Steven Madden, Ltd.’s earnings on an adjusted basis slid 24.3 in the first quarter, but they exceeded Wall Street targets and company officials predicted a return to earnings growth in the second quarter. The company reinstated EPS guidande for the year. Sales in the quarter jumped 18 percent due to strength in the Steve Madden brand and Kurt Geiger.

First quarter revenue increased 18.0 percent to $653.1 million, compared to $553.5 million in the same period of 2025.

Wholesale business revenue in the first quarter of 2026 was $443.6 million, a 1.0 percent increase compared to the first quarter of 2025. Excluding Kurt Geiger, wholesale revenue declined 8.2 percent. Wholesale footwear revenue decreased 5.8 percent, or 12.0 percent excluding Kurt Geiger. Wholesale accessories/apparel revenue increased 15.1 percent, or decreased 0.5 percent excluding Kurt Geiger. Gross profit as a percentage of wholesale revenue was 49.2 percent in the first quarter of 2026, compared to 35.7 percent in the first quarter of 2025. Adjusted gross profit as a percentage of wholesale revenue was 39.2 percent, compared to 35.7 percent in the first quarter of 2025, due to higher average selling prices as well as mix benefits from the addition of the Kurt Geiger business and a lower penetration of private label.

Direct-to-Consumer (DTC) revenue in the first quarter of 2026 was $206.0 million, an 83.8 percent increase compared to the first quarter of 2025. Excluding Kurt Geiger, direct-to-consumer revenue increased 8.0 percent. Gross profit as a percentage of direct-to-consumer revenue was 65.9 percent, compared to 60.1 percent in the first quarter of 2025. Adjusted gross profit as a percentage of direct-to-consumer revenue was 60.8 percent, compared to 60.1 percent in the first quarter of 2025, as a result of the addition of the Kurt Geiger business as well as a modest increase in the organic business.

Profitability and Expenses

  • Gross profit as a percentage of revenue was 54.7 percent, compared to 40.9 percent in the same period of 2025. Adjusted gross profit as a percentage of revenue was 46.3 percent, compared to 40.9 percent in the same period of 2025.
  • Operating expenses as a percentage of revenue were 39.5 percent, compared to 32.0 percent in the same period of 2025. Adjusted operating expenses as a percentage of revenue were 39.2 percent, compared to 30.8 percent in the same period of 2025.
  • Income from operations totaled $98.7 million, or 15.1 percent of revenue, compared to $53.5 million, or 9.7 percent of revenue, in the same period of 2025. Adjusted income from operations totaled $46.3 million, or 7.1 percent of revenue, compared to $56.1 million, or 10.1 percent of revenue, in the same period of 2025.
  • Net income attributable to Steven Madden, Ltd. was $71.8 million, or $1.00 per diluted share, compared to $40.4 million, or 57 cents per diluted share, in the same period of 2025. Adjusted net income attributable to Steven Madden, Ltd. was $32.1 million, or 45 cents per diluted share, compared to $42.4 million, or 60 cents per diluted share, in the same period of 2025.

Adjusted EPS of 45 cents topped analysts’ consensus target of 38 cents. Revenues of $653.1 exceeded the consensus estimate of $649.3 million.

Edward Rosenfeld, chairman and CEO, commented, “We got off to a solid start to the year in the first quarter, with healthy underlying demand across our brands driven by compelling product assortments and strong marketing execution.

“The Steve Madden brand continued to gain momentum, as consumers responded favorably to our on-trend assortments, resulting in strong comps in our direct-to-consumer business and robust sell-through performance in wholesale. The Kurt Geiger London brand also delivered another strong quarter, with continued momentum across channels.

“While earnings declined in the first quarter, we expect to return to earnings growth in the second quarter and deliver strong top- and bottom-line growth for the full year. Looking out further, we are confident that our powerful brands, proven business model and talented team position us to deliver sustainable growth for years to come.”

Stores
The company ended the quarter with 387 company-operated brick-and-mortar retail stores, including 95 outlets, as well as eight e-commerce websites and 162 company-operated concessions in international markets.

Balance Sheet and Cash Flow Highlights
As of March 31, 2026, total debt outstanding was $286.5 million, and cash and cash equivalents were $77.2 million, for net debt of $209.3 million.

During the first quarter of 2026, the company did not repurchase any shares of its common stock in the open market.

Quarterly Cash Dividend
The company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on June 19, 2026 to stockholders of record as of the close of business on June 8, 2026.

Updated Fiscal 2026 Outlook
The company is raising its fiscal 2026 revenue guidance and introducing fiscal 2026 diluted earnings per share guidance. In February, Steven Madden withheld its 2026 earnings forecast, citing recent tariff uncertainty as a result of the Supreme Court ruling on tariffs authorized under the International Emergency Economic Powers Act (IEEPA).

The company now expects fiscal 2026 revenue will increase 10 percent to 12 percent compared to fiscal 2025. The company expects fiscal 2026 diluted EPS will be in the range of $2.55 to $2.65 against 63 cents in 2025. The company expects adjusted diluted EPS will be in the range of $2.00 to $2.10, up from $1.70 the prior year.

Image courtesy Steve Madden