STEVEN MADDEN, LTD.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
SHOO$39.50+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001628280-25-050843
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032774
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 134 current paragraphs.
62 unchanged; 31 reworded; 40 added; 55 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 3 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (40)
Current report
•changes in trade policies, additional tariffs on product imported to the United States, retaliatory trade actions taken by other countries, and resulting trade wars;
Current report
•our reliance on independent manufacturers to produce and deliver products in a timely manner or to meet our quality standards if we experience a supply chain disruption and we are unable to secure an alternative source of raw materials or end products;
Current report
•our dependence on one or more of our significant customers;
Current report
•quarterly fluctuations of our financial results;
Current report
•extreme or unseasonable weather conditions in locations where we or our customers and suppliers are located;
Current report
•fluctuation of our stock price if our operating results are inconsistent with our forecasts or those of analysts who follow us;
Current report
•disruption of our information technology systems or e-commerce platforms;
Current report
•our ability to effectively implement artificial intelligence and data-driven technologies across our operations, and the risks that such technologies may not perform as expected, may be subject to regulatory constraints, or may increase operational, legal, or cybersecurity risks;
Current report
•litigation or other legal proceedings could divert management resources and result in costs;
Current report
•exposure to foreign exchange rate fluctuations;
Current report
•changes in economic conditions;
Current report
•the loss of a significant license;
Current report
•the actions of our licensees and diminished brand integrity;
Current report
•failure of our manufacturers, the manufacturers used by our licensees, or our licensees themselves to use acceptable labor practices or to otherwise comply with local laws and other standards;
Current report
•our ability to maintain effective internal control over our financial reporting; and
Current report
During the first quarter of 2026, there were significant legal developments affecting certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”). On February 20, 2026, the United States Supreme Court ruled that such tariffs were not authorized, and on March 4, 2026, the U.S. Court of International Trade directed U.S. Customs and Border Protection (“CBP”) to refund amounts previously collected, including applicable interest.
Current report
Following the Supreme Court ruling, the current administration implemented a new global 10% tariff under Section 122 of the Trade Act of 1974 and initiated additional trade actions, including investigations under Section 301 of the Trade Act of 1974, that may result in further tariffs. While the elimination of IEEPA tariffs is expected to have a favorable impact on gross margin, the imposition of additional tariffs, including those under Section 122 and potential measures arising from Section 301 actions, has partially offset and may continue to offset such benefits and could adversely affect our financial results.
Current report
Accordingly, the timing and magnitude of tariff-related impacts remain uncertain and will depend on future developments in global trade policy, including the imposition of new tariffs or changes to existing measures. With this evolving global trade environment, we have continued to maintain diversified sourcing strategies, selectively adjust pricing, and further emphasize cost management initiatives.
Current report
Interest rates in the United States and certain international markets have moderated from prior peaks, but remain elevated relative to historical levels, continuing to influence consumer borrowing costs and discretionary spending patterns. Consumer demand has shown mixed trends across channels and regions, reflecting ongoing sensitivity to pricing, inflationary pressures, and broader economic uncertainty. Foreign currency volatility and concerns around global economic growth have also continued to impact consumer sentiment.
Current report
Geopolitical developments remain an important backdrop. Ongoing conflicts in Ukraine and the Middle East, including heightened tensions involving Iran, as well as broader strategic tensions between the United States and China, have contributed to continued volatility and uncertainty in global markets. These conditions have affected, and may continue to affect, supply chains, trade flows, input costs, and global business operations.
Current report
At the same time, structural changes in the retail landscape continue to shape industry dynamics. Consumers increasingly favor omnichannel and direct-to-consumer shopping experiences, with heightened expectations around convenience, personalization, and digital engagement. These trends reinforce the importance of our continued investments in e-commerce capabilities, data analytics, and consumer experience. Wholesale partners have also remained focused on disciplined inventory management and cautious purchasing behavior in response to the ongoing macroeconomic uncertainty.
Current report
Total revenue for the three months ended March 31, 2026 increased 18.0% to $653,096, compared to $553,534 in the comparable period in the prior year, due to incremental revenue from the acquisition of Kurt Geiger.
Current report
Gross profit for the three months ended March 31, 2026 was $357,420, or 54.7% of total revenue, compared to $226,267, or 40.9% of total revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of total revenue was primarily driven by a benefit of $55,090 recognized in cost of sales related to the expected recovery of previously incurred IEEPA tariffs on inventory sold in the prior year, the addition of Kurt Geiger, higher average selling prices, and a lower penetration of the private label business. The comparable period in the prior year included a charge of $280 related to purchase accounting fair value adjustments of inventory from acquired businesses.
Current report
Operating expenses for the three months ended March 31, 2026 were $258,293, or 39.5% of total revenue, compared to $177,263, or 32.0% of total revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of total revenue was primarily attributable to the acquisition of Kurt Geiger, as well as higher incentive compensation and warehouse expenses. The current-year period also included charges of $1,163 related to certain severances and termination benefits, $840 related to legal costs as a result of litigation settlements and earnout-related litigations, and $261 related to acquisition costs and the formation of international joint ventures. The comparable period in the prior year included charges of $3,187 of acquisition costs and the formation of international joint ventures, $2,421 related to certain severances and termination benefits, and $1,188 related to legal costs as a result of litigation settlements.
Current report
In the three months ended March 31, 2026, we recorded an expense of $385 related to the change in valuation of contingent payment liabilities. In the comparable period in the prior year, we recorded a benefit of $4,495 related to the change in valuation of contingent payment liabilities.
