Steven Madden Q3 2026 Earnings Call Transcript

Steven Madden (NASDAQ:SHOO) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.

View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZV9vrVfv

Summary

Steven Madden reported a 16% increase in revenue and an 85% rise in diluted EPS for Q3 2026, with strong growth across its brands and channels.

Steve Madden’s flagship brand drove significant growth in footwear, accessories, and apparel, with success in casuals, booties, and heels.

Kurt Geiger’s Q3 DTC comp sales rose 6%, though growth has moderated from earlier in the year; full-year revenue is now expected to increase by low double digits.

Dolce Vita delivered record Q3 growth, prompting an upward revision of its full-year revenue forecast to low double digits.

The company raised its 2026 revenue and EPS guidance, expecting a 12-13% revenue increase and EPS between $2.15 and $2.20.

Wholesale revenue grew 19.4%, with footwear up 21% and accessories and apparel up 17%.

Direct-to-consumer revenue increased by 8%, with strong U.S. performance offsetting a slight international decline.

Gross margin improved to 44.6%, driven by wholesale performance but offset by higher freight costs in direct-to-consumer.

Inventory decreased by 12.8%, and the company ended the quarter with net debt of $48.8 million.

The board approved a quarterly cash dividend of $0.21 per share, payable in December 2026.

Full Transcript

OPERATOR

Good day and welcome to the third quarter 2026 Steven Madden earnings call and webcast. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded.

I would now like to turn the conference over to Danielle McCoy, VP of Corporate Development and Investor Relations. Please go ahead.

Danielle McCoy (VP of Corporate Development and Investor Relations)

Thanks, Michael, and good morning, everyone. Thank you for joining our third quarter 2026 earnings call and webcast. Before we begin, I’d like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements.

These risks include, among others, matters that have been described in our press release issued earlier today and filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings call, if at all. The financial results discussed on today’s call are on an adjusted basis and, unless otherwise noted, a reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release. Joining me on the call today are Ed Rosenfeld, Chairman and Chief Executive Officer, and Zine Mazouzi, Chief Financial Officer and Executive Vice President of Operations. With that, I’ll turn the call over to Ed.

Edward R Rosenfeld (Chief Executive Officer)

All right, thank you, Danielle, and good morning, everyone, and thank you for joining us to review Steven Madden’s third quarter 2026 results. We delivered an outstanding third quarter with revenue up 16% and diluted EPS up 85% compared to the third quarter last year. We saw strong growth across our brands and channels, reflecting our team’s disciplined execution of our strategy: creating outstanding product, amplifying it with effective marketing, and ensuring the right distribution and compelling consumer experiences across the channels where our customers shop.

Our flagship brand, Steve Madden, led the way with strong growth across footwear, accessories and apparel, as well as in both wholesale and DTC channels. Steve and his design team continue to create trend-right product assortments that resonate with consumers. In footwear, exceptional growth in casuals, along with strong performance in booties and heels, more than offset a decline in tall shaft boots. In handbags, we saw success across a range of shapes including shoulder bags, hobos and totes, and with trending treatments and materials like patchwork and faux suede.

And in apparel, we had a successful launch of denim and drove strong sell-through across categories including dresses, tops, bottoms and jackets. Our marketing team amplified these assortments with an integrated full-funnel approach that included our fall campaign, Ask Steve, featuring Delilah Belle and the 1997 Big Heads in a callback to one of the brand’s most famous ads. Building on the momentum of Steve’s recent viral social media moments, the campaign invited consumers to text or call Steve directly at an interactive toll-free hotline for advice on their shoe emergencies. Together, the combination of compelling product and strong marketing execution continues to fuel an increase in brand heat.

Global online search interest for Steve Madden rose 16% in the quarter, and we continue to expect Steve Madden brand revenue for the year to increase high single digits compared to 2025. In Kurt Geiger, the team continues to create the bold, expressive styles the brand is known for and to support them with creative marketing campaigns. Just last week we launched a limited edition holiday collaboration with Paddington Bear. London is at the heart of the Kurt Geiger brand and Paddington is one of London’s most beloved and internationally recognized characters. The collaboration brings these two distinctly London worlds together, reimagining Paddington with Kurt Geiger’s signature color crystals and jewel-encrusted detailing.

