Steven Madden, Ltd. (SHOO): Business Model Canvas [Dec-2025 Updated]

You're trying to map out the real operating engine of Steven Madden, Ltd. as we hit late 2025, and honestly, it boils down to a sharp pivot: they are aggressively leaning into Direct-to-Consumer (DTC) while simultaneously integrating the Kurt Geiger buy to boost international reach. This multi-brand agility is key, even as they manage cost pressures-you see wholesale gross margin sitting at 33.6% in Q3 2025, which tells a story about sourcing and tariffs. I've broken down their entire structure across the nine building blocks below, showing exactly where the $2.36 Billion USD TTM revenue is coming from and what their next big moves are; dig in to see the full picture.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Steven Madden, Ltd.'s operations-the external relationships that make the product flow from design to your customer's foot. For a company like Steven Madden, Ltd., these aren't just vendors; they are critical links in managing cost, speed, and risk in a volatile global market.

Third-party global manufacturers for production and sourcing

Steven Madden, Ltd. relies heavily on a network of third-party global manufacturers. This partnership structure allows the company to scale production for its high-volume footwear and accessories without owning massive factory assets. However, this reliance means they are directly exposed to geopolitical trade policy, which has been a major theme in 2025.

For instance, the tariff environment forced a strategic pivot. While Spring 2025 orders saw sourcing from China drop significantly-with management aiming for only a mid-teens percentage when the tariff was at a steep 145%-the landscape shifted. As of the Fall 2025 order book, management revised this, sourcing 30% of orders from China, leveraging better quality and turnaround times now that the China tariff rate has converged to 30%. This shows a dynamic partnership adjustment based on cost-benefit analysis.

Here's a look at the sourcing strategy evolution around the tariff changes:

Sourcing Metric	Spring 2025 Orders	Fall 2025 Orders (Revised)	China Tariff Rate (Relevant Period)
Percentage of Orders from China	58%	30%	145% (for Spring planning) to 30% (for Fall execution)
Wholesale Gross Margin Impact (Q2 2025)	N/A	N/A	Weighed down by 230 basis points due to tariffs
Trailing Twelve Month Revenue (as of Sep 30, 2025)	N/A	N/A	$2.36 billion

The company's overall revenue for the third quarter of 2025 was $667.9 million.

Major department stores and specialty retailers for wholesale distribution

The wholesale channel remains a massive part of Steven Madden, Ltd.'s business, though it faced headwinds. In the third quarter of 2025, wholesale revenues were $442.7 million. That figure represents a 10.7% decline year-over-year, and excluding the newly acquired Kurt Geiger, the decline was 19.0%.

This distribution network is broad, encompassing several partner types:

• - Department stores, mass merchants, and off-price retailers.
• - Shoe chains and national chains.
• - Specialty retailers and independent stores.

The gross profit as a percentage of wholesale revenue in Q3 2025 was 32.7%.

Licensing partners for non-core categories like apparel and home goods

Licensing agreements are key for expanding brand presence into non-core categories without direct operational investment. These partners market and sell certain products in apparel and home categories under Steven Madden, Ltd. brands.

The financial contribution from these partnerships in the third quarter of 2025 was licensing fee income of $3.7 million. That represented a 4.9% increase from the prior-year period.

Logistics and freight providers to mitigate tariff-related supply chain risks

Navigating the tariff environment required Steven Madden, Ltd. to actively manage its logistics partners. The impact of new tariffs was explicitly cited as a driver for margin pressure in both wholesale and direct-to-consumer channels during Q2 and Q3 2025.

Mitigation tactics involved working with logistics providers to adjust routing and potentially negotiate terms. The company has been focused on tariff mitigation strategies to position for a stronger fourth quarter of 2025. General industry best practices for this risk include building relationships with backup carriers to reroute shipments when needed. Steven Madden, Ltd. is working to ease these pressures, with analysts noting that the third quarter likely marked the peak of top-line and margin pressures from tariff disruptions.

