STEVEN MADDEN, LTD.
For the period ended Jun 30, 2026. Filed Jul 31, 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.
Jun 30, 2026 · Filed Jul 31, 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 2026-03-31; filed 2026-05-08.
0001628280-26-032774
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051368
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 134 previous paragraphs and 162 current paragraphs.
88 unchanged; 29 reworded; 43 added; 17 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 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 (43)
Current report
The retail environment continues to evolve as consumers increasingly expect integrated shopping experiences across digital and physical channels. We remain focused on strengthening our omnichannel capabilities and enhancing the consumer experience through continued investments in e-commerce, data analytics, and digital engagement. Across the wholesale channel, customers have continued to prioritize inventory discipline and cautious buying patterns in light of ongoing economic and trade-related uncertainty.
Current report
Total revenue for the three months ended June 30, 2026 increased 19.1% to $665,865, compared to $559,000 in the comparable period in the prior year. The increase was due to the acquisition of Kurt Geiger and a strong performance in the legacy branded business, partially offset by a decline in the private label business.
Current report
Gross profit for the three months ended June 30, 2026 was $309,659, or 46.5% of total revenue, compared to $226,027, or 40.4% of total revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of total revenue was due to higher average selling prices, a reduction in promotional activity, a smaller negative impact from tariffs, and a lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included a charge of $8,251 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the three months ended June 30, 2026 were $270,340, or 40.6% of total revenue, compared to $263,865, or 47.2% of total revenue, in the comparable period in the prior year. The decrease in operating expenses as a percentage of total revenue was primarily attributable to the one-time recognition of compensation expense of $38,819 in the prior-year period resulting from the reallocation of acquisition-related sellers proceeds from institutional sellers to management sellers in excess of their respective pre-acquisition equity ownership. The prior-year period also included charges of $8,135 related to acquisition costs and the formation of international joint ventures, $4,741 related to legal costs resulting from litigation settlements, and $522 related to certain severances and termination benefits. The second quarter of 2026 included charges of $3,386 related to legal costs resulting from litigation settlements, $1,486 related to certain severances and termination benefits, and $329 related to acquisition costs and the formation of joint ventures.
Current report
During the three months ended June 30, 2026, we recorded no expense related to changes in the fair value of contingent payment liabilities. In the comparable period in the prior year, we recorded expense of $2,420 related to changes in the fair value of contingent payment liabilities.
Current report
Net income attributable to Steven Madden, Ltd. for the three months ended June 30, 2026 was $27,727, compared to a net loss of $39,477 in the comparable period in the prior year.
Current report
Revenue from the Wholesale Footwear segment for the three months ended June 30, 2026 was $240,044, or 36.0% of total revenue, compared to $220,139, or 39.4% of total revenue, in the comparable period in the prior year. The increase of 9.0% was primarily driven by strong growth in the branded business, partially offset by a decline in the private label business.
Current report
Gross profit for the Wholesale Footwear segment was $85,331, or 35.5% of Wholesale Footwear revenue, for the three months ended June 30, 2026, compared to $68,485, or 31.1%, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to higher average selling prices, a smaller negative impact from tariffs, and a lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included $1,443 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the three months ended June 30, 2026 for the Wholesale Footwear segment were $54,576, or 22.7% of Wholesale Footwear revenue, compared to $43,580, or 19.8% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue reflects higher incentive compensation and higher distribution and logistics expenses. The second quarter of 2026 also included charges of $1,334 related to legal costs resulting from litigation settlements, $945 related to certain severances and termination benefits, and $46 related to acquisition costs and the formation of international joint ventures. The comparable period in the prior year included $350 of costs related to certain severances and termination benefits and $8 of acquisition costs related to the formation of new international joint ventures.
