Kurt Geiger Effect: How One Brand Just Saved Steve Madden's Quarter

Benzinga Earnings
05/07

Steven Madden, Ltd. (NASDAQ:SHOO) stock rose Wednesday after the footwear and accessories company reported first-quarter results that topped Wall Street estimates and raised its full-year sales outlook.

Strong Q1 Earnings Beat Expectations

The company reported adjusted first-quarter earnings of 45 cents per share, beating analysts' estimates of 39 cents. Quarterly revenue rose 18% year over year to $653.1 million, ahead of the Street consensus of $647.5 million.

Excluding the contribution from Kurt Geiger, revenue declined 4.8%, hurt by weakness in private-label operations and softer Steve Madden handbag sales in the U.S. wholesale channel.

Digital Sales And Brand Momentum Remain Strong

Digital performance remained strong during the quarter. Global search interest increased 27%, while U.S. direct-to-consumer comparable sales rose 17%. Global direct-to-consumer comparable sales increased 6%, or 10% excluding the Middle East.

Kurt Geiger continued to drive growth, with pro forma revenue rising 23% on strong handbag demand and steady footwear sales. Dolce Vita also posted solid results, aided by seasonal product offerings and expanded wholesale distribution.

Wholesale And Direct-To-Consumer Performance

Adjusted operating income fell to $46.3 million from $56.1 million in the prior-year quarter.

Wholesale revenue increased 1% year over year to $443.6 million but declined 8.2% excluding Kurt Geiger. Wholesale footwear revenue fell 5.8%, or 12% excluding Kurt Geiger.

Wholesale accessories and apparel revenue rose 15.1%, though it slipped 0.5% excluding Kurt Geiger.

Direct-to-consumer revenue surged 83.8% year over year to $206 million.

Margin Expansion Supports Profitability

Adjusted gross profit margin in the wholesale segment expanded to 39.2% from 35.7% a year earlier, driven by higher average selling prices and the addition of the Kurt Geiger business.

Adjusted gross profit margin in the direct-to-consumer segment improved to 60.8% from 60.1%, helped by Kurt Geiger and stronger performance in the company's organic business.

Retail Footprint And Balance Sheet Update

As of March 31, 2026, the company operated 387 company-owned retail stores, including 95 outlet locations, eight e-commerce websites and 162 company-operated concessions in international markets.

Steven Madden ended the quarter with total debt of $286.5 million and cash and cash equivalents of $77.2 million, resulting in net debt of $209.3 million. The company did not repurchase any shares during the quarter.

Full-Year Outlook And Management Commentary

For fiscal 2026, the company forecast adjusted earnings of $2.00 to $2.10 per share, compared with analysts' estimates of $2.11 per share.

Steven Madden raised its full-year revenue outlook to a range of $2.787 billion to $2.838 billion, up from prior guidance of $2.748 billion to $2.799 billion. Analysts currently expect revenue of about $2.798 billion.

Chairman and Chief Executive Officer Edward Rosenfeld said the company expects to return to earnings growth in the second quarter and deliver strong top- and bottom-line growth for the full year.

Steven Madden Stock Price Action

SHOO Price Action: Steven Madden shares were up 6.58% at $40.17 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock 

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