Steve Madden (SHOO) 2026年第3季法說會：營收成長15.7% 上調財測指引

重點摘要

• 第三季營收年增 15.7% 至 7.726 億美元，主要由批發業務成長 19.4% 及直接面對消費者 (DTC) 營收成長 8% 所帶動。
• 調整後稀釋每股盈餘 (EPS) 從 0.43 美元增至 0.79 美元。受毛利率改善及費用槓桿效應支撐，營業利益率從 6.9% 擴大至 10.2%。
• Steve Madden 全球同店銷售額成長 7%，其中美國市場成長 16%。Kurt Geiger 同店銷售額成長 6%，Dolce Vita 則攀升 26%。
• 管理層調升 2026 財年財測，預估營收成長 12% 至 13%，稀釋每股盈餘為 2.15 至 2.20 美元。
• 存貨下降 12.8% 至 4.153 億美元，主要受 Kurt Geiger 存貨減少 26% 帶動。
• 管理層預期第四季批發營收將下滑 6% 至 7%，主因是出貨時程的比較基期影響，而下半年品牌批發業務成長率預計落在 10% 出頭的低雙位數。

關鍵財務數據

業務與營運表現

旗艦品牌 Steve Madden 在鞋類、配件、服飾、批發及 DTC 業務皆實現成長。休閒鞋、踝靴與高跟鞋抵銷了長筒靴的疲軟表現。手提包受惠於單肩包、流浪包 (hobo) 及托特包的熱銷，服飾業務則受惠於牛仔系列的成功推出，以及多個品類的強勁銷售表現。

Steve Madden 全球同店銷售額成長 7%。美國同店銷售額成長 16%，其中正價門市成長 23%，暢貨門市 (Outlet) 成長 17%。國際同店銷售額下滑 2%，但若排除受中東衝突影響的海灣合作委員會 (GCC) 業務，則成長 1%。

Kurt Geiger 單季營收達 1.429 億美元，其中 1.018 億美元來自 DTC。同店銷售額成長 6%，此前第二季成長 7%，第一季成長 24%。管理層表示該品牌依然穩健，但已從年初異常強勁的表現回歸正常化水準。其專櫃業務大致持平，且營業利益率低於 Kurt Geiger 的其他業務。

Dolce Vita 第三季表現創下歷史新高，同店銷售額成長 26%。芭蕾平底鞋、樂福鞋、瑪莉珍鞋與厚底穆勒鞋引領鞋類成長，單肩包與托特包則支撐手提包的成長。管理層將該品牌的全年營收預期調升至低雙位數成長。

Betsey Johnson 全年營收仍有望維持 10% 出頭的成長。管理層亦指出 Anne Klein 與 Carvela 表現強勁。男士系列與 Madden Girl 呈現強勁年增，其中樂福鞋與新款正裝鞋受惠於部分消費者轉離球鞋的趨勢。

管理層財務指引

Steve Madden 將 2026 財年營收成長預估調升至 12% 至 13%，先前預估區間為 11% 至 13%。稀釋每股盈餘預期調升至 2.15 至 2.20 美元，高於先前指引的 2.05 至 2.15 美元。

管理層仍預期 Steve Madden 品牌全年營收將呈現高個位數成長。Dolce Vita 目前預期將實現低雙位數成長，而 Betsey Johnson 預計將繳出 10% 出頭的成長表現。

Kurt Geiger 的備考全年營收成長預估從 15% 左右下修至低雙位數，反映第一季後同店銷售成長的回歸正常化。管理層指出，這使得展望重回年初時的最初預期。

第四季方面，管理層預期批發營收將下滑 6% 至 7%，主因關稅相關干擾導致出貨提前至 2025 年第四季，造成較高的比較基期。下半年批發營收仍預計成長約 6% 至 7%，儘管自有品牌業務下滑高個位數，但品牌批發業務仍可實現低雙位數成長。

