), driven by double-digit increases in Steve Madden and Dolce Vita and partially offset by a double-digit decline in private label.
- Wholesale accessories and apparel revenue was $180.9 million, up 3.1%; excluding Kurt Geiger, it fell 13% due primarily to declines in Steve Madden handbags and private label.
- Direct-to-consumer revenue was $316.6 million, up 79.9%; excluding Kurt Geiger, DTC revenue increased 1.6% with modest gains in stores and e-commerce.
Mazouzi said Steve Madden U.S. DTC returned to comp growth in Q4, with strength in full-price channels offsetting continued outlet weakness. The company ended 2025 with 399 company-operated stores (including 98 outlets), seven e-commerce websites, and 133 company-operated concessions in international markets.
Gross margin in the quarter was 43.8%, compared with 40.4% a year earlier. Wholesale gross margin was 31.5% versus 30.5%, which Mazouzi attributed to the addition of Kurt Geiger, partially offset by tariff impacts. Direct-to-consumer gross margin was 69.8% versus 62%, with Mazouzi citing the addition of Kurt Geiger’s “relatively lower margin” concession business and tariff impacts.
Operating expenses rose to $278.9 million, or 37% of revenue, compared with $182.9 million, or 31.4%, in the prior-year quarter. Operating income was $50.9 million (6.8% of revenue), down from $52.6 million (9.0%) a year earlier. Net income attributable to Steve Madden was $34.3 million, or $0.48 per diluted share, compared with $39.3 million, or $0.55 per diluted share, in the fourth quarter of 2024.
Full-year results, balance sheet, and dividend
For full-year 2025, total revenue increased 11% to $2.5 billion versus $2.3 billion in 2024. Excluding Kurt Geiger, revenue declined 6.6%. Net income attributable to Steve Madden was $120.9 million, or $1.70 per diluted share, compared with $192.4 million, or $2.67 per diluted share, in 2024.
As of December 31, 2025, the company reported $234.2 million of outstanding debt and $112.4 million in cash equivalents and short-term investments, for net debt of $121.7 million. Inventory was $417.0 million versus $257.6 million at the end of 2024; excluding Kurt Geiger, inventory was $261.9 million, a 1.6% increase year-over-year.
Capital expenditures were $10.3 million in the fourth quarter and $42.6 million for the year. The company did not repurchase shares in the open market in 2025, but it spent $13.5 million during the year on shares acquired through net settlement of employee stock awards. The board approved a quarterly cash dividend of $0.21 per share, payable March 20, 2026, to stockholders of record as of March 11, 2026.
2026 outlook: revenue growth expected, tariffs cloud earnings visibility
Management provided revenue guidance but withheld earnings guidance due to tariff uncertainty. Mazouzi said the company expects full-year 2026 revenue to increase 9% to 11% versus 2025, and first-quarter 2026 revenue to rise 15% to 17%. The company said it is not providing earnings guidance “due to the uncertainty related to recent developments with respects to tariff policy in the United States.”
In the Q&A, Rosenfeld said the company had planned to give earnings guidance prior to recent changes in tariff policy, but concluded it would not be responsible without greater clarity. He emphasized that the uncertainty is centered on tariffs’ impact on cost structure and earnings, while the company still believes it has visibility into demand trends—supporting its decision to provide revenue guidance.
Management expects continued pressure in private label, which is concentrated in the mass channel and described as highly price sensitive. Rosenfeld said private label revenue declined to about $355 million in 2025 from about $415 million in 2024, and he said the company anticipates the decline could approach $70 million in 2026—consistent with its expectation for a nearly 20% drop in private label revenue in 2026. He said some customers have pulled back temporarily, and while management hopes the contraction is temporary, it acknowledged the near-term headwind.
On sourcing, management said China had represented over 70% of sourcing in 2024 but was reduced to the “high 30s” by fall 2025; year-to-date it is “back in the 40s,” as China came closer to parity with other sourcing countries on tariffs. Management cited Cambodia and Vietnam as diversification markets, as well as Mexico, and noted that a reduction in tariffs on Brazil (from 50% to 10%, as described on the call) could open the door to more production there for Steve Madden and Dolce Vita.
Management also flagged expected SG&A pressure in 2026. Mazouzi cited the normalization of incentive compensation and restoration of senior executive salaries, ongoing warehouse and fulfillment cost pressures related to occupancy and labor, continued marketing investment, and ongoing spending on IT and store fleet that affects depreciation. The company said it plans to keep marketing spend roughly flat as a percentage of revenue in 2026, while increasing in dollars alongside sales growth.
About Steven Madden (NASDAQ:SHOO)
Steven Madden, Inc (NASDAQ: SHOO) is a New York–based designer and marketer of fashion footwear, handbags and accessories. The company’s product portfolio spans a range of contemporary and lifestyle brands for women, men and children, including its core Steve Madden label as well as the Madden Girl and Dolce Vita brands. In addition to footwear, the company licenses its trademarks for use on apparel, eyewear and other fashion accessories.
Steven Madden distributes its products through multiple channels, including wholesale partners, e-commerce platforms and its own brick-and-mortar retail stores.
