Fashion
US’ Steven Madden posts strong 18% revenue growth in Q1
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)