Steve Madden’s Q4 2025 Revenue Jumped 29% But Full Year Net Income Dropped Over 35%

Steve Madden closed Q4 2025 with surging revenue but falling profits, as higher operating costs and tariffs ate into what would otherwise have been a clean growth story.

Revenue Surge in Q4 2025

Revenue for the quarter climbed roughly 29% to 29.4% year over year to about $753 to $754 million, driven by strong demand in the core Steve Madden footwear line and the first full quarter lift from the Kurt Geiger acquisition. Full year 2025 revenue reached approximately $2.53 billion, up around 11% versus 2024, again largely on the back of Kurt Geiger and solid brand momentum.

Profit Under Pressure

Profitability told a different story. Q4 net income slipped to roughly $23 to $34 million, down from about $35 million a year earlier, with adjusted EPS around $0.48, only a penny ahead of consensus despite the sales surge. For the full year, adjusted net income fell to about $120.9 million (around $1.70 per diluted share) from roughly $192.4 million (about $2.67 per share) in 2024, a decline of more than 35% even as revenue rose.

Operating Costs and Margins

The pressure point was operating expenses. In Q4, operating costs jumped to about 37.3% of revenue, up from roughly 32.9% the prior year, with adjusted opex still at about 37.0%. Management pointed to normalized incentive compensation, restored executive salaries, and strategic investments as structural drivers, rather than one offs, a mix that dragged operating margin down to roughly 4.8% to 6.8% from around 8% to 9% in the year ago quarter.

Gross Margin and Tariffs

Gross margin actually improved, edging up to roughly 42.4% in Q4, with adjusted gross margin around 43.8%, helped by mix and acquisition benefits. But that uplift wasn’t enough to offset the heavier SG&A load and tariff related headwinds, which together compressed earnings even as the top line scaled.

Looking Ahead

Looking ahead to 2026, Steve Madden is guiding to revenue growth in the 9% to 11% range, underpinned by continuing momentum in the flagship brand and further expansion of Kurt Geiger. However, the company has held back on detailed EPS guidance, citing uncertainty around U.S. tariff policy and elevated operating expenses, a combination that suggests margins could stay under pressure even if sales keep climbing.