SHOO

Steven Madden, Ltd.  SHOO delivered impressive second-quarter 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate and increasing year over year. Broad-based strength across its Steve Madden, Kurt Geiger and Dolce Vita brands, along with healthy wholesale and direct-to-consumer ("DTC") demand, drove robust revenue growth and margin expansion. Encouraged by the strong performance, management raised its fiscal 2026 revenue and adjusted earnings outlook.Shares of Steven Madden have gained 27.1% over the past three months, significantly outperforming the industry's 0.2% increase during the same period. Image Source: Zacks Investment Research Steven Madden reported second-quarter revenues of $665.9 million, up 19.1% year over year. Excluding Kurt Geiger, revenues increased 11.2%.Wholesale revenues increased 13% to $407.5 million, while DTC revenues climbed 30.6% to $255.4 million. Excluding Kurt Geiger, wholesale and DTC revenues increased 11.5% and 11.1%, respectively. Steve Madden global comparable sales rose 9%, including a 17% increase in the United States, reflecting continued strength in the company's flagship brand.Profitability improved meaningfully during the quarter. Adjusted gross margin expanded 460 basis points year over year to 46.5%, driven by higher average selling prices, reduced promotional activity, lower tariff pressure and a lower mix of private-label business. Adjusted operating margin increased to 6.7% from 4% a year ago, while adjusted earnings more than doubled to 44 cents per share from 20 cents.Steven Madden strengthened its balance sheet by using tariff-related refunds to reduce debt. The company ended the quarter with $94.7 million in cash and cash equivalents and net debt of $30.1 million, while inventories declined 13.7% year over year. Following the strong second quarter, management raised its fiscal 2026 outlook. Steven Madden expects revenue growth of 11-13%, up from the prior expectation of 10-12%. Adjusted earnings per share are projected in the range of $2.05-$2.15, compared with the earlier guidance of $2.00-$2.10. The company reaffirmed its EPS guidance of $2.55-$2.65.Management raised its expectations for several key brands. The Steve Madden brand is expected to deliver high single-digit revenue growth in 2026, Kurt Geiger is projected to generate mid-teens pro forma revenue growth and Dolce Vita is expected to post high single-digit to low-double-digit revenue growth. Despite the recent rally, Steven Madden's valuation remains attractive. The stock currently trades at a trailing 12-month price-to-sales ratio of 1.21X, below the industry average of 1.27X, suggesting investors are not paying a premium for its improving growth profile. It has a Value Score of A. Image Source: Zacks Investment Research Steven Madden continues to execute well across multiple growth initiatives, led by the strong momentum of its flagship Steve Madden brand. Management highlighted healthy demand across women's footwear, men's footwear and handbags, driven by trend-right product assortments and effective marketing campaigns. Reflecting the brand's growing consumer appeal, global online searches for the Steve Madden brand increased 71% during the second quarter, reinforcing management's confidence in its long-term growth prospects.Kurt Geiger remains another important long-term growth driver. The company expanded the brand's U.S. retail footprint by opening two full-price stores during the quarter, bringing the total to seven. Existing stores generated 12% comparable sales growth, while Steven Madden acquired Spain and Portugal distribution business and continues to pursue additional distribution and joint venture opportunities to further expand Kurt Geiger's international presence. The company noted that its in-store personalization service has emerged as a key differentiator for the brand.Dolce Vita continues to gain momentum as an important growth brand within Steven Madden's portfolio. Management highlighted strong performance across both wholesale and DTC channels, supported by demand for jellies, ballet flats, Mary Janes, mid-heel dress shoes and thongs. The brand continued to gain traction in handbags while expanding its presence in international markets, including Canada, Mexico and the United Kingdom.Beyond its brand portfolio, Steven Madden continues to strengthen its market position through disciplined execution across its wholesale and DTC businesses. Management noted strong sell-throughs and reorder activity in the branded wholesale business, while DTC momentum continued into the third quarter. Strong performance during the Nordstrom Anniversary Sale, particularly in the Steve Madden women's footwear business, further underscores the company's ability to capitalize on consumer demand across multiple distribution channels. Despite the strong momentum, Steven Madden faces several near-term challenges. The company's private-label business remains under pressure, with management expecting revenues from the segment to decline at a mid- to high-teens rate in fiscal 2026. While branded products continue to perform well, ongoing weakness in private label could weigh on wholesale growth.Freight and sourcing costs also remain a concern. Management noted that the prolonged conflict in the Middle East has increased air freight usage as the company works to replenish best-selling products and mitigate supply-chain disruptions. Suppliers are finding it increasingly difficult to absorb higher logistics costs, resulting in greater cost pressures during the second half of the year.Tariff uncertainty continues to cloud the outlook. While Steven Madden has benefited from lower tariff pressure this year, management's guidance assumes additional tariffs in the fourth quarter as investigations into structural excess capacity and intellectual property practices remain unresolved. Any further changes in trade policies could increase sourcing costs and dampen profitability.Although management expects gross margins to improve year over year in the second half, it cautioned that the pace of expansion will moderate as the company laps prior pricing actions and the favorable mix benefits from the Kurt Geiger acquisition. These headwinds could limit further margin improvement despite continued healthy demand for the company's brands. The Zacks Consensus Estimate for Steven Madden's 2026 earnings has increased by 3 cents over the past seven days, while the 2027 estimate has remained unchanged.Current consensus estimates indicate earnings growth of 25.9% in 2026 and 24.5% in 2027, reflecting confidence in the company's long-term earnings trajectory. Image Source: Zacks Investment Research Steven Madden remains well-positioned for long-term growth, supported by strong brand momentum, healthy consumer demand and an improving earnings outlook. While freight costs, tariff uncertainty and weakness in the private-label business remain near-term headwinds, the stock trades at a modest valuation relative to the industry and analysts continue to project robust earnings growth over the next two years.Given its balanced risk-reward profile following the recent rally, Steven Madden appears to be a stock worth holding. The company currently carries a Zacks Rank #3 (Hold). Canada Goose GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Canada Goose’s current fiscal-year earnings and sales suggests growth of 58.9% and 3.4%, respectively, from the year-ago actuals. GOOS delivered a trailing four-quarter average negative earnings surprise of 42%.Tilly's, Inc. TLYS is a specialty retailer in the action sports industry selling clothing, shoes and accessories. The company also sports a Zacks Rank #1 at present. The Zacks Consensus Estimate for Tilly's current fiscal-year sales indicates growth of 4.9% from the year-ago actuals. TLYS delivered a trailing four-quarter average earnings surprise of 155.3%. Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steven Madden, Ltd. (SHOO) : Free Stock Analysis Report Tilly's, Inc. (TLYS) : Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 8:30 a.m. ET Chairman and Chief Executive Officer - Edward Rosenfeld Chief Financial Officer and Executive Vice President of Operations - Zine Mazouzi Vice President of Corporate Development and Investor Relations - Danielle McCoy Operator: Welcome to the Second Quarter 2026 Steven Madden Limited Earnings Call and Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Danielle McCoy, Vice President of Corporate Development and Investor Relations. Please go ahead. Danielle McCoy: Thanks, Debbie, and good morning, everyone. Thank you for joining our second quarter 2026 earnings call and webcast. Before we begin, I'd like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have described in our press release issued earlier today and filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings call, if at all. The financial results discussed on today's call are on an adjusted basis, unless otherwise noted. A reconciliation to the most directly comparable GAAP financial measure or other associated disclosures are contained in our earnings release. Joining me on the call today are Ed Rosenfeld, Chairman and Chief Executive Officer; and Zine Mazouzi, Chief Financial Officer and Executive Vice President of Operations. With that, I'll turn the call over to Ed. Ed? Edward Rosenfeld: Okay. Thanks, Danielle, and good morning, everyone, and thank you for joining us to review Steve Madden's second quarter 2026 results. We delivered robust top and bottom line growth in the second quarter, reflecting the strength of our brands and our team's disciplined execution of our long-term strategy. Total revenue grew 19% in the quarter, or 11% excluding Kurt Geiger, and diluted EPS more than doubled from the second quarter last year. Our flagship brand, Steve Madden, was the highlight, continuing to gain momentum as consumers responded enthusiastically to the trend-right assortments created by Steve and his design team. In women's footwear, we saw strong performance with dress shoes at various heel heights and outsized growth in the casual category. We capitalized on a variety of trends in style and materials, including split toes, jellies, hidden wedges, rhinestone mesh, ballet-inspired looks, thongs and needle heels. Men's footwear also performed well across a range of categories with particular strength in loafers. And in handbags, we returned to strong growth with totes, hobos, and crossbody styles that incorporated trending materials like straw, jelly, and denim. Our marketing team supported these assortments with integrated brand and product storytelling, including a deeper partnership with model Delilah Belle, who fronted our Bait & Switch summer campaign. Together, the combination of compelling product and strong market execution fueled a meaningful increase in brand heat. Global online searches for Steve Madden rose 71% in the quarter. Based on the strong momentum we are seeing, we have increased our forecast for Steve Madden brand revenue for the year and now expect a high single-digit increase compared to 2025. We also made meaningful progress in the quarter on our key growth initiatives for the Kurt Geiger London brand. In the U.S., building out Kurt Geiger store base is an important part of our strategy to increase brand awareness, showcase the full brand experience and drive profitable growth. We opened 2 full-price stores in premium malls in the quarter, Tysons Corner and Dadeland, bringing us to a total of 7 full-price stores in the U.S. The new stores are off to a good start, and the existing stores are performing well, driving strong 4-wall profitability and delivering a 12% comp store sales gain in the second quarter. 6 of the 7 stores offer Kurt Geiger's unique one-of-a-kind personalization service, which enables customers to design their own Kensington bag and walk out with it in minutes. In the stores where it's available, the one-of-a-kind offering drove 17% of handbag sales, and we see this as a key differentiator for the brand that we will lean into going forward. Outside the U.S., we acquired a business in Spain and Portugal from our distributor in Q2, and we'll now operate that business in-house, and we are in active discussions with a number of potential distribution and joint venture partners for Kurt Geiger around the world. For the year, we continue to expect mid-teens pro forma revenue growth in Kurt Geiger. In Dolce Vita, we had an outstanding second quarter with strong growth across wholesale and DTC channels, driven by a compelling product assortment highlighted by jellies, ballet flats, Mary Janes, mid-heel dress shoes and thongs. We also continue to gain momentum in handbags and make progress in international markets, including Canada, Mexico and the U.K. Based on the momentum we are seeing, we have increased our forecast for Dolce Vita revenue for the year and now expect high single-digit to low double-digit growth. Overall, our lead brands are deepening their connections with consumers and gaining relevance in the marketplace, and each is poised for meaningful growth ahead. Based on the strong performance in the second quarter, we are raising our consolidated revenue and earnings outlook for 2026. And looking out further, we believe our powerful brands, proven business model, talented team and sound strategy position us to deliver sustainable revenue and earnings growth over the long term. And now I'll turn it over to Zine to review our second quarter financial results in more detail and provide our updated outlook for 2026. Zine Mazouzi: Thanks, Ed, and good morning, everyone. In the second quarter, consolidated revenue was $665.9 million, a 19.1% increase compared to the second quarter of 2025. Excluding Kurt Geiger, which we acquired on May 6, 2025, consolidated revenue increased 11.2%. Wholesale revenue was $407.5 million, up 13% compared to the second quarter of 2025. Excluding Kurt Geiger, our wholesale revenue increased 11.5%. Wholesale footwear revenue was $240 million, a 9% increase or up 7.8%, excluding Kurt Geiger, driven by strong growth in the branded business, partially offset by a decline in private label. Wholesale accessories and apparel revenue was $167.5 million, up 19.2% compared to the second quarter in the prior year or up 17.5%, excluding Kurt Geiger, also driven by strong growth in the branded business, partially offset by a decline in private label. In our direct-to-consumer segment, revenue was $255.4 million, a 30.6% increase compared to the second quarter of 2025. Excluding Kurt Geiger, our DTC revenue increased 11.1% with double-digit growth in both brick-and-mortar and e-commerce channels. Steve Madden brand global comp sales rose 9% in the quarter, including a 17% increase in the U.S. and a 1% increase in international markets, which were impacted by the conflict in the Middle East. Excluding our business in the GCC, international comp sales increased by 4%. We ended the quarter with 382 company-operated brick-and-mortar stores, including 92 outlets as well as 8 e-commerce websites and 164 company-operated concessions in international markets. Our licensing royalty income was $3 million in the quarter compared to $2.9 million in the second quarter of 2025. Consolidated gross margin was 46.5% in the quarter, up from 41.9% in the second quarter of 2025, driven by significant increases in both wholesale and DTC channels. Wholesale gross margin was 35.2%, up from 30.9% in the second quarter of 2025 due to higher average selling prices, a smaller negative impact from tariffs and a lower