The company completed the acquisition of Kurt Geiger for approximately £289 million, which is expected to provide a favorable impact on the overall gross margin due to its higher direct-to-consumer weighting. Finance: draft 13-week cash view by Friday.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Key Activities

The Key Activities for Steven Madden, Ltd. center on rapid product creation, strategic supply chain realignment, targeted brand acquisition integration, and digitally-focused consumer engagement.

Rapid, trend-right design and product development (fast-fashion model)

The design function is focused on delivering assortments that resonate quickly with current consumer tastes. The team created an outstanding fall product assortment for 2025 that is showing positive reception with consumers, helping the flagship Steve Madden brand outperform competition in Q3 2025. This activity is supported by the overall digital sales performance, which outperformed physical stores in the second quarter of 2025.

Steven Madden, Ltd. projects its 2025 online sales to reach $372.64 million. The company's direct-to-consumer (DTC) revenue in the third quarter of 2025 reached $221.5 million, representing a 76.6% increase year-over-year, showing the success of the trend-right product flow into their owned channels.

Diversifying sourcing base, aiming to reduce China reliance to 30% for Fall 2025

A critical activity involves actively managing the global supply chain to mitigate tariff risks, which caused challenges like shipment delays and increased landed costs in the first half of 2025. The company is executing a multi-year plan to shift production away from China, developing capabilities in countries like Vietnam, Cambodia, Mexico, and Brazil.

The current sourcing mix reflects this shift, though some production was moved back to China for the fall season due to concerns over on-time delivery and quality elsewhere. Here's the quick math on the China sourcing activity:

Sourcing Metric	Value/Percentage
Expected China Imports for Fall 2025	30%
China Imports One Year Prior (Fall 2024)	71%
Current China Sourcing Percentage (Q2/Q3 2025)	Low 60s
Target China Sourcing by Spring 2026	Mid-single digits
Initial Goal for Reduction (Announced Late 2024)	40% to 45% reduction over one year

The company's DTC gross profit as a percentage of revenue in Q1 2025 was 60.1%, which was down from 61.9% in the prior year period, partly due to the impact of tariffs on landed costs.

Integrating Kurt Geiger acquisition for international and DTC growth

Integrating the recently acquired Kurt Geiger business is a core activity driving expansion outside the core U.S. market and strengthening the accessories category. Steven Madden, Ltd. completed this acquisition on May 6, 2025, for an enterprise value of approximately £289 million (or $384.4 million) in cash. Kurt Geiger contributed significant top-line growth, having generated revenue of £400 million (or $532 million) in the twelve months preceding the deal close.

The integration is focused on leveraging Steven Madden's international network for Kurt Geiger and using the Kurt Geiger platform to grow the Steve Madden brand in the U.K. The momentum is evident in Kurt Geiger's Q3 2025 comparable sales, which were up mid-teens. The long-term strategic goal for this acquired brand is to make Kurt Geiger London a $1 billion brand.

The impact on Steven Madden's DTC channel is substantial:

• DTC Revenue Q2 2025 (Including Kurt Geiger): $195.5 million, up 43.3% year-over-year.
• DTC Revenue Q2 2025 (Excluding Kurt Geiger): Down 3.0%.
• DTC Revenue Q3 2025 (Including Kurt Geiger): $221.5 million, up 76.6% year-over-year.
• DTC Revenue Q3 2025 (Excluding Kurt Geiger): Up 1.5%.

High-impact digital marketing targeting Gen Z and Millennial consumers

Steven Madden, Ltd. executes marketing campaigns designed to deepen consumer connections and drive relevance, especially with younger demographics. The Summer 2025 campaign, 'Never Miss A Summer,' was specifically designed to resonate with Gen Z by tapping into nostalgia and escapism, focusing on selling full looks rather than single styles.

The marketing strategy is omnichannel, but digital channels are key for this segment. The company ended Q1 2025 operating five e-commerce websites, expanding to seven by the end of Q2 2025. The company's Q1 2025 DTC revenue was $112.1 million.