該公司第四季的關稅假設從 15% 下調至約 12.5%。管理層亦預期外向運費將產生約 20 個基點的影響。

風險與關注焦點

• 批發出貨時程仍是季度波動的來源之一。由於亞洲颱風與延遲交貨，約有 1,200 萬至 1,400 萬美元的訂單從第三季遞延至第四季，儘管部分第四季出貨有所提前以抵銷部分影響。
• 長筒靴表現遜於其他鞋類品項，管理層將此歸因於流行趨勢而非氣候因素。
• DTC 毛利率從 61.9% 下滑至 60.7%，主因運費成本上升、降價促銷時程調整，以及季節性商品（尤其是涼鞋）的折扣力道加大。
• Kurt Geiger 的成長動能較第一季放緩，而其專櫃業務利潤率較低且大致持平。
• 自有品牌營收預計在 2026 年下滑約 15% 左右。管理層表示，該業務從 2024 年至 2026 年將縮減約 1.1 億至 1.15 億美元，且尚未迎來營運轉折點。
• 關稅政策仍具不確定性。管理層正在等待針對其餘 301 條款調查及長期關稅體制更加明確後，才會提供 Kurt Geiger 營業利益率目標的具體時程。

分析師問答重點

管理層表示，第三季營收接近內部預期，些微落差主要導因於批發出貨遞延至第四季。獲利表現則優於管理層預期。

批發客戶正針對熱銷商品追加訂單並進行補貨，但管理層未量化追加訂單的具體貢獻。該公司強調，第四季的比較基期受到前一年關稅相關出貨時程變動的扭曲。

Kurt Geiger 已在梅西百貨 (Macy's) 開設 15 家店中店，包含先驅廣場 (Herald Square) 旗艦店。管理層預期到 2027 年春季，總店數可望達到 40 至 42 家。Kurt Geiger 品牌本身的獲利能力略高於公司平均，但由於專櫃業務利潤率較低，導致整體業務略低於平均水準。

在自有品牌方面，管理層將 2026 年展望微幅上修，從原先預期的下滑 15% 至 19% 左右改善為下滑 15% 左右。然而，此調整主要反映了訂單由 1 月提前至 12 月出貨。公司的初步目標是在 2027 年使該業務回穩，隨後再尋求重返成長。

法說會逐字稿全文

完整財報電話會議逐字稿

管理層陳述

Operator

Good day and welcome to the Third 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, VP of Corporate Development and Investor Relations. Please go ahead.

Danielle McCoy

Thanks, Michael, and good morning, everyone. Thank you for joining our third 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 previously or implied by such forward-looking statements. These risks include, among others, matters that have been 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 and 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

All right, thank you, Danielle, and good morning, everyone, and thank you for joining us to review Steve Madden's third quarter 2026 results. We delivered an outstanding third quarter with revenue up 16% and diluted EPS up 85% compared to the third quarter last year. We saw strong growth across our brands and channels, reflecting our team's disciplined execution of our strategy: creating outstanding product, amplifying it with effective marketing, and ensuring the right distribution and compelling consumer experiences across the channels where our customers shop.

Our flagship brand, Steve Madden, led the way with strong growth across footwear, accessories, and apparel, as well as in both wholesale and DTC channels. Steve and his design team continue to create trend-right product assortments that resonate with consumers. In footwear, exceptional growth in casuals along with strong performance in booties and heels more than offset a decline in tall shaft boots. In handbags, we saw success across a range of shapes, including shoulder bags, hobos, and totes, and with trending treatments and materials like patchwork and faux suede.

And in apparel, we had a successful launch of denim and drove strong sell-through across categories including dresses, tops, bottoms, and jackets. Our marketing team amplified these assortments with an integrated, full-funnel approach that included our fall campaign, Ask Steve, featuring Delilah Belle and the 1997 Big Heads in a callback to one of the brand's most famous ads. Building on the momentum of Steve's recent viral social media moments, the campaign invited consumers to text or call Steve directly at an interactive toll-free hotline for advice on their shoe emergencies. Together, the combination of compelling product and strong marketing execution continues to fuel an increase in brand heat. Global online search interest for Steve Madden rose 16% in the quarter. And we continue to expect Steve Madden brand revenue for the year to increase high single digits compared to 2025.

