Steve Madden Q3 2026: Profit Beat Drives Guidance Raise Despite Revenue Miss

Steve Madden posted adjusted earnings per share of $0.79 for the third quarter of fiscal 2026, beating expectations of $0.75. Revenue of $772.6 million came in below the $778.9 million estimate, missing expectations, though it still climbed 15.7% from the same period a year earlier.

Gross margin expanded to 44.6% from 41.5% a year ago, driving the profit outperformance. The prior-year quarter had absorbed a $12.3 million inventory fair-value step-up charge tied to the Kurt Geiger acquisition that did not repeat this time around, giving the comparison a meaningful tailwind.

On the segment level, wholesale revenue of $528.7 million grew 19.4%, with Kurt Geiger now contributing on a clean basis. Direct-to-consumer added $239.2 million, up 8.0%, though that channel saw gross margin pressure from a shift in markdown timing and deeper discounting on seasonal product. Operating expenses also fell as a share of revenue, dropping to 34.9% from 36.8% a year ago.

Management cited the strength of that profit performance to raise full-year adjusted diluted EPS guidance to a range of $2.15 to $2.20, up from the prior $2.05 to $2.15. The revenue growth outlook was also tightened at the low end, now targeting a 12% to 13% gain versus fiscal 2025, compared with the prior range of 11% to 13%. CEO Edward Rosenfeld pointed to continued momentum across brands and channels as the basis for the revised targets.

Investors watching the stock should note that the adjusted EPS figure excludes $3.9 million in pre-tax Kurt Geiger acquisition-related costs, $0.8 million in legal settlements, and a $1.0 million net expense from changes in contingent payment valuations. GAAP diluted EPS came in at $0.72. The company also declared a quarterly cash dividend of $0.21 per share, payable December 24 to shareholders of record December 11.