Current report
Income from operations for the three months ended June 30, 2026 for the Wholesale Footwear segment totaled $30,755, or 12.8% of Wholesale Footwear revenue, compared to $24,905, or 11.3% 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 June 30, 2026 was $167,461, or 25.1% of total revenue, compared to $140,449, or 25.1% of total revenue, in the comparable period in the prior year. The increase of 19.2% was primarily driven by strong growth in the branded business, partially offset by a decline in the private label business.
Current report
Gross profit for Wholesale Accessories/Apparel segment was $57,940, or 34.6% of Wholesale Accessories/Apparel revenue, for the three months ended June 30, 2026, compared to $39,809, or 28.3% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to higher average selling prices, a smaller negative impact from tariffs, and a lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included a charge of $1,814 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the three months ended June 30, 2026 for the Wholesale Accessories/Apparel segment were $36,057, or 21.5% of Wholesale Accessories/Apparel revenue, compared to $31,480, or 22.4% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The decrease in operating expenses as a percentage of Wholesale Accessories/Apparel revenue reflects leveraging of operating expenses on a higher revenue base. The second quarter of 2026 also included charges of $602 related to legal costs resulting from earnout-related litigation and $322 related to certain severances and termination benefits. The comparable period in the prior year included charges of $791 related to legal costs resulting from litigation settlements and $223 related to certain severances and termination benefits.
Current report
During the three months ended June 30, 2025, we recorded a charge of $2,420 related to the change in fair value of contingent payment liabilities.
Current report
Income from operations for the three months ended June 30, 2026 for the Wholesale Accessories/Apparel segment was $21,883, or 13.1% of Wholesale Accessories/Apparel revenue, compared to $5,909, or 4.2% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Current report
Revenue from the Direct-to-Consumer segment for the three months ended June 30, 2026 was $255,409, or 38.4% of total revenue, compared to $195,502, or 35.0% of total revenue, in the comparable period in the prior year period. The increase of 30.6% was primarily driven by the acquisition of Kurt Geiger and a strong Steve Madden performance in both our brick-and-mortar stores and e-commerce businesses. As of June 30, 2026, we operated 382 brick-and-mortar stores, eight e-commerce websites, and 164 concessions in international markets. As of June 30, 2025, we operated 392 brick-and-mortar stores, seven e-commerce websites, and 130 concessions in international markets.
Current report
Gross profit for the three months ended June 30, 2026 for the Direct-to-Consumer segment was $163,437, or 64.0% of Direct-to-Consumer revenue, compared to $114,823, or 58.7% of Direct-to-Consumer revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to higher average selling prices, a reduction in promotional activity, and a smaller negative impact from tariffs, partially offset by higher freight costs. The comparable period in the prior year included a charge of $4,994 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the three months ended June 30, 2026 for the Direct-to-Consumer segment were $150,237, or 58.8% of Direct-to-Consumer revenue, compared to $159,157, or 81.4% 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 one-time recognition of compensation expense of $38,819 in the prior-year period resulting from the reallocation of acquisition-related sellers proceeds from institutional sellers to management sellers in excess of their respective pre-acquisition equity ownership. The prior-year period also included charges of $7,222 related to acquisition costs and the formation of international joint ventures and $1,450 related to legal costs resulting from litigation settlements. The second quarter of 2026 included charges of $922 related to legal costs as a result of litigation settlements, $277 related to acquisition costs and the formation of joint ventures, and $172 related to certain severances and termination benefits.
Current report
Income from operations for the three months ended June 30, 2026 for the Direct-to-Consumer segment was $13,200, or 5.2% of Direct-to-Consumer revenue, compared to a loss from operations of $44,334, or (22.7)% of Direct-to-Consumer revenue, in the comparable period in the prior year.
Current report
Results of Operations
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
Consolidated
Current report
Total revenue for the six months ended June 30, 2026 increased 18.6% to $1,318,961, compared to $1,112,534 in the comparable period in the prior year. The increase was driven by the acquisition of Kurt Geiger and a strong performance in the legacy branded business, partially offset by a decline in the private label business.