Key marketing and channel metrics include:

• Q1 2025 DTC Gross Margin: 60.1%.
• Q3 2025 DTC Gross Profit Margin: 58.3%.
• Q3 2025 Adjusted DTC Gross Profit Margin: 61.9%.

The company is focused on disciplined execution to strengthen brand relevance, which is necessary given that the wholesale business revenue in Q3 2025 was $442.7 million, a 10.7% decrease compared to Q3 2024 (or a 19.0% decline excluding Kurt Geiger).

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Key Resources

Strong brand equity across multiple labels (Steve Madden, Dolce Vita, Kurt Geiger).

The portfolio includes the flagship Steve Madden® brand, alongside Kurt Geiger London®, Dolce Vita®, Betsey Johnson®, Carvela®, Blondo®, and ATM®. Steven Madden, Ltd. also licenses categories for the Anne Klein® brand. The Kurt Geiger brand saw comp sales up mid-teens in the third quarter of 2025.

• - Brands on track for full-year 2025 revenue gains: Dolce Vita and Betsey Johnson.
• - Management aims to elevate Kurt Geiger London into a $1 billion brand.

Intellectual property (IP) of a diverse multi-brand portfolio.

The intellectual property encompasses the design and sourcing rights for the owned brands and licensed brands. The company also designs and sources products under private label brand names for various retailers.

Brand Type	Example Brand(s)	Latest Reported Revenue Context
Core Owned Brand	Steve Madden	Strong consumer demand noted in Q3 2025
Acquired Brand	Kurt Geiger London	Reported £400 million in revenue for the 12 months ended February 1, 2025
Licensed Brand	Anne Klein®	Licensing royalty income in Q3 2025 was $3.7 million

Global distribution network, including 397 company-operated stores.

The distribution spans direct-to-consumer (DTC) owned channels and wholesale partners.

Channel Component	Count as of September 30, 2025	Count as of June 30, 2025
Company-Operated Brick-and-Mortar Stores	397	392
Company-Operated Outlets (Included Above)	99	98
Company-Operated Concessions (International)	133	130
E-commerce Websites	7	7

The DTC segment is the largest revenue generator for Steven Madden, Ltd.. DTC gross margin in Q3 2025 was 61.9%.

Agile design and sourcing teams for quick market response.

The proven model combines talented design teams, a test-and-react strategy, and an industry-leading speed-to-market capability. The company is actively mitigating tariff impacts through sourcing shifts.

• - Production shift target: shifting 45% of production out of China by year-end 2025.
• - Tariff mitigation efforts reduced costs by 6%.
• - Wholesale gross margin in Q3 2025 was 33.6%.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Steven Madden, Ltd. (SHOO) right now, especially after integrating a major new brand. The value proposition centers on delivering what's next in fashion, but with a structure that balances aspirational appeal with market accessibility.

Fashion-forward, on-trend footwear and accessories for a young demographic.

Steven Madden, Ltd. is positioned as a leading designer and marketer of fashion-forward footwear, accessories and apparel, targeting fashion-conscious adults and children. The core offering is designed to capture immediate trends. For instance, looking at the third quarter of 2025, the company posted total revenues of $667.9 million. This revenue is sourced across distinct channels that cater to this demographic's shopping habits.

• The company's Q3 2025 Direct-to-Consumer revenue reached $221.5 million.
• Wholesale revenue for Q3 2025 totaled $442.7 million.
• Licensing fee income contributed $3.7 million in Q3 2025.

Accessible luxury positioning, strengthened by the Kurt Geiger acquisition.

The acquisition of Kurt Geiger, completed in the first quarter of 2025 for approximately £289 million (or about $360 million in cash), significantly elevates the portfolio's perceived value. Kurt Geiger London is specifically noted for its 'unique brand image, high-quality and statement-making styles and compelling value proposition,' offering a differentiated and elevated positioning. This acquisition adds a powerful new growth engine. For the year ended February 1, 2025, Kurt Geiger generated estimated revenue of approximately £400 million. Looking ahead to the fourth quarter of 2025, the contribution from Kurt Geiger is forecasted to range between $182 million and $187 million in revenues.

