Steven Madden Positioned for Double-Digit International Growth Through Strategic Kurt Geiger Integration

Steven Madden Ltd. [SHOO] has positioned itself as a growth-focused footwear and accessories company with international markets emerging as its primary expansion engine. The company’s strategic geographic diversification across EMEA, APAC, and the Americas—excluding the United States—demonstrates a deliberate move beyond domestic market dependency. Management’s expectation of high-single-digit growth for core Steven Madden brand revenues outside the U.S. in fiscal 2025 reflects a measured but confident approach to sustained international penetration.

Geographic Diversification: Building a Multi-Region Growth Foundation

The company’s international strategy is notably well-distributed across multiple regions rather than concentrated in any single geography. This balanced approach to growth indicates broad-based consumer demand and reduces execution risk. Europe, particularly the U.K., has become a focal point following the strategic integration of Kurt Geiger London—a premium footwear brand that significantly strengthened Steven Madden’s international presence and brand portfolio diversity.

The Kurt Geiger brand delivered mid-teens comparable sales growth during the third quarter of 2025, supported by strong consumer reception to its distinctive design philosophy and high-visibility marketing investments. Performance remained consistently solid across the U.K., continental Europe, and U.S. markets, reinforcing management’s confidence in the brand’s capacity for long-term global scalability.

Kurt Geiger’s Direct-to-Consumer Advantage: Margin Expansion & Brand Control

What makes Kurt Geiger particularly attractive from an investment standpoint is its direct-to-consumer revenue structure. The brand generates over 70% of its revenues through DTC channels, a model that provides dual benefits: enhanced brand control and substantially higher long-term margin potential compared to wholesale-dependent models.

The company concluded the quarter with 133 international concessions and continued expanding its e-commerce footprint, strengthening customer touchpoints across multiple regions. This omnichannel strategy positions Kurt Geiger to capture growing consumer preference for seamless, branded shopping experiences. Beyond Kurt Geiger’s standalone performance, Steven Madden is leveraging its established international distribution network to unlock cross-selling opportunities between its core brands and the Kurt Geiger platform. These synergistic initiatives are expected to gain material traction during the latter half of 2026.

Financial Performance: Positioned for Earnings Recovery & Valuation Upside

From a stock performance perspective, Steven Madden shares have surged 76.8% over the past six months, substantially outpacing the industry’s 15.2% decline. This divergence signals investor confidence in management’s international strategy and operational execution.

On valuation, the company presents an attractive entry point. Steven Madden trades at a forward 12-month price-to-sales ratio of 1.16X, compared to the industry average of 1.74X—indicating a meaningful discount despite superior international growth prospects. This valuation gap suggests the market has not fully priced in the revenue synergies and profitability improvements expected from Kurt Geiger integration.

The Zacks Consensus Estimate projects fiscal 2025 earnings to decline 37.1% year-over-year, primarily reflecting one-time integration costs and operational transitions. However, fiscal 2026 earnings are expected to increase 27.4%, signaling a meaningful recovery trajectory. Additionally, earnings estimates have been revised upward by 1 cent and 2 cents for fiscal 2025 and 2026 respectively over the past 30 days, reflecting improving analyst sentiment.

Investment Perspective: Why SHOO Merits Buy Rating Status

Steven Madden currently carries a Zacks Rank #2 (Buy), positioning it among the sector’s most attractive opportunities. The company faces favorable catalysts including Kurt Geiger’s continued international expansion, cross-brand revenue synergies, and margin expansion from the DTC channel mix shift.

Comparable opportunities in the specialty retail space include FIGS Inc. [FIGS], which holds a Zacks Rank #1 (Strong Buy) with 450% earnings growth and 7.1% sales growth projected for the current financial year, and American Eagle Outfitters Inc. [AEO], trading at Zacks Rank #1 with expected 2.5% sales growth despite a 21.3% earnings decline projection. The Gap Inc. [GAP] rounds out the watch list at Zacks Rank #2, with modest sales growth of 1.8% expected against a 2.7% earnings decline.

Looking forward, Steven Madden’s international growth story remains intact. With disciplined expansion execution, proven DTC profitability model, and strong brand resonance across markets, the company is positioned to sustain double-digit international growth for Kurt Geiger and steady expansion for its core brand portfolio through the coming years. International revenues are expected to reach 63.4% year-over-year growth in 2025, marking a significant milestone in the company’s transformation into a truly global footwear powerhouse.