Steve Madden's sales jump leaves cash tied up with customers
Profit more than doubled as shoes and accessories sold better. A comparison of the filings shows why the stronger quarter produced little operating cash.
Steve Madden raised its full-year outlook for adjusted earnings per share after third-quarter revenue climbed 16% to $772.6 million. Profit attributable to shareholders more than doubled to $52.4 million. The shoe and accessories maker is getting a stronger contribution from its wholesale business.
Research by Ticker Byline shows that operations generated just $3.5 million of cash during the quarter, down from $23.4 million a year earlier. We isolated the three-month result by comparing the nine-month and first-half filings.
More sales, more money awaiting collection
The buildup in customer receivables took $107.5 million out of cash flow, more than twice the year-earlier amount. Inventory absorbed a further $39.4 million, although that was less than in the same quarter last year.
| Cash use | 2025 | 2026 |
|---|---|---|
| Customer receivables | $46.3 | $107.5 |
| Inventory | $75.7 | $39.4 |
The company put its average collection time at 56 days, down from 58 a year earlier. A larger amount tied up in customer bills can coexist with faster average collection. Payables and other accrued bills provided a partial cash offset.
The year-to-date picture is stronger: operating cash flow reached $152.7 million, versus $71.1 million. That total includes a $92.1 million tariff-refund payment, including interest, received in the second quarter.
A higher target, with a retail weak spot
Wholesale revenue rose 19%, while sales through the company's stores and online channels increased 8%. Wholesale gross margin improved, but the retail business kept less of each sales dollar before operating expenses. Its gross margin was 60.7%, versus an adjusted 61.9% a year earlier, as freight costs and markdowns weighed.
Management now expects 2026 adjusted earnings of $2.15 to $2.20 a share, up from $2.05 to $2.15 in July. That measure excludes tariff-refund effects, acquisition-related and legal costs, and other specified items.
Debt repayment continues. Borrowings stood at $125 million at September 30, versus $130 million in June. The company then used cash to repay the remaining $25 million drawn on its revolving credit line before filing its quarterly report in November.
Our Steve Madden company profile tracks the quarterly results, completed acquisitions and updated outlook.