penetration of private label. Direct-to-consumer gross margin was 64%, up from 61.3% in the prior year due to higher average selling prices, a reduction in promotional activity and a small negative impact from tariffs. Operating expenses as a percentage of revenue were 39.8% in the quarter compared to 37.9% in the second quarter of 2025, primarily reflecting the inclusion of the full quarter of Kurt Geiger as well as higher incentive compensation. Operating income for the quarter was $44.5 million or 6.7% of revenue compared to $22.6 million or 4% of revenue in the prior year. The effective tax rate for the quarter was 26.3% compared to 25.6% in the second quarter of 2025. Finally, net income attributable to Steve Madden Limited for the quarter was $31.7 million or $0.44 per diluted share compared to $13.9 million or $0.20 per diluted share in the second quarter of 2025. Turning to the balance sheet. Our financial foundation remains strong. During the quarter, we received $92.1 million in refunds related to the reversal of IEEPA tariffs, which included $3.1 million in interest. We only have approximately $1 million in potential refunds still outstanding. We used the refunds to pay down debt. And as of June 30, 2026, we had $124.8 million in debt and $94.7 million in cash, cash equivalents for a net debt of $30.1 million. Inventory at the end of the second quarter was $377.2 million, down 13.7% compared to $437 million in the prior year, driven by a 30% reduction in the Kurt Geiger business. Our CapEx in the quarter was $8.5 million. We did not repurchase any shares in the open market during the second quarter, and we spent approximately $1 million on shares acquired through the net settlement of employee stock awards. The company's Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend will be payable on September 24, 2026, to stockholders of record as of the close of business on September 11, 2026. Turning to our fiscal 2026 guidance. We are raising our revenue and diluted earnings per share outlook. We now expect revenue to increase 11% to 13%, up from our prior guidance of 10% to 12% and diluted earnings per share to be in the range of $2.05 to $2.15, up from our prior guidance of $2 to $2.10. Unlike last year, when tariff disruption resulted in an unusual back half where the fourth quarter revenue and earnings exceeded third quarter levels, we expect a more typical cadence this year. Specifically, we expect Q3 to contribute more than Q4 to back half revenue and earnings. Now, I would like to turn the call over to the operator for questions. Debbie? Operator: [Operator Instructions] The first question comes from Anna Andreeva with Piper Sandler. Unknown Analyst: This is [ Noah ] on for Anna. Just wanted to follow up on the annual sales guide. It implies more modest expectations in the second half. Can you elaborate just on that given the momentum we're seeing across the portfolio? Any color on what you're seeing in direct-to-consumer quarter-to-date and how you're approaching back-to-school? And just as a follow-up, can you comment on how Nordstrom's anniversary sale is going across the portfolio as we've been seeing some sell-outs? Edward Rosenfeld: Great. Yes. Yes. In terms of the top line sales guide, I think it, we -- on an organic basis, we're looking for continued strong performance. I think that if you're looking at a slowdown on a consolidated basis, that's because we anniversary Kurt Geiger or just did anniversary in May. And so obviously, the inorganic growth contribution goes away. In terms of DTC, the momentum really continues into the quarter-to-date period, and we're seeing trends similar to what we saw in Q2. And then Nordstrom anniversary has been a really positive story for us. We're having really a phenomenal event. Every -- I think every division in the company that participates in that sale is seeing increased sell-through versus the prior year. But the real standout has been that Steve Madden women's footwear business. If you recall, we had a very strong event last year. That's really when we started to see the inflection in that business and a significant improvement in sell-through. But even on top of the very strong -- or the very tough comparisons, we're seeing big increases in both overall volume and sell-through percentage. So very pleased with the Nordstrom anniversary performance. Operator: The next question is from Paul Lejuez with Citigroup Inc. Paul Lejuez: Curious if you can talk about how much of the full year raise was from the second quarter beat versus something that was changed in the second half. Maybe if you can talk about what has changed in your second half assumptions, if anything? And also, I would love to hear any more detail about how you're thinking on DTC versus wholesale in the second half and what you build into guidance for footwear versus apparel and accessories on the wholesale side? Edward Rosenfeld: Okay. Sure. So in terms of the second quarter and then the back half with respect to the raise in revenue and earnings. So second quarter on a revenue -- from a revenue standpoint came in pretty close to our internal expectations. So the revenue raise is really related more to what we're seeing going forward. However, we did exceed expectations -- our internal expectations on the gross margin line in Q2, and that was the primary driver of a beat versus our internal forecast in Q2. So one comment I'll make there, though, is that we were modeling that -- if you're looking at the Street consensus numbers, we were modeling the quarterly breakdown differently from the Street. And so we were ahead of -- our internal forecast was ahead of the Street for Q2. So while we did have a beat versus Q2, I think it was more like $0.07. We came in ahead of our expectation. And as you see, we're raising the full year by [ $0.05 ]. Keep in mind that we have incorporated an additional $0.06 of pressure from freight as the impact from the Iran conflict has gone on longer than we contemplated in the prior guidance. Paul Lejuez: Got it. Then just DTC versus... Edward Rosenfeld: Okay. So the next -- yes, the next part was DTC versus wholesale. So for the full year, I'm just going to give you the full year numbers. So -- which I guess you'd probably like it without Kurt Geiger's, just to make it cleaner. So high single digits for DTC, excluding Kurt Geiger. With Kurt Geiger, we're in the kind of low to mid-20s. And then wholesale, excluding Kurt Geiger, that's -- we're looking at low single digits. And then with Kurt Geiger, mid-single digits. Zine Mazouzi: And Paul, sorry, I was just going to add some color on the freight side. As Ed mentioned, the conflict has gone on longer than contemplated. We actually successfully managed our ocean freight and the reduced kind of the impact that would come from those EBS or emergency bunker surcharges for oil rising. And -- but what we're seeing is higher air and air cost as we chase best sellers and also as we chase product in international market due to the supply chain or the ocean supply chain being disrupted in international markets, we're also using more air to chase product. Hence, why we added the $0.06 to the back half. Paul Lejuez: Got it. And then just one follow-up. Did anything change in how you're thinking about the private label business? Edward Rosenfeld: Not materially. I would say it got -- I think our expectation for the year got modestly better, but it's still obviously a pressure point. We're looking at that business to be down mid- to high teens for the year. And so just as additional color, I mentioned that the wholesale business, excluding Geiger, is forecasted to be up low singles. But obviously, that's being dragged down by that decline in private label. The branded business, we're looking at a high single-digit