Steven Madden, Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 15.7% year-over-year to $772.6 million, compared to $667.9 million in Q3 2025.
• Gross profit as a percentage of revenue was 44.6%, up from 41.5% in the prior-year period; adjusted gross profit margin was 43.4% in Q3 2025.
• Operating expenses as a percentage of revenue were 34.9%, down from 36.8% in Q3 2025; adjusted operating expenses were 34.3% compared to 36.4% in the prior year.
• Income from operations totaled $73.2 million (9.5% of revenue), compared to $31.4 million (4.7% of revenue) in Q3 2025; adjusted income from operations was $78.9 million (10.2% of revenue) versus $46.3 million (6.9% of revenue) in the prior year.
• Net income attributable to Steven Madden, Ltd. was $52.4 million ($0.72 per diluted share), compared to $20.5 million ($0.29 per diluted share) in Q3 2025; adjusted net income was $57.3 million ($0.79 per diluted share) versus $30.4 million ($0.43 per diluted share) in the prior year.
• Total debt outstanding was $120.2 million as of September 30, 2026, down from $234.2 million at December 31, 2025; cash and cash equivalents were $71.3 million.
• Net debt (total debt less cash) was $48.8 million as of September 30, 2026.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $152.7 million, compared to $71.1 million in the same period of 2025.

Guidance and Future Outlook:

• Fiscal 2026 revenue guidance was raised to a 12% to 13% increase compared to fiscal 2025, up from the previous range of 11% to 13%.
• Fiscal 2026 diluted EPS guidance was raised to a range of $2.58 to $2.63, compared to the previous range of $2.55 to $2.65.
• Fiscal 2026 adjusted diluted EPS guidance was raised to a range of $2.15 to $2.20, up from the previous range of $2.05 to $2.15.
• Management expressed confidence in driving sustainable growth and creating long-term value based on strong brand momentum and a diversified portfolio.

Business Segments and Product Lines:

• Wholesale revenue increased 19.4% year-over-year to $528.7 million; wholesale footwear revenue grew 21.0% and wholesale accessories/apparel revenue grew 17.0%.
• Wholesale gross profit margin was 36.8% in Q3 2026, compared to 32.7% in Q3 2025; adjusted wholesale gross profit margin was 33.6% in the prior year.
• Direct-to-consumer revenue increased 8.0% year-over-year to $239.2 million.
• Direct-to-consumer gross profit margin was 60.7% in Q3 2026, compared to 58.3% in Q3 2025; adjusted direct-to-consumer gross profit margin was 61.9% in the prior year.
• The company operates 381 company-owned brick-and-mortar stores (including 92 outlets), eight e-commerce websites, and 190 company-operated concessions in international markets.
• The Steve Madden brand was highlighted as a particular growth driver due to trend-right assortments and marketing.

Market and Competitive Landscape:

• The company operates in a highly competitive market with multiple growth opportunities across its diversified brand portfolio.
• Wholesale gross margin improvement reflected strong underlying performance and a smaller negative impact from tariffs, partially offset by higher freight expenses.
• Direct-to-consumer margin decrease was attributed to higher freight expenses, a shift in markdown cadence, and deeper discounting on seasonal product.

Risks and Challenges:

• Key risks include the ability to anticipate fashion trends, compete effectively, and adapt to rapid retail industry changes.
• Risks related to trade policies, tariffs, retaliatory trade actions, and trade wars are noted.
• Supply chain disruptions, logistics issues, and inventory management challenges are identified as potential risks.
• Risks associated with the integration of Kurt Geiger, including goodwill impairment, increased indebtedness, and operational integration, are highlighted.
• Other risks include cybersecurity threats, geopolitical tensions, foreign exchange fluctuations, and dependence on key personnel and significant customers.

Management Commentary and Tone:

• Edward Rosenfeld, Chairman and CEO, described the quarter as "outstanding" with strong growth across brands and channels.
• Management cited disciplined execution of strategy and strong momentum across the broader brand portfolio.
• The tone was confident regarding the strength of brands and the ability to drive sustainable growth.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $0.21 per share, payable on December 24, 2026, to stockholders of record as of December 11, 2026.
• The company did not repurchase any shares of common stock in the open market during the third quarter of 2026.
• Non-GAAP adjustments for Q3 2026 included $3.9 million in acquisition-related costs for Kurt Geiger, $0.8 million in legal settlements, and $1.0 million in net expenses related to contingent payment liabilities.
• The company reported a $1.0 million pre-tax expense related to the change in valuation of contingent payment liabilities in Q3 2026.