Current report
Operating expenses for the six months ended June 30, 2026 were $528,633, or 40.1% of total revenue, compared to $441,128, or 39.7% 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, higher incentive compensation, and higher distribution and logistics expenses. The first half of 2026 also included charges of $4,226 related to legal costs resulting from litigation settlements and earnout-related litigations, $2,649 related to certain severances and termination benefits, and $591 related to acquisition costs and the formation of international joint ventures. The comparable period in the prior year included $38,819 of compensation expense resulting from the reallocation of acquisition-related sellers proceeds from institutional sellers to management sellers in excess of their respective pre-acquisition equity ownership, as well as charges of $11,322 related to acquisition costs and the formation of international joint ventures, $5,929 related to legal costs resulting from litigation settlements, and $2,943 related to certain severances and termination benefits.
Current report
Income from operations for the six months ended June 30, 2026 was $138,061, or 10.5% of total revenue, compared to $13,241, or 1.2% of total revenue, in the comparable period in the prior year. The effective tax rate for the six months ended June 30, 2026 was 25.2%, compared to 87.0% in the comparable period in the prior year. The difference between the Company’s effective tax rates was primarily due to non-deductible expenses treated as discrete items related to the acquisition of the Kurt Geiger business.
Current report
Wholesale Footwear Segment
Current report
Revenue from the Wholesale Footwear segment for the six months ended June 30, 2026 was $518,910, or 39.3% of total revenue, compared to $516,284, or 46.4% of total revenue, in the comparable period in the prior year. The increase of 0.5% was primarily driven by the acquisition of Kurt Geiger and a strong performance in the legacy branded business, partially offset by a decline in the private label business.
Current report
Gross profit for the six months ended June 30, 2026 for the Wholesale Footwear segment was $221,341, or 42.7% of Wholesale Footwear revenue, compared to $177,176, or 34.3% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to the refund of IEEPA tariffs, higher average selling prices, a smaller negative impact from tariffs, a lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included $1,443 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the six months ended June 30, 2026 for the Wholesale Footwear segment were $110,211, or 21.2% of Wholesale Footwear revenue, compared to $89,183, or 17.3% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue was due to higher incentive compensation and higher distribution and logistics expenses. The first half of 2026 also included charges of $1,545 related to certain severances and termination benefits, $1,334 related to legal costs resulting from litigation settlements, and $81 related to acquisition costs and the formation of international joint ventures. The comparable period in the prior year included costs of $946 related to certain severances and termination benefits, and $80 of acquisition costs related to the formation of new international joint ventures.
Current report
Income from operations for the six months ended June 30, 2026 for the Wholesale Footwear segment totaled $111,130, or 21.4% of Wholesale Footwear revenue, compared to $87,993, or 17.0% of Wholesale Footwear revenue, in the comparable period in the prior year.
Current report
Wholesale Accessories/Apparel Segment
Current report
Gross profit for the six months ended June 30, 2026 for the Wholesale Accessories/Apparel segment was $140,110, or 42.2% of Wholesale Accessories/Apparel revenue, compared to $87,858, or 31.0% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to the refund of IEEPA tariffs, higher average selling prices, the acquisition of Kurt Geiger, a smaller negative impact from tariffs, and a lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included a charge of $2,093 related to the purchase accounting fair value adjustment of inventory from acquired businesses.
Current report
Operating expenses for the six months ended June 30, 2026 for the Wholesale Accessories/Apparel segment were $73,897, or 22.2% of Wholesale Accessories/Apparel revenue, compared to $61,612, or 21.7% 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 due to the acquisition of Kurt Geiger, higher incentive compensation, and higher distribution and logistics expenses. The first half of 2026 also included charges of $910 related to legal costs resulting from earnout-related litigation and $669 related to certain severances and termination benefits. The comparable period in the prior year included charges of $1,979 related to legal costs resulting from litigation settlements and $327 related to certain severances and termination benefits.
