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SHOO Q3 Earnings Beat on Wholesale Strength, 2026 Outlook Raised
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Key Takeaways
SHOO's Q3 adjusted EPS surged 83.7%, while revenues rose 15.7%, beating estimates.
Wholesale revenues jumped 19.4%, driven by 21% footwear growth and a 17% rise in accessories/apparel sales.
SHOO raised its 2026 revenue growth outlook to 12-13% and adjusted EPS guidance to $2.15-$2.20.
Steven Madden, Ltd. (SHOO - Free Report) reported third-quarter 2026 results, with adjusted earnings of 79 cents per share beating the Zacks Consensus Estimate of 69 cents. Earnings surged 83.7% year over year from 43 cents per share. Revenues rose 15.7% to $772.6 million, surpassing the Zacks Consensus Estimate of $762 million.
The Steve Madden brand stood out during the quarter, supported by well-received product assortments and marketing initiatives. Wholesale revenues increased 19.4%, driven by growth in footwear and accessories/apparel. Management raised its 2026 revenues and adjusted earnings outlook.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden delivered growth across its brands and distribution channels. Management highlighted the Steve Madden brand's strong performance, supported by trend-right product offerings and marketing initiatives that resonated with consumers.
Net income attributable to Steven Madden increased to $52.4 million or 72 cents per share, from $20.5 million or 29 cents, in the prior-year quarter. Adjusted net income increased to $57.3 million from $30.4 million a year ago.
Licensing royalty income increased 28.3% year over year to $4.7 million from $3.7 million, contributing to the company's consolidated revenue performance.
Steve Madden's Wholesale Business Posts Strong Growth
Wholesale revenues increased 19.4% year over year to $528.7 million, supported by growth across footwear and accessories/apparel categories. Wholesale footwear revenues increased 21%, while wholesale accessories/apparel revenues grew 17%.
Gross margin in the wholesale business expanded to 36.8% from the prior-year adjusted gross margin of 33.6%. The improvement reflected stronger underlying performance and a smaller negative impact from tariffs, partially offset by higher freight expenses.
The wholesale business was a key contributor to the company's third-quarter performance, with revenue growth across both major product categories and improvement in gross profitability.
SHOO's Direct-to-Consumer Business Records Growth
Direct-to-consumer ("DTC") revenues increased 8% year over year to $239.2 million. The business recorded revenue growth, although gross margin faced pressure from higher freight expenses and increased promotional activity.
DTC gross margin declined to 60.7% from the year-ago adjusted margin of 61.9%. The decrease primarily reflected higher freight expenses, changes in markdown timing and deeper discounting on seasonal products.
Steven Madden ended the quarter with 381 company-operated brick-and-mortar retail stores, including 92 outlets. The company operated eight e-commerce websites and 190 company-operated concessions in international markets.
Steve Madden's Margin & Cost Performance
Adjusted gross profit increased 18.8% year over year to $344.3 million from $289.7 million. Gross margin reached 44.6%, expanding 120 basis points from the prior-year adjusted gross margin of 43.4%.
Adjusted operating expenses increased 9% year over year to $265.3 million from $243.4 million. However, adjusted operating expenses, as a percentage of revenues, declined 210 basis points to 34.3% from 36.4%, reflecting a lower cost burden relative to sales.
Adjusted income from operations increased 70.7% to $78.9 million from $46.3 million in the prior-year quarter. Adjusted operating margin expanded 330 basis points to 10.2% from 6.9%, alongside higher gross margin and a lower adjusted operating expense ratio.
SHOO's Financial Health Snapshot
As of Sept. 30, 2026, Steven Madden had cash and cash equivalents of $71.3 million and total outstanding debt of $120.2 million, resulting in net debt of $48.8 million. Inventories declined 12.7% year over year to $415.3 million from $476 million.
For the first nine months of 2026, net cash provided by operating activities increased to $152.7 million from $71.1 million in the comparable prior-year period. Capital expenditures totaled $28.8 million during the nine months.
The company did not repurchase shares in the open market during the quarter. Its board declared a quarterly cash dividend of 21 cents per share, payable Dec. 24, 2026, to shareholders of record as of Dec. 11.
Steve Madden Raises Its 2026 Outlook
Steven Madden raised its 2026 revenue growth outlook to 12-13% from its previous projection of 11-13%. Management attributed the improved outlook to strong year-to-date results and continued business momentum.
The company increased its adjusted earnings per share guidance to $2.15-$2.20 from $2.05-$2.15. Meanwhile, its earnings guidance was updated to $2.58-$2.63 per share from the previous range of $2.55-$2.65.
Management highlighted the strength of its brands, disciplined execution of thestrategy and growth opportunities across the diversified portfolio. The company remains focused on leveraging these opportunities to support sustainable growth and long-term shareholder value.
SHOO Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Over the past three months, shares of this Zacks Rank #3 (Hold) company have lost 19.7% compared with the industry’s 2.2% decline.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Abercrombie & Fitch Co. (ANF - Free Report) operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales suggests growth of 15.8% and 6.5%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 13.6%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 12.6%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.
