We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Steven Madden's Wholesale Business Gains Strength From Branded Demand
Read MoreHide Full Article
Key Takeaways
SHOO's Q3 wholesale revenues rose 19.4% to $528.7 million, led by strong branded demand.
Footwear sales grew 21%, while accessories and apparel revenues advanced 17%, lifting margins.
SHOO expects Q4 wholesale sales to decline 6-7% amid shipment timing and private-label weakness.
Steven Madden, Ltd.’s (SHOO - Free Report) wholesale business is benefiting from strong performance across its branded portfolio. Management linked broader brand momentum to relevant assortments and effective marketing. Strength across footwear, handbags and apparel is supporting retailer demand, while higher revenues are helping spread operating expenses across a larger sales base. However, shipment timing and persistent private-label weakness remain near-term challenges.
Third-quarter 2026 wholesale revenues increased 19.4% year over year to $528.7 million. Wholesale footwear sales climbed 21% to $322.6 million, while accessories and apparel revenues advanced 17% to $206.1 million. Branded products drove growth across both segments. More normalized deliveries also helped comparisons with last year, when tariff-related disruptions pushed shipments into the fourth quarter.
Profitability strengthened alongside sales. Wholesale gross margin reached 36.8%, compared with the prior-year adjusted margin of 33.6%, reflecting underlying operational improvement and a smaller tariff drag, partly offset by higher freight costs. Footwear operating margin expanded to 19.2% from 15%, while accessories and apparel operating margin improved to 16.5% from 8.9%, as revenues outpaced operating expense growth.
Across the portfolio, Steve Madden recorded growth in casual footwear and strong performance in booties and heels, while Dolce Vita delivered a record third quarter with robust wholesale growth. Kurt Geiger’s distribution expanded after quarter-end, with Macy’s Herald Square shop-in-shops opening in October. By the third-quarter earnings call, management reported shop-in-shops at 14 other Macy’s locations.
Still, management expects wholesale revenues to decline 6-7% in the fourth quarter as shipment comparisons reverse. For the second half, wholesale growth is projected at roughly 6-7%, including low-double-digit branded growth and a high-single-digit private-label decline. Management also reported continued retailer reorders, with branded products remaining a source of strength.
SHOO’s Price Performance, Valuation & Estimates
Shares of Steven Madden have risen 10.2% over the past six months against the industry’s 6.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Steven Madden is trading at a forward 12-month price-to-earnings ratio of 16.39, below the industry average of 22.85. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Steven Madden’s 2026 earnings implies year-over-year growth of 27.7%, whereas the same for 2027 indicates an uptick of 24%. Estimates for 2026 and 2027 have been revised upward by 2 cents and remained unchanged, respectively, over the past seven days.
Image Source: Zacks Investment Research
SHOO’s Zacks Rank & Other Key Picks
Steven Madden currently carries a Zacks Rank #2 (Buy).
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
Image: Bigstock
Steven Madden's Wholesale Business Gains Strength From Branded Demand
Key Takeaways
Steven Madden, Ltd.’s (SHOO - Free Report) wholesale business is benefiting from strong performance across its branded portfolio. Management linked broader brand momentum to relevant assortments and effective marketing. Strength across footwear, handbags and apparel is supporting retailer demand, while higher revenues are helping spread operating expenses across a larger sales base. However, shipment timing and persistent private-label weakness remain near-term challenges.
Third-quarter 2026 wholesale revenues increased 19.4% year over year to $528.7 million. Wholesale footwear sales climbed 21% to $322.6 million, while accessories and apparel revenues advanced 17% to $206.1 million. Branded products drove growth across both segments. More normalized deliveries also helped comparisons with last year, when tariff-related disruptions pushed shipments into the fourth quarter.
Profitability strengthened alongside sales. Wholesale gross margin reached 36.8%, compared with the prior-year adjusted margin of 33.6%, reflecting underlying operational improvement and a smaller tariff drag, partly offset by higher freight costs. Footwear operating margin expanded to 19.2% from 15%, while accessories and apparel operating margin improved to 16.5% from 8.9%, as revenues outpaced operating expense growth.
Across the portfolio, Steve Madden recorded growth in casual footwear and strong performance in booties and heels, while Dolce Vita delivered a record third quarter with robust wholesale growth. Kurt Geiger’s distribution expanded after quarter-end, with Macy’s Herald Square shop-in-shops opening in October. By the third-quarter earnings call, management reported shop-in-shops at 14 other Macy’s locations.
Still, management expects wholesale revenues to decline 6-7% in the fourth quarter as shipment comparisons reverse. For the second half, wholesale growth is projected at roughly 6-7%, including low-double-digit branded growth and a high-single-digit private-label decline. Management also reported continued retailer reorders, with branded products remaining a source of strength.
SHOO’s Price Performance, Valuation & Estimates
Shares of Steven Madden have risen 10.2% over the past six months against the industry’s 6.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Steven Madden is trading at a forward 12-month price-to-earnings ratio of 16.39, below the industry average of 22.85. It has a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Steven Madden’s 2026 earnings implies year-over-year growth of 27.7%, whereas the same for 2027 indicates an uptick of 24%. Estimates for 2026 and 2027 have been revised upward by 2 cents and remained unchanged, respectively, over the past seven days.
Image Source: Zacks Investment Research
SHOO’s Zacks Rank & Other Key Picks
Steven Madden currently carries a Zacks Rank #2 (Buy).
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2. 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%.