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Steven Madden Gears Up to Report Q3 Earnings: What Should You Expect?
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Key Takeaways
SHOO's Q3 sales and earnings are expected to grow, backed by strong brand demand and product innovation.
Kurt Geiger's retail expansion and Dolce Vita's footwear and handbag strength may support SHOO's sales.
Higher selling prices & reduced promotions could boost margins, despite freight and sourcing cost pressures.
We expect Steven Madden, Ltd. (SHOO - Free Report) to report a year-over-year increase in the top line when it releases third-quarter 2026 earnings on Nov. 5, before the market opens. Investors are closely monitoring for insights into the company's performance and strategic direction.
The company has effectively established a niche in the competitive footwear market by emphasizing trendy, fashion-forward designs that attract a wide consumer base. The Zacks Consensus Estimate for third-quarter revenues is pegged at $760.7 million, which indicates a 13.9% increase from the prior-year figure.
Also, the bottom line is expected to have increased year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has remained stable at 68 cents, which indicates a 58.1% increase from the year-ago quarter.
Steven Madden delivered a trailing four-quarter earnings surprise of 10.6%, on average. In the last reported quarter, this Long Island City, NY-based company surpassed the Zacks Consensus Estimate by a 33.3% margin.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden is likely to have benefited from sustained momentum in its flagship Steve Madden brand during the third quarter. Strong consumer interest in fashion-forward footwear, including dress shoes, casual styles and loafers, may have supported demand across its wholesale and direct-to-consumer channels. The brand's growing handbag business, supported by popular totes, hobos and crossbody styles, could have provided an additional sales boost. Compelling product assortments, effective marketing campaigns and stronger brand visibility are likely to have helped attract shoppers and drive sales.
Beyond its flagship brand, Steven Madden's diversified brand portfolio may have contributed to quarterly growth. Kurt Geiger London's expanding U.S. retail presence, encouraging store performance and distinctive handbag personalization offerings could have supported direct-to-consumer sales. The brand's international expansion initiatives may also have provided incremental opportunities.
Meanwhile, Dolce Vita's strength in fashionable footwear, growing handbag business and expanding international presence are likely to have supported performance. These developments, together with healthy demand for branded products from wholesale partners, may have strengthened the company's overall sales momentum.
The company's direct-to-consumer business is also likely to have remained a key growth driver, supported by encouraging trends across physical stores and e-commerce platforms. We expect DTC revenues to increase 21.6% year over year in the third quarter.
Management indicated that positive sales momentum had continued into the early part of the third quarter, while strong sell-through during Nordstrom's Anniversary Sale highlighted healthy demand for its branded footwear. Higher average selling prices, disciplined promotional activity and a favorable mix of branded products may have supported margins. Management also anticipated continued year-over-year gross margin expansion, although at a slower pace than earlier in the year. We anticipate adjusted gross margin to expand approximately 290 basis points year over year to 46.3% in the third quarter.
Despite these positives, Steven Madden's third-quarter performance may have faced pressure from higher freight and sourcing costs. Management highlighted increased reliance on air freight to replenish popular products and address international supply-chain disruptions linked to the Middle East conflict. Rising supplier costs and shipping expenses could also have weighed on profitability.
What the Zacks Model Predicts for Steven Madden
Our proven model does not conclusively predict an earnings beat for Steven Madden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Steven Madden currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold). You can uncover the best stocks before they are reported with our Earnings ESP Filter.
SHOO’s Price Performance & Valuation
The recent market movements show that Steven Madden’s shares have gained 19.4% over the past six months against the industry's 8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, SHOO trades at a forward 12-month price-to-sales (P/S) multiple of 1.05X, below the industry average of 1.26X, suggesting that the stock is relatively undervalued.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for Tapestry’s upcoming quarterly revenues is pegged at $1.84 billion. The figure indicates an 8% increase from the prior-year quarter. The Zacks Consensus Estimate for Tapestry’s quarterly earnings per share is pegged at $1.56, suggesting a 13% rise from the year-ago period figure. TPR delivered a trailing four-quarter earnings surprise of 16%, on average.
The Gap, Inc. (GAP - Free Report) currently has an Earnings ESP of +3.14% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $4.02 billion, which indicates an increase of 1.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Gap’s upcoming quarter’s EPS is pegged at 73 cents, which implies a 17.7% increase year over year. GAP delivered a trailing four-quarter earnings surprise of roughly 2.1%, on average.
Victoria's Secret & Co. (VSXY - Free Report) currently has an Earnings ESP of +214.3% and a Zacks Rank of 3. The company is likely to register growth in top and bottom line when it reports third-quarter fiscal 2026 figures.
The Zacks Consensus Estimate for Victoria's Secret’s quarterly revenues is pegged at $1.61 billion, indicating an increase of 9.7% from the figure reported in the prior-year quarter. The consensus estimate for VSXY quarterly earnings of 2 cents per share implies a 107.4% rise from the year-ago quarter’s level. VSXY has a trailing four-quarter earnings surprise of 48.9%, on average.
