third quarter 2026
Filed Nov 5, 2026Steve Madden Announces Third Quarter 2026 Results
Third-quarter revenue increased 15.7% to $772.6 million, with income from operations rising to $73.2 million from $31.4 million and adjusted diluted EPS increasing to $0.79 from $0.43. The Company raised its fiscal 2026 revenue and Adjusted diluted EPS outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $772.6M | – | 15.7% |
| Net sales, three months ended September 30GAAP | $767.9M | – | – |
| Licensing income, three months ended September 30GAAP | $4.71M | – | – |
| Gross profit, three months ended September 30GAAP | $344.3M | – | – |
| Gross profit as a percentage of revenue, three months ended September 30GAAP | 44.6% | – | – |
| Adjusted gross profit, three months ended September 30non-GAAP | $344.3M | – | – |
| Adjusted gross profit as a percentage of revenue, three months ended September 30non-GAAP | not reported | – | – |
| Operating expenses, three months ended September 30GAAP | $270.0M | – | – |
| Operating expenses as a percentage of revenue, three months ended September 30GAAP | 34.9% | – | – |
| Adjusted operating expenses, three months ended September 30non-GAAP | $265.3M | – | – |
| Adjusted operating expenses as a percentage of revenue, three months ended September 30non-GAAP | 34.3% | – | – |
| Income from operations, three months ended September 30GAAP | $73.2 million, or 9.5% of revenue | – | – |
| Adjusted income from operations, three months ended September 30non-GAAP | $78.9 million, or 10.2% of revenue | – | – |
| Net income attributable to Steven Madden, Ltd., three months ended September 30GAAP | $52.4M | – | – |
| Diluted net income per share, three months ended September 30GAAP | $0.72 per diluted share | – | – |
| Adjusted net income attributable to Steven Madden, Ltd., three months ended September 30non-GAAP | $57.3M | – | – |
| Adjusted diluted net income per share, three months ended September 30non-GAAP | $0.79 per diluted share | – | – |
| Total revenue, nine months ended September 30GAAP | $2.09B | – | – |
| Gross profit, nine months ended September 30GAAP | $1.01B | – | – |
| Income from operations, nine months ended September 30GAAP | $211.3M | – | – |
| Adjusted income from operations, nine months ended September 30non-GAAP | $169.8M | – | – |
| Net income attributable to Steven Madden, Ltd., nine months ended September 30GAAP | $152.0M | – | – |
| Diluted net income per share, nine months ended September 30GAAP | $ 2.10 | – | – |
| Adjusted net income attributable to Steven Madden, Ltd., nine months ended September 30non-GAAP | $121.1M | – | – |
| Adjusted diluted net income per share, nine months ended September 30non-GAAP | $ 1.68 | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $152.7M | – | – |
| Capital expenditures, nine months ended September 30GAAP | −$28.82M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wholesale businessWholesale footwear revenue increased 21.0%, and wholesale accessories/apparel revenue increased 17.0%. Compared with the prior-year Adjusted gross margin, the increase reflected strong underlying improvement as well as a smaller negative impact from tariffs, partially offset by higher freight expense. | $528.7M | – | 19.4% |
| Direct-to-consumerCompared with the prior-year Adjusted gross margin, the decrease was primarily due to higher freight expense, a shift in markdown cadence and deeper discounting on seasonal product. | $239.2M | – | 8.0% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fiscal 2026 outlook
- Revenueincrease 12% to 13% compared with fiscal 2025
- NoteDiluted earnings per share: $2.58 to $2.63
- NoteAdjusted diluted EPS: $2.15 to $2.20
Capital returns
- During the third quarter of 2026, the Company did not repurchase any shares of its common stock in the open market.
- The Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share.
- The dividend is payable on December 24, 2026 to stockholders of record as of the close of business on December 11, 2026.
- Common stock repurchased and net settlements of stock awards were $ (8,695 ) (In thousands) for the nine months ended September 30, 2026, compared to $ (8,367 ) (In thousands) for the nine months ended September 30, 2025.
- Cash dividends paid on common stock were $ (46,004 ) (In thousands) for the nine months ended September 30, 2026, compared to $ (45,692 ) (In thousands) for the nine months ended September 30, 2025.
What drove it
- The Steve Madden brand was a particular highlight, as trend-right product assortments and compelling marketing continued to resonate with consumers and drive momentum.
- Wholesale footwear revenue increased 21.0%, and wholesale accessories/apparel revenue increased 17.0%.
- Wholesale gross margin benefited from strong underlying improvement and a smaller negative impact from tariffs.
- The Company ended the quarter with 381 company-operated brick-and-mortar retail stores, including 92 outlets, eight e-commerce websites and 190 company-operated concessions in international markets.
Concerns
- Direct-to-consumer adjusted gross margin decreased primarily due to higher freight expense, a shift in markdown cadence and deeper discounting on seasonal product.
- Higher freight expense partially offset wholesale gross-margin improvement.
- The Company identified risks related to tariffs, supply chain disruptions, increased indebtedness, Kurt Geiger integration, foreign exchange rate fluctuations and changes in economic conditions.
