Steve Madden Net Income More Than Doubles to $52.4M in Q3

Steven Madden Ltd. more than doubled third-quarter net income to $52.4 million, or 72 cents a diluted share, from $20.5 million, or 29 cents, a year earlier. The company beat Wall Street profit forecasts and raised its full-year outlook, though revenue came in slightly below expectations.

Total revenue rose 15.7 percent to $772.6 million from $667.9 million for the three months ended Sept. 30. Net sales grew 15.7 percent to $767.9 million from $664.2 million. Licensing income made up the balance. Analysts had expected $776.9 million in revenue on adjusted diluted EPS of 75 cents; the company delivered 79 cents on an adjusted basis.

What drove the beat?

Wholesale carried the quarter. Wholesale revenue climbed 19.4 percent to $528.7 million. Wholesale footwear rose 21.0 percent. Wholesale accessories and apparel gained 17.0 percent. Direct-to-consumer revenue grew 8.0 percent to $239.2 million, less than half the wholesale growth rate and a signal of where the company's volume momentum sits.

For the nine months, net income reached $152.2 million, or $2.10 per share, 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, including a 17.4 percent net sales increase to $2.08 billion.

"We delivered an outstanding third quarter, with strong growth across our brands and channels," chairman and CEO Edward Rosenfeld 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."

What changed in guidance?

The company raised its fiscal 2026 outlook. It now expects revenue up 12 to 13 percent above fiscal 2025 levels, versus the prior range of 11 to 13 percent set at second-quarter results. Fiscal 2026 diluted EPS is forecast between $2.58 and $2.63, versus the prior range of $2.55 to $2.65. Adjusted diluted EPS guidance moved to $2.15 to $2.20, up from $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," Rosenfeld said. He cited brand strength and "multiple growth opportunities across our diversified portfolio" as grounds for confidence in long-term value creation.

The company did not provide fourth-quarter guidance.

What should sourcing teams watch?

Supply-chain timing affected the quarter's top line. BMO analyst Kelly Crago said third-quarter sales were likely impacted by a shift in orders into the fourth quarter, noting delayed shipments caused by typhoons in China at the end of September. For sourcing and planning teams, the disruption is a reminder of the seasonal typhoon risk baked into China-dependent footwear calendars.

Crago expects fourth-quarter sales to be flat to up 2 percent, given the updated EPS guidance, and sees potential upside from wholesale reorders — a pattern that rewards factories holding flexible late-quarter capacity.

On the channel side, the company ended the quarter with 381 company-operated brick-and-mortar retail stores, including 92 outlets, eight e-commerce websites and 190 company-operated concessions in international markets. The concession footprint signals continued international expansion through partner-operated retail infrastructure rather than owned store growth.

Brand visibility stayed high through the quarter. GloRilla wore the brand's crystal-covered sandals at the 2026 American Music Awards in May, and Vivica A. Fox wore Steve Madden's western-inspired boots for her "Is God Is" movie promotion the same month. At New York Fashion Week in September, "Love Island USA" star Caleb McDaniel appeared in the brand's square-toed, ankle-length western boots at an in-store event at the Soho flagship.

With wholesale momentum, a tightened EPS range and China shipment delays pushing volume into the fourth quarter, the next test for Steven Madden's supply chain comes in holiday-season reorder execution.