Current report
Revenue from the Wholesale Footwear segment for the three months ended March 31, 2026 was $278,866, or 42.7% of total revenue, compared to $296,145, or 53.5% of total revenue, in the comparable period in the prior year. The decrease of 5.8% was primarily driven by a decline in the private label business, partially offset by incremental revenue from the acquisition of Kurt Geiger.
Current report
Gross profit for the three months ended March 31, 2026 was $136,010, or 48.8% of Wholesale Footwear revenue, compared to $108,691, or 36.7% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was primarily driven by a benefit of $28,270 recognized in cost of sales related to the expected recovery of previously incurred IEEPA tariffs on inventory sold in the prior year, higher average selling prices, and a lower penetration of the private label business.
Current report
Operating expenses for the three months ended March 31, 2026 were $55,635, or 20.0% of Wholesale Footwear revenue, compared to $45,603, or 15.4% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue primarily reflects higher incentive compensation and warehouse expenses, the deleveraging of operating expenses on a lower revenue base, and the acquisition of Kurt Geiger. The current-year period also included charges of $600 related to certain severances and termination benefits, and $35 related to acquisition costs and the formation of international joint ventures. The comparable period in the prior year included $644 related to certain severances and termination benefits, and $72 of acquisition costs related to the formation of international joint ventures.
Current report
Income from operations for the three months ended March 31, 2026 totaled $80,375, or 28.8% of Wholesale Footwear revenue, compared to $63,088, or 21.3% of Wholesale Footwear revenue, in the comparable period in the prior year.
Current report
Revenue from the Wholesale Accessories/Apparel segment for the three months ended March 31, 2026 was $164,781, or 25.2% of total revenue, compared to $143,173, or 25.9% of total revenue, in the comparable period in the prior year. The increase of 15.1% was due to incremental revenue from the acquisition of Kurt Geiger.
Current report
Gross profit for the three months ended March 31, 2026 was $82,170, or 49.9% of Wholesale Accessories/Apparel revenue, compared to $48,049, or 33.6% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was primarily driven by a benefit of $16,185 recognized in cost of sales related to the expected recovery of previously incurred IEEPA tariffs on inventory sold in the prior year, higher average selling prices, a mix benefit from the addition of Kurt Geiger, and a lower penetration of the private label business. The comparable period in the prior year included a charge of $280 related to the purchase accounting fair value adjustments of inventory from acquired businesses.
Current report
Operating expenses for the three months ended March 31, 2026 were $37,840, or 23.0% of Wholesale Accessories/Apparel revenue, compared to $30,132, or 21.0% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Accessories/Apparel revenue was primarily attributable to the acquisition of Kurt Geiger, as well as higher warehouse expenses and incentive compensation. The current-year period also included charges of $347 related to certain severances and termination benefits, and $308 related to legal costs as a result of earnout-related litigation. The comparable period in the prior year included charges of $743 related to certain severances and termination benefits, and $549 related to legal costs as a result of earnout-related litigation.
Current report
In the three months ended March 31, 2026, we recorded a charge of $385 related to the change in valuation of contingent payment liabilities. In the comparable period of 2025, we recorded a benefit of $4,495 related to the change in valuation of contingent payment liabilities.
Current report
Income from operations for the Wholesale Accessories/Apparel segment for the three months ended March 31, 2026 was $43,945, or 26.7% of Wholesale Accessories/Apparel revenue, compared to $22,412, or 15.7% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Current report
Gross profit for the three months ended March 31, 2026 was $135,804, or 65.9% of Direct-to-Consumer revenue, compared to $67,375, or 60.1% of Direct-to-Consumer revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was primarily driven by a benefit of $10,635 recognized in cost of sales related to the expected recovery of previously incurred IEEPA tariffs on inventory sold in the prior year, as well as a mix benefit from the addition of Kurt Geiger.
Current report
Operating expenses for the three months ended March 31, 2026 were $137,388, or 66.7% of Direct-to-Consumer revenue, compared to $73,603, or 65.7% of Direct-to-Consumer revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of revenue was primarily attributable to higher incentive compensation and logistics expenses. The current-year period included charges of $532 related to legal costs as a result of litigation settlements, $227 related to acquisition costs and the formation of joint ventures, and $57 related to certain severances and termination benefits. The comparable period in the prior year included charges of $639 related to legal costs as a result of litigation settlements, $469 of acquisition costs related to the formation of international joint ventures, and $301 related to certain severances and termination benefits.
Current report
Loss from operations for the three months ended March 31, 2026 was $1,584, or 0.8% of Direct-to-Consumer revenue, compared to $6,228, or 5.6% of Direct-to-Consumer revenue, in the comparable period in the prior year.
Current report
IEEPA Tariff Refund
Current report
As of March 31, 2026, the Company recognized a receivable of $90,192 related to the expected refund of tariffs previously paid under the IEEPA, following recent legal developments, including a ruling by the United States Supreme Court and subsequent actions by the U.S. Court of International Trade directing the refund of such tariffs, including applicable interest. While the Company believes recovery is probable, the timing of cash receipts is dependent upon the execution of the refund process by U.S. Customs and Border Protection and the U.S. Treasury Department.
Current report
Cash used in operating activities was $55,337 for the three months ended March 31, 2026, compared to $18,832 in the same period of the prior year. The increase in cash used in operations was primarily driven by unfavorable changes in working capital, partially offset by an increase in net income.
