A month has gone by since the last earnings report for Steven Madden (SHOO Quick QuoteSHOO - Free Report) . Shares have added about 12.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Steven Madden due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Steven Madden, Ltd. before we dive into how investors and analysts have reacted as of late.

SHOO Q1 Earnings Beat Estimates, FY26 Revenue Outlook Raised

Steven Madden 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. 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.

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.

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. 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. While wholesale accessories/apparel revenues rose 15.1% year over year to $164.8 million, they dipped 0.5%, excluding Kurt Geiger. 

Direct-to-consumer revenues jumped 83.8% year over year to $206 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. 

International comparable sales decreased 5% during the period. However, excluding stores in the Middle East, international comparable sales increased 1%.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

The consensus estimate has shifted -6.06% due to these changes.

VGM Scores

At this time, Steven Madden has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Steven Madden has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.