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SHOO Stock Up 6% After Q1 Earnings Beat, FY26 Revenue Outlook Raised
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Key Takeaways
Steven Madden beat Q1 estimates as revenue rose 18% on strong DTC and Kurt Geiger growth.
SHOO raised its fiscal 2026 revenue outlook and expects earnings growth to resume in Q2.
Steven Madden brand searches rose 27%, reflecting strong consumer demand and sell-through trends.
Steven Madden, Ltd. (SHOO - Free Report) reported fiscal first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. The top line increased year over year.
Shares gained investor attention after the company highlighted strong momentum across its core brands, particularly Steven Madden and Kurt Geiger. Online searches for the Steven Madden brand increased 27% during the quarter. Management pointed to healthy consumer demand, strong sell-through trends at department stores and improving traction in direct-to-consumer channels.
The company also raised its fiscal 2026 revenue outlook, supported by better-than-expected performance from Kurt Geiger, Steven Madden and Dolce Vita. Investors were additionally encouraged by management’s confidence in returning to earnings growth in the fiscal second quarter and delivering strong growth for the full year. As a result, shares of SHOO have gained nearly 6.2%.
SHOO’s Q1 Performance: Key Insights
SHOO posted adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 42 cents. However, the bottom line declined 25% from 60 cents in the prior-year quarter.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Total revenues rose 18% year over year to $653.1 million from $553.5 million, surpassing the Zacks Consensus Estimate of $643.8 million.
SHOO’s Segmental Performance
Wholesale revenues increased 1% year over year to $443.6 million, missing our estimated mark of $479.7 million. Excluding Kurt Geiger, wholesale revenues declined 8.2%, primarily due to softness in private label. Adjusted gross margin in the segment increased to 49.2% from 35.7% in the prior-year period, driven by higher average selling prices, favorable business mix and lower private-label penetration.
Wholesale footwear revenues were $278.9 million, declining 5.8%, but declined 12%, excluding Kurt Geiger. This missed our estimated mark of $317.4 million. While wholesale accessories/apparel revenues rose 15.1% year over year to $164.8 million, they dipped 0.5%, excluding Kurt Geiger. The figure beat our estimated mark of $162.4 million.
Direct-to-consumer revenues jumped 83.8% year over year to $206 million, beating our estimated mark of $156.1 million. However, excluding Kurt Geiger, DTC revenues increased 8% year over year, reflecting growth across brick-and-mortar and e-commerce channels. Adjusted gross margin in the segment increased to 60.8% from 60.1% in the prior-year period, supported by the addition of the Kurt Geiger business and a modest improvement in the organic business.
Licensing royalty income increased to $3.4 million in the quarter from $2.2 million in the first quarter of 2025, reflecting year-over-year growth in royalty-related earnings during the period. This also beat our estimated mark of $2.2 million.
International comparable sales decreased 5% during the period. However, excluding stores in the Middle East, international comparable sales increased 1%. The company ended the quarter with 387 company-operated brick-and-mortar stores, including 95 outlets, along with eight e-commerce websites and 162 company-operated concessions in international markets.
SHOO’s Margin & Cost Performance
Adjusted gross profit increased 33.5% year over year to $302.3 million from $226.5 million in the same period of 2025. Adjusted gross margin also expanded to 46.3% from 40.9% in the prior-year period, reflecting improved profitability and margin performance.
Adjusted operating expenses increased 50.2% to $256 million from $170.5 million in the same period of 2025. Adjusted operating expenses, as a percentage of revenue, also rose to 39.2% from 30.8% in the prior-year period.
Adjusted income from operations declined 17.4% year over year to $46.3 million from $56.1 million in the same period last year. As a percentage of revenue, adjusted income from operations decreased to 7.1% from 10.1% in the prior-year period.
SHOO’s Financial Health Snapshot
As of March 31, 2026, Steven Madden had $77.2 million in cash and cash equivalents and $286.5 million in total debt, resulting in net debt of $209.3 million. Inventories totaled $379.4 million, up from $238.6 million in the year-ago period, though inventories declined 2.5% excluding Kurt Geiger.