Removed paragraphs (55)
Previous report
•our ability to navigate changes in global trade policies and tariffs imposed by the United States government and the governments of other nations in which we manufacture and sell products;
Previous report
•our ability to navigate shifting macro-economic environments including but not limited to inflation and the potential for recessionary conditions;
Previous report
•our reliance on independent manufacturers to produce and deliver products in a timely manner, especially when faced with adversities such as work stoppages, transportation delays, public health emergencies, social unrest, changes in local economic conditions, and political upheavals as well as their ability to meet our quality standards;
Previous report
•our ability to maintain adequate liquidity when negatively impacted by unforeseen events such as an epidemic or a pandemic, which may cause disruption to our business operations for an indeterminable period of time;
Previous report
•our ability to achieve operating results that are consistent with prior financial guidance; and
Previous report
Recent Developments
Previous report
In August 2025, the Company acquired a 50% controlling financial interest in the newly formed entity, MG Distribution Hong Kong Limited. This joint venture was formed to expand the distribution of the Company’s products across China, Hong Kong, and Macau. The results of this joint venture are included within the Direct-to-Consumer segment.
Previous report
Trade and global sourcing remain areas of heightened focus. Although some previously announced tariff initiatives have been postponed or adjusted, the absence of clarity around future trade policy remains, prompting many multinational businesses, including us, to maintain flexible supplier networks, selectively adjust pricing strategies, and intensify cost-containment efforts.
Previous report
While interest rates have recently come down in the United States and key international markets, they have remained high through the third quarter of 2025, continuing to impact credit conditions and consumer discretionary spending. Furthermore, continued foreign currency volatility, elevated global trade tensions, and recession fears continue to impact consumer sentiment.
Previous report
Geopolitical tensions remain influential. The conflicts in the Middle East and Ukraine persist and tensions with China remain elevated. These headwinds have contributed to continued economic uncertainty, inflationary pressures, foreign currency volatility, disruptions in global supply chains, deteriorating trade relations, and declining consumer confidence. These factors contribute to broader market volatility and may continue to adversely impact our global business operations.
Previous report
Structural change remains a key theme in the retail space. Consumers increasingly favor omnichannel and direct-to-consumer shopping experiences – highlighting the strategic importance of investing in digital, data analytics, and the customer journey.
Previous report
Total revenue for the three months ended September 30, 2025 increased 6.9% to $667,875, compared to $624,675 in the comparable period in the prior year, primarily attributable to incremental revenue from the acquisition of Kurt Geiger, partially offset by a decline in the organic business primarily attributable to tariff-related impacts.
Previous report
Gross profit for the three months ended September 30, 2025 was $277,375, or 41.5% of total revenue, compared to $259,544, or 41.5% of total revenue, in the comparable period in the prior year. Gross profit as a percentage of total revenue remained flat despite tariff-related impacts affecting our Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer segments. These adverse impacts were offset by a greater mix of the higher-margin direct-to-consumer business, primarily related to the acquisition of Kurt Geiger. Gross profit in both periods included $12,309 and $59, respectively, related to purchase accounting fair value adjustments of inventory from acquired businesses.
Previous report
Operating expenses for the three months ended September 30, 2025 were $246,017, or 36.8% of total revenue, compared to $178,915, or 28.6% of total revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of total revenue was primarily attributable to the acquisition of Kurt Geiger. The current-year period included charges of $1,087 related to certain severances and termination benefits, $695 related to acquisition costs and the formation of joint ventures, and $803 related to legal costs as a result of litigation settlements. The comparable period in the prior year included charges of $8,635 related to the impairment of an intangible, $3,199 related to a loss on the divestiture of a business, and $1,480 related to acquisition costs and the formation of joint ventures, as well as a benefit of $2,584 related to the change in valuation of a contingent payment liability.
Previous report
Income from operations for the three months ended September 30, 2025 was $31,358, or 4.7% of total revenue, compared to $74,578, or 11.9% of total revenue, in the comparable period in the prior year. The effective tax rate for the three months ended September 30, 2025 was 17.4% compared to 25.5%, in the comparable period in the prior year. The difference between the Company’s effective tax rates was primarily due to changes in non-deductible expenses related to the acquisition of the Kurt Geiger business as a result of our transaction cost analysis.
Previous report
Revenue from the Wholesale Footwear segment for the three months ended September 30, 2025 was $266,543, or 39.9% of total revenue, compared to $299,315, or 47.9% of total revenue, in the comparable period in the prior year. The decrease of 10.9% was primarily driven by tariff-related impacts and timing of shipments, partially offset by incremental revenue from the acquisition of Kurt Geiger.
Previous report
Gross profit was $91,684, or 34.4% of Wholesale Footwear revenue, compared to $110,778, or 37.0%, in the comparable period in the prior year. The decrease in gross profit as a percentage of revenue was driven by the impact of tariffs on goods imported into the United States. Gross profit in the current-year period also included $1,737 related to the purchase accounting fair value adjustment of inventory in connection with the Kurt Geiger acquisition.
Previous report
Operating expenses for the three months ended September 30, 2025 were $51,570, or 19.3% of Wholesale Footwear revenue, compared to $46,523, or 15.5% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue primarily reflects the deleveraging of operating expenses on a lower revenue base and the addition of the Kurt Geiger business. The current-year period included charges of $1,592 related to legal costs as a result of litigation settlements, $491 related to certain severances and termination benefits, and $17 related to acquisition costs and the formation of joint ventures. The comparable period in the prior year included charges of $109 due to acquisition costs and formation of joint ventures.
