American designer of apparel and footwear Steven Madden, Ltd has reported higher sales for the full year ended December 31, 2025, with total revenue rising 11 per cent year on year (YoY) to $2,534.1 million. Gross margin edged up to 41.4 per cent from 41 per cent, while adjusted gross margin improved to 42.6 per cent from 41.1 per cent, supported by favourable mix and acquisition-related benefits.

The growth was driven largely by the newly acquired Kurt Geiger business, but earnings declined as operating costs increased and tariff-related headwinds pressured profitability. The company issued a 2026 revenue outlook while withholding earnings guidance amid continued uncertainty over US tariff policy.

Steven Madden has reported revenue growth of 11 per cent to $2,534.1 million in 2025, but profitability declined due to higher operating costs and tariff pressures.
Q4 sales surged 29.4 per cent, while earnings softened YoY.
The company expects 2026 revenue growth of 9-11 per cent, citing brand momentum and Kurt Geiger expansion, though rising SG&A and tariff uncertainty remain concerns.

Profitability, however, was materially lower YoY as operating expenses stepped up. Operating expenses rose to 38.2 per cent of revenue versus 30.6 per cent in 2024; on an adjusted basis, operating expenses were 35.7 per cent compared with 30 per cent a year earlier, Steven Madden said in a press release.

The income from operations fell to $80.8 million (3.2 per cent margin) from $224.9 million (9.9 per cent margin) in 2024. On an adjusted basis, operating income was $175.9 million (6.9 per cent margin) versus $253.5 million (11.1 per cent margin) in the prior year.

Net income attributable to the company declined 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 with $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 investing outflows rose sharply due to acquisitions, with $371.6 million spent on purchasing businesses during the year.

In the fourth quarter (Q4) of 2025, revenue increased 29.4 per cent to $753.7 million from $582.3 million in the same period of 2024. Gross margin expanded to 42.4 per cent from 40.4 per cent; adjusted gross margin improved further to 43.8 per cent, compared with 40.4 per cent a year earlier.

Operating costs rose faster than sales. Operating expenses were 37.3 per cent of revenue versus 32.9 per cent in the prior-year quarter; on an adjusted basis, operating expenses were 37 per cent versus 31.4 per cent.

The operating income declined to $36.2 million (4.8 per cent margin) from $46.7 million (8.0 per cent margin) in Q4 2024. Adjusted operating income was $50.9 million (6.8 per cent margin) compared with $52.6 million (9 per cent margin) a year earlier.

Net income attributable to Steven Madden fell to $23.2 million, or $0.32 per diluted share, versus $34.8 million, or $0.49 per diluted share, in Q4 2024. Adjusted net income was $34.3 million, or $0.48 per diluted share, compared with $39.3 million, or $0.55 per diluted share, in the prior-year quarter.

Steve Madden’s wholesale revenue in Q4 2025 was $433.3 million, up 7.5 per cent YoY. Excluding Kurt Geiger, wholesale revenue declined 2.6 per cent. Within wholesale, footwear revenue rose 11.0 per cent (or 5.5 per cent excluding Kurt Geiger), while accessories/apparel increased 3.1 per cent but fell 13 per cent excluding Kurt Geiger.

Wholesale gross margin was 30.7 per cent versus 30.5 per cent in Q4 2024; adjusted wholesale gross margin improved to 31.5 per cent, with the company noting the addition of Kurt Geiger was partly offset by the impact of new tariffs on goods imported into the United States.

Direct-to-consumer (DTC) revenue climbed 79.9 per cent to $316.6 million. Excluding Kurt Geiger, DTC revenue increased 1.6 per cent. DTC gross margin declined to 57.7 per cent from 62 per cent, while adjusted DTC gross margin was 59.8 per cent versus 62 per cent, reflecting the addition of the Kurt Geiger concessions business and tariff impacts.

At quarter-end, the company operated 399 company-run stores (including 98 outlets), seven e-commerce websites, and 133 company-operated concessions in international markets.

