SHOO — Steven Madden, Ltd.

Summary of Steven Madden Limited Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Total Revenue: $665.9 million, a 19.1% increase year-over-year (11.2% excluding Kurt Geiger).
• Diluted EPS: $0.44, more than double from $0.20 in Q2 2025.
• Wholesale Revenue: $407.5 million, up 13% (11.5% excluding Kurt Geiger).
• Direct-to-Consumer (DTC) Revenue: $255.4 million, a 30.6% increase (11.1% excluding Kurt Geiger).
• Gross Margin: 46.5%, up from 41.9% in Q2 2025.
• Operating Income: $44.5 million (6.7% of revenue), compared to $22.6 million (4% of revenue) in the prior year.
• Net Income: $31.7 million, up from $13.9 million in Q2 2025.
• Inventory: $377.2 million, down 13.7% year-over-year.

2. Strategic Updates and Business Highlights

• Brand Performance: Strong growth in the Steve Madden brand, particularly in women's footwear and handbags, with notable trends in casual styles and materials.
• Kurt Geiger: Opened 2 new full-price stores in the U.S., achieving a 12% comp store sales gain. The brand's unique personalization service contributed significantly to sales.
• Dolce Vita: Experienced outstanding growth across channels, with revenue forecasts raised to high single-digit to low double-digit growth for the year.
• Marketing Initiatives: Integrated campaigns, including partnerships with influencers, have increased brand visibility, resulting in a 71% rise in global online searches for Steve Madden.

3. Forward Guidance and Outlook

• Revenue Guidance: Raised to an expected increase of 11% to 13% for the year, up from 10% to 12%.
• EPS Guidance: Increased to a range of $2.05 to $2.15, up from $2.00 to $2.10.
• Sales Expectations: Anticipated typical revenue cadence, with Q3 expected to contribute more than Q4.

4. Bad News, Challenges, or Points of Concern

• Private Label Business: Continued decline expected, projected to be down mid- to high teens for the year.
• International Markets: Sales impacted by conflict in the Middle East, with international comp sales showing only a 1% increase.
• Cost Pressures: Increased freight costs due to ongoing geopolitical tensions, particularly affecting air freight.
• Tariff Impacts: New tariffs related to forced labor and other investigations may affect future costs.

5. Notable Q&A Insights

• Sales Momentum: Management noted ongoing strong performance in DTC and wholesale channels, particularly during the Nordstrom anniversary sale.
• Branded vs. Private Label: The branded wholesale business is performing well, while private label remains a pressure point.
• Gross Margin Projections: While year-over-year improvement in gross margin is expected, it will not be as significant as in the first half due to various pressures.
• Store Performance: Full-price stores outperform outlets, but outlets showed a recovery with a 12% increase in Q2.
• Reorder Assumptions: Management indicated that reorders are expected in Q4, but they remain cautious about building too much activity into forecasts until the fall season begins.

Overall, Steven Madden Limited reported a strong second quarter with significant growth across its brands, while also facing challenges in the private label segment and external cost pressures. The company remains optimistic about its strategic initiatives and future growth prospects.