Previous report
Income from operations for the three months ended September 30, 2025 totaled $40,114, or 15.0% of Wholesale Footwear revenue, compared to $64,255, or 21.5% of Wholesale Footwear revenue in the comparable period in the prior year.
Previous report
Revenue from the Wholesale Accessories/Apparel segment for the three months ended September 30, 2025 was $176,152, or 26.4% of total revenue, compared to $196,400, or 31.4% of total revenue, in the comparable period in the prior year. The decrease of 10.3% was primarily driven by tariff-related impacts and a decline in our off-price business, partially offset by incremental revenue from the acquisition of Kurt Geiger.
Previous report
Gross profit was $52,966, or 30.1% of Wholesale Accessories/Apparel revenue, for the three months ended September 30, 2025, compared to $64,963, or 33.1% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The decrease in gross profit as a percentage of revenue was driven by the impact of tariffs on goods imported into the United States. Gross profit in both periods also included $2,506 and $59, respectively, related to purchase accounting fair value adjustments of inventory from acquired businesses.
Previous report
Operating expenses for the three months ended September 30, 2025 were $37,363, or 21.2% of Wholesale Accessories/Apparel revenue, compared to $28,251, or 14.4% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Accessories/Apparel revenue was primarily attributable to the deleveraging of operating expenses on a lower revenue base and the addition of the Kurt Geiger business. The current-year period also included charges of $780 related to legal costs as a result of litigation settlements, $122 related to certain severances and termination benefits, and $8 related to acquisition costs and the formation of joint ventures. The comparable period in the prior year included charges of $8,635 related to the impairment of an intangible, $195 related to acquisition costs and the formation of joint ventures, as well as a benefit of $2,584 related to the change in valuation of a contingent payment liability.
Previous report
Income from operations for the three months ended September 30, 2025 was $15,603, or 8.9% of Wholesale Accessories/Apparel revenue, compared to $30,661, or 15.6% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Previous report
Gross profit for the three months ended September 30, 2025 was $129,050, or 58.3% of Direct-to-Consumer revenue, compared to $80,298, or 64.0% of Direct-to-Consumer revenue, in the comparable period in the prior year. The decrease in gross profit as a percentage of revenue was primarily driven by the impact of tariffs on goods imported into the United States and the addition of the relatively lower gross margin concessions business in connection with the acquisition of Kurt Geiger. Gross margin also included a purchase accounting fair value adjustment of inventory of $8,066 in connection with the Kurt Geiger acquisition.
Previous report
Operating expenses for the three months ended September 30, 2025 were $133,490, or 60.3% of Direct-to-Consumer revenue, compared to $78,799, or 62.8% of Direct-to-Consumer revenue, in the comparable period in the prior year. The decrease in operating expenses as a percentage of revenue was primarily attributable to the acquisition of Kurt Geiger. The current-year period included charges of $671 related to acquisition costs and the formation joint ventures, and $469 related to certain severances and termination benefits. The comparable period in the prior year included charges of $3,199 related to a loss on the divestiture of a business and $1,176 related to acquisition costs and the formation of joint ventures.
Previous report
Loss from operations for the three months ended September 30, 2025 was $4,440, or (2.0%) of Direct-to-Consumer revenue, compared to income from operations of $1,499, or 1.2% of Direct-to-Consumer revenue, in the comparable period in the prior year.
Previous report
Results of Operations
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Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
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Consolidated
Previous report
Total revenue for the nine months ended September 30, 2025 increased 4.7% to $1,780,409, compared to $1,700,609 in the comparable period in the prior year, primarily attributable to incremental revenue from the acquisition of Kurt Geiger, partially offset by a decline in the organic business primarily attributable to tariff-related impacts.
Previous report
Gross profit for the nine months ended September 30, 2025 was $729,669, or 41.0% of total revenue, compared to $701,488, or 41.2% of total revenue, in the comparable period in the prior year. The decrease in gross profit as a percentage of total revenue was driven by tariff-related impacts, partially offset by a greater mix of the higher-margin direct-to-consumer business, primarily related to the acquisition of Kurt Geiger. Gross profit in both periods also included $20,840 and $393, respectively, related to purchase accounting fair value adjustments of inventory from acquired businesses.
Previous report
Operating expenses for the nine months ended September 30, 2025 were $687,145, or 38.6% of total revenue, compared to $507,343, or 29.8% of total revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of total revenue was primarily attributable to the acquisition of Kurt Geiger due to certain acquisition-related transaction costs. The current-year period included $38,819 of compensation expense as a result of acquisition-related sellers proceeds which were reallocated from institutional sellers to management sellers in excess of their respective pre-acquisition equity ownership. The current-year period also included charges of $12,017 related to acquisition costs and the formation of joint ventures, $6,732 related to legal costs as a result of litigation settlements, $4,030 related to certain severances and termination benefits, as well as a benefit of $2,075 related to the change in valuation of contingent payment liabilities. The comparable period in the prior year included charges of $10,335 related to the impairment of an intangible, $5,616 related to the change in valuation of a contingent payment liability, $3,199 related to a loss on the divestiture of a business, $2,776 related to acquisition costs and the formation of joint ventures, and $326 related to working capital adjustments in connection with the Almost Famous acquisition.