Capital expenditures during the quarter totaled $5.9 million. The company did not repurchase shares in the open market during the quarter. Its board approved a quarterly cash dividend of 21 cents per share, payable on June 19, 2026, to shareholders of record as of June 8.
SHOO’s Outlook for Fiscal 2026
Steven Madden raised its fiscal 2026 revenue guidance and now expects revenues to increase in the range of 10-12% from fiscal 2025 levels compared with the prior expectation of 9-11% growth. The company expects adjusted EPS between $2.00 and $2.10 for fiscal 2026.
Management expects mid- to high-single-digit revenue growth for the Steven Madden brand, mid-teens pro forma revenue growth for Kurt Geiger and high-single-digit revenue growth for Dolce Vita. The company also expects a return to earnings growth beginning in the second quarter, continued year-over-year gross margin improvement through the balance of the year and SG&A growth of around 25% in the second quarter, low teens in the third quarter and high singles in the fourth quarter.
In the past three months, shares of this Zacks Rank #2 (Buy) company have gained 9.5% against the industry’s 27.4% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
The Zacks Consensus Estimate for CRI’s current fiscal-year sales implies growth of 4.3%, and the same for earnings implies a decline of 13.8% from the year-ago figures. CRI delivered a trailing four-quarter negative earnings surprise of 7.3%, on average.
Under Armour, Inc. (UAA - Free Report) , together with its subsidiaries, engages in developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. At present, Under Armour sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Under Armour’s current fiscal-year sales and earnings implies a decline of 3.9% and 64.5%, respectively, from the year-ago figures. UAA has delivered a trailing four-quarter earnings surprise of 140.3 %, on average.
Columbia Sportswear Company (COLM - Free Report) engages in the design, development, marketing, and distribution of outdoor, active, and lifestyle products in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. At present, COLM flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for COLM’s current fiscal-year sales implies growth of 2.3%, and the same for earnings indicates a decline of 1.9% from the year-ago figures. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.
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SHOO Stock Up 6% After Q1 Earnings Beat, FY26 Revenue Outlook Raised
Key Takeaways
Steven Madden, Ltd. (SHOO - Free Report) reported fiscal first-quarter 2026 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. The top line increased year over year.
Shares gained investor attention after the company highlighted strong momentum across its core brands, particularly Steven Madden and Kurt Geiger. Online searches for the Steven Madden brand increased 27% during the quarter. Management pointed to healthy consumer demand, strong sell-through trends at department stores and improving traction in direct-to-consumer channels.
The company also raised its fiscal 2026 revenue outlook, supported by better-than-expected performance from Kurt Geiger, Steven Madden and Dolce Vita. Investors were additionally encouraged by management’s confidence in returning to earnings growth in the fiscal second quarter and delivering strong growth for the full year. As a result, shares of SHOO have gained nearly 6.2%.
SHOO’s Q1 Performance: Key Insights
SHOO posted adjusted earnings of 45 cents per share, which beat the Zacks Consensus Estimate of 42 cents. However, the bottom line declined 25% from 60 cents in the prior-year quarter.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
Total revenues rose 18% year over year to $653.1 million from $553.5 million, surpassing the Zacks Consensus Estimate of $643.8 million.
SHOO’s Segmental Performance
Wholesale revenues increased 1% year over year to $443.6 million, missing our estimated mark of $479.7 million. Excluding Kurt Geiger, wholesale revenues declined 8.2%, primarily due to softness in private label. Adjusted gross margin in the segment increased to 49.2% from 35.7% in the prior-year period, driven by higher average selling prices, favorable business mix and lower private-label penetration.
Wholesale footwear revenues were $278.9 million, declining 5.8%, but declined 12%, excluding Kurt Geiger. This missed our estimated mark of $317.4 million. While wholesale accessories/apparel revenues rose 15.1% year over year to $164.8 million, they dipped 0.5%, excluding Kurt Geiger. The figure beat our estimated mark of $162.4 million.
