“We were pleased to deliver earnings results in line with expectations for the second quarter despite the challenging operating environment. Our performance in the quarter reflects our disciplined control of inventory and expenses, even as we continue to invest in product innovation, consumer engagement and our long-term growth initiatives. While the retail environment remains choppy, we are confident that the power of our brands and the strength of our business model position us for sustainable growth and value creation over the long term”, commented Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden.

Second Quarter Results

In the second quarter of the current fiscal year, the company recorded a 16.8% revenue decrease to 445.3 million US dollars, on a comparable basis to the same period of 2022.

In this period, the wholesale business contributed 314.6 million US dollars to the total revenue, down by 20.8% year-over-year, while the direct-to-consumer revenue amounted to 128.2 million US dollars, down by 5.4%, as compared to the second quarter of the prior year.

Steve Madden's gross profit as a percentage of revenue was 42.6% in the second quarter of 2023, from 40.7% in a similar period of last fiscal year.

The US-based company's income from operations totalled 44.0 million US dollars in this past second quarter, as compared to 65.2 million US dollars, in the same period of fiscal 2022. Its adjusted net income was 44.5 million US dollars in this period, as compared to 67.0 million US dollars in a similar period a year ago.  

Furthermore, in the three months to the 30^th of June, the net income attributable to Steve Madden stood at 34.5 million US dollars, or 0.46 US dollars per diluted share, decreasing from 48.5 million US dollars, or 0.62 US dollars per diluted share, in the same period of 2022. 

Accordingly, its adjusted net income was 34.9 million US dollars, or 0.47 US dollars per diluted share, as compared to 49.8 million US dollars, or 0.63 US dollars per diluted share, in the second quarter of the previous year.

Full Year Outlook

For fiscal 2023, Steve Madden is expecting its revenue to decline between 6.5% to 8.0% over the prior fiscal year, diluted earnings per share in the range of 2.38 US dollars to 2.48 US dollars and adjusted diluted earnings per share from 2.40 US dollars to 2.50 US dollars.

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