growth expectation for the year. Operator: The next question is from Janine Stichter with BTIG. Janine Hoffman Stichter: Can you elaborate a bit on what you're seeing on the branded side of the wholesale business? Curious if you're -- it sounds like you're not chasing, if you're getting reorders in the quarter, and then what the conversations with your wholesale partners have been like for the back half, if there's any change there? Edward Rosenfeld: Yes. Look, we feel very good about that business, seeing very strong performance. It was up -- the branded business in wholesale in Q2 was up 20% year-over-year. And we continue to be very pleased with the sell-throughs. We're obviously getting reorders, and we've been chasing into strong sellers, and it's a positive story. Janine Hoffman Stichter: And for your full year forecast, it does assume some deceleration. Does that continue to assume reorders in the holiday period? Or is that kind of assuming just the basic business? Edward Rosenfeld: Well, keep in mind, we were also -- we were still down in that business in Q1. So you're right, I guess we're not assuming 20% for the full year, but we started a little bit in the hole, and we're catching up. I would say there's -- we've obviously got a reorder assumption in for Q4. Is there upside to that? Potentially, but we're just -- we got to get into the fall season and see how it goes before we build a lot of that activity into the forecast. Operator: The next question is from Marni Shapiro with The Retail Tracker. Marni Shapiro: Congratulations. I just wanted to check one thing on the $0.06 related to freight. I'm assuming that includes freight from the factories and then distributions to stores. What about shipping costs to customers for your direct-to-consumer business? Have you raised hurdles or changed prices? Or are you just absorbing that excess cost? Zine Mazouzi: We're seeing pressure in that as well, and that's also built in our guide, but we have not -- we're absorbing that cost in the guide. Marni Shapiro: Okay. So no impact to the consumer. And then could you just talk a nice rebound in the bag business that's exciting. Are you seeing increased orders from your wholesale partners in the bag business now? Or is it mostly your own and direct-to-consumer? Edward Rosenfeld: Yes. We're seeing a big increase. In fact, so just for context, Steve Madden bags in the quarter overall across all channels was up about 30%. It was up more than that in wholesale. Now again, we had easy compares and it's not going to remain at that level. But still Steve Madden bags for the year is on track to be up double digits. So we feel good about that we're back on track there. Marni Shapiro: That's amazing. And can I just sneak in one more. There's so many more styles now that are what I would call kind of seasonless, like boots are selling all year. At the moment, suede is so trendy, so suede is selling all year. So does that give you guys a little bit more of a base of solid product that could live a little longer on the shelves. It doesn't have to get marked down end of season? Or like how does that change your thinking, I guess, in how markdowns would happen? Because it feels to me like you could let some of this live longer, but I don't know. Edward Rosenfeld: Yes, I think that's right. I mean, I think that we've got a number of products in the assortment here that can sell all year round. And particularly if you look at like this spring, the category that declined the most was the most seasonal category of sandals, and we saw increases in categories that we can sell more all year round. So we like that. That being said, we're still in the business of trend and the trend cycles move faster than ever today. So we're still -- we're not -- we're going to suddenly become a company that has a lot of styles that run for years and years and years. Marni Shapiro: I'll leave it for somebody else. Best of luck for back to school and fall. Operator: The next question is from Aubrey Tianello with PNB Paribas. Lipeiwen Yang: This is Leah Yang on for Aubrey. Congrats on a nice quarter. So my first question is going to be on gross margin. I want to ask about gross margin for the rest of the year, especially now that you're lapping the acquisition of Kurt Geiger a couple of months ago. How should we think about the progression of gross margin in 3Q and 4Q? Zine Mazouzi: I think for fall, when you look at the balance of the year, you have to remember this KG mix impact is pretty much going away in fall as we lap the acquisition, which was in May of last year. And we also start to lap our pricing initiatives, which went into effect last fall. So now we start to lap those. And there is less of a mix benefit from private label. And as we mentioned earlier, we're factoring in some pressure on the cost due to the conflict in the Middle East and on freight. And also, we're seeing cost pressures coming from our suppliers since the conflict has gone on longer than expected, and it's becoming a lot harder to push them off. So we're absorbing some cost in our margin as well. Edward Rosenfeld: So he gave you a lot of negative things there. I just want to wrap that up by saying we still expect to see year-over-year improvement in gross margin each quarter. It's just -- it's not going to be as significant as it was in the first half. Lipeiwen Yang: Got it. And then moving down to SG&A. I want to ask about SG&A growth for the rest of the year. Should we still be modeling like low teens growth in 3Q and high singles in 4Q? Is there any change to that previous guide you provided last quarter? And then can you talk about some of the focus areas for the SG&A investment you're making this year? Zine Mazouzi: So I think it's best to think about it as what we built in our guide is a 38.3% SG&A for the year. And when you factor in what the comments we made about a normalized sales flow between Q3 and Q4 that you'll see a lower percent as a percentage to sales in Q3 versus Q4. And from an SG&A perspective, as far as what we're doing, obviously, we'll continue to watch everything that we can and anything that we can control. And the only change from the last time in our last guidance is we increased our investment in marketing, in brand marketing. Operator: The next question is from Dana Telsey with Telsey Advisory Group. Dana Telsey: Nice to see the progress. As you mentioned, part of the uptick in gross margin was the higher ASPs. What are you seeing in wholesale and DTC and ASPs? How you're thinking about it going forward? And then any update on tariffs and how you're planning for the back half? And lastly, just on the retail stores, Ed, any difference between full price and outlet store performance? Edward Rosenfeld: Sure. So as we -- as we got into Q2, we started layering on the price increases in the wake of tariffs last year in DTC, they started to hit in Q2 and then more of those roll through, through the balance of the year. We didn't really see any impact to -- any significant impact to wholesale until we got into the back half. So in Q2, whereas we had been running like in Q1, we were up -- AUR up 17% in DTC. That slowed to up high singles as we started to lap some of the increases from a year ago. And I think that will still moderate again in Q3. Whereas wholesale, we were still up mid-teens in Q2 because we had not yet lapped any increases from the year before. But again, that will also moderate as we go into the back half. I'll address the stores, and I'll turn it over to Zine for the tariffs. The full-price stores continue to outperform outlet, but we've seen a really nice recovery in outlet. As you know, that's been a laggard for us. In the U.S., we were down 1% in Q1 in outlet, and that rebounded to up 12% in Q2. So a nice recovery