Steven Madden (NASDAQ:SHOO) reported second-quarter revenue growth of 19.1% and more than doubled diluted earnings per share, citing momentum in its flagship Steve Madden brand, growth at Dolce Vita and progress expanding Kurt Geiger London in the U.S. and overseas.
Revenue for the quarter totaled $665.9 million, compared with the prior-year period. Excluding Kurt Geiger, which Steven Madden acquired in May 2025, revenue increased 11.2%. Net income attributable to Steven Madden rose to $31.7 million, or $0.44 per diluted share, from $13.9 million, or $0.20 per diluted share, a year earlier.
Brand Momentum Drives Sales Growth
Rosenfeld said the Steve Madden brand gained momentum as shoppers responded to trend-focused footwear and accessories. Women’s footwear sales benefited from dress shoes across heel heights and growth in casual styles, while men’s footwear saw particular strength in loafers. Handbags returned to growth, led by totes, hobos and crossbody styles using materials such as straw, jelly and denim.
The company said global online searches for Steve Madden increased 71% during the quarter. It now expects Steve Madden brand revenue to rise by a high-single-digit percentage for the full year, an increase from its previous outlook.
Dolce Vita also posted what Rosenfeld described as an “outstanding” second quarter, with growth across wholesale and direct-to-consumer channels. The brand’s product performance was led by jellies, ballet flats, Mary Janes, mid-heel dress shoes and thongs. Steven Madden raised its full-year Dolce Vita revenue forecast to high-single-digit to low-double-digit growth.
In the wholesale channel, branded business grew 20% year over year in the second quarter, Rosenfeld said. The company has been receiving reorders and chasing strong-selling products. However, private-label business remains a pressure point, with Steven Madden expecting it to decline by a mid- to high-teens percentage for the year. The company expects branded wholesale revenue to grow at a high-single-digit rate for the full year, while wholesale revenue excluding Kurt Geiger is expected to rise by a low-single-digit percentage.
Kurt Geiger Expands U.S. Store Presence
Kurt Geiger opened two full-price U.S. stores during the quarter, at Tysons Corner and Dadeland, bringing its U.S. full-price store count to seven. Existing stores posted a 12% comparable-store sales increase in the quarter, according to Rosenfeld.
Six of the seven U.S. stores offer Kurt Geiger’s personalization service, which allows shoppers to design a Kensington bag and leave with the product within minutes. The service represented 17% of handbag sales at stores where it was available, the company said.
Steven Madden also acquired the Kurt Geiger business in Spain and Portugal from its distributor during the second quarter and will operate it internally. Management said it is discussing potential distribution and joint-venture partnerships for Kurt Geiger in other global markets. The company maintained its expectation for mid-teens pro forma Kurt Geiger revenue growth for the year.
Margins Improve, Though Freight Costs Remain a Factor
Wholesale revenue increased 13% to $407.5 million, while direct-to-consumer revenue climbed 30.6% to $255.4 million. Excluding Kurt Geiger, wholesale revenue rose 11.5% and direct-to-consumer sales increased 11.1%.
Steve Madden brand global comparable sales rose 9%, including a 17% increase in the U.S. International comparable sales rose 1%, affected by conflict in the Middle East; excluding the company’s Gulf Cooperation Council business, international comparable sales increased 4%.
Consolidated gross margin increased to 46.5% from 41.9% a year earlier. Wholesale gross margin rose to 35.2%, helped by higher average selling prices, a smaller negative tariff impact and lower private-label penetration. Direct-to-consumer gross margin increased to 64%, aided by higher selling prices and reduced promotional activity.
Chief Financial Officer and Executive Vice President of Operations Zine Mazouzi said gross margin is still expected to improve year over year in each remaining quarter, though the improvement will be less significant than in the first half. The company is lapping Kurt Geiger acquisition-related mix benefits and prior price actions, while facing higher freight and supplier costs associated with the prolonged Middle East conflict.
Steven Madden added $0.06 of freight pressure to its outlook for the second half, reflecting higher air freight costs used to chase bestsellers and supply international markets amid ocean shipping disruption. Mazouzi said the company is also absorbing higher direct-to-consumer shipping costs in its guidance.
Outlook Raised for 2026
The company raised its fiscal 2026 outlook and now expects:
- Revenue growth of 11% to 13%, compared with prior guidance of 10% to 12%.
- Diluted earnings per share of $2.05 to $2.15, compared with previous guidance of $2.00 to $2.10.
Management expects third-quarter revenue and earnings to contribute more than the fourth quarter to second-half results, a more typical seasonal pattern than the prior year, when tariff disruption created an unusual sales cadence.
As of June 30, the company had $124.8 million in debt and $94.7 million in cash equivalents, for net debt of $30.1 million. During the quarter, it received $92.1 million in refunds related to the reversal of IEEPA tariffs, including $3.1 million of interest, and used the proceeds to reduce debt.
Inventory fell 13.7% year over year to $377.2 million, driven by a 30% reduction in Kurt Geiger inventory. The board approved a quarterly cash dividend of $0.21 per share, payable Sept. 24 to shareholders of record as of Sept. 11.
About Steven Madden (NASDAQ:SHOO)
Steven Madden, Inc (NASDAQ: SHOO) is a New York–based designer and marketer of fashion footwear, handbags and accessories. The company’s product portfolio spans a range of contemporary and lifestyle brands for women, men and children, including its core Steve Madden label as well as the Madden Girl and Dolce Vita brands. In addition to footwear, the company licenses its trademarks for use on apparel, eyewear and other fashion accessories.
Steven Madden distributes its products through multiple channels, including wholesale partners, e-commerce platforms and its own brick-and-mortar retail stores.