The DTC focus of the acquired brand is a key part of this value proposition. In the third quarter of 2025, Kurt Geiger's direct-to-consumer operations accounted for approximately $135 million, which represents over 70% of that brand's total sales mix.

Multi-brand portfolio offering diverse styles and price points.

You benefit from a structure that spreads risk and captures different consumer wallets through its brand architecture. The portfolio now includes the core Steve Madden brand alongside the acquired brands: Kurt Geiger London, KG Kurt Geiger, and Carvela. This structure is reflected in the segment performance, even with external pressures like tariffs.

Revenue Segment (Q3 2025)	Amount (USD)	YoY Change (Excluding KG)
Wholesale Revenue	$442.7 million	Declined 19.0%
Direct-to-Consumer Revenue	$221.5 million	Grew 1.5%

The wholesale segment, which is typically more price-sensitive, saw its footwear revenue decrease by 10.9% (or 16.7% excluding Kurt Geiger) in Q3 2025.

Consistent product innovation in key categories like boots and dress shoes.

The company maintains a focus on core, high-volume categories, although recent tariff impacts have been felt. For example, in the wholesale channel during the third quarter of 2025, footwear revenue saw a 10.9% decrease year-over-year. Wholesale accessories/apparel revenue declined 10.3% over the same period, though the Kurt Geiger brand's success is specifically noted as being led by handbags.

The underlying gross margin performance shows the tension between trend-chasing and cost management. The overall adjusted gross profit as a percentage of revenue improved to 43.4% in Q3 2025, up from 41.6% in Q3 2024, showing pricing power or successful mitigation efforts, despite the impact of new tariffs on goods imported into the United States.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Customer Relationships

You're looking at how Steven Madden, Ltd. connects with the people buying their product in late 2025. The relationship strategy is clearly split between direct customer interaction and wholesale partnerships, with a heavy push toward digital engagement.

Direct-to-Consumer (DTC) engagement via e-commerce and retail stores.

The DTC channel is the primary growth engine, especially following the Kurt Geiger acquisition. In the third quarter of 2025, Direct-to-Consumer revenue reached \$221.5 million, marking a massive 76.6% year-over-year increase. This shows the power of their owned channels, which include physical stores and e-commerce sites. As of the second quarter of 2025, the company operated 392 company-operated brick-and-mortar retail stores, including 98 outlets, alongside seven e-commerce websites. For the full year 2025, Digital Commerce 360 projects Steven Madden, Ltd.'s online sales (GMV) will reach \$372.64 million. To give you a snapshot of the e-commerce performance, in October 2025, stevemadden.com generated \$15,856,308 in online sales, attracting 6,016,722 sessions with an Average Order Value (AOV) between \$100-125.

Here's a look at the channel revenue split from Q3 2025:

Channel	Q3 2025 Revenue (Millions USD)	Year-over-Year Change
Wholesale	\$442.7	-10.7%
Direct-to-Consumer (DTC)	\$221.5	+76.6%

Social media-driven brand heat and cultural relevance (TikTok, Pinterest).

Steven Madden, Ltd. is actively using digital platforms to maintain its fashion relevance, which translates directly into sales conversion. The company is using Fivetran to centralize data from various social platforms, including TikTok Ads, Facebook Pages, Instagram Business, and Snapchat Ads. This integration helps them streamline reporting and improve campaign performance by gaining faster insights across their global digital footprint. Josh Krepon, President, US Direct to Consumer & Global Digital, stated this agility allows them to anticipate market shifts and respond to trends in real time.

• Integrating data from platforms like TikTok Ads and Instagram Business.
• Using consolidated data to inform targeting and creative decisions.
• Focusing on digital storytelling to keep brand heat going.

Traditional B2B relationships with wholesale retail buyers.

The wholesale channel remains a significant part of the business, though it faced headwinds in 2025. In the third quarter of 2025, wholesale revenue was \$442.7 million, a 10.7% decrease compared to the prior year. Excluding the Kurt Geiger contribution, the organic wholesale revenue decline was 19.0%. Management noted that $95\%$ of the revenue shortfall in Q2 2025 came from wholesale customer order cancellations and reduced open-to-buys, showing the sensitivity of these B2B relationships to market uncertainty and inventory planning.

