A promising start to the year for Steve Madden
Steve Madden is off to a strong start in 2026. The American company, which specializes in the design and sale of shoes and accessories, reported first-quarter net income of $71.8 million (approximately €66.06 million), or $1 per diluted share. This represents a spectacular 77.6% jump compared to the $40.4 million (57 cents per share) reported in the same quarter of the previous year. However, adjusted net income declined from $42.4 million to $32.1 million, or $0.45 per share.
Revenue growth and improved gross margin
In addition, revenue for the first quarter ended March 31 rose 18% to $653.1 million, compared to $553.5 million in the same period of 2025. This increase was driven by strong demand for Steve Madden and Kurt Geiger products, with a marked acceleration in direct-to-consumer sales. Despite a slowdown in wholesale sales, particularly in the footwear sector, the brand continued to perform well, relying on an effective marketing strategy and product lines perfectly aligned with current trends, the company states in its financial report.
Gross margin, expressed as a percentage of revenue, improved significantly, rising from 40.9% in the first quarter of 2025 to 54.7% in the first quarter of 2026. Operating income amounted to $98.7 million, representing 15.1% of revenue, up from $53.5 million in the same period of the previous year. However, the adjusted operating margin declined, falling from 10.1% to 7.1% of revenue.
Mixed performance across sales channels
Looking at distribution channels, the brand’s wholesale division recorded revenue of $443.6 million, a slight increase of 1% compared to the same period in 2025. However, excluding Kurt Geiger, wholesale revenue fell by 8.2%. Wholesale footwear sales contracted by 5.8% (and by 12% excluding Kurt Geiger). In contrast, the accessories and apparel sector posted robust growth of 15.1%, driven by the introduction of new products and brand expansion.
On the direct-to-consumer sales front, results were impressive, with a surge of 83.8% compared to the first quarter of 2025, reaching $206 million. Excluding Kurt Geiger, growth stood at 8%. This excellent momentum was fueled by an improvement in gross margin, which rose from 60.1% to 65.9%, as well as the positive contribution from the integration of Kurt Geiger and slight organic sales growth.
Optimistic Outlook for Fiscal Year 2026
Based on the results of this first quarter and the continued demand for its flagship brands, Steve Madden has updated its forecasts for the full fiscal year 2026. The company now anticipates revenue growth of between 10% and 12% compared to 2025, with diluted earnings per share expected to be between $2.55 and $2.65. Adjusted earnings per share are expected to be between $2.00 and $2.10.
“We had a strong start to the year in the first quarter, with solid demand for our brands, supported by attractive product selections and strong marketing execution,” commented President and CEO Edward Rosenfeld. “Despite a decline in adjusted earnings in the first quarter, we expect a rebound in the second quarter, with strong growth in both revenue and earnings for the full year. “Over the longer term, we are confident that the strength of our brands, our proven business model, and the talent of our teams will enable us to continue delivering sustainable growth in the years ahead.”