“We are off to a good start to 2021, with first quarter results that significantly exceeded our expectations. The on-trend product assortments created by Steve and our design teams are resonating with consumers, as evidenced by the performance in our retail segment, where first quarter revenue increased 7% compared to pre-COVID-19 first quarter 2019 on the strength of exceptional growth in our digital business. Looking ahead, while we are cautious on the near-term outlook due to the continued negative impacts of COVID-19 and supply chain disruption, we remain confident that our strong brands and proven business model will enable us to drive sustainable revenue and earnings growth over the long term”, commented Edward Rosenfeld, Chairman and Chief Executive Officer.

First Quarter Results

Revenue for the wholesale business was 291.4 million US dollars, a 3.7% decrease compared to the first quarter of 2020, with a 7.8% decline in wholesale footwear partially offset by a 10.3% increase in wholesale accessories/apparel. Gross margin in the wholesale business declined to 32.3% compared to 32.5% in the first quarter of 2020 due to a shift in sales mix.

Retail revenue totalled 67.5 million US dollars, a 27.5% increase compared to the first quarter of 2020 driven by strong performance in the e-commerce business. Retail gross margin rose to 63.5% compared to 59.8% in the first quarter of 2020, including strong increases in both the e-commerce and brick-and-mortar businesses.

Steve Madden ended the quarter with 215 company-operated retail stores, including seven internet stores, as well as 17 company-operated concessions in international markets.

Outlook

For the second quarter of 2021, the company expects revenue will be in the range of 360 million US dollars to 365 million US dollars and diluted EPS will be in the range of 0.26 US dollars to 0.28 US dollars. Given the continued disruption and uncertainty related to the COVID-19 pandemic, Steve Madden is not providing full year guidance at this time.