View the Zacks #1 Rank List
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Steven Madden Gears Up to Report Q3 Earnings: What Should You Expect?
Key Takeaways
We expect Steven Madden, Ltd. (SHOO - Free Report) to report a year-over-year increase in the top line when it releases third-quarter 2026 earnings on Nov. 5, before the market opens. Investors are closely monitoring for insights into the company's performance and strategic direction.
The company has effectively established a niche in the competitive footwear market by emphasizing trendy, fashion-forward designs that attract a wide consumer base. The Zacks Consensus Estimate for third-quarter revenues is pegged at $760.7 million, which indicates a 13.9% increase from the prior-year figure.
Also, the bottom line is expected to have increased year over year. Over the past 30 days, the Zacks Consensus Estimate for earnings per share has remained stable at 68 cents, which indicates a 58.1% increase from the year-ago quarter.
Steven Madden delivered a trailing four-quarter earnings surprise of 10.6%, on average. In the last reported quarter, this Long Island City, NY-based company surpassed the Zacks Consensus Estimate by a 33.3% margin.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
Key Factors Influencing SHOO's Q3 Performance
Steven Madden is likely to have benefited from sustained momentum in its flagship Steve Madden brand during the third quarter. Strong consumer interest in fashion-forward footwear, including dress shoes, casual styles and loafers, may have supported demand across its wholesale and direct-to-consumer channels. The brand's growing handbag business, supported by popular totes, hobos and crossbody styles, could have provided an additional sales boost. Compelling product assortments, effective marketing campaigns and stronger brand visibility are likely to have helped attract shoppers and drive sales.
Beyond its flagship brand, Steven Madden's diversified brand portfolio may have contributed to quarterly growth. Kurt Geiger London's expanding U.S. retail presence, encouraging store performance and distinctive handbag personalization offerings could have supported direct-to-consumer sales. The brand's international expansion initiatives may also have provided incremental opportunities.
Meanwhile, Dolce Vita's strength in fashionable footwear, growing handbag business and expanding international presence are likely to have supported performance. These developments, together with healthy demand for branded products from wholesale partners, may have strengthened the company's overall sales momentum.
The company's direct-to-consumer business is also likely to have remained a key growth driver, supported by encouraging trends across physical stores and e-commerce platforms. We expect DTC revenues to increase 21.6% year over year in the third quarter.
Management indicated that positive sales momentum had continued into the early part of the third quarter, while strong sell-through during Nordstrom's Anniversary Sale highlighted healthy demand for its branded footwear. Higher average selling prices, disciplined promotional activity and a favorable mix of branded products may have supported margins. Management also anticipated continued year-over-year gross margin expansion, although at a slower pace than earlier in the year. We anticipate adjusted gross margin to expand approximately 290 basis points year over year to 46.3% in the third quarter.
Despite these positives, Steven Madden's third-quarter performance may have faced pressure from higher freight and sourcing costs. Management highlighted increased reliance on air freight to replenish popular products and address international supply-chain disruptions linked to the Middle East conflict. Rising supplier costs and shipping expenses could also have weighed on profitability.
What the Zacks Model Predicts for Steven Madden
Our proven model does not conclusively predict an earnings beat for Steven Madden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Steven Madden currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold). You can uncover the best stocks before they are reported with our Earnings ESP Filter.
SHOO’s Price Performance & Valuation
The recent market movements show that Steven Madden’s shares have gained 19.4% over the past six months against the industry's 8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, SHOO trades at a forward 12-month price-to-sales (P/S) multiple of 1.05X, below the industry average of 1.26X, suggesting that the stock is relatively undervalued.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to beat on earnings this season.
Tapestry, Inc. (TPR - Free Report) currently has an Earnings ESP of +0.85% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s upcoming quarterly revenues is pegged at $1.84 billion. The figure indicates an 8% increase from the prior-year quarter. The Zacks Consensus Estimate for Tapestry’s quarterly earnings per share is pegged at $1.56, suggesting a 13% rise from the year-ago period figure. TPR delivered a trailing four-quarter earnings surprise of 16%, on average.
The Gap, Inc. (GAP - Free Report) currently has an Earnings ESP of +3.14% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $4.02 billion, which indicates an increase of 1.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Gap’s upcoming quarter’s EPS is pegged at 73 cents, which implies a 17.7% increase year over year. GAP delivered a trailing four-quarter earnings surprise of roughly 2.1%, on average.
Victoria's Secret & Co. (VSXY - Free Report) currently has an Earnings ESP of +214.3% and a Zacks Rank of 3. The company is likely to register growth in top and bottom line when it reports third-quarter fiscal 2026 figures.
The Zacks Consensus Estimate for Victoria's Secret’s quarterly revenues is pegged at $1.61 billion, indicating an increase of 9.7% from the figure reported in the prior-year quarter. The consensus estimate for VSXY quarterly earnings of 2 cents per share implies a 107.4% rise from the year-ago quarter’s level. VSXY has a trailing four-quarter earnings surprise of 48.9%, on average.