Steven Madden Ltd. beat Wall Street earnings forecasts for the third quarter on Thursday and raised its full-year forecast, though sales fell short of expectations.
For the three months ended Sept. 30, net income more than doubled to $52.4 million, or 72 cents a diluted share, from $20.5 million, or 29 cents, in the same year-ago period. On an adjusted basis, diluted earnings per share was 79 cents for the quarter. Total revenue rose 15.7 percent to $772.6 million from $667.9 million, which included a net sales increase of 15.7 percent to $767.9 million from $664.2 million. The balance of revenue was from licensing income.
Wall Street was expecting $776.9 million on adjusted diluted earnings per share (EPS) of 75 cents.
Revenue for the wholesale business rose 19.4 percent to $528.7 million, with wholesale revenue up 21.0 percent. Wholesale accessories and apparel revenue gained 17.0 percent. For direct-to-consumer, revenue grew 8.0 percent to $239.2 million.
For the nine months, net income was $152.2 million, or $2.10, versus $24.4 million, or 30 cents, in the year-ago period. Total revenue grew 17.5 percent to $2.09 billion from $1.78 billion, which included a 17.4 percent increase in net sales to $2.08 billion from $1.77 billion.
“We delivered an outstanding third quarter, with strong growth across our brands and channels,” Edward Rosenfeld, chairman and chief executive officer, said. “The Steve Madden brand was a particular highlight, as our trend-right product assortments and compelling marketing continue to resonate with consumers and drive strong momentum.”
Rosenfeld added that the company is also “pleased with the performance across the broader brand portfolio.”
Celebrities continue to embrace the Steve Madden brand, with GloRilla in the brand’s crystal-covered sandals at the 2026 American Music Award in May and Vivica A. Fox in Steve Madden’s western-inspired boots for her “Is God Is” movie promo, also in May. New York Fashion Week in September also saw “Love Island USA” star Caleb McDaniel in Steve Madden’s square-toed, ankle-length western boots at the brand’s special in-store event at its Soho flagship store.
Looking ahead, the company raised its fiscal 2026 outlook. Guidance included a revenue increase of 12 percent to 13 percent above fiscal 2025 levels, versus the prior range of an increase of 11 percent to 13 percent when the firm posted second quarter results. And fiscal 2026 diluted EPS was forecasted at between $2.58 to $2.63, versus the prior range of $2.55 to $2.65. In addition, adjusted diluted EPS was guided to the range of $2.15 to $2.20, up from the prior range of $2.05 to $2.15.
“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 CEO said. “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.”
The company did not provide fourth quarter guidance. BMO’s Kelly Crago said fourth quarter sales will likely be flat to up 2 percent, given the updated EPS guidance. She added that the fourth quarter likely has upside from wholesale reorders.
According to Crago, third quarter sales were likely impacted by a shift in orders into the fourth quarter. She noted delayed shipments caused by typhoons in China at the end of September.
The company ended the quarter with 381 company-operated brick-and-mortar retail stores, including 92 outlets and eight e-commerce websites plus 190 company-operated concessions in international markets.