Previous report
Net income attributable to Steven Madden, Ltd. for the nine months ended September 30, 2025 was $21,474, compared to net income of $134,589 in the comparable period in the prior year.
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Wholesale Footwear Segment
Previous report
Revenue from the Wholesale Footwear segment for the nine months ended September 30, 2025 was $782,827, or 44.0% of total revenue, compared to $832,000, or 48.9% of total revenue, in the comparable period in the prior year. The decrease of 5.9% was primarily driven by tariff-related impacts on our off-price and mass merchant businesses, partially offset by incremental revenue from the acquisition of Kurt Geiger.
Previous report
Gross profit for the nine months ended September 30, 2025 was $268,860, or 34.3% of Wholesale Footwear revenue, compared to $298,186, or 35.8% of Wholesale Footwear revenue, in the comparable period in the prior year. The decrease in gross profit as a percentage of revenue was primarily driven by the impact of tariffs on goods imported into the United States. Gross profit in the current-year period also included $3,180 related to the purchase accounting fair value adjustments of inventory in connection with the Kurt Geiger acquisition.
Previous report
Operating expenses for the nine months ended September 30, 2025 were $140,753, or 18.0% of Wholesale Footwear revenue, compared to $131,877, or 15.9% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue primarily reflects the deleveraging of operating expenses on a lower revenue base and our continued investment in marketing and advertising. The current-year period included charges of $1,592 related to legal costs as a result of litigation settlements, $1,438 related to certain severances and termination benefits, and $97 related to acquisition costs and the formation of joint ventures. The comparable period in the prior year included charges of $109 related to acquisition costs and the formation of joint ventures.
Previous report
Income from operations for the nine months ended September 30, 2025 totaled $128,107, or 16.4% of Wholesale Footwear revenue, compared to $166,309, or 20.0% of Wholesale Footwear revenue, in the comparable period in the prior year.
Previous report
Wholesale Accessories/Apparel Segment
Previous report
Revenue from the Wholesale Accessories/Apparel segment for the nine months ended September 30, 2025 was $459,774, or 25.8% of total revenue, compared to $487,252, or 28.7% of total revenue, in the comparable period in the prior year. The decrease of 5.6% was primarily driven by tariff-related impacts and a decline in our off-price business, partially offset by incremental revenue from the acquisition of Kurt Geiger.
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Reworded paragraphs (31)
Previous wording
The following discussion of our financial condition and results of operations for the three and nine months ended September 30, 2025 should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following discussion of our financial condition and results of operations for the three months ended March 31, 2026 should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
•our ability to adapt our business model to rapid changes in the retail industry;
Current wording
•our ability to adapt to our business model to rapid changes in the retail industry;
Previous wording
•geopolitical tensions in the regions in which we operate and any related challenging macroeconomic conditions globally that may materially and adversely affect our customers, vendors, and partners, and the duration and extent to which these factors may impact our future business and operations, results of operations, and financial condition;
Current wording
•geopolitical tensions in the regions in which we operate and any related challenging macroeconomic conditions globally that may materially adversely affect our customers, vendors, and partners, and the duration and extent to which these factors may impact our future business and operations, results of operations, and financial condition;
Previous wording
•legal, regulatory, political, and economic risks that may affect our sales in international markets;
Current wording
•legal, regulatory, political, and economic risks that may affect our operations in international markets;
Previous wording
These risks and uncertainties, along with the risk factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and, in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2024, should be considered in evaluating any forward-looking statements contained in this report. We do not undertake any obligation to publicly update any forward-looking statement, including without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments, or otherwise.
Current wording
These risks and uncertainties, along with the risk factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and, in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025, should be considered in evaluating any forward-looking statements contained in this report. We do not undertake, and disclaim, any obligation to publicly update any forward-looking statement, including without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments, or otherwise.
Previous wording
Steven Madden, Ltd. and its subsidiaries designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel. We distribute our products through the wholesale channel to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, United Kingdom, Canada, Mexico, and Europe. Additionally, we operate in other international markets through our joint ventures in South Africa, the Middle East, Israel, various countries in Europe, Latin America, and certain countries in Asia, and through special distribution arrangements in various European countries, North Africa, South and Central America, and various countries within the Asia-Pacific region. We also distribute our products through our direct-to-consumer channel, which includes company-operated retail stores and e-commerce websites, in the United States, United Kingdom, Canada, Mexico, South Africa, the Middle East, Israel, various countries in Europe, Latin America, and the Asia-Pacific region.
Current wording
Steven Madden, Ltd. and its subsidiaries design, source, and market fashion-forward branded and private label footwear, accessories, and apparel. We distribute our products through the wholesale channel to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, the United Kingdom, Europe, Canada, and Mexico. Additionally, we operate in other international markets through our joint ventures in South Africa, the Middle East, Israel, Australia, various countries in Europe, Latin America, and certain countries in Asia, and through special distribution arrangements in various European countries, North Africa, South and Central America, and various countries within the Asia-Pacific region. We also distribute our products through our direct-to-consumer channel, which includes company-operated retail stores, third-party concessions in international markets, and e-commerce platforms, in the United States, the United Kingdom, Canada, Mexico, South Africa, the Middle East, Israel, various countries in Europe, Latin America, and the Asia-Pacific region.
Previous wording
Our product offerings include a diverse range of contemporary styles, designed to establish or capitalize on market trends, complemented by core product offerings. We are recognized for our design creativity and ability to deliver trend-right products with high quality at accessible price points, efficiently and within short lead times.