there. Again, not as strong as the full-price stores in the U.S., which were up 16% or e-commerce in the U.S. which is up 20%, but still a healthy number. Zine Mazouzi: And Dana, from a tariff perspective, top level for Q3, we're basically in line with the announcements of the new 301 tariffs related to failure to, I guess, fight forced labor and anything that happened with Brazil. So those, as you know, went into effect Brazil on 7/22 and the main one that actually impacts us is the one, the 10% to 12.5% related to forced labor, and that went into effect on July 24th with some 4-day grace period. So we're reflecting Q3 as such. And for Q4, we're still assuming 15% built into our numbers. So it's a little bit higher than the currently announced tariffs. But we also know that there are 2 more investigations that are pending, one for structural excess capacity and the other one for IP infringement, which targets just Vietnam. The first one, the excess capacity targets about 16 countries and about 5 or 6 of them are countries that we source from. So that's why we have the 15%. Dana Telsey: Got it. And just one last follow-up. On the wholesale channel, how is the difference in performance of whether it's department stores, discounters, off-price? What are you seeing in terms of the difference of performance? And what are you expecting go forward from private label? Edward Rosenfeld: Yes. I'd say anywhere we're selling -- I mean, the branded business is quite strong really across the board. It's strongest in the first tier channels, the department stores, the pure-play e-commerce retailers, the boutiques that we sell our latest fashion to. But we're doing pretty well with the brands across the board. Obviously, it's well documented that private label is a tougher part of the market for us right now in the mass channel, but we're hard at work at getting that straightened out. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ed Rosenfeld for any closing remarks. Edward Rosenfeld: Great. Well, thanks so much for joining us today. We hope you enjoy the rest of your summer, and we look forward to speaking with you on the third quarter call. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Steven Madden (SHOO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Steven Madden, Ltd. SHOO reported second-quarter 2026 results, with both top and bottom lines surpassing the Zacks Consensus Estimate. Revenues increased year over year.The Steve Madden brand was the quarter’s key growth engine. Women’s footwear benefited from demand for dress shoes and casual styles. Men’s footwear performed well, particularly loafers, while handbags returned to strong growth on strength in totes, hobos and crossbody products. Global online searches for the Steve Madden brand increased 71% during the quarter.Management highlighted strong consumer response to its trend-right assortments, continued momentum in direct-to-consumer (DTC) and wholesale channels, and solid performance from Kurt Geiger and Dolce Vita.The company raised its fiscal 2026 revenues and adjusted earnings per share (EPS) guidance, reflecting confidence in the momentum across its brands and stronger-than-expected second-quarter performance. Investors responded positively, sending SHOO shares up 10.2% yesterday. Steven Madden, Ltd. price-consensus-eps-surprise-chart | Steven Madden, Ltd. Quote SHOO posted adjusted earnings of 44 cents per share, which beat the Zacks Consensus Estimate of 33 cents per share. The bottom line more than doubled from adjusted earnings of 20 cents reported in the prior-year quarter.Total revenues increased 19.1% year over year to $665.9 million from $559 million, surpassing the Zacks Consensus Estimate of $634 million. Excluding Kurt Geiger, consolidated revenues increased 11.2% year over year. Wholesale revenues increased 13% year over year to $407.5 million, surpassing our estimated mark of $388 million. Excluding Kurt Geiger, wholesale revenues increased 11.5%. Adjusted gross margin in the segment expanded to 35.2% from 30.9% in the prior-year period, driven by higher average selling prices, a smaller negative impact from tariffs and a lower penetration of private label.Wholesale footwear revenues increased 9% year over year to $240 million, or 7.8% excluding Kurt Geiger, due to strong growth in the branded business, partially offset by a decline in private label. This beat our estimated mark of $235.3 million. Wholesale accessories/apparel revenues increased 19.2% year over year to $167.5 million, or 17.5% excluding Kurt Geiger, also due to sustained momentum in the branded business, partially offset by a decline in private label. The figure exceeded our consensus mark of $152.7 million.DTC revenues increased 30.6% year over year to $255.4 million, surpassing our estimated mark of $235.2 million. Excluding Kurt Geiger, DTC sales grew 11.1%, supported by double-digit gains across both brick-and-mortar stores and e-commerce. The Steve Madden brand continued to perform well, with U.S. comparable sales rising 17%, while global comparable sales increased 9%. Adjusted gross margin in the DTC business expanded to 64% from 61.3% a year ago, benefiting from higher average selling prices, lower promotional activity and a smaller tariff headwind. Management also noted that DTC momentum has continued into the third quarter.Licensing royalty income totaled $3 million, up modestly from $2.9 million in the prior-year quarter. This also beat our estimated mark of $2.9 million. International comparable sales increased 1%, while excluding the GCC business, comparable sales rose 4%. The company ended the second quarter with 382 company-operated stores, including 92 outlets, along with eight e-commerce websites and 164 international concessions. During the quarter, the company also opened two full-price Kurt Geiger stores in the United States, bringing its total U.S. full-price Kurt Geiger store count to seven, with existing stores delivering a 12% comparable sales increase. Adjusted gross profit increased 32.2% year over year to $309.7 million, beating our estimate of $278.2 million. Adjusted gross margin expanded 460 basis points to 46.5%, reflecting stronger profitability across both the wholesale and direct-to-consumer businesses. Adjusted operating expenses increased 25.3% year over year to $265.1 million, which surpassed our estimate of $243.4 million. As a percentage of revenues, adjusted operating expenses increased to 39.8% from 37.9% in the year-ago quarter, primarily due to the inclusion of a full quarter of Kurt Geiger and higher incentive compensation.Adjusted income from operations nearly doubled to $44.5 million from $22.6 million in the prior-year quarter. Adjusted operating margin expanded 270 basis points year over year to 6.7%. As of June 30, 2026, Steven Madden had cash and cash equivalents of $94.7 million and total debt of $124.8 million, resulting in net debt of $30.1 million. Inventories declined 13.7% year over year to $377.2 million, primarily reflecting a 30% reduction in inventory at the Kurt Geiger business. During the second quarter, the company received $92.1 million in tariff-related refunds, including $3.1 million in interest, and used the proceeds to reduce outstanding debt.Capital expenditures totaled $8.5 million during the quarter. The company did not repurchase any shares in the open market but spent approximately $1 million to acquire shares through the net settlement of employee stock awards. Steven Madden's board also declared a quarterly cash dividend of 21 cents per share, payable on Sept. 24, 2026, to shareholders of record as of Sept. 11, 2026. Steven Madden raised its fiscal 2026 revenue guidance and expects revenues to increase 11-13% from the fiscal 2025 reported level, up from its previous expectation