Steven Madden Raises 2026 Adjusted Profit Outlook After Q3 Earnings Beat, Sales Miss

Steven Madden Ltd. (NASDAQ:SHOO) reported third-quarter financial results on Thursday, beating earnings estimates but missing sales expectations. The company also raised its fiscal 2026 adjusted earnings per share (EPS) guidance while narrowing its GAAP EPS outlook.

The American fashion company reported quarterly EPS of 79 cents, beating the analyst consensus estimate of 72 cents by 9.7%. That was up 84% from EPS of 43 cents reported in the same period last year.

Quarterly sales came in at $772.6 million, narrowly missing the analyst consensus estimate of $777.5 million by 0.6%. However, revenue increased 15.7% from $667.9 million reported in the same period last year, according to Benzinga Pro.

2026 Guidance

Steven Madden raised its fiscal 2026 adjusted EPS guidance from $2.05–$2.15 to $2.15–$2.20, compared with the analyst consensus estimate of $2.19.

The company also raised its fiscal 2026 sales outlook from $2.799 billion–$2.850 billion to $2.825 billion–$2.850 billion, compared with the analyst estimate of $2.879 billion.

Meanwhile, Steven Madden narrowed its fiscal 2026 GAAP EPS guidance from $2.55–$2.65 to $2.58–$2.63, compared with the analyst consensus estimate of $2.65.

Margins, Cash and Debt

Gross profit as a percentage of revenue was 44.6%, compared with 41.5% a year earlier. Adjusted operating income was $78.9 million, or 10.2% of revenue, versus $46.3 million, or 6.9%. Wholesale gross margin rose to 36.8% from 32.7%. In direct-to-consumer, gross margin was 60.7%, compared with an adjusted 61.9% a year earlier. The company cited higher freight expense, a shift in markdown timing and deeper discounting on seasonal product.

Operating cash flow for the first nine months was $152.7 million, compared with $71.1 million a year earlier. Total debt was $120.2 million and cash and cash equivalents was $71.3 million, leaving net debt at $48.8 million. The company did not repurchase stock in the quarter.

Chairman and CEO Edward Rosenfeld said, "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."

The board declared a quarterly cash dividend of 21 cents, payable Dec. 24 to stockholders of record on Dec. 11.

Wholesale Leads Growth

Wholesale revenue, which comes from selling to retailers, rose 19.4% to $528.7 million. Wholesale footwear revenue grew 21%, and accessories and apparel grew 17%. Direct-to-consumer revenue, from the company’s own stores and websites, rose 8% to $239.2 million. The company ended the quarter with 381 company-operated retail stores.

Stock Trend and Analyst Views

Steven Madden shares came into the report with momentum. The stock closed Wednesday at $46.98, up about 13% this year and roughly 5% below its 52-week high of $49.70, set in August.

Shares are trading above their 20-day, 50-day and 200-day simple moving averages of $44.39, $43.92 and $41.36, respectively.

Recent analyst actions have been bullish. BTIG reiterated a Buy rating and $55 price target on Oct. 27. BMO Capital initiated coverage with an Outperform rating and a $60 target on Sept. 9, and Piper Sandler raised its target to $55 from $50 in August while keeping an Overweight rating.

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