Direct-to-consumer revenues jumped 83.8% year over year to $206 million, beating our estimated mark of $156.1 million. However, excluding Kurt Geiger, DTC revenues increased 8% year over year, reflecting growth across brick-and-mortar and e-commerce channels. Adjusted gross margin in the segment increased to 60.8% from 60.1% in the prior-year period, supported by the addition of the Kurt Geiger business and a modest improvement in the organic business.
Licensing royalty income increased to $3.4 million in the quarter from $2.2 million in the first quarter of 2025, reflecting year-over-year growth in royalty-related earnings during the period. This also beat our estimated mark of $2.2 million.
International comparable sales decreased 5% during the period. However, excluding stores in the Middle East, international comparable sales increased 1%. The company ended the quarter with 387 company-operated brick-and-mortar stores, including 95 outlets, along with eight e-commerce websites and 162 company-operated concessions in international markets.
SHOO’s Margin & Cost Performance
Adjusted gross profit increased 33.5% year over year to $302.3 million from $226.5 million in the same period of 2025. Adjusted gross margin also expanded to 46.3% from 40.9% in the prior-year period, reflecting improved profitability and margin performance.
Adjusted operating expenses increased 50.2% to $256 million from $170.5 million in the same period of 2025. Adjusted operating expenses, as a percentage of revenue, also rose to 39.2% from 30.8% in the prior-year period.
Adjusted income from operations declined 17.4% year over year to $46.3 million from $56.1 million in the same period last year. As a percentage of revenue, adjusted income from operations decreased to 7.1% from 10.1% in the prior-year period.
SHOO’s Financial Health Snapshot
As of March 31, 2026, Steven Madden had $77.2 million in cash and cash equivalents and $286.5 million in total debt, resulting in net debt of $209.3 million. Inventories totaled $379.4 million, up from $238.6 million in the year-ago period, though inventories declined 2.5% excluding Kurt Geiger.
Capital expenditures during the quarter totaled $5.9 million. The company did not repurchase shares in the open market during the quarter. Its board approved a quarterly cash dividend of 21 cents per share, payable on June 19, 2026, to shareholders of record as of June 8.
SHOO’s Outlook for Fiscal 2026
Steven Madden raised its fiscal 2026 revenue guidance and now expects revenues to increase in the range of 10-12% from fiscal 2025 levels compared with the prior expectation of 9-11% growth. The company expects adjusted EPS between $2.00 and $2.10 for fiscal 2026.
Management expects mid- to high-single-digit revenue growth for the Steven Madden brand, mid-teens pro forma revenue growth for Kurt Geiger and high-single-digit revenue growth for Dolce Vita. The company also expects a return to earnings growth beginning in the second quarter, continued year-over-year gross margin improvement through the balance of the year and SG&A growth of around 25% in the second quarter, low teens in the third quarter and high singles in the fourth quarter.
In the past three months, shares of this Zacks Rank #2 (Buy) company have gained 9.5% against the industry’s 27.4% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks have been discussed below:
Carter’s, Inc. (CRI - Free Report) designs, sources, and markets branded children's wear in the United States and internationally. At present, CRI currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRI’s current fiscal-year sales implies growth of 4.3%, and the same for earnings implies a decline of 13.8% from the year-ago figures. CRI delivered a trailing four-quarter negative earnings surprise of 7.3%, on average.
Under Armour, Inc. (UAA - Free Report) , together with its subsidiaries, engages in developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. At present, Under Armour sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Under Armour’s current fiscal-year sales and earnings implies a decline of 3.9% and 64.5%, respectively, from the year-ago figures. UAA has delivered a trailing four-quarter earnings surprise of 140.3 %, on average.
Columbia Sportswear Company (COLM - Free Report) engages in the design, development, marketing, and distribution of outdoor, active, and lifestyle products in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. At present, COLM flaunts a Zacks Rank of 1.
The Zacks Consensus Estimate for COLM’s current fiscal-year sales implies growth of 2.3%, and the same for earnings indicates a decline of 1.9% from the year-ago figures. COLM delivered a trailing four-quarter earnings surprise of 44.1%, on average.