of 10-12% growth. The company also raised its adjusted EPS guidance to $2.05-$2.15 from the prior stated $2-$2.10, while reaffirming the EPS guidance of $2.55-$2.65.Management expects the Steve Madden brand to deliver high-single-digit revenue growth, Kurt Geiger to generate mid-teens pro forma revenue growth and Dolce Vita to post high-single-digit to low-double-digit revenue growth in fiscal 2026. Excluding Kurt Geiger, DTC revenues are projected to grow at a high-single-digit rate, while wholesale revenues are expected to increase at a low-single-digit pace. Including Kurt Geiger, management expects DTC revenues to grow in the low- to mid-20% range and wholesale revenues to increase at a mid-single-digit rate. Private-label revenues are still expected to decline in the mid- to high-teens range, whereas the branded wholesale business is anticipated to grow at a high-single-digit rate.The company expects gross margin to improve on a year-over-year basis in each of the remaining quarters of fiscal 2026, although the pace of expansion is likely to moderate as it laps the Kurt Geiger acquisition and prior pricing actions. Management expects pressure from higher freight and supplier costs stemming from the prolonged Middle East conflict, including an additional 6 cents per share headwind in the second half related to freight. SG&A expenses are projected to be approximately 38.3% of revenues for fiscal 2026, reflecting increased investments in brand marketing. Management expects a more typical seasonal cadence in the second half, with the third quarter contributing more to second-half revenues and earnings than the fourth quarter, unlike the unusual pattern seen in fiscal 2025. SHOO Stock Past 3-Month Performance Image Source: Zacks Investment Research Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 28.2% compared with the industry’s 0.4% growth. Genesco Inc. GCO is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 55.2% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.Tilly's, Inc. TLYS is a specialty retailer in the action sports industry selling clothing, shoes and accessories. The company also sports a Zacks Rank #1 at present. The Zacks Consensus Estimate for Tilly's current fiscal-year sales indicates growth of 4.9% from the year-ago actuals. TLYS delivered a trailing four-quarter average earnings surprise of 155.3%. Designer Brands Inc. DBI designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 137.5% and 0.5%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 112.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steven Madden, Ltd. (SHOO) : Free Stock Analysis Report Genesco Inc. (GCO) : Free Stock Analysis Report Tilly's, Inc. (TLYS) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Steven Madden, Ltd.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 19.1% to $665.9 million, while diluted EPS more than doubled to $0.44. Growth was led by the Steve Madden and Dolce Vita brands, as well as the Kurt Geiger acquisition. Brand and international expansion continued: Steve Madden’s global comparable sales increased 9%, Dolce Vita’s outlook was raised, and Kurt Geiger expanded its U.S. store base while reporting a 12% comparable-sales increase at existing stores. Full-year guidance increased: The company now expects fiscal 2026 revenue growth of 11%–13% and diluted EPS of $2.05–$2.15, although higher freight and supplier costs are expected to pressure margins in the second half. Sweating The Dip In Steve Madden? Why Analysts Are Not Steven Madden (NASDAQ:SHOO) reported second-quarter revenue growth of 19.1% and more than doubled diluted earnings per share, citing momentum in its flagship Steve Madden brand, growth at Dolce Vita and progress expanding Kurt Geiger London in the U.S. and overseas. Revenue for the quarter totaled $665.9 million, compared with the prior-year period. Excluding Kurt Geiger, which Steven Madden acquired in May 2025, revenue increased 11.2%. Net income attributable to Steven Madden rose to $31.7 million, or $0.44 per diluted share, from $13.9 million, or $0.20 per diluted share, a year earlier. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Steve Madden Stock is Ready to Rise “We delivered robust top and bottom-line growth in the second quarter, reflecting the strength of our brands and our team’s disciplined execution of our long-term strategy,” Chairman and Chief Executive Officer Ed Rosenfeld said on the company’s earnings call. Rosenfeld said the Steve Madden brand gained momentum as shoppers responded to trend-focused footwear and accessories. Women’s footwear sales benefited from dress shoes across heel heights and growth in casual styles, while men’s footwear saw particular strength in loafers. Handbags returned to growth, led by totes, hobos and crossbody styles using materials such as straw, jelly and denim. → 3 Value ETFs to Consider as Growth Stocks Lag Behind The company said global online searches for Steve Madden increased 71% during the quarter. It now expects Steve Madden brand revenue to rise by a high-single-digit percentage for the full year, an increase from its previous outlook. Dolce Vita also posted what Rosenfeld described as an “outstanding” second quarter, with growth across wholesale and direct-to-consumer channels. The brand’s product performance was led by jellies, ballet flats, Mary Janes, mid-heel dress shoes and thongs. Steven Madden raised its full-year Dolce Vita revenue forecast to high-single-digit to low-double-digit growth. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? In the wholesale channel, branded business grew 20% year over year in the second quarter, Rosenfeld said. The company has been receiving reorders and chasing strong-selling products. However, private-label business remains a pressure point, with Steven Madden expecting it to decline by a mid- to high-teens percentage for the year. The company expects branded wholesale revenue to grow at a high-single-digit rate for the full year, while wholesale revenue excluding Kurt Geiger is expected to rise by a low-single-digit percentage. Kurt Geiger opened two full-price U.S. stores during the quarter, at Tysons Corner and Dadeland, bringing its U.S. full-price store count to seven. Existing stores posted a 12% comparable-store sales increase in the quarter, according to Rosenfeld. Six of the seven U.S. stores offer Kurt Geiger’s personalization service, which allows shoppers to design a Kensington bag and leave with the product within minutes. The service represented 17% of handbag sales at stores where it was available, the company said. Steven Madden also acquired the Kurt Geiger business in Spain and Portugal from its distributor during the second quarter and will operate it internally. Management said it is discussing potential distribution and joint-venture partnerships for Kurt Geiger in other global markets. The company maintained its expectation for mid-teens pro forma Kurt Geiger revenue growth for the year. Wholesale revenue increased 13% to $407.5 million, while direct-to-consumer revenue climbed 30.6% to $255.4 million. Excluding Kurt Geiger, wholesale revenue rose 11.5% and direct-to-consumer sales increased 11.1%. Steve Madden brand global comparable sales rose 9%, including a 17% increase in the U.S. International comparable sales rose 1%, affected by conflict in the Middle East; excluding the company’s Gulf Cooperation Council business, international comparable sales increased 4%. Consolidated gross margin increased to 46.5% from 41.9% a year earlier. Wholesale gross margin rose to 35.2%, helped by higher average selling prices, a smaller negative tariff impact and lower private-label penetration. Direct-to-consumer gross margin increased to 64%, aided by higher selling prices and reduced promotional activity. Chief Financial