Under Kurt Geiger, the team continues to create the bold, expressive styles the brand is known for and to support them with creative marketing campaigns. Just last week, we launched a limited edition holiday collaboration with Paddington Bear. London is at the heart of the Kurt Geiger brand and Paddington is one of London's most beloved and internationally recognized characters. The collaboration brings these two distinctly London worlds together, reimagining Paddington with Kurt Geiger's signature color, crystals, and jewel-encrusted detailing. The campaign features Georgia May Jagger, Vinnie Jones, and a cast of London personalities. And the collection spans handbags, footwear, accessories, and gifting.

We also continue to thoughtfully expand distribution for the Kurt Geiger brand. In October, we opened a full-price store in the SoHo neighborhood of New York City, a premium outlet in Desert Hills in California, and handbag and footwear shop-in-shops in Macy's Herald Square. In the third quarter, global DTC comp sales for Kurt Geiger rose 6%, on top of a 15% increase in last year's third quarter. While this remains healthy growth, it represents a moderation from the exceptionally strong trend we saw earlier in the year, and we have adjusted our forecast for the full year and now expect Kurt Geiger revenue to be up low double digits for the year on a pro forma basis.

In Dolce Vita, we delivered a record third quarter with robust growth across wholesale and direct-to-consumer channels driven by a compelling product assortment. In footwear, ballets, loafers, Mary Janes, and wedge mules were standouts. We also continued to build our handbag business, where highlights included shoulder bags and totes. And across both shoes and bags, Dolce Vita saw success with on-trend materials like suede and animal print, as well as seasonal colors like oxblood, jade, and chocolate brown. The team also continues to deliver innovative marketing campaigns and activations that deepen the brand's connection with its consumers.

Dolce Vita's fall campaign, Designed to Be Lived In, came to life through the Dolce Vita Flat, an immersive brand residency in the Williamsburg neighborhood of Brooklyn, New York, inspired by the brand's best-selling flats category. Dolce Vita transformed a Williamsburg loft into a fully furnished home, and throughout the month-long residency, the space has hosted dinners, editorial appointments, styling sessions, and community gatherings. Based on the strong momentum we're seeing in the brand, we have increased our forecast for Dolce Vita revenue for the year and now expect low double-digit growth.

Beyond our lead brands, we're pleased that we're also seeing strength across our broader brand portfolio and are on pace for strong gains for the year at Anne Klein, Betsey Johnson, and Carvela as well. Betsey Johnson has been a particular highlight. Over the past few years, the team has renewed the brand's cultural relevance by tapping into the Y2K fashion revival and building on that momentum with distinctive product, storytelling, collaborations, and activations. During the third quarter, we launched the Betsey Johnson by Paris Hilton collaboration. Sell-through was strong across the products in the collection, and dresses inspired by some of Betsey's most iconic archival prints and styles generated an online frenzy and sold out in 2 days. The collaboration generated nearly 800 million media impressions, further strengthening brand awareness and reinforcing the brand's relevance with a new generation of consumers. The Betsey Johnson brand is on track for low teens revenue growth for the year.

So overall, our brands are deepening their connection with consumers, gaining relevance in the marketplace, and driving meaningful growth. Based on our strong year-to-date results and the continued momentum we see in the business, we are raising both our revenue and earnings outlook for the year. And looking further ahead, the strength of our brands and the multiple growth opportunities across our diversified portfolio give us confidence in our ability to drive sustainable growth and create long-term value for our stockholders. And now I'll turn it over to Zine to review our third quarter financial results in more detail and provide our updated outlook for 2026.

Zine Mazouzi

Thanks, Ed, and good morning, everyone. In the third quarter, consolidated revenue was $772.6 million, a 15.7% increase compared to the third quarter of 2025. Wholesale revenue was $528.7 million, up 19.4% compared to the third quarter of 2025, driven by strong performance in the branded business. Wholesale revenue also benefited from a more normalized shipment timing compared with last year, when tariff-related disruptions shifted certain shipments from the third quarter into the fourth quarter of 2025. Growth was strong across categories: wholesale footwear revenue was $322.6 million, a 21% increase, and wholesale accessories and apparel revenue was $206.1 million, a 17% increase.

