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Performance in Q4 was driven by a recovery in the core Steve Madden footwear business and a strong contribution from the newly acquired Kurt Geiger brand.
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Management attributes the 2025 challenges primarily to disruption and negative impacts from new U.S. tariffs, which particularly affected price-sensitive segments.
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The Steve Madden brand returned to growth in Q4 following two quarters of decline, supported by a 10% year-over-year increase in online searches and robust demand across multiple silhouettes.
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Strategic elevation of quality and materials enabled higher average unit retails (AUR) while maintaining a competitive price-value proposition.
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The Kurt Geiger acquisition is meeting strategic goals of expanding international presence, accessories categories, and direct-to-consumer channels.
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Private label revenue decreased 15% in 2025 as the company lacked brand leverage to implement pricing actions necessary to offset tariff costs in mass channels.
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Revenue is projected to grow 9% to 11% in 2026, though the company is withholding earnings guidance due to extreme uncertainty regarding U.S. tariff policy.
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The Steve Madden brand is expected to achieve mid- to high-single-digit revenue growth in 2026, building on momentum from early-year demand.
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Private label revenue is forecasted to decline nearly 20% in 2026 as mass-market customers pull back due to price sensitivity and tariff-related cost pressures.
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Management expects higher SG&A expenses driven by the normalization of incentive compensation and the restoration of senior executive salaries.
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The company plans to open approximately five Kurt Geiger stores in the U.S. to build brand awareness and serve as a vehicle for profit growth.
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Sourcing from China was reduced from over 70% in 2024 to the high 30s in 2025, though it has recently ticked back into the 40s to maintain flexibility.
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Warehouse and fulfillment costs are expected to remain high due to lease renewals for major facilities and ongoing labor shortages in California.
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The company is utilizing a ‘speed advantage’ to position for ‘chase’ demand from wholesale partners who are planning inventories conservatively.
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A 10% price increase was successfully implemented in the Steve Madden brand to partially mitigate tariff impacts without sacrificing full-price sell-through.
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