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1. Company Snapshot

1.a. Company Description

Steven Madden, Ltd.designs, sources, markets, and sells fashion-forward branded and private label footwear, accessories, and apparel for women, men, and children in the United States and internationally.Its Wholesale Footwear segment provides footwear under the Steve Madden, Steven by Steve Madden, Madden Girl, BB Dakota, Dolce Vita, DV Dolce Vita, Betsey Johnson, GREATS, Blondo, Anne Klein, Mad Love, Superga, Madden NYC, and COOL Planet brands, as well as private label footwear.


The company's Wholesale Accessories/Apparel segment offers handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other accessories under the Steve Madden, BB Dakota, Anne Klein, Betsey Johnson, Cejon, Madden NYC, and Dolce Vita brands, as well as private label handbag and accessories to department stores, mass merchants, off-price retailers, online retailers, specialty stores, and independent stores.Its Direct-to-Consumer segment operates Steve Madden and Superga full-price retail stores, Steve Madden outlet stores, and Steve Madden shop-in-shops, as well as digital e-commerce websites, including SteveMadden.com, DolceVita.com, betseyjohnson.com, Blondo.com, GREATS.com, and Superga-USA.com.The company's Licensing segment licenses its Steve Madden, Madden Girl, and Betsey Johnson trademarks.


Its First Cost segment operates as a buying agent for footwear products under private labels for national chains, specialty retailers, and value-priced retailers.As of December 31, 2021, it owned and operated 214 brick-and-mortar retail stores that included 147 Steve Madden full-price stores, 66 Steve Madden outlet stores, and 1 Superga store, as well as 6 e-commerce websites.Steven Madden, Ltd.


was incorporated in 1990 and is headquartered in Long Island City, New York.

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1.b. Last Insights on SHOO

Steven Madden's recent performance has been positively driven by promising Q4 guidance and signs of recovery. Despite Q3 earnings lagging estimates, the company's upbeat outlook and growing institutional investor interest have contributed to its momentum. Creative Planning and Commonwealth of Pennsylvania Public School Empls Retrmt SYS have increased their stakes in the company. Additionally, a comparison with NIKE highlights contrasting strategies and demand trends, potentially positioning Steven Madden for future growth.

1.c. Company Highlights

2. Steve Madden Ltd. Faces Tariff Challenges, Yet Sees Growth Opportunities

The third quarter of 2025 was a mixed bag for Steve Madden Ltd., as the company navigated the impact of new tariffs on goods imported into the United States. Despite this, consolidated revenue reached $667.9 million, a 6.9% increase compared to the third quarter of 2024. Excluding the newly acquired Kurt Geiger, consolidated revenue decreased 14.8%. The company's gross margin improved to 43.4% in the quarter, up from 41.6% in the comparable period of 2024. Operating income for the quarter was $46.3 million or 6.9% of revenue, and net income attributable to Steve Madden Limited was $30.4 million or $0.43 per diluted share, slightly below estimates of $0.44.

Publication Date: Nov -09

📋 Highlights
  • Revenue Growth Despite Tariffs:: Consolidated revenue rose 6.9% to $667.9M (Q3 2025 vs. Q3 2024), though excluding Kurt Geiger, it fell 14.8%.
  • DTC Surge Outpaces Wholesale Decline:: Direct-to-consumer revenue jumped 76.6% to $221.5M, contrasting with a 10.7% drop in wholesale revenue to $442.7M.
  • Gross Margin Expansion:: Gross margin improved to 43.4% (up from 41.6%), while operating income reached $46.3M (6.9% of revenue).
  • Q4 Guidance Optimistic:: Revenue expected to rise 27–30% YoY in Q4 2025, with EPS projected at $0.41–$0.46, driven by AUR growth (high singles in Q3, mid-teens in Q4).
  • Kurt Geiger Integration Progress:: Acquisition on track for U.S. store launches in 2026, with 6% EBIT margin for 2024 partial ownership and margin improvement potential beyond Steve Madden’s historical levels.

Revenue Segmentation and Outlook

Wholesale revenue was $442.7 million, down 10.7% compared to Q3 2024, while the direct-to-consumer segment revenue increased 76.6% to $221.5 million. The company expects revenue to increase 27% to 30% in the fourth quarter of 2025 compared to the fourth quarter of 2024, driven by the inclusion of Kurt Geiger and growth in its existing businesses. Earnings per share are expected to be in the range of $0.41 to $0.46.

Product Category Performance

The company's handbag business has faced challenges due to excess inventory and market pressures, but underlying demand is improving, with expectations for stabilization in spring 2026. In contrast, the apparel business has been a growth story, with good sell-throughs, particularly in key accounts. Average Unit Retail (AUR) has increased significantly due to price increases and a mix benefit from selling more higher-priced products like boots.