In our direct-to-consumer segment, revenue was $239.2 million, an 8% increase compared to the third quarter of 2025. Globally, Steve Madden brand comp sales rose 7% in the quarter, driven by continued outstanding performance in the U.S., where comp sales for our flagship brand rose 16%. International comp sales decreased 2%, but increased 1% excluding the GCC business, which was impacted by the conflict in the Middle East. Kurt Geiger comp sales were up 6% in the quarter, and Dolce Vita comp sales increased 26%.

We ended the quarter with 381 company-operated brick-and-mortar stores, including 92 outlets, as well as 8 e-commerce websites, and 190 company-operated concessions in international markets. Our licensing royalty income was $4.7 million in the quarter compared to $3.7 million in the third quarter of 2025. Consolidated gross margin was 44.6% in the quarter, up from 43.4% in the prior year, driven by an increase in the wholesale channel, partially offset by a decrease in direct-to-consumer. Wholesale gross margin was 36.8%, up from 33.6% in the third quarter of 2025, reflecting strong underlying improvement as well as a small negative impact from tariffs, partially offset by higher freight expense.

Direct-to-consumer gross margin was 60.7%, down from 61.9% in the third quarter of 2025, primarily due to higher freight expense, shift in markdown cadence compared to the prior year, and deeper discounting on seasonal products. Operating expenses as a percentage of revenue were 34.3% in the quarter compared to 36.4% in the third quarter of 2025, driven by expense leverage on a higher revenue base. Operating income for the quarter was $78.9 million, or 10.2% of revenue, compared to $46.3 million, or 6.9% of revenue, in the third quarter in the prior year.

The effective tax rate for the quarter was 25.4% compared to 23.4% in the third quarter of 2025. Finally, net income attributable to Steve Madden Limited for the quarter was $57.3 million, or $0.79 per diluted share, compared to $30.4 million, or $0.43 per diluted share, in the prior year. Turning to the balance sheet, our financial foundation remains strong. And as of September 30, 2026, we had $120.2 million in debt and $71.3 million in cash and cash equivalents, for a net debt of $48.8 million. Inventory was $415.3 million, down 12.8% compared to $476 million in the prior year, driven by a 26% inventory reduction in the Kurt Geiger business. Our CapEx in the quarter was $14.4 million, and we did not repurchase any shares in the open market.

The company's board of directors approved a quarterly cash dividend of $0.21 per share. The dividend will be payable on December 24, 2026 to stockholders of record as of the close of business on December 11, 2026. Now turning to our fiscal 2026 guidance, we are raising our revenue and diluted earnings per share outlook. We now expect revenue to increase 12% to 13% from our prior guidance of 11% to 13%. And we expect diluted earnings per share to be in the range of $2.15 to $2.20, up from our prior guidance of $2.05 to $2.15. Now I would like to turn the call over to the operator for Q&A. Michael?

Operator

[Operator Instructions] The first question today comes from Anna Andreeva with Piper Sandler. Please go ahead.

分析師問答

Anna Andreeva

We had a couple. On the core Madden business, surprised to see a miss to at least the Street, considering the product looks really great. So did that come in in line with your expectations? We've noticed some stockouts in core Madden plus weather hasn't been seasonable quite yet, as we know, so are you leaving some sales on the table as a result? And then secondly, I'm not sure you mentioned, what was the revenue contribution from KG? You talked about a slower comp in 3Q and revenue is now expected low double digits for the year. Can you just elaborate on that? Maybe talk about what didn't work well. Thanks so much.

Edward Rosenfeld

Yes, sure. The revenue overall was pretty close to our internal expectation, maybe a couple million dollars below, and that was related to wholesale shipments that moved out from Q3 to Q4. And that was, you know, related to the typhoons in Asia and some late deliveries. But basically in Q3, we were, you know, we were pretty much in line with what we expected on the revenue and obviously exceeded on the earnings line.