The campaign features Georgia May Jagger, Vinnie Jones and a cast of London personalities, and the collection spans handbags, footwear, accessories and gifting. We also continue to thoughtfully expand distribution for the Kurt Geiger brand. In October, we opened a full price store in the SoHo neighborhood of New York City, a premium outlet in Desert Hills in California, and handbag and footwear shop-in-shops in Macy’s Herald Square. In the third quarter, global DTC comp sales for Kurt Geiger rose 6% on top of a 15% increase in last year’s third quarter.

While this remains healthy growth, it represents a moderation from the exceptionally strong trend we saw earlier in the year, and we have adjusted our forecast for the full year and now expect Kurt Geiger revenue to be up low double digits for the year on a pro forma basis. In Dolce Vita, we delivered a record third quarter with robust growth across wholesale and direct-to-consumer channels driven by a compelling product assortment. In footwear, ballets, loafers, Mary Janes and wedge mules were standouts. We also continue to build our handbag business, where highlights included shoulder bags and totes, and across both shoes and bags, Dolce Vita saw success with on-trend materials like suede and animal print, as well as seasonal colors like oxblood and chocolate brown.

The team also continues to deliver innovative marketing campaigns and activations that deepened the brand’s connection with its consumers. Dolce Vita’s fall campaign, Designed to Be Lived In, came to life through the Dolce Vita Flat, an immersive brand residency in the Williamsburg neighborhood of Brooklyn, New York. Inspired by the brand’s best-selling flats category, Dolce Vita transformed the Williamsburg loft into a fully furnished home, and throughout the month-long residency, the space has hosted dinners, editorial appointments, styling sessions and community gatherings.

Based on the strong momentum we’re seeing in the brand, we have increased our forecast for Dolce Vita revenue for the year and now expect low double-digit growth. Beyond our lead brands, we’re pleased that we’re also seeing strength across our broader brand portfolio and are on pace for strong gains for the year at Anne Klein, Betsey Johnson and Carvela as well. Betsey Johnson has been a particular highlight over the past few years. The team has renewed the brand’s cultural relevance by tapping into the Y2K fashion revival and building on that momentum with distinctive product storytelling, collaborations and activations.

During the third quarter, we launched the Betsey Johnson by Paris Hilton collaboration. Sell-through was strong across the products in the collection, and dresses inspired by some of Betsey’s most iconic archival prints and styles generated an online frenzy and sold out in two days. The collaboration generated nearly 800 million media impressions, further strengthening brand awareness and reinforcing the brand’s relevance with a new generation of consumers.

The Betsey Johnson brand is on track for low-teens revenue growth for the year. So overall, our brands are deepening their connection with consumers, gaining relevance in the marketplace and driving meaningful growth. Based on our strong year-to-date results and the continued momentum we see in the business, we are raising both our revenue and earnings outlook for the year. And looking further ahead, the strength of our brands and the multiple growth opportunities across our diversified portfolio give us confidence in our ability to drive sustainable growth and create long-term value for our stockholders.

And now I’ll turn it over to Zine to review our third quarter financial results in more detail and provide our updated outlook for 2026.

Zine Mazouzi (Chief Financial Officer)

Thanks, Ed, and good morning, everyone. In the third quarter, consolidated revenue was $772.6 million, a 15.7% increase compared to the third quarter of 2025. Wholesale revenue was $528.7 million, up 19.4% compared to the third quarter of 2025, driven by strong performance in the branded business. Wholesale revenue also benefited from a more normalized shipment timing compared with last year when tariff-related disruption shifted certain shipments from the third quarter into the fourth quarter of 2025.

Growth was strong across categories. Wholesale footwear revenue was $322.6 million, a 21% increase, and wholesale accessories and apparel revenue was $206.1 million, a 17% increase. In our direct-to-consumer segment, revenue was $239.2 million, an 8% increase compared to the third quarter of 2025. Globally, Steve Madden brand comp sales rose 7% in the quarter, driven by continued outstanding performance in the U.S., where comp sales for our flagship brand rose 16%. International comp sales decreased 2% but increased 1% excluding the GCC business, which was impacted by the conflict in the Middle East. Kurt Geiger comp sales were up 6% in the quarter, and Dolce Vita comp sales increased 26%.

We ended the quarter with 381 company-operated brick-and-mortar stores, including 92 outlets, as well as 8 e-commerce websites and 190 company-operated concessions in international markets. Our licensing royalty income was $4.7 million in the quarter compared to $3.7 million in the third quarter of 2025. Consolidated gross margin was 44.6% in the quarter, up from 43.4% in the prior year, driven by an increase in the wholesale channel, partially offset by a decrease in direct-to-consumer.