Current wording
Our product offerings include a diverse range of contemporary styles, designed to establish or capitalize on market trends, complemented by core product offerings. We are recognized for our design creativity and ability to deliver trend-right products with high quality at accessible price points, efficiently and with speed-to-market.
Previous wording
•Wholesale Footwear. This segment designs, sources, and markets our brands and sells our products to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, United Kingdom, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
Current wording
•Wholesale Footwear. This segment designs, sources, and markets our brands and sells our products, consisting of footwear, to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, the United Kingdom, Europe, Canada, Mexico, and through our joint ventures and international distributor network.
Previous wording
•Wholesale Accessories/Apparel. This segment designs, sources, and markets our brands and sells our products, primarily consisting of handbags and apparel, to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs throughout the United States, United Kingdom, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
Current wording
•Wholesale Accessories/Apparel. This segment designs, sources, and markets our brands and sells our products, primarily consisting of handbags and apparel, to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs throughout the United States, the United Kingdom, Europe, Canada, Mexico, and through our joint ventures and international distributor network.
Previous wording
•Direct-to-Consumer. This segment engages in the sale of footwear, handbags, apparel, and other accessories through Steve Madden, Kurt Geiger, Dolce Vita, and Carvela full-price retail stores, Steve Madden, Kurt Geiger and Carvela outlet stores, directly-operated concessions in international markets, and directly-operated e-commerce websites. We operate retail locations in regional malls and shopping centers, as well as high streets in various cities across the United States, United Kingdom, Canada, Mexico, and Europe, as well as through our joint ventures in international markets.
Current wording
London, and Carvela outlet stores, directly-operated e-commerce platforms, directly-operated concessions in international markets, and also operates third-party concessions in luxury and premium department stores primarily in the United Kingdom. We operate retail locations in regional malls and shopping centers, as well as high streets in various cities across the United States, the United Kingdom, Europe, Canada, and Mexico, as well as through our joint ventures in international markets.
Previous wording
•Licensing. This segment engages in the licensing of the Steve Madden®, Betsey Johnson®and Kurt Geiger trademarks for use in the sale of select apparel, accessories, and home categories as well as various other non-core products.
Current wording
•Licensing. This segment engages in the licensing of the Steve Madden®, Kurt Geiger®, and Betsey Johnson®trademarks for use in the sale of select apparel, accessories, and home categories as well as various other non-core products.
Previous wording
Our business operations – and the broader industry – continue to be shaped by a dynamic macroeconomic backdrop. While some headwinds have stabilized, uncertainty persists and requires continued agility in our sourcing, supply chain, and go-to-market strategies.
Current wording
Our business operations – and the broader industry – continued to be influenced in the first quarter of 2026 by a dynamic and uncertain macroeconomic environment, requiring ongoing agility across our sourcing, supply chain, and go-to-market strategies.
Previous wording
While the macroeconomic environment is ever evolving, we remain steadfast in our commitment to executing the following key strategic initiatives which are aimed at driving long-term growth and creating shareholder value:
Current wording
While the macroeconomic environment continues to evolve, some things remain the same, including our steadfast commitment to executing the following key strategic initiatives, which are aimed at driving long-term growth and creating shareholder value:
Previous wording
•Strengthen the core U.S. wholesale footwear business. Continue leveraging product innovation and speed to market to grow our diversified business across all distribution tiers.
Current wording
•Strengthen the core U.S. wholesale footwear business. Continue leveraging product innovation and speed to market to grow our diversified business across all tiers of distribution.
Previous wording
Total revenue for the quarter ended September 30, 2025 increased 6.9% to $667,875, compared to $624,675 in the same period of last year driven by the acquisition of the Kurt Geiger. Net income attributable to Steven Madden, Ltd. was $20,528 in the third quarter of 2025, compared to net income of $55,278 in the same period of last year. Our effective tax rate for the third quarter of 2025 was 17.4%, compared to 25.5% in the third quarter of the prior year. Diluted income per share was
Current wording
Total revenue for the quarter ended March 31, 2026 increased 18.0% to $653,096, compared to $553,534 in the same period of last year driven by the acquisition of Kurt Geiger. During the quarter ended March 31, 2026, we recorded a benefit of $55,090 to costs of sales related to the IEEPA tariff refund on goods imported into the United States and sold in 2025. Net income attributable to Steven Madden, Ltd. was $71,822 in the first quarter of 2026, compared to net income of $40,423 in the same period of last year. Our effective tax rate for the first quarter of 2026 was 24.7%, compared to 24.1% in the same period of last year. Diluted income per share was $1.00 per share on 71,876 diluted weighted average shares outstanding, compared to diluted earnings per share of $0.57 per share on 71,055 diluted weighted average shares outstanding in the first quarter of the prior year.
Previous wording
Our inventory turnover (calculated on a trailing four quarter average) for the quarter ended September 30, 2025 was 4.0 times, compared to 5.5 times at September 30, 2024. Excluding the Kurt Geiger business, our inventory turnover for the quarter ended September 30, 2025 was 4.5 times. Our total Company accounts receivable average collection days decreased to 58 days in the third quarter of 2025, compared to 66 days in the third quarter of 2024. As of September 30, 2025, we had $108,862 in cash, cash equivalents, and short-term investments, and total stockholders’ equity of $886,135. Working capital was $520,512 as of September 30, 2025, compared to $491,880 as of September 30, 2024.
