The net income attributable to Steven Madden increased to $71.8 million, or $1 per diluted share, compared to $40.4 million, or $0.57 per diluted share, in the corresponding quarter of fiscal 2025. Adjusted net income attributable to the company declined to $32.1 million, or $0.45 per diluted share, from $42.4 million, or $0.6 per diluted share, a year earlier.

Steven Madden has reported an 18 per cent YoY rise in Q1 FY26 revenue to $653.1 million, driven by strong demand for Steve Madden and Kurt Geiger brands.
Net income rose to $71.8 million, while direct-to-consumer revenue surged 83.8 per cent.
The company raised FY26 revenue guidance to 10-12 per cent growth and introduced diluted EPS guidance of $2.55-2.65.

“We got off to a solid start to the year in the first quarter, with healthy underlying demand across our brands driven by compelling product assortments and strong marketing execution,” said Edward Rosenfeld, chairman and chief executive officer of Steven Madden.

The gross profit as a percentage of revenue rose to 54.7 per cent from 40.9 per cent in Q1 FY25. Adjusted gross margin improved to 46.3 per cent from 40.9 per cent. Income from operations climbed to $98.7 million, or 15.1 per cent of revenue, compared to $53.5 million, or 9.7 per cent of revenue, in the prior-year quarter.

Operating expenses increased to 39.5 per cent of revenue from 32.0 per cent in the same quarter last year. Adjusted operating expenses rose to 39.2 per cent of revenue from 30.8 per cent, Steven Madden said in a press release.

Wholesale business sees modest growth

Revenue from the wholesale business increased 1 per cent YoY to $443.6 million in Q1 FY26. Excluding Kurt Geiger, wholesale revenue declined 8.2 per cent.

Wholesale footwear revenue fell 5.8 per cent, or 12 per cent excluding Kurt Geiger, while wholesale accessories and apparel revenue increased 15.1 per cent. Excluding Kurt Geiger, accessories and apparel revenue slipped 0.5 per cent.

Gross profit margin for the wholesale segment improved to 49.2 per cent from 35.7 per cent in Q1 FY25. Adjusted gross margin for the segment rose to 39.2 per cent from 35.7 per cent, supported by higher average selling prices, favourable product mix and lower penetration of private label products.

DTC revenue jumped 83.8 per cent YoY to $206 million in the quarter. Excluding Kurt Geiger, DTC revenue increased 8 per cent.

Gross profit margin in the DTC segment improved to 65.9 per cent from 60.1 per cent in the prior-year quarter. Adjusted gross margin rose modestly to 60.8 per cent from 60.1 per cent, aided by the addition of the Kurt Geiger business and growth in the organic business.

At the end of the quarter, the company operated 387 brick-and-mortar retail stores, including 95 outlets, along with eight e-commerce websites and 162 company-operated concessions in international markets.

“The Steve Madden brand continued to gain momentum, as consumers responded favourably to our on-trend assortments, resulting in strong comps in our direct-to-consumer (DTC) business and robust sell-through performance in wholesale. The Kurt Geiger London brand also delivered another strong quarter, with continued momentum across channels,” added Rosenfeld.

Steven Madden raises FY26 revenue outlook

Steven Madden raised its FY26 revenue guidance and introduced earnings guidance for the fiscal year. The company now expects revenue to increase 10 per cent to 12 per cent compared to FY25.

The company expects diluted earnings per share (EPS) in the range of $2.55 to $2.65, while adjusted diluted EPS is projected between $2 and $2.1 for FY26.

“While earnings declined in the first quarter, we expect to return to earnings growth in the second quarter and deliver strong top- and bottom-line growth for the full year,” Rosenfeld said.

“Looking out further, we are confident that our powerful brands, proven business model and talented team position us to deliver sustainable growth for years to come,” he added.

Fibre2Fashion News Desk (SG)

UK import duties on apparel from India have run as high as ** percent, with fabrics at * percent and yarns at * percent, as per the UK Trade Tariff and the UK Fashion & Textiles Association. CETA removes these duties for qualifying Indian goods. The UK Department for Business and Trade estimates duty savings of around £*** million for UK exporters at entry-into-force, rising to £*** million within ten years.

For inbound trade, the impact is just as direct. According to TexPro data, UK textile and apparel imports from India totaled $*.** billion in ****. The two apparel chapters alone—knitwear (HS **) and woven garments (HS **)—account for $*.** billion. Stripping a ** percent duty out of this basket implies up to $*** million in annual duty savings, to be split between UK buyers and Indian suppliers through price negotiation.

The measure, aimed at easing supply chain disruptions as the key Middle Eastern shipping route has effectively been closed since US-Israeli strikes on Iran in February, will apply retroactively to imports reported since March 1 that have already faced sharp increases in shipping costs.

Eligible shipments include vessels from the Middle East using alternative routes that bypass the Strait of Hormuz, emergency air cargo transport and ships stranded in the strait due to the conflict, South Korea’s customs authority was cited as saying by a domestic news agency.

The Korea Customs Service will exempt extra shipping costs from tariffs on imports rerouted due to the Strait of Hormuz closure.
The measure, aimed at easing supply chain disruptions, will apply retroactively to imports reported since March 1 that have faced sharp shipping cost hikes.
The exemption will cover not only standard freight charges, but also demurrage fees and transportation insurance premia.

The exemption will cover not only standard freight charges, but also demurrage fees and transportation insurance premia.

Fibre2Fashion News Desk (DS)