Edward Rosenfeld, chairman and CEO of the company, commented: “We are pleased to have delivered above-guidance earnings results for the fourth quarter, driven by improved performance in our core Steve Madden footwear business as well as a strong contribution from the newly acquired Kurt Geiger. Looking to 2026, we are encouraged by the momentum building in our flagship Steve Madden brand and the opportunity for growth in Kurt Geiger London. That said, we expect pressure on our private label business as well as higher SG&A driven by the normalisation of incentive compensation and the restoration of senior executive salaries. While we continue to face uncertainty related to tariffs, the fundamentals of our business are strong. Our product assortments and marketing campaigns are resonating with consumers, our brands are powerful and gaining relevance, and we have a sound strategy for long-term value creation with multiple levers for growth.”

For 2026, Steven Madden expects revenue to increase 9-11 per cent YoY. The company is not providing earnings guidance at this time due to uncertainty linked to recent developments in US tariff policy.

Fibre2Fashion News Desk (SG)

German multinational company Adidas’ currency-neutral revenues increased 13 per cent for the second consecutive year in 2025. This increase was driven by double-digit growth in all markets and channels, as well as in both performance and lifestyle.

Footwear revenues grew 12 per cent on a currency-neutral basis in 2025. The broader and deeper product offering drove double-digit footwear growth across many categories, including running, training, performance, basketball, and sportswear. Strong growth in originals also contributed to the increase in footwear. Apparel sales grew 15 per cent during the year as brand and product momentum continued to expand as planned. Differentiated and locally relevant apparel collections fuelled double-digit increases in major categories like football, running, training, and originals.

In 2025, Adidas achieved double-digit, currency-neutral revenue growth across all markets and channels, with footwear up 12 per cent and apparel 15 per cent.
Europe, North America, and Greater China grew 10-13 per cent, while Latin America, Emerging Markets, and Japan/South Korea saw 14-22 per cent growth.
Strong wholesale, retail, and e-commerce performance drove results.

“I am again very proud of what our people have achieved. Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started. The double-digit growth in all markets and all channels is of course very pleasing, but even more important is that this is quality growth. Our markets have been very good at managing that the right product in the right amount has been sold in their markets and that we have managed to keep full-price sell-throughs high and discounts under control. The gross margin of 51.6 per cent (without Yeezy) is historically high and underlines this performance and the strength of our brand,” said Adidas CEO Bjørn Gulden.

Currency-neutral net sales for the Adidas brand grew at double-digit rates in all markets in 2025, reflecting significant market share gains around the world as a result of combining the brand’s global strength with locally relevant product assortments and activations. Europe (+10 per cent), North America (+10 per cent), and Greater China (+13 per cent) grew revenues at a low-double-digit rate in 2025. Latin America (+22 per cent), Emerging Markets (+17 per cent), and Japan/South Korea (+14 per cent) recorded even faster growth. In all markets, growth was broad-based as reflected in strong improvements in both the wholesale and direct-to-consumer (DTC) business, the company said in a press release.

Growth for the Adidas brand in 2025 was equally broad-based across all channels with double-digit increases in both wholesale and DTC. Strong sell-through rates at retail partners and increased shelf space allocations continued to drive wholesale revenues, which increased 12 per cent on a currency-neutral basis. Own retail revenues were up 13 per cent, driven by strong like-for-like growth in the company’s global fleet of own stores and continued investments into new retail doors. E-commerce sales increased 16 per cent, with a continued focus on full-price propositions. As a result, sales in the brand’s DTC business grew 14 per cent.

“For 2026 we expect high-single-digit growth currency-neutral, which will add another €2 billion (~$2.32 billion) in revenue. We expect operating profit, despite the headwind from tariffs and negative FX of around €400 million (~$464.04 million), to grow faster than revenue and to increase to around €2.3 billion (~$2.67 billion). That will in my opinion define Adidas again to be a healthy and successful company. For 2027 and 2028 we expect to continue to take market share, grow sales at a high-single-digit rate and deliver an operating margin of more than 10 per cent in 2028,” added Gulden.

“To achieve this, our focus will continue to be consumer-oriented and to be the global sports brand with a local mindset. We have the scale, the innovation, the product pipeline, the marketing concepts, and the talented people to achieve this. We now have to further reduce complexity, put decision-making closer to the consumer and where the knowledge sits and make sure we optimise our systems, processes, and organisation to the new reality in the global marketplace,” Gulden concluded.

Fibre2Fashion News Desk (RR)