Dive Brief:
- Steve Madden reported Q4 revenue of $528.3 million, a 12% year-over-year increase, according to a press release Wednesday. Revenue for the full year was about $2.3 billion, a 15.2% increase.
- The company’s wholesale segment grew 13.6% year over year in Q4, with its accessories and apparel segment growing the most at 35.4%. DTC grew 8.4%, which the company attributed to increases in both brick-and-mortar stores and e-commerce.
- In the near term, the company is being cautious in its upcoming outlook due to the potential impact of new tariffs on goods imported into the U.S., CEO Edward Rosen said in the release.
Dive Insight:
Since President Donald Trump’s reelection in November, Steve Madden began reconsidering its sourcing strategies. At the time, the company said it aimed to reduce its reliance on sourcing from China and planned to cut its imports from the country between 40% and 45%.
U.S. imports account for about two-thirds of the company’s business, with about 70% of those goods sourced from China.
Steve Madden is particularly at risk due to Trump’s tariffs, analysts said earlier in February. Tom Nikic, managing director of Needham & Company, said that even if Steve Madden reduced its reliance on China, it would still have about 30% to 35% of its goods sourced from the country. The company also has meaningful sourcing in Mexico, which is another target of increased tariffs.
However, for the full 2025 fiscal year, Steve Madden expects its revenue to grow between 17% and 19% year over year, per Wednesday’s release. This outlook assumes the proposed acquisition of the Kurt Geiger brand closes in May.
Earlier this month, Steve Madden announced a definitive agreement to buy the U.K.-based brand from a group associated with private equity firm Cinven for 289 million pounds, or about $367 million. Steve Madden said it intends to finance the deal through debt financing and cash on hand.
The Kurt Geiger portfolio includes KG Kurt Geiger and Carvela. It operates footwear concessions in department stores in the U.K., including Harrods and Selfridges. Over the past year, the company generated about 400 million pounds in revenue.
The acquisition of Kurt Geiger marks another shift in Steve Madden’s portfolio. Last year, the company sold the Greats sneaker brand to Unified Commerce Group, and in 2023, it bought apparel brand Almost Famous.
Since being added to the portfolio, Almost Famous has given Steve Madden a surge in its accessories and apparel revenue segment.
In addition to its namesake brand, Steve Madden’s other brand holdings include Dolce Vita and Betsey Johnson.