Current wording
Our inventory turnover (calculated on a trailing four quarter average) for the quarter ended March 31, 2026 was 3.4 times, compared to 5.3 times at March 31, 2025. Excluding the Kurt Geiger business, our inventory turnover for the quarter ended March 31, 2026 was 4.7 times. Our total Company accounts receivable average collection days decreased to 62 days in the first quarter of 2026, compared to 73 days in the first quarter of 2025. As of March 31, 2026, we had $77,157 in cash and cash equivalents, and total stockholders’ equity of $947,248. Working capital was $577,532 as of March 31, 2026, compared to $491,459 as of March 31, 2025.
Previous wording
Amid a dynamic operating environment, we remain focused on executing our strategic priorities: delivering trend-right product, deepening connections with our consumers, expanding our international businesses, growing our non-footwear categories, expanding our direct-to-consumer business led by digital, strengthening our core U.S. wholesale business, and efficiently managing our inventory and expenses. At the same time, we are advancing our corporate social responsibility initiatives to create long-term value for our stakeholders, minimize the negative impacts on the environment, and maximize the positive impacts on our people and our communities.
Current wording
Amid a dynamic and uncertain operating environment, we remain focused on disciplined execution of our strategic priorities: delivering trend-right product, deepening connections with our consumers, expanding our international businesses, growing our non-footwear categories, expanding our direct-to-consumer business led by digital, strengthening our core U.S. wholesale business, and efficiently managing our inventory and expenses. At the same time, we are maintaining a strong focus on cost control and operational efficiency. We also remain committed to advancing our corporate social responsibility initiatives to create long-term value for our stakeholders, minimize the negative impacts on the environment, and maximize the positive impacts on our people and our communities.
Previous wording
Income from operations for the nine months ended September 30, 2025 was $44,599, or 2.5% of total revenue, compared to $178,194, or 10.5% of total revenue, in the comparable period in the prior year. The effective tax rate for the nine months ended September 30, 2025 was 47.0%, compared to 24.3% in the comparable period in the prior year. The difference between the Company’s effective tax rates was primarily due to non-deductible expenses related to the acquisition of the Kurt Geiger business.
Current wording
Income from operations for the three months ended March 31, 2026 was $98,742, or 15.1% of total revenue, compared to $53,499, or 9.7% of total revenue, in the comparable period in the prior year. The effective tax rate for the three months ended March 31, 2026 was 24.7%, compared to 24.1% in the comparable period in the prior year. The difference between the Company’s effective tax rates was primarily due to an increase in pre-tax income in jurisdictions with higher tax rates.
Previous wording
Net income attributable to Steven Madden, Ltd. for the three months ended September 30, 2025 was $20,528, compared to $55,278, in the comparable period in the prior year.
Current wording
Net income attributable to Steven Madden, Ltd. for the three months ended March 31, 2026 was $71,822, compared to $40,423 in the comparable period in the prior year.
Previous wording
Revenue from the Direct-to-Consumer segment for the three months ended September 30, 2025 was $221,505, or 33.2% of total revenue, compared to $125,455, or 20.1% of total revenue, in the comparable period in the prior year period. The increase of 76.6% was primarily driven by incremental revenue from brick-and-mortar stores, concessions, and digital businesses related to the acquisition of Kurt Geiger. As of September 30, 2025, we operated 397 brick-and-mortar stores, seven e-commerce websites, and 133 concessions in international markets. This includes 74 company-operated brick-and-mortar retail stores, including 29 outlets, as well as two e-commerce websites and 72 concessions related to Kurt Geiger. As of September 30, 2024, we operated 282 brick-and-mortar stores, five e-commerce websites, and 67 concessions in international markets.
Current wording
Revenue from the Direct-to-Consumer segment for the three months ended March 31, 2026 was $206,013, or 31.5% of total revenue, compared to $112,064, or 20.2% of total revenue, in the comparable period in the prior year. The increase of 83.8% was driven by incremental revenue from the acquisition of Kurt Geiger and a strong performance of the Steve Madden full-price business in the United States. As of March 31, 2026, we operated 387 brick-and-mortar stores, eight e-commerce websites, and 162 concessions in international markets. This includes 73 company-operated brick-and-mortar retail stores, three e-commerce websites, and 65 concessions related to the Kurt Geiger business. As of March 31, 2025, we operated 314 brick-and-mortar stores, five e-commerce websites, and 61 concessions in international markets.
Previous wording
Royalty income from the Licensing segment for the three months ended September 30, 2025 was $3,675, or 0.6% of total revenue, compared to $3,505, or 0.6% of total revenue, in the comparable period in the prior year. Operating expenses for the three months ended September 30, 2025 were $217, compared to $277 in the comparable period of the prior year. Income from operations for the three months ended September 30, 2025 was $3,458, compared to $3,228 in the comparable period in the prior year.
Current wording
Royalty income from the Licensing segment for the three months ended March 31, 2026 was $3,436, or 0.5% of total revenue, compared to $2,152, or 0.4% of total revenue, in the comparable period in the prior year. Operating expenses for the three months ended March 31, 2026 were $259, compared to $327 in the comparable period in the prior year. Income from operations for the three months ended March 31, 2026 was $3,177, compared to $1,825 in the comparable period in the prior year.
Previous wording
Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These expenses primarily related to corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services. Corporate operating expenses for the three months ended September 30, 2025 were $23,377, or 3.5% of total revenue, compared to $25,065, or 4.0% of total revenue, in the comparable period in the prior year.