View the Zacks #1 Rank List
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SHOO Q3 Earnings Beat on Wholesale Strength, 2026 Outlook Raised
Key Takeaways
Steven Madden, Ltd. (SHOO - Free Report) reported third-quarter 2026 results, with adjusted earnings of 79 cents per share beating the Zacks Consensus Estimate of 69 cents. Earnings surged 83.7% year over year from 43 cents per share. Revenues rose 15.7% to $772.6 million, surpassing the Zacks Consensus Estimate of $762 million.
The Steve Madden brand stood out during the quarter, supported by well-received product assortments and marketing initiatives. Wholesale revenues increased 19.4%, driven by growth in footwear and accessories/apparel. Management raised its 2026 revenues and adjusted earnings outlook.
Steven Madden, Ltd. Price, Consensus and EPS Surprise
Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote
SHOO's Q3 Performance: Key Insights
Steven Madden delivered growth across its brands and distribution channels. Management highlighted the Steve Madden brand's strong performance, supported by trend-right product offerings and marketing initiatives that resonated with consumers.
Net income attributable to Steven Madden increased to $52.4 million or 72 cents per share, from $20.5 million or 29 cents, in the prior-year quarter. Adjusted net income increased to $57.3 million from $30.4 million a year ago.
Licensing royalty income increased 28.3% year over year to $4.7 million from $3.7 million, contributing to the company's consolidated revenue performance.
Steve Madden's Wholesale Business Posts Strong Growth
Wholesale revenues increased 19.4% year over year to $528.7 million, supported by growth across footwear and accessories/apparel categories. Wholesale footwear revenues increased 21%, while wholesale accessories/apparel revenues grew 17%.
Gross margin in the wholesale business expanded to 36.8% from the prior-year adjusted gross margin of 33.6%. The improvement reflected stronger underlying performance and a smaller negative impact from tariffs, partially offset by higher freight expenses.
The wholesale business was a key contributor to the company's third-quarter performance, with revenue growth across both major product categories and improvement in gross profitability.
SHOO's Direct-to-Consumer Business Records Growth
Direct-to-consumer ("DTC") revenues increased 8% year over year to $239.2 million. The business recorded revenue growth, although gross margin faced pressure from higher freight expenses and increased promotional activity.
DTC gross margin declined to 60.7% from the year-ago adjusted margin of 61.9%. The decrease primarily reflected higher freight expenses, changes in markdown timing and deeper discounting on seasonal products.
Steven Madden ended the quarter with 381 company-operated brick-and-mortar retail stores, including 92 outlets. The company operated eight e-commerce websites and 190 company-operated concessions in international markets.
Steve Madden's Margin & Cost Performance
Adjusted gross profit increased 18.8% year over year to $344.3 million from $289.7 million. Gross margin reached 44.6%, expanding 120 basis points from the prior-year adjusted gross margin of 43.4%.
Adjusted operating expenses increased 9% year over year to $265.3 million from $243.4 million. However, adjusted operating expenses, as a percentage of revenues, declined 210 basis points to 34.3% from 36.4%, reflecting a lower cost burden relative to sales.
Adjusted income from operations increased 70.7% to $78.9 million from $46.3 million in the prior-year quarter. Adjusted operating margin expanded 330 basis points to 10.2% from 6.9%, alongside higher gross margin and a lower adjusted operating expense ratio.
SHOO's Financial Health Snapshot
As of Sept. 30, 2026, Steven Madden had cash and cash equivalents of $71.3 million and total outstanding debt of $120.2 million, resulting in net debt of $48.8 million. Inventories declined 12.7% year over year to $415.3 million from $476 million.
For the first nine months of 2026, net cash provided by operating activities increased to $152.7 million from $71.1 million in the comparable prior-year period. Capital expenditures totaled $28.8 million during the nine months.
The company did not repurchase shares in the open market during the quarter. Its board declared a quarterly cash dividend of 21 cents per share, payable Dec. 24, 2026, to shareholders of record as of Dec. 11.
Steve Madden Raises Its 2026 Outlook
Steven Madden raised its 2026 revenue growth outlook to 12-13% from its previous projection of 11-13%. Management attributed the improved outlook to strong year-to-date results and continued business momentum.
The company increased its adjusted earnings per share guidance to $2.15-$2.20 from $2.05-$2.15. Meanwhile, its earnings guidance was updated to $2.58-$2.63 per share from the previous range of $2.55-$2.65.
Management highlighted the strength of its brands, disciplined execution of thestrategy and growth opportunities across the diversified portfolio. The company remains focused on leveraging these opportunities to support sustainable growth and long-term shareholder value.
SHOO Stock Past Three-Month Performance
Image Source: Zacks Investment Research
Over the past three months, shares of this Zacks Rank #3 (Hold) company have lost 19.7% compared with the industry’s 2.2% decline.
Eye These Better-Ranked Picks
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Abercrombie & Fitch Co. (ANF - Free Report) operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales suggests growth of 15.8% and 6.5%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 13.6%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 12.6%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.