Officer and Executive Vice President of Operations Zine Mazouzi said gross margin is still expected to improve year over year in each remaining quarter, though the improvement will be less significant than in the first half. The company is lapping Kurt Geiger acquisition-related mix benefits and prior price actions, while facing higher freight and supplier costs associated with the prolonged Middle East conflict. Steven Madden added $0.06 of freight pressure to its outlook for the second half, reflecting higher air freight costs used to chase bestsellers and supply international markets amid ocean shipping disruption. Mazouzi said the company is also absorbing higher direct-to-consumer shipping costs in its guidance. The company raised its fiscal 2026 outlook and now expects: Revenue growth of 11% to 13%, compared with prior guidance of 10% to 12%. Diluted earnings per share of $2.05 to $2.15, compared with previous guidance of $2.00 to $2.10. Management expects third-quarter revenue and earnings to contribute more than the fourth quarter to second-half results, a more typical seasonal pattern than the prior year, when tariff disruption created an unusual sales cadence. As of June 30, the company had $124.8 million in debt and $94.7 million in cash equivalents, for net debt of $30.1 million. During the quarter, it received $92.1 million in refunds related to the reversal of IEEPA tariffs, including $3.1 million of interest, and used the proceeds to reduce debt. Inventory fell 13.7% year over year to $377.2 million, driven by a 30% reduction in Kurt Geiger inventory. The board approved a quarterly cash dividend of $0.21 per share, payable Sept. 24 to shareholders of record as of Sept. 11. Steven Madden, Inc (NASDAQ: SHOO) is a New York–based designer and marketer of fashion footwear, handbags and accessories. The company's product portfolio spans a range of contemporary and lifestyle brands for women, men and children, including its core Steve Madden label as well as the Madden Girl and Dolce Vita brands. In addition to footwear, the company licenses its trademarks for use on apparel, eyewear and other fashion accessories. Steven Madden distributes its products through multiple channels, including wholesale partners, e-commerce platforms and its own brick-and-mortar retail stores. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Steven Madden Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 19% was driven by strong consumer response to trend-right assortments in the flagship Steve Madden brand and the integration of Kurt Geiger. Brand heat for Steve Madden accelerated significantly, evidenced by a 71% increase in global online searches during the quarter. The Kurt Geiger U.S. expansion is yielding high profitability, with new premium mall locations and a unique 'one-of-a-kind' personalization service driving 17% of handbag sales in participating stores. Management attributed the return to strong growth in handbags to a successful pivot toward trending materials like straw, jelly, and denim. Wholesale gross margin expansion to 35.2% was primarily driven by higher average selling prices and a strategic shift away from lower-margin private label business. International performance was bifurcated, with strong growth in most markets offset by conflict-related headwinds in the Middle East impacting the GCC region. The full-year revenue guidance was raised to 11% to 13% growth, reflecting increased confidence in the Steve Madden and Dolce Vita brands despite anniversarying the Kurt Geiger acquisition. Management expects a normalized seasonal cadence for the second half of 2026, with Q3 anticipated to contribute more to revenue and earnings than Q4. The updated earnings guidance incorporates an additional $0.06 per share of pressure from freight costs due to the prolonged conflict in the Middle East. Gross margin is expected to show year-over-year improvement in every quarter, though the magnitude of expansion will moderate as the company laps prior pricing initiatives. Strategic investments in the back half will prioritize increased brand marketing to sustain current momentum in DTC and branded wholesale channels. The company received $92.1 million in refunds related to the reversal of IEEPA tariffs, which was utilized to significantly reduce outstanding debt. Supply chain disruptions are necessitating increased use of expensive air freight to chase best-selling products and maintain inventory levels in international markets. Private label remains a significant headwind, with management forecasting a mid- to high teens decline for the year as they work to restructure that segment. Tariff assumptions for Q4 are modeled at 15%, which is higher than currently announced rates to account for pending investigations into structural excess capacity and IP infringement. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported a 'phenomenal' event with every participating division seeing increased sell-through compared to the prior year. The Steve Madden women's footwear business was identified as the standout performer, achieving significant volume increases even against very tough year-over-year comparisons. The $0.05 raise in full-year EPS guidance actually masks a stronger underlying performance, as it absorbs $0.06 of incremental freight headwinds. Costs are rising not just from ocean freight surcharges, but from the necessity of using air freight to bypass disrupted shipping lanes and meet demand for high-velocity items. Steve Madden bags grew 30% in the quarter, benefiting from easy comparisons but also genuine trend alignment. Management expects the category to remain on track for double-digit growth for the full year, signaling a successful turnaround of the accessory business. ASP growth in DTC moderated to high singles in Q2 as the company began lapping last year's price increases. Wholesale ASPs remained up mid-teens in Q2 but are expected to moderate in the second half as those channels also reach the anniversary of previous pricing actions.

Steven Madden (SHOO) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this footwear and accessories retailer would post earnings of $0.42 per share when it actually produced earnings of $0.45, delivering a surprise of +7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Steven Madden, which belongs to the Zacks Shoes and Retail Apparel industry, posted revenues of $665.87 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.02%. This compares to year-ago revenues of $559 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Steven Madden shares have added about 4.2% since the beginning of the year versus the S&P 500's gain of 6.9%. While Steven Madden has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Steven Madden was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $724.83 million in revenues for the coming quarter and $2.11 on $2.83 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Shoes and Retail Apparel is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Carter's (CRI), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This maker of children's apparel and accessories is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -88.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Carter's' revenues are expected to be $609.02 million, up 4.