Current wording
Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These expenses primarily related to corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services. Corporate operating expenses for the three months ended March 31, 2026 were $27,171 or 4.2% of total revenue, compared to $27,598 or 5.0% of total revenue, in the comparable period in the prior year. The comparable period in the prior year included charges of $2,614 related to acquisition costs and $686 related to certain severances and termination benefits.
Previous wording
Our primary sources of liquidity are cash flows from operations, cash, cash equivalents, short-term investments and borrowing capacity under our Credit Agreement. Cash, cash equivalents, and short-term investments totaled $108,862 and $203,408 at September 30, 2025 and December 31, 2024, respectively, and of the total cash, cash equivalents, and short-term investments as of September 30, 2025, $89,861, or approximately 88%, was held in our foreign subsidiaries, and of the total cash, cash equivalents, and short-term investments as of December 31, 2024, $119,569, or approximately 59%, was held in our foreign subsidiaries.
Current wording
Our primary sources of liquidity are cash flows from operations, cash, cash equivalents and borrowing capacity under our Credit Agreement. Cash and cash equivalents totaled $77,157 and $112,423 at March 31, 2026 and December 31, 2025, respectively, and of the total cash and cash equivalents as of March 31, 2026, $72,066, or approximately 93%, was held at our foreign subsidiaries, and of the total cash and cash equivalents as of December 31, 2025, $93,859, or approximately 83%, was held at our foreign subsidiaries.
Previous wording
As of September 30, 2025, we had working capital of $520,512, cash and cash equivalents of $108,722, short-term investments of $140, and $2,703 in letters of credit outstanding.
Current wording
As of March 31, 2026, we had working capital of $577,532, cash and cash equivalents of $77,157, and $3,024 in letters of credit outstanding.
Previous wording
At September 30, 2025, the total outstanding borrowings under our Credit Agreement in the form of cash borrowings and standby letters of credit were $300,000 and $2,703, respectively.
Current wording
At March 31, 2026, the total outstanding borrowings under our Credit Agreement in the form of cash borrowings and standby letters of credit were $292,000 and $3,024, respectively.
Previous wording
We believe that based on our current financial position and available cash, cash equivalents, short-term investments, we will meet all our financial commitments and operating needs for at least the next twelve months. In addition, our $250,000 asset-based revolving credit facility provides us with additional liquidity and flexibility on a long-term basis.
Current wording
We believe that based on our current financial position and available cash and cash equivalents, we will meet all our financial commitments and operating needs for at least the next twelve months. In addition, our $250,000 asset-based revolving credit facility provides us with additional liquidity and flexibility on a long-term basis.
Previous wording
Cash used in investing activities was $392,861 for the nine months ended September 30, 2025, which consisted of $371,554 related to the acquisition of the Kurt Geiger business (net of cash acquired), capital expenditures of $32,338 for leasehold improvements, new stores, and systems enhancements and $2,379 related to the acquisitions of joint ventures. This was partially offset by $13,410 related to proceeds from the sales of short-term investments.
Current wording
Cash used in investing activities was $5,901 for the three months ended March 31, 2026, which consisted of capital expenditures for leasehold improvements, new stores, and systems enhancements.
Previous wording
Cash provided by financing activities was $237,540 for the nine months ended September 30, 2025, which primarily consisted of net transaction-related borrowings of $300,000, partially offset by dividends paid of $45,692, financing costs paid of $8,955 in connection with the Credit Agreement, and net settlements of stock awards of $8,367.
Current wording
Cash provided by financing activities was $26,419 for the three months ended March 31, 2026, which primarily consisted of net transaction-related borrowings of $52,000, partially offset by dividends paid of $15,290, and net settlements of stock awards of $7,367.
Previous wording
(3)Future minimum royalty and advertising payments represent our obligation in connection with our licenses agreement. Refer to Note 13 – Commitments, Contingencies, and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Current wording
(3)Future minimum royalty and advertising payments represent our obligation in connection with our license agreement. Refer to Note 12 – Commitments, Contingencies, and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Previous wording
In addition to the commitments included in the Contractual Obligations table above, we have letters of credit of $2,703 outstanding as of September 30, 2025 related to the purchase of inventory and certain lease obligations. These letters of credit expire at various dates through 2030.
Current wording
In addition to the commitments included in the Contractual Obligations table above, we have letters of credit of $3,024 outstanding as of March 31, 2026 related to the purchase of inventory and certain lease obligations. These letters of credit expire at various dates through 2030.
Previous wording
We do not maintain any other off-balance sheet arrangements, transactions, obligations, or other relationships with unconsolidated entities that would be expected to have a material current or future effect on our consolidated financial statements. Refer to Note 13 – Commitments, Contingencies, and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Current wording
We do not maintain any other off-balance sheet arrangements, transactions, obligations, or other relationships with unconsolidated entities that would be expected to have a material current or future effect on our Condensed Consolidated Financial Statements. Refer to Note 12 – Commitments, Contingencies, and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Direct-to-Consumer. This segment engages in the sale of footwear, handbags, apparel, and other accessories through Steve Madden, Kurt Geiger London, Dolce Vita, and Carvela full-price retail stores, Steve Madden, Kurt Geiger
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
$0.29 per share on 71,157 diluted weighted average shares outstanding, compared to diluted earnings per share of $0.77 per share on 71,569 diluted weighted average shares outstanding in the third quarter of the prior year.
Previous report — wording carried elsewhere
The following tables set forth information on operations for the periods indicated: