Steven Madden, Ltd.

What they do

The company designs, sources and markets fashion-forward footwear, handbags, apparel and accessories under brands including Steve Madden, Kurt Geiger, Dolce Vita, Betsey Johnson, Blondo, Carvela, ATM and Anne Klein, plus private label programs. It sells through wholesale to department stores, mass merchants, off-price retailers, online retailers, specialty and independent stores, and clubs, and through its direct-to-consumer channel of company-operated stores, e-commerce sites and international concessions. International reach includes joint ventures in South Africa, the Middle East, Israel, Australia, Latin America and parts of Europe and Asia, plus distributor arrangements.

Revenue drivers

• Wholesale Footwear — Designs, sources and markets footwear brands such as Steve Madden, Kurt Geiger, Dolce Vita, Betsey Johnson, Blondo, Carvela and Anne Klein plus private label; represented 40.9% of total revenue in 2025.
• Wholesale Accessories/Apparel — Sells handbags, apparel, small leather goods, belts, soft accessories, scarves, gifting and other trend accessories; represented 25.3% of total revenue in 2025.
• Direct-to-Consumer — Operates full-price and outlet stores, e-commerce and concessions under Steve Madden, Kurt Geiger, Carvela, Dolce Vita and ATM, including 382 company-operated brick-and-mortar stores (92 outlets), eight e-commerce sites and 164 international concessions as of Q2 2026.
• Licensing — Licenses the Steve Madden, Betsey Johnson and Kurt Geiger trademarks for select apparel, accessories and home categories and various other non-core products.

Recent performance

Second quarter 2026 revenue rose 19.1% to $665.9 million from $559.0 million a year earlier, with gross margin rising to 46.5% from 40.4%. Operating income was $39.3 million versus a $40.3 million loss in Q2 2025, and net income attributable to Steven Madden was $27.7 million, or $0.38 per diluted share, versus a loss of $39.5 million, or $0.56 per diluted share. Wholesale revenue increased 13.0% to $407.5 million and direct-to-consumer revenue rose 30.6% to $255.4 million; excluding Kurt Geiger, wholesale rose 11.5% and direct-to-consumer rose 11.1%. Adjusted net income was $31.7 million, or $0.44 per diluted share, compared with $13.9 million, or $0.20 per diluted share, in the prior-year period.

Strategy

The company has been expanding internationally through joint ventures, including acquiring a 50.1% controlling interest in SM Fashion Australia in January 2025 and raising its stake in SM Distribution Malaysia to 51.0%. In May 2025 it acquired Kurt Geiger (Mercury Acquisitions Topco Limited) for a preliminary purchase price of $403.3 million, adding U.K., U.S. and European wholesale and direct-to-consumer operations and brands such as Kurt Geiger London and Carvela. Management cites the Steve Madden brand's momentum, trend-right assortments and marketing execution as driving results, and ended Q2 2026 with 382 company-operated stores, eight e-commerce websites and 164 international concessions.

Risks

• Fashion trend risk — If the company misjudges consumer preferences, it may face excess inventories, markdown allowances and brand damage, which its 10-K identifies as a core industry risk.
• Kurt Geiger integration and debt — The 10-Q lists risks from integrating Kurt Geiger's operations, systems and personnel and from debt service tied to the acquisition, with $124.8 million of debt outstanding at June 30, 2026.
• Tariffs and trade policy — The 10-Q cites additional tariffs on U.S. imports, retaliatory trade actions and resulting trade wars as factors that could adversely affect results.
• Goodwill and intangible impairment — The 10-Q notes substantial goodwill and intangible assets recorded from the Kurt Geiger acquisition could be impaired if the business environment deteriorates.

Outlook

Management raised its fiscal 2026 revenue and adjusted diluted EPS guidance and reaffirmed GAAP diluted EPS guidance based on second quarter results and brand momentum. Edward Rosenfeld, Chairman and CEO, said the company remains confident its brands, business model and team support sustainable growth and long-term shareholder value. The company separately announced the appointment of Ken Pilot to its Board of Directors.