Valuation and Growth Prospects

With a P/E Ratio of 48.14 and an EV/EBITDA of 27.5, the market appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 11.6%. The acquisition of Kurt Geiger is expected to have a positive impact on the company's growth, with opportunities for SG&A synergies and gross margin improvement. Long-term, the company sees opportunities for the Kurt Geiger business to reach higher margins, potentially exceeding the historical margins of the legacy Steve Madden business.

Margin Expectations and Tariff Impact

The company expects to recover from the impact of tariffs over time. The Kurt Geiger business is expected to have an EBIT margin of around 6% for the partial period owned in 2024, with opportunities for improvement in 2025 and beyond. The company plans to continue investing in marketing and storytelling to engage with consumers, driving growth and margin expansion.

3. NewsRoom

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Macquarie Small Cap Value Fund Q3 2025 Portfolio Performance

Nov -30

Source: seekingalpha.com

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Commonwealth of Pennsylvania Public School Empls Retrmt SYS Grows Position in Steven Madden, Ltd. $SHOO

Nov -27

Source: defenseworld.net

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Creative Planning Purchases 73,331 Shares of Steven Madden, Ltd. $SHOO

Nov -26

Source: defenseworld.net

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NIKE vs Steven Madden: How Two Footwear Leaders Stack Up for Investors

Nov -20

Source: zacks.com

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Steven Madden (SHOO) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -11

Source: zacks.com

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Steve Madden Is Back To Pre-Tariff Valuation Despite A Worse And Uncertain Outlook

Nov -08

Source: seekingalpha.com

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Will Steven Madden (SHOO) Gain on Rising Earnings Estimates?

Nov -07

Source: zacks.com

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SHOO Q3 Earnings Lag Estimates, Shares Up on Promising Q4 Guidance

Nov -06

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.66%)

6. Segments

Wholesale Footwear

Expected Growth: 6.5%

Strong brand recognition, increasing online presence, and strategic expansion into new markets drive the 6.5% growth in wholesale footwear segment of Steven Madden, Ltd. Additionally, the company's focus on trendy and affordable products, effective inventory management, and efficient supply chain operations contribute to its growth momentum.

Direct-to-Consumer

Expected Growth: 8.0%

Strong e-commerce platform, effective social media marketing, and influencer partnerships drive Direct-to-Consumer growth for Steven Madden, Ltd. Additionally, the company's ability to offer trendy and affordable products, as well as its focus on customer experience and loyalty programs, contribute to the 8.0% growth rate.

Wholesale Accessories/ Apparel

Expected Growth: 5.5%

Steven Madden's 5.5% growth in Wholesale Accessories/Apparel is driven by increasing demand for fashion-forward, affordable products, particularly among younger consumers. Strong brand recognition, effective marketing strategies, and a diversified product portfolio also contribute to growth. Additionally, the company's ability to adapt to changing fashion trends and its strategic partnerships with major retailers support its expansion.

Licensing

Expected Growth: 4.0%

Strong brand recognition and increasing popularity of Steven Madden's fashion footwear, combined with strategic licensing agreements, drive 4.0% growth. Expanding product lines, entering new markets, and leveraging e-commerce platforms also contribute to this growth. Additionally, the company's ability to adapt to changing consumer preferences and trends supports its continued success.

7. Detailed Products

Private Label Footwear

Designs, sources, and markets private label footwear for major department stores and specialty retailers

Branded Footwear

Designs, sources, and markets branded footwear under its own brands, including Steve Madden, Dolce Vita, and others

Licensed Brands

Holds licenses to design, source, and market footwear for popular brands, such as Anne Klein and Karl Lagerfeld

Accessory Products

Designs, sources, and markets handbags, belts, and other accessories under its own brands and licensed brands

Wholesale Distribution

Distributes its products to major department stores, specialty retailers, and online retailers

Direct-to-Consumer

Sells its products directly to consumers through its e-commerce platform, retail stores, and outlet stores

8. Steven Madden, Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Steven Madden, Ltd. is medium due to the presence of alternative products in the market, such as clothing and accessories from other brands.

Bargaining Power Of Customers

The bargaining power of customers for Steven Madden, Ltd. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Steven Madden, Ltd. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for Steven Madden, Ltd. is high due to the relatively low barriers to entry in the fashion industry.

Intensity Of Rivalry

The intensity of rivalry for Steven Madden, Ltd. is high due to the competitive nature of the fashion industry and the presence of several established brands.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.34%
Debt Cost 6.75%
Equity Weight 85.66%
Equity Cost 9.72%
WACC 9.29%
Leverage 16.74%

11. Quality Control: Steven Madden, Ltd. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.88$

Current Price

43.88$

Potential

-0.00%

Expected Cash-Flows