In terms of Kurt Geiger, I think it's helpful to put the adjustment to the Kurt Geiger guidance into context. When we came into the year, our initial guidance was for Kurt Geiger brand revenue to be up low doubles for the year. Then we came out in Q1 and had an exceptionally strong quarter where comps were up 24% in that business. And at that time, based on that strength in Q1, we raised the guidance to mid-teens for the year. Since then, the growth has normalized somewhat. It's still quite healthy. We did a 7% positive comp in Q2, and then, as I mentioned, our comps were up 6% in Q3. So still solid growth, but obviously not at the same pace as what we saw in Q1. And based on that more normalized trend, you know, we're now looking at low doubles again for the year, which is essentially where we started.

Anna Andreeva

Okay, understood. Super helpful. Ed, did you quantify the amount of those shipments from 3Q into 4Q?

Edward Rosenfeld

Zine, do you want to?

Zine Mazouzi

Yes, so the actual orders that had shifted, I would say, were about between $12 million and $14 million, but we were also able to accelerate some from Q4 into Q3 to kind of offset it a little bit.

Anna Andreeva

All right. I appreciate it. Thank you so much, guys.

Operator

The next question comes from Kelly Crago with BMO Capital Markets. Please go ahead.

Unknown Speaker

I guess could you dig into the 4Q implied sales guidance of flat to up 2%? I guess, what does that imply for the core Steve Madden business versus KG?

Edward Rosenfeld

So the core Steve Madden business or the business excluding Kurt Geiger would be down modestly in Q4. And again, that has to do with the wholesale shipment timing. And, you know, last year was obviously a very unusual year because of all the tariff-related disruption. And so a lot of shipments last year moved from Q3 to Q4. And so, you know, we've tried to prepare people that we would have strong wholesale growth in Q3 and then would be down in Q4. We're really looking at it as what are we achieving for the back half in total.

But if you're asking about the number excluding Kurt Geiger, I can just give you the wholesale number. Well, maybe since Kurt Geiger's anniversaried, I'll give you the number in total. We were up 19.4% in wholesale growth in Q3. We'll be down 6% or 7% in Q4. And so that gets us to roughly a 6% or 7% increase for the second half. And just keep in mind, that includes down high singles in private label. So the branded business for the second half is up low double digits in wholesale.

Unknown Speaker

Got it. I guess what's sort of, given that you're talking about very strong trends, you know, it seems like particularly wholesale, I know there was a shift underlying that, what you're implying is that, you know, there are trends, you guys are chasing it. So I guess what is the assumption on, you know, the reorder business in the fourth quarter on wholesale given, you know, retailers seem to be wanting more of this product?

Edward Rosenfeld

Look, we never quantify that, but obviously we built a reorder assumption in here. We are getting reorders. We are seeing wholesale customers chasing into products that are selling. But again, there's a meaningful headwind from the shift.

Unknown Speaker

Got it, okay. And then you mentioned another thing that stood out to us is that you're talking very strong Steve Madden core comps, especially in the U.S., but you spoke to some seasonal liquidations. And I'm curious what the dynamic is there, and in that same vein, you called out tall shaft boots. I was wondering if there was anything more to say there as we look to the fourth quarter. Thanks.

Edward Rosenfeld

Yes. Sure. So in terms of the seasonal liquidation, I guess what I would say is, you know, overall, I know many of you guys track our DTC promotions, and I think everybody's aware that we have pulled back on promotional activity overall, that we've had fewer days where we're on sale this year. And, you know, that's been a positive story. However, what we did see in Q3 is that when you have something that you do need to clear, we had to go pretty deep. And for us in spring, that category that was a bit of a laggard was sandals. And as we moved through the sandals in Q3, we did find that we had to, you know, take some serious markdowns to get through those and get clean going into fall.

And then, yes, from a trend perspective, I would say tall shaft boots is the one thing that is not as strong as last year. If we look at our business by category, we're essentially up in every category but tall shaft boots. So, you know, obviously flats have been tremendous for us. All the casuals have been very strong. Dress shoes are performing very well. And booties are great, particularly dress booties. But tall shaft boots have not been as strong as last year.

Unknown Speaker

Do you think that's sort of a weather thing or a trend thing?

Edward Rosenfeld

No, I think it's a trend thing, but, you know, that's the nature of our business. You know, we shifted based on the categories that are trending, and I can't remember any year where every category was up because, you know, the consumer moves based on fashion.

