Shoe and apparel company Steven Madden (NASDAQ: SHOO) announced better-than-expected revenue in Q1 CY2026, with sales up 18% year on year to $653.1 million. Its non-GAAP profit of $0.45 per share was 20.1% above analysts’ consensus estimates.

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StockStory’s Take

Steven Madden’s first quarter saw healthy demand across its flagship and acquired brands, resulting in financial results that surpassed Wall Street’s expectations and a positive market reaction. CEO Edward Rosenfeld pointed to strong consumer interest in new footwear styles, effective marketing campaigns, and robust direct-to-consumer (DTC) sales—particularly in the Steven Madden and Kurt Geiger brands. The quarter also benefited from disciplined product assortments and increased marketing investment, with Rosenfeld highlighting that “the combination of trend-right product and targeted marketing investments drove measurable brand heat.”

Looking forward, management has raised its full-year revenue outlook, attributing this to ongoing momentum in its largest brands and successful international expansion. Rosenfeld emphasized the impact of product innovation and digital engagement, saying, “We continue to see strong trends in our DTC business and are optimistic about our ability to deliver earnings growth in the coming quarters.” However, the company is also monitoring risks from tariffs and rising freight costs, and expects a gradual improvement in gross margin throughout the year, aided by product mix and operational efficiencies.

Key Insights from Management’s Remarks

Management credited the quarter’s performance to strong consumer demand for on-trend products, expansion of key brands, and disciplined marketing execution. The addition of Kurt Geiger and improving DTC performance played a substantial role in exceeding analyst expectations.

• Flagship brand momentum: The Steven Madden brand experienced broad strength in footwear, with CEO Edward Rosenfeld noting product trends such as split toes, mesh, and ballet-inspired styles, as well as notable success in casuals, dress shoes, and boots.
• Kurt Geiger acquisition impact: Kurt Geiger contributed significantly to revenue growth, with new store openings in the U.S. and an expanded international presence. The brand saw particular strength in handbags and sandals, and management raised its growth forecast for Kurt Geiger based on early performance.
• DTC channel outperformance: Direct-to-consumer revenue increased sharply, driven by both brick-and-mortar and e-commerce channels. Rosenfeld highlighted a 17% increase in U.S. DTC comparable sales for the Steven Madden brand, especially in full-price channels, and noted sequential improvement in outlet performance.
• Wholesale dynamics: While wholesale footwear revenue declined excluding Kurt Geiger, the company observed strong performance in department stores, with reorders and increased demand for key products. Management also reported improvement in the off-price channel, although it remains below pre-pandemic levels.
• Marketing investment drive: The company continued to increase marketing spending, with a notable shift toward digital and social channels. Marketing now represents over 5% of revenue, supporting both brand awareness and customer acquisition across all key brands.

Drivers of Future Performance

Steven Madden’s outlook is shaped by the continued growth of its core brands, international expansion, and a focus on operational discipline amid external cost pressures.

• Brand expansion and product innovation: Management expects mid- to high single-digit revenue growth in the Steven Madden brand and high single-digit growth in Dolce Vita, driven by new assortments and customer engagement initiatives. Kurt Geiger is projected to achieve mid-teens growth, aided by new wholesale partnerships such as Macy’s and ongoing international store expansion.
• Margin management and cost headwinds: The company anticipates ongoing improvement in gross margin versus the prior year due to product mix and lower private label penetration. However, CFO Zine Mazouzi cautioned about 30 basis points of gross margin pressure from increased freight costs, as well as uncertainty around tariffs, which are expected to persist beyond mid-year.
• Wholesale and DTC channel trends: Department store and off-price channel recovery are viewed as key contributors to wholesale growth, while the DTC segment is expected to maintain strong organic trends. Management is also monitoring the Middle East market, where ongoing conflict has led to a material reduction in revenue expectations for the region.

Catalysts in Upcoming Quarters

In the coming quarters, our team will watch (1) the continued ramp-up of Kurt Geiger’s U.S. and international presence, (2) the sustainability of DTC growth and margin improvement as new assortments reach consumers, and (3) the ability to manage cost pressures from tariffs and freight. Execution on wholesale channel recovery and apparel margin expansion will also be key milestones.

Steven Madden currently trades at $40.07, up from $37.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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