Steven Madden Raises Full-Year Outlook as DTC Revenue Climbs
The footwear company reported adjusted net income of $31.7 million for the second quarter.
Steven Madden (SHOO) reported a significant increase in quarterly profitability as direct-to-consumer sales and margin expansion drove results.
The footwear designer saw a reversal in operating performance during the second quarter of fiscal 2026. Income from operations swung to a profit of $39.3 million, or 5.9% of revenue, compared to an operating loss of $40.3 million in the same period the previous year.
Revenue rose 19.1% to $665.9 million. Adjusted net income attributable to the company rose to $31.7 million, or $0.44 a diluted share, up from $13.9 million, or $0.20 a diluted share, in the prior-year quarter.
Growth was led by the direct-to-consumer segment, where revenue increased 30.6% to $255.4 million. Excluding the impact of Kurt Geiger, direct-to-consumer growth was 11.1%. Wholesale revenue increased 13.0% to $407.5 million, with growth of 11.5% when excluding Kurt Geiger.
Profitability improved across both channels. Gross profit as a percentage of revenue expanded to 46.5% from 40.4% in the prior-year quarter. Direct-to-consumer gross profit as a percentage of revenue rose to 64.0% from 58.7%, while wholesale gross profit as a percentage of revenue improved to 35.2% from 30.0%. Operating expenses as a percentage of revenue decreased to 40.6% from 47.2%.
Steven Madden raised its fiscal 2026 revenue guidance to an increase of 11% to 13% compared to fiscal 2025, up from a previous range of 10% to 12%. The company also raised its adjusted diluted EPS guidance to a range of $2.05 to $2.15, compared to the previous range of $2.00 to $2.10.
Net debt decreased to $30.1 million as of June 30, 2026, from $209.3 million on March 31, 2026. The company also announced the appointment of Ken Pilot to its Board of Directors, effective October 1, 2026.