Unknown Speaker

Yes. Great. Thanks. That's awesome.

Operator

The next question comes from Janine Stichter with BTIG. Please go ahead.

Ethan Saghi

You've got Ethan Saghi on for Janine. I was hoping you could just walk us through your assumptions for tariffs and freight costs in Q4 and as we move into '27, what you're embedding in there as well.

Zine Mazouzi

As far as tariffs, we have adjusted our assumptions for Q4 for any products received. We had, as you know, our previous guide had 15% for Q4, and we have adjusted that to somewhere in the 12.5% range. So that's what's embedded in our Q4. And as far as freight is concerned, in Q4, we're assuming we'll still have an impact from inbound freight, but although we were able to manage it in Q3, we're expecting probably about a 20 basis points impact on outbound freight, or freight to our stores or to our consumers from our e-com.

Ethan Saghi

Great. Thanks so much. And then just on SG&A, I know in Q3 came in a bit below your previous expectations. Could you just walk us through the puts and takes of the lower growth there?

Zine Mazouzi

Yes, so if you look at it as a percentage of revenue, obviously we have the leverage from the higher revenue base. But if you look at it from a dollar-to-dollar perspective, Q2 was a partial year last year for Kurt Geiger. So Kurt Geiger being there for the full Q2 had a much bigger impact. I think we were up 25.3% in Q2, and in Q3 we're at 9%. And some of the other things that helped us in Q3 as well is we put a big focus on our warehouse management and put people on the ground there to ensure that everything runs smoothly, and we manage our operating expenses in our stores very well given the nice comp increase that Ed spoke to earlier.

Ethan Saghi

Great. Thanks so much. I'll pass it on.

Operator

[Operator Instructions] Your next question comes from Sam Poser with Williams Trading. Please go ahead.

Samuel Poser

I would like to just follow up on Anna's question about Kurt Geiger. How much revenue did Kurt Geiger do in the quarter? And if you could break it down by DTC and the wholesale components, that would be great.

Edward Rosenfeld

Kurt Geiger. Do you want me to report it? Yes, go ahead.

Zine Mazouzi

So revenue for the quarter for Kurt Geiger in total was $142.9 million, and the DTC part of it was $101.8 million.

Samuel Poser

Thank you. And then on the -- there's been some articles recently about the concessions part of that business. Can you talk a little bit about the concessions business and your thoughts there and how that's performing relative to the balance of the business?

Edward Rosenfeld

Well, yes, no, obviously we can't comment on any rumors or any of the press reports. And certainly, if and when there's anything material to report, we will get that information out quickly and through the official channels. But in terms of the business, look, it continues to perform. It's making money. I think we've been open about the fact that it's lower operating margin than the balance of the Kurt Geiger business.

Samuel Poser

But it's performing well. I mean, when you look at the overall Kurt Geiger revenue of $142 million and its growth, was that additive as a percent growth metric or did the Geiger brand grow better?

Edward Rosenfeld

No, the brands are growing faster. The concessions business has basically been flattish.

Samuel Poser

And if I'm not mistaken, that's around 1/3 of the overall Kurt Geiger revenue. Is that more accurate on an annualized basis?

Edward Rosenfeld

Yes, I think it's a little smaller than that now as the brands have grown faster.

Samuel Poser

And then lastly, could you talk about, you left out a couple of your own brands in there. One is Madden Girl, which I'm not sure how big it is, and the other is Men's. Can you give us a little read there on both the performance and the appetite, I guess mostly from your wholesale partners there?

Edward Rosenfeld

Yes, both are doing well. In fact, when we talk about the Steve Madden brand overall, we include men's, we include kids, we include Madden Girl, et cetera. So that's why we didn't address those separately. But both are showing strong growth this year versus last year. You know, men's, similar to what we're seeing in women's or Madden Girl, I think is benefiting from this fashion shift and more men who are deciding that they're going to get out of their sneakers and wear maybe loafers.