Current report
Income from operations for the six months ended June 30, 2026 for the Wholesale Accessories/Apparel segment was $65,828, or 19.8% of Wholesale Accessories/Apparel revenue, compared to $28,321, or 10.0% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Current report
Direct-to-Consumer Segment
Current report
Revenue from the Direct-to-Consumer segment for the six months ended June 30, 2026 was $461,422, or 35.0% of total revenue, compared to $307,566, or 27.6% of total revenue, in the comparable period in the prior year. The increase of 50.0% was driven by the acquisition of Kurt Geiger and a strong Steve Madden performance in both our brick-and-mortar and e-commerce businesses.
Current report
Gross profit for the six months ended June 30, 2026 for the Direct-to-Consumer segment was $299,241, or 64.9% of Direct-to-Consumer revenue, compared to $182,198, or 59.2% of Direct-to-Consumer revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was due to the refund of IEEPA tariffs, higher average selling prices, and a reduction in promotional activity, partially offset by higher freight costs. The comparable period in the prior year included a charge of $4,994 related to the purchase accounting fair value adjustment of inventory from the acquisition of the Kurt Geiger business.
Current report
Operating expenses for the six months ended June 30, 2026 for the Direct-to-Consumer segment were $287,625, or 62.3% of Direct-to-Consumer revenue, compared to $232,760, or 75.7% 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 one-time recognition of compensation expense of $38,819 in the prior-year period resulting from the reallocation of acquisition-related sellers proceeds from institutional sellers to management sellers in excess of their respective pre-acquisition equity ownership. The prior-year period also included charges of $7,692 related to acquisition costs and the formation of international joint ventures, $1,450 related to legal costs resulting from litigation settlements, and $915 related to certain severances and termination benefits. This was partially offset by higher incentive compensation and higher distribution and logistics expenses in the first half of 2026. The 2026 period also included charges of $1,454 related to legal costs resulting from litigation settlements, $504 related to acquisition costs and the formation of international joint ventures, and $229 related to certain severances and termination benefits.
Current report
Income from operations for the six months ended June 30, 2026 for the Direct-to-Consumer segment was $11,616, or 2.5% of Direct-to-Consumer revenue, compared to a loss from operations of $50,562, or (16.4)% of Direct-to-Consumer revenue, in the comparable period in the prior year.
Current report
Licensing Segment
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Removed paragraphs (17)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Reworded paragraphs (29)
Previous 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.
Current wording
The following discussion of our financial condition and results of operations for the three and six months ended June 30, 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 to our business model to rapid changes in the retail industry;
Current wording
•our ability to adapt our business model to rapid changes in the retail industry;
Previous wording
•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 wording
•changes in trade policies, additional tariffs on product imported to the United States or other territories where we operate, retaliatory trade actions taken by other countries, and resulting trade wars;
Previous wording
•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 wording
•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 for our products;
Previous wording
•our exposure to risks associated with increased indebtedness used to finance the acquisition of Kurt Geiger, including related debt service requirements;
Current wording
•our exposure to risks associated with indebtedness used to finance the acquisition of Kurt Geiger, including related debt service requirements;
Previous wording
•litigation or other legal proceedings could divert management resources and result in costs;
Current wording
•litigation or other legal proceedings could divert management resources and result in additional costs;
Previous wording
•the actions of our licensees and diminished brand integrity;
Current wording
•the actions of our licensees that may result in diminished brand integrity;
Previous 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.
Current wording
The second quarter of 2026 continued to be shaped by an evolving macroeconomic environment, requiring ongoing flexibility across our sourcing, supply chain, and go-to-market strategies.