Loyalty programs to drive repeat purchases in the DTC segment.

While specific Steven Madden, Ltd. loyalty program metrics for 2025 aren't public, the strategy is clearly focused on driving repeat purchases in the DTC segment, a common practice where loyal customers are highly valuable. Industry statistics suggest that customers enrolled in loyalty programs are 70% more likely to continue shopping with a brand. Furthermore, loyal customers are noted to generate 40% of online store revenue. There was an expert note suggesting that the U.S.-centric loyalty base will need thoughtful alignment with the expectations of the newly acquired Kurt Geiger customer base post-merger, treating loyalty as an early integration layer.

• Loyal customers spend 12%-18% more than unenrolled customers.
• 79% of consumers stay loyal when they can access exclusive benefits.
• Customers with a strong emotional relationship spend 306% more over their lifetime.

Finance: draft 13-week cash view by Friday.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Channels

You're looking at how Steven Madden, Ltd. gets its product into the hands of customers right now, late 2025. It's a multi-pronged approach, balancing the traditional wholesale relationships with a growing direct connection to the consumer.

The wholesale segment remains a massive piece of the puzzle, even with the strategic pivot elsewhere. For the third quarter of 2025, wholesale revenues hit $442.7 million. To be fair, that represented a year-over-year decline of 10.7% compared to Q3 2024, but that figure includes the impact of the Kurt Geiger acquisition; organically, excluding Kurt Geiger, the decline was 19%.

Steven Madden, Ltd. supports its brand presence through a significant physical footprint, which you can see broken down here:

• - Wholesale segment revenue for Q3 2025 was $442.7 million.
• - Direct-to-Consumer (DTC) revenue for Q3 2025 reached $221.5 million.
• - The company operates 7 e-commerce websites.
• - Global physical presence includes 397 company-operated brick-and-mortar retail stores.
• - International reach is extended through 133 company-operated concessions.

The DTC channel is clearly gaining traction, evidenced by that $221.5 million in revenue for the quarter, which was a 76.6% increase year-over-year, though excluding Kurt Geiger, the organic DTC increase was only 1.5%. The gross profit margin on this DTC revenue was 58.3% in Q3 2025.

Here's a quick view mapping out the scale of these distribution points as of the end of Q3 2025:

Channel Component	Metric Type	Value as of Q3 2025 End	Context/Detail
Wholesale Revenue	Financial	$442.7 million	Q3 2025 revenue
Company-Operated Stores	Count	397	Total brick-and-mortar retail stores globally
E-commerce Websites	Count	7	Total owned websites
International Concessions	Count	133	Company-operated units
Direct-to-Consumer Revenue	Financial	$221.5 million	Q3 2025 revenue

The wholesale distribution network is broad, covering department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, and independent stores. Anyway, the company also licenses certain brands for apparel, accessory, and home products to third parties, adding another, albeit smaller, layer to their channel strategy.

The DTC segment's margin profile is notably higher; the adjusted gross profit as a percentage of DTC revenue was 61.9% in Q3 2025, compared to the wholesale adjusted gross profit margin of 33.6% for the same period. That difference in margin clearly shows why the shift toward DTC is a key strategic focus for Steven Madden, Ltd.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Customer Segments

You're looking at the customer base for Steven Madden, Ltd. (SHOO) as of late 2025, which is a fascinating mix of established wholesale relationships and a rapidly growing direct channel, all reshaped by the recent Kurt Geiger acquisition. Honestly, the customer segmentation is where you see the company's strategy playing out in real-time, especially with the tariff pressures hitting certain channels harder than others.

Core Target: Style-conscious Gen Z and Millennial Consumers

The heart of the Steven Madden brand remains focused on capturing the style-conscious Gen Z and Millennial consumers. This segment is primarily served through the Direct-to-Consumer (DTC) channel, which is showing serious momentum. In the third quarter of 2025, DTC revenue hit $221.5 million, marking a massive 76.6% increase compared to the third quarter of 2024. Even when you strip out the Kurt Geiger contribution, the underlying DTC business grew by 1.5% in that same period, showing that the core brand equity is still resonating directly with shoppers.

