Steven Madden Q3 Earnings Call Highlights

Key Points

• Third-quarter results strengthened: Revenue rose 15.7% to $772.6 million, while adjusted diluted EPS increased to $0.79 from $0.43. Wholesale revenue grew 19.4%, and consolidated gross margin expanded to 44.6%.
• 2026 guidance was raised: Steven Madden now expects revenue growth of 12% to 13% and diluted EPS of $2.15 to $2.20. It lowered Kurt Geiger’s growth forecast to the low double digits but raised its Dolce Vita outlook to low-double-digit growth.
• Fourth-quarter wholesale revenue is expected to decline 6% to 7%, mainly due to shipment timing comparisons with late-2025 orders and some 2026 shipments delayed by typhoons and late deliveries.

Steven Madden NASDAQ: SHOO raised its 2026 revenue and earnings outlook after reporting third-quarter sales growth across its wholesale and direct-to-consumer businesses, although management moderated its forecast for the Kurt Geiger brand.

The footwear and accessories company reported revenue of $772.6 million, up 15.7% from a year earlier. Adjusted diluted earnings per share rose to $0.79 from $0.43, while net income attributable to the company increased to $57.3 million from $30.4 million. The financial results discussed on the call were adjusted unless otherwise noted.

Chairman and CEO Ed Rosenfeld said the flagship Steve Madden brand led growth across footwear, accessories and apparel. Strong sales of casual footwear, booties and heels more than offset a decline in tall-shaft boots, he said.

Wholesale Growth and Higher Margins

Wholesale revenue rose 19.4% to $528.7 million, with footwear sales up 21% and accessories and apparel sales up 17%. CFO Zine Mazouzi said the segment benefited in part from more normalized shipment timing: Tariff-related disruption had moved some shipments from the third quarter into the fourth quarter of 2025.

Direct-to-consumer revenue increased 8% to $239.2 million. Global comparable sales rose 7% for the Steve Madden brand, including a 16% increase in the U.S. International comparable sales fell 2%, but rose 1% excluding the Gulf Cooperation Council business, which was affected by the Middle East conflict, Mazouzi said.

Consolidated gross margin expanded to 44.6% from 43.4%, driven by an increase in wholesale margin. Direct-to-consumer gross margin fell to 60.7% from 61.9%, partly because of higher freight costs and deeper discounts on seasonal products. Rosenfeld said the company had reduced promotional activity overall but needed substantial markdowns to clear spring sandals.

Operating income increased to $78.9 million, or 10.2% of revenue, from $46.3 million, or 6.9% of revenue, a year earlier. Operating expenses fell as a percentage of sales as the company benefited from a higher revenue base.

Outlook Raised Despite Kurt Geiger Slowdown

Steven Madden now expects 2026 revenue to rise 12% to 13%, compared with its prior forecast of 11% to 13%. It raised its diluted earnings-per-share outlook to $2.15 to $2.20 from $2.05 to $2.15.

The company lowered its full-year forecast for Kurt Geiger brand revenue growth to the low double digits on a pro forma basis, after previously expecting a mid-teens increase. Kurt Geiger’s global direct-to-consumer comparable sales rose 6% in the third quarter, following gains of 24% in the first quarter and 7% in the second.

Rosenfeld said the revised forecast reflected a normalization after an exceptionally strong start to the year. Total Kurt Geiger revenue was $142.9 million in the quarter, including $101.8 million from direct-to-consumer operations, Mazouzi said.

The company raised its Dolce Vita revenue forecast to low-double-digit growth for the year. Dolce Vita comparable sales rose 26% in the third quarter. Management continues to expect high-single-digit annual revenue growth for the Steve Madden brand and low-teens growth for Betsey Johnson.

Fourth-Quarter Shipment Comparisons

Rosenfeld said the company expects wholesale revenue to decline 6% to 7% in the fourth quarter, reflecting the comparison with shipments shifted into the final quarter of 2025. For the second half as a whole, he expects wholesale revenue to rise roughly 6% to 7%, including low-double-digit growth in the branded business and a high-single-digit decline in private label.

Some shipments also moved from the third quarter of 2026 into the fourth because of typhoons in Asia and late deliveries, Rosenfeld said. Mazouzi estimated the shifted orders at $12 million to $14 million, although the company accelerated some other orders into the third quarter to offset part of the effect.

The company slightly improved its forecast for the private-label business, now expecting a mid-teens revenue decline in 2026 rather than a mid- to high-teens drop. Rosenfeld said most of the change reflected orders expected to ship in December rather than January, not a material change in the trend. He said the company’s goal would likely be to keep the business flat in 2027.

At September 30, Steven Madden had $120.2 million in debt and $71.3 million in cash and cash equivalents. Inventory declined 12.8% year over year to $415.3 million, helped by a 26% reduction in Kurt Geiger inventory. The board approved a quarterly dividend of $0.21 per share, payable December 24 to shareholders of record on December 11.

About Steven Madden (NASDAQ:SHOO)

Steven Madden, Ltd. is a fashion company that designs, sources, markets and sells footwear, handbags, accessories and apparel. Its products are offered under the Steve Madden brand and a portfolio of owned, licensed and distributed brands, including Dolce Vita, Betsey Johnson, Blondo, Mad Love and Greats.

The company sells its products through wholesale channels, including department stores, specialty retailers and online retailers, as well as through its own retail stores and e-commerce websites.

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