Previous wording
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 wording
Global trade policy remained a significant area of focus during the second quarter of 2026. Following the United States Supreme Court’s February 2026 decision concluding that certain tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were not authorized, and the U.S. Court of International Trade’s (“CIT”) subsequent order directing U.S. Customs and Border Protection (“CBP”) to provide refunds of previously collected amounts, including applicable interest, the administration continued to pursue alternative trade measures, including the imposition of tariffs under Sections 301 and 122 of the Trade Act of 1974, as well as other statutory authorities that may be used to impose tariffs or other import restrictions. In addition, the ongoing review of the United States-Mexico-Canada Agreement (“USMCA”), together with developments relating to other trade agreements and international trade arrangements, has contributed to, and may continue to contribute to, uncertainty in the global trade environment. At this time, the timing, scope, and magnitude of tariff-related impacts remain uncertain and will depend on future developments in U.S. trade policy, trade agreement negotiations, judicial proceedings, and regulatory actions. In response to this evolving environment, we have continued to maintain diversified sourcing strategies, selectively adjust pricing where appropriate, and pursue cost management initiatives.
Previous wording
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 wording
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 remained mixed across channels and regions, reflecting ongoing sensitivity to pricing, inflationary pressures, and broader economic uncertainty. Foreign currency volatility and concerns regarding global economic growth have also continued to influence consumer sentiment.
Previous wording
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 wording
Geopolitical developments continued to influence the global operating environment during the quarter. Ongoing conflicts in Ukraine and the Middle East, including persistent tensions involving Iran, together with broader strategic tensions between the United States and China, continued to contribute to uncertainty in global markets. These conditions have affected, and may continue to affect, supply chains, trade flows, input costs, freight markets, and broader global business operations.
Previous 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.
Current wording
Total revenue for the quarter ended June 30, 2026 increased 19.1% to $665,865, compared to $559,000 in the same period of last year, primarily driven by the acquisition of Kurt Geiger and a strong performance in the legacy branded business, partially offset by a decline in the private label business. Net income attributable to Steven Madden, Ltd. was $27,727 in the second quarter of 2026, compared to a net loss of $39,477 in the same period of last year. Our effective tax rate for the second quarter of 2026 was 26.6%, compared to (11.2)% in the same period of last year. Diluted income per share was $0.38 per share on 72,164 diluted weighted average shares outstanding, compared to diluted loss per share of $0.56 per share on 70,870 diluted weighted average shares outstanding in the second quarter of the prior year.
Previous 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.
Current wording
Our inventory turnover (calculated on a trailing four quarter average) for the quarter ended June 30, 2026 was 3.6 times, compared to 4.6 times at June 30, 2025. Excluding the Kurt Geiger business, our inventory turnover for the quarter ended June 30, 2026 was 4.8 times, compared to 5.2 times for the quarter ended June 30, 2025. Our total Company accounts receivable average collection days decreased to 61 days in the second quarter of 2026, compared to 71 days in the second quarter of 2025. As of June 30, 2026, we had $94,739 in cash and cash equivalents, and total stockholders’ equity of $972,104. Working capital was $441,931 as of June 30, 2026, compared to $501,184 as of June 30, 2025.
Previous 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.
Current wording
Income from operations for the three months ended June 30, 2026 was $39,319, or 5.9% of total revenue, compared to a loss from operations of $40,258, or (7.2)% of total revenue in the comparable period in the prior year. The effective tax rate for the three months ended June 30, 2026 was 26.6% compared to (11.2)%, in the comparable period in the prior year. The difference between the Company’s effective tax rates was primarily due to non-deductible expenses treated as discrete items related to the acquisition of the Kurt Geiger business.
Previous 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.
Current wording
Royalty income from the Licensing segment for the three months ended June 30, 2026 was $2,951, or 0.4% of total revenue, compared to $2,910, or 0.5% of total revenue, in the comparable period in the prior year. Operating expenses for the three months ended June 30, 2026 were $1,016, compared to $553 in the comparable period of the prior year. The current period included charges of $528 related to legal costs resulting from litigation settlements. Income from operations for the three months ended June 30, 2026 was $1,935, compared to $2,357 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 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.