Wholesale gross margin was 36.8%, up from 33.6% in the third quarter of 2025, reflecting strong underlying improvement as well as a small negative impact from tariffs, partially offset by higher freight expense. Direct to consumer gross margin was 60.7%, down from 61.9% in the third quarter of 2025, primarily due to higher freight expense, a shift in markdown cadence compared to the prior year and deeper discounting on seasonal products. Operating expenses as a percentage of revenue were 34.3% in the quarter Compared to 36.4% in the third quarter of 2025, driven by expense leverage on a higher revenue base. Operating income for the quarter was 78.9 million, or 10.2% of revenue, compared to 46.3 million, or 6.9% of revenue, in the third quarter in the prior year. The effective tax rate for the quarter was 25.4% compared to 23.4% in the third quarter of 2025. Finally, net income attributable to Steven Madden, Ltd. for the quarter was 57.3 million, or $0.79 per diluted share, compared to 30.4 million, or $0.43 per diluted share, in the prior year.

Turning to the balance sheet, our financial foundation remains strong and as of September 30, 2026, we had $120.2 million in debt and $71.3 million in cash and cash equivalents for a net debt of $48.8 million. Inventory was $415.3 million, down 12.8% compared to $476 million in the prior year, driven by a 26% inventory reduction in the Kurt Geiger business. Our capex in the quarter was 14.4 million and we did not repurchase any shares in the open market.

The company’s board of directors approved a quarterly cash dividend of $0.21 per share. The dividend will be payable on December 24, 2026 to stockholders of record as of the close of business on December 11, 2026. Now turning to our fiscal 2026 guidance, we are raising our revenue and diluted earnings per share outlook. We now expect revenue to increase 12% to 13%, up from our prior guidance of 11% to 13%. And we expect diluted earnings per share to be in the range of $2.15 to $2.20, up from our prior guidance of $2.05 to $2.15. Now I’d like to turn the call over to the operator for questions. Michael,

OPERATOR

Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time we will pause momentarily to assemble our roster. And the first question today comes from Anna Andreeva with Piper Sandler.

Please go ahead.

Anna Andreeva (Analyst at Piper Sandler)

Great. Thank you for taking our question and good morning, guys. We had a couple on the core Madden business. Surprised to see a miss relative to the Street considering the product looks really great. So did that come in in line with your expectations? We’ve noticed some stock-outs in core Madden plus weather hasn’t been seasonable quite yet, as we know. So are you leaving some sales on the table as a result? And then secondly, I’m not sure you mentioned what was the revenue contribution from KG.

You talked about a slower comp in 3Q. Revenue is now expected up low double digits for the year. Can you just elaborate on that? Maybe talk about what didn’t work? Well, thanks so much.

Edward R Rosenfeld (Chief Executive Officer)

Yeah, sure. The revenue overall was pretty close to our internal expectation, maybe a couple million dollars below. And that was related to wholesale shipments that moved out from Q3 to Q4 and that was related to the typhoons in Asia and some late deliveries. But basically in Q3 we were pretty much in line with what we expected on the revenue and obviously exceeded the earnings line. In terms of Kurt Geiger, I think it’s helpful to put the adjustment to the Kurt Geiger guidance into context. When we came into the year our initial guidance was for Kurt Geiger brand revenue to be up low doubles for the year. Then we came out in Q1 and had an exceptionally strong quarter where comps were up 24% in that business. And at that time, based on that strength in Q1, we raised the guidance to mid-teens for the year. Since then the growth has normalized somewhat.

It’s still quite healthy. We did a 7% positive comp in Q2 and then, as I mentioned, our comps were up 6% in Q3. So still solid growth but obviously not at the same pace as what we saw in Q1. And based on that more normalized trend, we’re now looking at low doubles again for the year, which is essentially where we started.

Anna Andreeva (Analyst at Piper Sandler)

Okay, understood. Super helpful. Ed, did you quantify the amount of those shipments from 3Q into 4Q?

Edward R Rosenfeld (Chief Executive Officer)

Zine, do you want to?

Zine Mazouzi (Chief Financial Officer)

Yeah. So the actual orders that had shifted, I would say, were about between $12 and $14 million. But we were also able to accelerate some from Q4 into Q3 to kind of offset it a little bit.

Anna Andreeva (Analyst at Piper Sandler)

All right, I appreciate it. Thank you so much, guys.

OPERATOR

The next question comes from Kelly Crago with BMO Capital Markets. Please go ahead.

Kelly Crago (Analyst at BMO Capital Markets)

Hi there. Great quarter. Thanks for taking our question. I guess, could you dig into the 4Q implied sales guidance of flat to up 2%? I guess what does that imply for the core Steven Madden business versus KG?

Edward R Rosenfeld (Chief Executive Officer)

So the core Steven Madden business, or the business excluding Kurt Geiger, would be down modestly in Q4. And again that has to do with the wholesale shipment timing. And you know, last year was obviously a very unusual year because of all the tariff-related disruption. And so a lot of shipments last year moved from Q3 to Q4. And so we’ve tried to prepare people that we would have a strong wholesale growth in Q3 and then would be down in Q4. We’re really looking at it as, what’s the, you know, what are we achieving for the back half in total?

But if you’re asking about the number excluding Kurt Geiger, I can just give you the wholesale number. Maybe, since Kurt Geiger’s anniversary, I’ll give you the number in total: we did up 19.4% in wholesale growth in Q3. We’ll be down 6 or 7% in Q4. So that gets us to roughly a 6 or 7% increase for the second half. And just keep in mind that’s, you know, that includes a down high singles in private label. So the branded business for the second half is up low double digits in wholesale.

Kelly Crago (Analyst at BMO Capital Markets)

Got it. I guess what’s sort of the—given that you’re talking about very strong trends, it seems like, particularly in wholesale—I know there was a shift, but underlying that, what you’re implying is that there’s trends, you guys are chasing it. So I guess what is the assumption on the reorder business in the fourth quarter on wholesale, given retailers seem to be wanting more of this product?

Edward R Rosenfeld (Chief Executive Officer)

Look, we never quantify that, but obviously we built a reorder assumption in here. We are getting reorders, we are seeing wholesale customers chasing into products that are selling. But again, there’s a meaningful headwind from the shift.

Kelly Crago (Analyst at BMO Capital Markets)

Got it. Okay. And then you mentioned—another thing that was a little bit that stood out to us is that you’re talking very strong Steven Madden core comps, especially in the U.S., but you spoke to some seasonal liquidations and just curious what the dynamic is there. And on that same vein, you called out tall-shafted boots. I was wondering if there’s anything more to say there as we look to the fourth quarter. Thanks.

Edward R Rosenfeld (Chief Executive Officer)

Sure. So in terms of the seasonal liquidation, I guess what I would say is overall, I know many of you guys track our DTC promotions and I think everybody’s aware that we have pulled back on promotional activity overall, that we’ve had fewer days where we’re on sale this year. And, you know, that’s been a positive story. However, what we did see in Q3 is that when you have something that you do need to clear, we had to go pretty deep. And for us in spring, the category that was a bit of a laggard was sandals.

And as we moved through the sandals in Q3, we did find that we had to take some serious markdowns to get through those and get clean going into fall. And then, yeah, from a trend perspective, I would say tall shaft boots is the one thing that is not as strong as last year. If we look at our business by category, we’re essentially up in every category but tall shaft boots. So, you know, obviously flats have been tremendous for us. All the casuals have been very strong. Dress shoes are performing very well and booties are great, particularly dress booties. But tall shaft boots have not been as strong as last year.

Kelly Crago (Analyst at BMO Capital Markets)

And you think that’s sort of a weather thing or a trend thing?

Edward R Rosenfeld (Chief Executive Officer)

No, I think it’s a trend thing. But, you know, that’s the nature of our business. You know, we shoot based on the categories that are trending. And I can’t remember any year where every category was up because the consumer moves based on fashion.

Kelly Crago (Analyst at BMO Capital Markets)

Yeah, gotcha. Great, thanks. That’s the most.

OPERATOR

And the next question comes from Jeanine Stichter with BTIG. Please go ahead.

Ethan Sagge (Analyst at BTIG)

Morning. You’ve got Ethan Sagge on for Janine. Thanks for taking our questions. I was hoping you could just walk us through your assumptions for tariffs and freight costs in Q4 and, as we move into ’27, what you’re embedding in there as well.

Zine Mazouzi (Chief Financial Officer)

As far as tariffs, we have adjusted our assumptions from Q4 for any products received. We had, as you know, our previous guide had a 15% for Q4 and we have adjusted that to somewhere in the 12.5% range. So that’s what’s embedded in our Q4. And as far as freight is concerned in Q4, we will still have an impact from inbound freight. But although we were able to manage it in Q3, we’re expecting probably about a 20 basis points impact on outbound freight, or freight to our stores or to our consumers from our e-commerce.

Ethan Sagge (Analyst at BTIG)

Great, thanks so much. And then just on SG&A, I know in Q3 it came in a bit below your previous expectations. Could you just walk us through the puts and takes of the lower growth there?

Zine Mazouzi (Chief Financial Officer)

Yeah. So you look at it as a percentage to revenue, obviously we have the leveraging from the higher revenue base. But if you look at it from a dollar-to-dollar perspective, Q2 was a partial year last year for Kurt Geiger, so Kurt Geiger being there for the full Q2 had a much bigger impact. I think we were up 25.3% in Q2, and in Q3 we’re at 9%. And some of the other things that helped us in Q3 as well is we put a big focus on our warehouse management and put people on the ground there to ensure that everything runs smoothly.

And we managed our operating expenses in our stores very well given the nice comp increase that Ed spoke to earlier.

Ethan Sagge (Analyst at BTIG)

Great, thanks so much. I’ll pass it on.

OPERATOR

Once again, if you would like to ask a question, please press star then one. Your next question comes from Sam Poser with Williams Trading. Please go ahead.

Sam Poser (Analyst at Williams Trading)

Thank you for taking my questions, everybody. I’d like to just follow up on Anna’s question about Kurt Geiger. How much revenue did Kurt Geiger do in the quarter, and if you could break it down by DTC, wholesale, and the wholesale components, that would be great.

Zine Mazouzi (Chief Financial Officer)

Okay, Kurt Geiger—yeah, go ahead. Yeah, so revenue for the quarter for Kurt Geiger in total was 142.9 million. And the DTC part of it was 101.8 million.

Sam Poser (Analyst at Williams Trading)

Thank you. And then there have been some articles recently about the concessions part of that business. Can you talk a little bit about the concessions business and your thoughts there and how that’s performing relative to the balance of the business?

Edward R Rosenfeld (Chief Executive Officer)

Well, yeah, no, obviously we can’t comment on any rumors or any of the press reports, and certainly if and when there’s anything material to report we will get that information out quickly and through the official channels. But in terms of the business, look, it continues to perform, it’s making money. I think we’ve been open about the fact that it’s lower operating margin than the balance of the Kurt Geiger business, but it’s performing well.

Sam Poser (Analyst at Williams Trading)

When you look at the overall Kurt Geiger revenue of 142 million and its growth, was that additive as a percent growth metric, or did the Geiger brand grow better?

Edward R Rosenfeld (Chief Executive Officer)

No, the brands are growing faster. The concessions business has basically been flattish.

Sam Poser (Analyst at Williams Trading)

And if I’m not mistaken, that’s around a third of the overall Kurt Geiger revenue. Is that more accurate on an annualized basis?

Edward R Rosenfeld (Chief Executive Officer)

Yeah, I think it’s a little smaller than that now as the brands have grown faster. Yeah, yeah. Both are doing well. You know, when we think, when we talk about the Steven Madden brand overall, we include men’s, we include kids, we include Madden Girl, et cetera. So that’s why we didn’t address those separately. But both are showing strong growth this year versus last year. You know, men’s, similar to what we’re seeing in women’s. Madden Girl I think is benefiting from this fashion shift and more men who are deciding that they’re going to get out of their sneakers and wear maybe loafers.

And so we’re doing phenomenal with loafers, we’re doing phenomenal with updated dress shoes. We do still have some sneakers that are good. And we really, you know, we’re investing more in marketing in men’s. I think we’ve really upgraded the product, the quality. The AURs are up as well. And so that’s a positive story and what we think can be a growth opportunity for us going forward.

OPERATOR

And the next question comes from Dana Telsey with Telsey Advisory Group. Please go ahead.

Dana Telsey (Analyst at Telsey Advisory Group)

Hi, good morning everyone. Nice to see the progress. As you think about the DTC business and retail, anything you’ve been seeing different in outlets versus full price? And then on the wholesale side, difference in terms of whether it’s off-price, department stores—how you think of order trends, and does it differ by brand? Thank you.

Edward R Rosenfeld (Chief Executive Officer)

Yeah, well, as you know, outlets were sort of a laggard for us at the beginning of the year, but they have really recovered. Our full-price stores have been very strong all year. So in Q3, for instance, if we’re talking about the United States, our full-price stores were up 23% in Q3—that’s on a comp basis—and outlets comped up 17. So haven’t quite caught up to the full-price stores, but very strong performance in outlets as well. In terms of the wholesale channel, I think there’s no big change there. We continue to see strong performance really across all of our branded channels—so whether that’s department stores or pure-play e-commerce retailers or shoe chains, et cetera. Off-price players, you know, obviously the more challenging business for us this year, as we’ve talked extensively about, is in the mass channel with our private label.

Dana Telsey (Analyst at Telsey Advisory Group)

Got it. Thank you.

Edward R Rosenfeld (Chief Executive Officer)

Thanks, Dana.

OPERATOR

And the next question is a follow up from Sam Poser with Williams Trading. Please go ahead.

Sam Poser (Analyst at Williams Trading)

Thank you. Real quick, the private label business—you just brought it up—can you talk about where you are and sort of, you know, what the future is looking like there into next year?

Edward R Rosenfeld (Chief Executive Officer)

Yeah. So we have actually brought our expectation for the year up for that business slightly—still nothing to write home about—but I think we now expect it to be down mid-teens in 2026 versus our prior expectation of down mid- to high-teens. I will say, though, that most of that is just some orders that we were expecting to get for January that we’ve been able—that we now expect to go out in December. So I don’t think it’s a material change in the trend.

And obviously we’ll address 2027 on the next call. But look, it’s a work in progress. I think it’s, you know, it’s still—we have not cracked the code, and we’re not prepared to call a big inflection here. And we need to keep at it to get this thing turned around.

Sam Poser (Analyst at Williams Trading)

And I mean from its peak, where is that business now? I mean, as you see it today, do you expect it to continue to go down next year, or is this sort of—now it’ll be flat until you can stabilize it, until you can get it going again? Excuse me.

Edward R Rosenfeld (Chief Executive Officer)

Well, just compared to ’24, we’re going to be down, you know, north of $110 million—maybe $115 million, somewhere in there—from ’24 to ’26. I think probably we’re going to be looking to be flat next year. We want to stop the bleeding and then attempt to grow off that base.

Sam Poser (Analyst at Williams Trading)

All right, thanks again.

OPERATOR

And the next question is a follow up from Anna Andreeva with Piper Sandler. Please go ahead.

Anna Andreeva (Analyst at Piper Sandler)

Great. Thank you so much for taking your question again. I just wanted to follow up on KG shop-in-shops with Macy’s. The one at Herald Square looks really great. Can you just remind us on the cadence? I think you talked about up to 40 better Macy’s doors you’re launching by spring—any color how we should think about contribution from that? And just remind us how we should think about profitability for KG this year. And is mid-teens or better still a goal for margins over time?

Thank you so much.

Edward R Rosenfeld (Chief Executive Officer)

Yeah, in terms of the Macy’s launch, we’re very pleased with that. In addition to Herald Square, we’ve got 14 other shop-in-shops open in other Macy’s doors. I think there’s one more that we’re working on for this season. And then to your point, I think we may get up to 40—or maybe even 42—for spring of ’27. We never provide revenue by wholesale customers, so I can’t help you with any quantification of that, but obviously it’s a potential to be a meaningful relationship.

In terms of the profitability of Kurt Geiger, if we’re talking about the brand, it’s slightly above company average right now. The business overall would be, I think, slightly below because of the concessions business being lower. And yeah, I don’t think the target for operating margin changes, but we’ve been pretty clear that we’re going to wait until we get through, you know, find out what happens with these remaining 301 investigations, wait until we understand the go-forward tariff regime, and then we’ll try to give you some more color on timing around operating margin targets.

Anna Andreeva (Analyst at Piper Sandler)

All right, terrific. Thank you so much again.

Edward R Rosenfeld (Chief Executive Officer)

Thank you.

OPERATOR

Once again, if you would like to ask a question, please press star then one. Seeing no additional questions, this concludes our question and answer session. I would like to turn the conference back over to Ed Rosenfeld for any closing remarks.

Edward R Rosenfeld (Chief Executive Officer)

Great. Well, thanks so much for joining us today. Have a great day, and we look forward to speaking with you on the next call.

OPERATOR

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.