This focus on the direct relationship is critical because the gross profit as a percentage of DTC revenue in Q3 2025 was 58.3%, significantly higher than the wholesale margin. This group is responding favorably to new fashion assortments, particularly in dress shoes and boots.

Wholesale Partners: Department Stores, Mass Merchants, and Off-Price Retailers

The traditional backbone of Steven Madden, Ltd.'s distribution is the wholesale channel, which includes department stores, mass merchants, off-price retailers, and various chains. This segment faced headwinds in 2025, largely due to macroeconomic factors. For the third quarter of 2025, wholesale revenue was $442.7 million, a 10.7% decrease year-over-year. To put the tariff impact into perspective, when you exclude the Kurt Geiger contribution, the legacy wholesale business declined by 19.0%. Management noted that about 95% of the wholesale revenue shortfall came from the mass and off-price segments.

Here's a quick look at how the two main channels stacked up in Q3 2025:

Segment	Q3 2025 Revenue (Millions USD)	Year-over-Year Change
Wholesale	$442.7	-10.7%
Direct-to-Consumer (DTC)	$221.5	+76.6%

International Markets: Focus on EMEA, APAC, and the Americas ex-U.S. for Expansion

International expansion is a key growth driver, heavily bolstered by the acquisition of Kurt Geiger, which has a strong European base. The company operates through various means abroad, including joint ventures and direct operations. As of September 30, 2025, Steven Madden, Ltd. had 133 company-operated concessions in international markets. This is up from 130 at the end of Q2 2025. The Kurt Geiger brand itself is expected to contribute between $182 million and $187 million in revenue in the fourth quarter of 2025, with over 70% of that coming from its DTC operations.

The strategic intent is clear:

• Expand the Steven Madden brand into the U.K. via the Kurt Geiger platform.
• Leverage Kurt Geiger's existing presence in EMEA, APAC, and the Americas ex-U.S.
• The 2024 performance already showed robust gains in international markets.

Accessible Luxury Shoppers (New Segment via Kurt Geiger)

The Kurt Geiger acquisition introduced a clear customer segment: the accessible luxury shopper. Kurt Geiger's portfolio, which includes Carvela, is positioned as differentiated and elevated. This brand generated an estimated £400 million in revenue for the year ended February 1, 2025. The addition of this segment is expected to have a favorable impact on the company's overall gross margin due to its higher DTC weighting. This move diversifies the brand portfolio beyond the core Steve Madden offerings, targeting a slightly more premium, yet still accessible, price point. Finance: draft 13-week cash view by Friday.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that drive Steven Madden, Ltd.'s operations as of late 2025. The cost structure is heavily influenced by product sourcing, retail footprint management, and brand investment.

Cost of Goods Sold (COGS) is a major pressure point, especially given the global supply chain environment. New tariffs on imported goods have directly squeezed margins in the wholesale channel. For the third quarter ended September 30, 2025, the Adjusted gross profit as a percentage of wholesale revenue was 33.6%, down from 35.5% in the third quarter of 2024, explicitly due to these tariff impacts. To be fair, the company has been working on mitigation efforts, but the cost of goods remains a significant variable.

Operating costs are substantial, reflecting the scale of Steven Madden, Ltd.'s marketing spend and its extensive retail network. For the third quarter of 2025, operating expenses totaled $243.4 million. As a percentage of revenue, this represented 36.8% under GAAP measures, or 36.4% on an adjusted basis. This covers everything from running the 397 company-operated brick-and-mortar retail stores, including 99 outlets, to digital marketing efforts.

Inventory management is another critical cost area. Holding the right amount of product is key to fashion retail, but it ties up significant capital. As of September 30, 2025, Steven Madden, Ltd. reported inventory of $476 million. This is a considerable increase from the $268.7 million reported in the third quarter of 2024, suggesting higher investment in stock, perhaps in anticipation of the strong Q4 outlook or to buffer against supply chain uncertainty.