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 June 30, 2026 were $28,454, or 4.3% of total revenue, compared to $29,095, or 5.2% of total revenue, in the comparable period in the prior year. The current period included charges of $47 related to certain severances and termination benefits, and $6 related to acquisition costs and the formation of joint ventures.
Previous wording
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 wording
Gross profit for the six months ended June 30, 2026 was $667,079, or 50.6% of total revenue, compared to $452,294, or 40.7% of total revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of total revenue was due to the refund of IEEPA tariffs, the acquisition of Kurt Geiger, higher average selling prices, a smaller negative impact from tariffs, and lower penetration of the private label business, partially offset by higher freight costs. The comparable period in the prior year included a charge of $8,530 related to purchase accounting fair value adjustment of inventory from acquired businesses.
Previous wording
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 wording
During the six months ended June 30, 2026, we recorded an expense of $385 related to the change in fair value of contingent payment liabilities. In the comparable period in the prior year, we recorded a benefit of $2,075 related to the change in fair value of contingent payment liabilities.
Previous 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.
Current wording
Net income attributable to Steven Madden, Ltd. for the six months ended June 30, 2026 was $99,549, compared to $946 in the comparable period in the prior year.
Previous wording
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 wording
Revenue from the Wholesale Accessories/Apparel segment for the six months ended June 30, 2026 was $332,242, or 25.2% of total revenue, compared to $283,622, or 25.5% of total revenue, in the comparable period in the prior year. The increase of 17.1% was primarily driven by the acquisition of Kurt Geiger and a strong performance in the legacy branded business, partially offset by a decline in the private label business.
Previous wording
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 wording
During the six months ended June 30, 2026, we recorded a charge of $385 related to the change in fair value of contingent payment liabilities. During the comparable period in the prior year, we recorded a benefit of $2,075 related to the change in fair value of contingent payment liabilities.
Previous 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.
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 $94,739 and $112,423 at June 30, 2026 and December 31, 2025, respectively, and of the total cash and cash equivalents as of June 30, 2026, $78,618, or approximately 83%, 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 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.
Current wording
As of June 30, 2026, we had working capital of $441,931, cash and cash equivalents of $94,739, and $3,834 in letters of credit outstanding.
Previous 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.
Current wording
At June 30, 2026, the total outstanding borrowings under our Credit Agreement in the form of cash borrowings and standby letters of credit were $130,000 and $3,330, respectively.
Previous wording
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.
Current wording
Cash provided by operating activities was $149,263 for the six months ended June 30, 2026, compared to $47,635 in the same period of the prior year. The increase in cash provided by operating activities was primarily driven by higher net income and favorable changes in working capital, and the collection of substantially all of the Company's IEEPA tariff refund during the second quarter of 2026.
Previous 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.
Current wording
Cash used in investing activities was $15,739 for the six months ended June 30, 2026, which primarily consisted of capital expenditures for leasehold improvements, new stores, and systems enhancements.
Previous 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.
Current wording
Cash used in financing activities was $151,502 for the six months ended June 30, 2026, which primarily consisted of transaction-related net repayments of $110,000, dividends paid of $30,641, and net settlements of stock awards of $8,352.
Previous 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.
Current wording
(3)Future minimum royalty and advertising commitments represent our obligations 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 $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.
Current wording
In addition to the commitments included in the Contractual Obligations table above, we have letters of credit of $504 outstanding as of June 30, 2026 related to the purchase of inventory and certain lease obligations. These letters of credit expire at various dates through 2036.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The following tables set forth information on operations for the periods indicated:
Current report — wording carried from elsewhere
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 six months ended June 30, 2026 were $55,625 or 4.2% of total revenue, compared to $56,693 or 5.1% of total revenue, in the comparable period in the prior year. The current period included charges of $206 related to certain severances and termination benefits and $6 related to acquisition costs and the formation of joint ventures. 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.