Steven Madden Positioned for Sustained International Growth Through Strategic DTC Expansion

Steven Madden’s international business strategy demonstrates why the company is well positioned to capture significant growth opportunities across multiple global markets. Rather than concentrating efforts in a single region, the company has deliberately built geographic diversification as a cornerstone of its expansion playbook, with management projecting core brand revenues outside the United States to grow at high-single-digit rates through fiscal 2025. This balanced approach—spanning EMEA, APAC, and the Americas excluding the U.S.—reflects genuine consumer demand across diverse markets rather than temporary strength in any one territory.

The Kurt Geiger London acquisition exemplifies how strategic acquisition can accelerate international positioning. The brand achieved mid-teens comparable sales growth in Q3 2025, with strong performance across the U.K., the United States, and continental Europe. This success wasn’t accidental; it reflected the power of bold design language combined with high-visibility marketing that resonated with consumers across different cultural contexts. The brand’s ability to perform well simultaneously across such geographically diverse markets signals a fundamental strength in its positioning and appeal.

Building Global Strength: Kurt Geiger’s Regional Success Story

Kurt Geiger’s expansion illustrates the cross-market synergies Steven Madden is systematically unlocking. The company plans to leverage its established international distribution network to extend Kurt Geiger into new markets through existing partners, while simultaneously using the Kurt Geiger platform to deepen the company’s presence in the U.K. These initiatives represent more than simple geographic expansion—they demonstrate how different brands within the portfolio can amplify each other’s reach and credibility. Management expects these cross-brand initiatives to contribute meaningfully to results during the latter half of 2026.

The numbers validate this strategic approach: international revenues were projected to increase 63.4% year-over-year in 2025, demonstrating that the company’s international playbook delivers tangible results. This isn’t growth through dilution or margin sacrifice; it’s growth achieved while strengthening the overall business model.

Direct-to-Consumer Model: The Engine Behind Margin Expansion

What truly positions Steven Madden for sustained profitability is its commitment to direct-to-consumer channels in international markets. Kurt Geiger generates over 70% of revenues from DTC operations, a mix that provides both brand control and the foundation for long-term margin expansion. By the end of the most recent quarter, the company operated 133 international concessions and continued building its global e-commerce presence, creating multiple touchpoints with consumers across regions.

The DTC-focused strategy matters because it allows Steven Madden to retain pricing power and customer relationships directly. Rather than depending on wholesale partners or third-party distributors for international growth, the company owns the customer interaction. This structural advantage becomes increasingly valuable as brands scale globally, enabling faster adaptation to local preferences while maintaining consistent brand positioning.

Valuation Metrics and Investment Thesis

From a market perspective, Steven Madden shares surged 76.8% over the prior six months, significantly outpacing the industry’s 15.2% decline. This outperformance reflects investor recognition of the company’s international growth trajectory and operational execution.

On valuation, Steven Madden trades at a forward 12-month price-to-sales ratio of 1.16X, below the industry average of 1.74X. This discount presents an interesting dynamic—the market may not yet be fully pricing in the international growth potential. The Zacks Consensus Estimate projected a 37.1% earnings decline for fiscal 2025, but anticipated a 27.4% uptick for fiscal 2026, suggesting earnings momentum recovery. Recent estimate revisions have been positive, with fiscal 2025 and 2026 estimates revised upward by 1 cent and 2 cents respectively over the prior 30 days.

Why Investors Should Watch Steven Madden

Steven Madden carries a Zacks Rank #2 (Buy) rating, reflecting analyst confidence in the company’s strategic positioning and execution capability. The company’s ability to deliver international growth while maintaining disciplined expansion and preserving brand identity demonstrates management quality that commands investor attention.

With diversified sourcing, a proven international playbook, and strong consumer resonance for both the Steven Madden core brands and Kurt Geiger, the company appears well positioned to sustain double-digit international growth for Kurt Geiger specifically and steady expansion for core brands over the coming years. The combination of strategic positioning, operational execution, and reasonable valuation provides a compelling investment case for patient capital.