Capital expenditure (CapEx) supports the physical and digital infrastructure. While the latest full-year CapEx isn't fully reported yet, Q1 2025 data shows investment in growth and modernization. For the three months ended March 31, 2025, cash used in investing activities included capital expenditures of $9,847 (likely in thousands, representing $9.847 million) dedicated to leasehold improvements, new stores, and systems enhancements. This spending supports the ongoing retail footprint and necessary systems integration.

Here's a quick look at some key Q3 2025 financial figures that frame these costs:

Metric	Amount / Percentage (Q3 2025)
Revenue	$667.9 million
Operating Expenses (Adjusted as % of Revenue)	36.4%
Wholesale Gross Margin (Adjusted)	33.6%
Inventory Value (as of Sep 30, 2025)	$476 million
Total Debt Outstanding (as of Sep 30, 2025)	$293.8 million

The cost structure also involves managing the balance sheet, which impacts financing costs. As of September 30, 2025, Steven Madden, Ltd. carried total debt outstanding of $293.8 million against cash, cash equivalents and short-term investments of $108.9 million, resulting in a net debt position.

The company's fixed and variable costs are also reflected in the retail channel performance. For instance, the Direct-to-Consumer (DTC) gross margin was 61.9% in Q3 2025, lower than the prior year's 64.0%, partly due to the integration of the Kurt Geiger concessions business, which carried a lower DTC margin in the quarter.

You can see the direct impact of these costs on profitability:

• Net income attributable to Steven Madden, Ltd. for Q3 2025 was $20.5 million.
• Income from operations totaled $31.4 million, or 4.7% of revenue.
• The company is actively assessing sourcing strategies to manage tariff impacts.

Finance: draft 13-week cash view by Friday.

Steven Madden, Ltd. (SHOO) - Canvas Business Model: Revenue Streams

You're looking at how Steven Madden, Ltd. brings in the money, and as of late 2025, it's a mix of traditional and direct channels, with the recent acquisition of Kurt Geiger playing a big role in the numbers.

The revenue streams for Steven Madden, Ltd. are clearly segmented across wholesale partners and the company's own direct channels, supplemented by intellectual property monetization.

The primary revenue drivers for the third quarter ended September 30, 2025, were:

• Wholesale product sales (footwear, accessories, apparel) to retailers.
• Direct-to-Consumer (DTC) sales from e-commerce and retail stores.
• Licensing and royalty income.

For the third quarter of 2025, the company reported a consolidated revenue of $667.9 million, which was a 6.9% increase year-over-year. The trailing twelve months (TTM) revenue, based on the Q3 2025 filing data, was $1,780,409 (in thousands).

Here's a breakdown of the key revenue components from the Q3 2025 results:

Revenue Stream Component	Q3 2025 Amount (USD)
Wholesale Revenue	$442.7 million
Direct-to-Consumer (DTC) Revenue	$221.5 million
Licensing and Royalty Income	$3.7 million

Drilling down into the wholesale segment, you see the split between the core footwear business and the accessories/apparel categories:

• Wholesale footwear revenue was $266.5 million, a 10.9% decrease from Q3 2024.
• Wholesale accessories and apparel revenue was $176.2 million, down 10.3% compared to the third quarter in the prior year.

The Direct-to-Consumer segment showed significant growth, largely due to the inclusion of the Kurt Geiger business. DTC revenue increased 76.6% to $221.5 million in the quarter. However, excluding Kurt Geiger, the organic DTC revenue increased by 1.5%. Steven Madden, Ltd. supported this channel with a physical footprint of 397 company-operated brick-and-mortar retail stores, including 99 outlets, as of the end of the quarter.

The licensing stream, which represents revenue from third parties marketing and selling products under certain Steven Madden, Ltd. brands, contributed $3.7 million in Q3 2025, up from $3.5 million in the third quarter of 2024. That's a 4.9% increase for that specific income line item.