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Steven Madden, Ltd. (SHOO) : Free Stock Analysis Report Carter's, Inc. (CRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The men’s and women’s product lines across Steve Madden’s brands are resonating with consumers, and Wall Street likes what it sees. Williams Trading analyst Sam Poser has a “buy” rating on shares of the company’s stock. He said the Steve Madden brand, Madden Girl, Dolce Vita and Kurt Geiger are making headway and that the firm’s large retail partners — the wholesale accounts — are stepping up with their fill-in and new orders. More from WWD Inside Nike's Big China Reset + Why Analysts Are Mixed Lord & Taylor Rebuilds Private Label on 200th Birthday With Women's Fashion; Shoe Licensee Could be Next Ariana Madix's 'Love Island USA' Season 8 Style: Clear Heels and Island Glamour “Also, [the company’s] private label business, primarily done in the mass channel, is set to improve by early to mid 2027,” Poser said. “It appears that some of the product that the mass retailers developed directly with factories, rather than using Steve Madden’s expertise, have underperformed at retail.” The shoe firm’s chairman and chief executive officer Edward Rosenfeld said in May when the firm posted first-quarter earnings that the private label business had been pressured due to tariffs in a distribution channel where price sensitivity is the highest. At the time, he was targeting 2027 as the time period for a recovery. And Rosenfeld last November when the firm posted third quarter earnings results was noting strong performance in dress shoes across various heel heights and in casuals that include loafers and Mary-Janes. The Williams Trading analyst also highlighted Steve Madden Men’s shoes, which represents about 15 percent of total revenue, excluding the Kurt Geiger business. “The new Steve Madden’s Men’s dress and dress casual product have been elevated to a $150 price point, and highlight understandable interpretations of key designer styles as well as updates to classic men’s footwear styles,” Poser said, adding that the new product has led to sales to better department stores, both online and in-store. And Poser said direct-to-consumer (DTC) strength continues to be led “full price stores, stevemadden.com, and TikTok Shop and Snapchat.” The two social media platforms represent a small part of the business, but are increasing in importance. In the latest U.S. TikTok data from Charm Io on the fastest growing shoe shops based on year-over-year revenue change from July 2025 to June 2026, Steve Madden placed fourth. The firm saw U.S. TikTok sales up 697.4 percent to $4.5 million from $559,508. “Broadly, we believe underlying trends remain strong, driven by a rotation into fashion styles from athletic, and supported by strong product and marketing execution,” BTIG’s Janine Stichter said. She sees the potential for the company to raise guidance when it posts second quarter results on Thursday. Stichter is expecting second quarter earnings per share at 35 cents versus 20 cents a year ago, which is also ahead of consensus estimates of 32 cents. The company did not formally provide second quarter guidance. “We continue to see strong full-price demand for the trending Calico — Tabi-style — shoes, as well as jelly shoes and flip-flops,” the BTIG analyst said, adding that the brand also has been surrounded by celebrity buzz from actress Lexi Minetree, Megan Thee Stallion and SZA. Telsey Advisory Group’s (TAG) chief investment officer Dana Telsey is expecting second quarter revenue growth of 13.9 percent year-over-year to $637 million, in line with the consensus estimate of $635 million. Telsey said the Steve Madden brand’s U.S. DTC comps rose 17 percent, as it benefited from strength in full-price channels. “Strength in the DTC channel should continue and return the company back to earnings growth in the second quarter,” she said. The TAG analyst said a product showroom tour last month showed that the firm continues to bring trend-right products to market quickly, she concluded. She pointed out that the firm is “well positioned to benefit from the current fashion driven footwear cycle, in our view, and has built in additional flexibility into its supply chain to remain close to consumer demand than competitors.” She also noted that while the private label business remains a headwind, it is starting to look as if it “may begin moving in the right direction” next year. Telsey has an “Outperform” rating on the company’s shares. Best of WWD Zendaya's Best Christian Louboutin 'So Kate' Heels Moments All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

This is a big week in the second quarter earnings season as over 700 companies are expected to report earnings, including many S&P 500 companies. That includes four of the Magnificent 7 stocks: Microsoft, Amazon, Apple, and Meta Platforms. But what if the Mag 7 companies report earnings and no one cares? Attention is now routinely turning to other companies outside of the trillion-dollar market cap companies. That’s true this week as well. Every industry will be reporting this week including key restaurants like Chipotle, Wingstop and Starbucks, financials such as Visa and Mastercard, important AI infrastructure companies like Vertiv and MasTec, lots of auto retailers like Carvana and Lithia Motors, gold miners like Eldorado and Kinross, and shoe retailers including Crocs, Boot Barn and Steve Madden. It’s difficult to narrow it down to just five companies but these are the must-watch earnings reports this week. 1. Visa Inc. (V) Visa is the ultimate earnings all-star. It has never missed on earnings since its 2008 IPO. That’s an incredible record that will stand for many years. Shares of Visa are up 8% in the last month but only 2.9% over the last year. Earnings are expected to rise 14.4% this year and another 13.4% next year. Visa trades with a forward P/E of 27. Visa is trading near its all-time high, even as it seems to be treading water. Is it ready to break out again? 2. Lam Research Corp. (LRCX) Lam Research is an earnings all-star. It has only missed once on earnings in the last five years and it was in 2022. That is an incredible track record. Earnings are expected to jump 37.2% this year and another 39.3% in 2027. But shares of Lam Research have sold off. It’s now down 30.5% in the last month but was down “only” 17.2% when the video was recorded on July 27, 2026. Lam Research is still up 167% over the last year. Lam Research now trades with a forward P/E of 36.7. It did trade in the 40s just a month ago. Is Lam Research on sale? 3. Starbucks Corp. (SBUX) Starbucks is in the middle of a corporate turnaround. It beat on earnings last quarter after having missed four quarters in a row prior to that. CEO Brian Niccol has been at the helm since 2024. Expectations are growing regarding the turnaround. Earnings are expected to rise 13.2% in 2026 after falling 35.6% in 2025. Shares of Starbucks are up 10.2% in the last year. It’s not cheap, however. Starbucks trades with a forward P/E of 42.8. Will the Starbucks turnaround gain momentum this year? 4. Robinhood Markets, Inc. (HOOD) Robinhood is coming off of an earnings miss last quarter, after beating on earnings 5 quarters in a row prior to that miss. Earnings are expected to decline 9.3% this year but rebound 39.8% in 2027. Shares of Robinhood have struggled in the last year, falling 6.9% in that time. It’s not cheap, though. Robinhood trades with a forward P/E of 51. Will Robinhood get back on track with an earnings beat this quarter? 5. MasTec, Inc. (MTZ) MasTec has only missed once on earnings in five years and that was in 2023. That’s impressive. MasTec is an AI Revolution stock as it’s building the data centers. Earnings are expected to jump 46.3% this year and another 52% in 2027. Shares of MasTec soared over the last year but have plunged 20% in the prior month as investors have sold the AI Revolution stocks. MasTec is now trading with a forward P/E of 35. Is MasTec on sale? [In full disclosure, Tracey owns shares of SBUX in her personal portfolio.] Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Visa Inc. (V) : Free Stock Analysis Report Starbucks Corporation (SBUX) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research