And so we're doing phenomenal with loafers, we're doing phenomenal with updated dress shoes. We do still have some sneakers that are good. So, and we've really, you know, we're investing more in marketing in men's. We've really upgraded the product, the quality, the AURs are up as well, and so that's a positive story and what we think can be a growth opportunity for us going forward.

Samuel Poser

Thanks very much.

Operator

The next question comes from Dana Telsey with Telsey Advisory Group. Please go ahead.

Dana Telsey

As you think about the DTC business and retail, anything you've been seeing different in outlets versus full price? And then on the wholesale side, difference in terms of whether it's off-price, department stores, how you're thinking of order trends, and does it differ by brand? Thank you.

Edward Rosenfeld

Yes, well, as you know, outlets were sort of a laggard for us at the beginning of the year, but they have really recovered. Our full-price stores have been very strong all year. So in Q3, for instance, if we're talking about the United States, our full-price stores were up 23% in Q3, that's on a comp basis, and outlets comped up 17%. So haven't quite caught up to the full-price stores, but very strong performance in outlets as well.

In terms of the wholesale channel, I think there's no big change there. We continue to see strong performance across all of our branded channels. So whether that's department stores or pure-play e-commerce retailers or shoe chains, et cetera, off-price players. Obviously, the more challenging business for us this year, as we've talked extensively, is in the mass channel with our private label.

Dana Telsey

Got it.

Operator

The next question is a follow-up from Sam Poser with Williams Trading. Please go ahead.

Samuel Poser

Real quick, the private label business, you just brought it up. Can you talk about where you are and sort of, you know, what the future is looking like there into next year?

Edward Rosenfeld

Yes, so we have actually brought our expectation for the year up for that business slightly. Still nothing to write home about, but I think we now expect it to be down mid-teens in 2026 versus our prior expectation of down mid to high teens. I will say, though, that most of that is just some orders that we were expecting to get for January that we now expect to go out in December. So I don't think it's a material change in the trend.

And obviously we'll address 2027 on the next call. Look, it's a work in progress. I think we have not created a plan and we're not prepared to call a big inflection here, and we need to keep working at it to get this thing turned around.

Samuel Poser

And I mean, from its peak, where is that business now? I mean, as you see it today, do you expect it to continue to go down next year, or do you expect it to be flat until you can get it going again?

Edward Rosenfeld

Well, compared to '24, we're going to be down, you know, north of $110 million, maybe $115 million, somewhere in there, from '24 to '26. Our goal will be, I think probably we're going to be looking to be flat next year. We want to stop the bleeding and then attempt to grow off that base.

Samuel Poser

All right. Thanks again.

Operator

The next question is a follow-up from Anna Andreeva with Piper Sandler. Please go ahead.

Anna Andreeva

I just wanted to follow up on the KG shop-in-shops with Macy's. The one at Herald Square looks really great. Can you just remind us on the cadence? I think you talked about up to 40 better Macy's doors you're launching by spring. Any color how we should think about that, and just remind us how we should think about profitability for KG this year, and is mid-teens or better still a goal for margins over time? Thank you so much.

Edward Rosenfeld

Yes, in terms of the Macy's launch, we're very pleased with that. In addition to Herald Square, we've got 14 other shop-in-shops open in other Macy's stores. I think there's one more that we're working on for this season, and then to your point, I think we may get up to 40 or maybe even 42 for spring of '27. We never provide revenue by wholesale customers, so I can't help you with any quantification of that, but obviously it has the potential to be a meaningful relationship.

In terms of the profitability of Kurt Geiger, if we're talking about the brand, it's slightly above company average right now. The business overall would be, I think, slightly below because of the concessions business being lower. And, yes, I don't think the target for operating margin changes, but we've been pretty clear that we're going to wait until we get through, you know, find out what happens with these remaining Section 301 investigations, wait until we understand the go-forward tariff regime, and then we'll try to give you some more color on timing around operating margin targets.

Anna Andreeva

All right, terrific. Thank you so much again.

Edward Rosenfeld

Thank you.

Operator

[Operator Instructions] Seeing no additional questions, 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. Have a great day. We look forward to speaking with you on the next call.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

This live transcript is auto-generated without human intervention or review.