What to watch
- Fiscal 2026 revenue growth within the updated 12% to 13% outlook range.
- Fiscal 2026 diluted EPS of $2.58 to $2.63 and Adjusted diluted EPS of $2.15 to $2.20.
- Direct-to-consumer margin effects from freight expense, markdown cadence and seasonal-product discounting.
- Wholesale momentum across footwear and accessories/apparel.
- Debt, cash and operating cash flow following $115,000 (In thousands) of net borrowings repayments during the nine months ended September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $71.3 million as of September 30, 2026.
- Total debt outstanding was $120.2 million as of September 30, 2026.
- Net debt was $48.8 million as of September 30, 2026.
- Cash and cash equivalents were $ 71,334 (In thousands) as of September 30, 2026, compared to $ 112,423 (In thousands) as of December 31, 2025 and $ 108,722 (In thousands) as of September 30, 2025.
- Inventories were $ 415,339 (In thousands) as of September 30, 2026, compared to $ 417,016 (In thousands) as of December 31, 2025 and $ 476,027 (In thousands) as of September 30, 2025.
- Factor accounts receivable were $ 398,075 (In thousands) as of September 30, 2026, compared to $ 311,563 (In thousands) as of December 31, 2025 and $ 333,198 (In thousands) as of September 30, 2025.
- Long-term debt was $ 120,170 (In thousands) as of September 30, 2026, compared to $ 234,166 (In thousands) as of December 31, 2025 and $ 293,828 (In thousands) as of September 30, 2025.
- Net cash provided by operating activities was $ 152,735 (In thousands) for the nine months ended September 30, 2026, compared to $ 71,072 (In thousands) for the nine months ended September 30, 2025.
- Net cash used in investing activities was $ (22,445 ) (In thousands) for the nine months ended September 30, 2026, compared to $ (392,861 ) (In thousands) for the nine months ended September 30, 2025.
- Net cash used in financing activities was $ (171,739 ) (In thousands) for the nine months ended September 30, 2026, compared to net cash provided by financing activities of $ 237,540 (In thousands) for the nine months ended September 30, 2025.
Analysis
Steve Madden reported a strong third quarter ended September 30, 2026. Revenue increased 15.7% to $772.6 million from $667.9 million. Profitability improved materially: GAAP gross margin was 44.6% versus 41.5%, operating expenses as a percentage of revenue were 34.9% versus 36.8%, and income from operations reached $73.2 million, or 9.5% of revenue, versus $31.4 million, or 4.7% of revenue. GAAP diluted EPS was $0.72, compared with $0.29, while Adjusted diluted EPS was $0.79, compared with $0.43.
Channel performance was led by wholesale, where revenue was $528.7 million and increased 19.4%. Wholesale footwear revenue increased 21.0% and wholesale accessories/apparel revenue increased 17.0%. Wholesale gross margin was 36.8%, compared with 32.7%, with the Company citing strong underlying improvement and a smaller negative tariff impact, partly offset by freight expense. Direct-to-consumer revenue was $239.2 million, up 8.0%, but the channel's gross-margin comparison reflected higher freight expense, a shift in markdown cadence and deeper seasonal-product discounting.
For the nine months ended September 30, 2026, total revenue was $ 2,091,567 (In thousands), income from operations was $ 211,267 (In thousands), and net income attributable to Steven Madden, Ltd. was $ 151,964 (In thousands). Operating cash flow was $ 152,735 (In thousands), versus $ 71,072 (In thousands) in the prior-year period. Cash and cash equivalents were $71.3 million and total debt outstanding was $120.2 million as of September 30, 2026, while net debt was $48.8 million. Long-term debt was $ 120,170 (In thousands), below $ 234,166 (In thousands) at December 31, 2025.
Capital deployment included no open-market share repurchases during the third quarter, although common stock repurchased and net settlements of stock awards were $ (8,695 ) (In thousands) for the first nine months. The Board declared a quarterly cash dividend of $0.21 per share. The Company raised fiscal 2026 revenue guidance to an increase of 12% to 13% and raised Adjusted diluted EPS guidance to $2.15 to $2.20. GAAP diluted EPS guidance is $2.58 to $2.63, compared with the prior range of $2.55 to $2.65. The key reported tension is whether wholesale strength and its improving margin can continue to outweigh direct-to-consumer freight, markdown and discounting pressure.
Management, verbatim
We delivered an outstanding third quarter, with strong growth across our brands and channels. The Steve Madden brand was a particular highlight, as our trend-right product assortments and compelling marketing continue to resonate with consumers and drive strong momentum.
Edward Rosenfeld, Chairman and Chief Executive Officer
Based on our strong year-to-date results and the continued momentum we see in the business, we are raising our revenue and Adjusted diluted earnings per share outlook for the year.
Edward Rosenfeld, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported third-quarter and nine-month metrics were not provided.
- Free cash flow was not reported.
- Third-quarter operating cash flow and third-quarter capital expenditures were not reported.
- Adjusted gross profit as a percentage of revenue for the third quarter of 2026 was not reported.
- Fiscal 2026 guidance for gross margin, operating expenses and tax rate was not reported.
- A separate previous outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.