Companies

Solid fourth quarter for Steve Madden

Mar 1, 2024 United States

The New York-based designer and marketer of footwear, accessories and apparel ended its fiscal 2023 with a solid performance, despite a decline in full year revenue and profits

“We are pleased to have delivered fourth quarter results that exceeded expectations on both the top and bottom lines. We saw organic revenue growth in both the wholesale and direct-to-consumer channels, supplemented by the contribution from the newly acquired Almost Famous, and also drove strong improvement in Adjusted operating margin compared to the same period in the prior year”, commented Edward Rosenfeld, Chairman and Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of fiscal 2023, Steve Madden’s revenue totalled 519.7 million US dollars, reflecting an increase of 10.4% on a comparable basis to the same period of the previous year.

The company reported that, in this period, the wholesale business contributed 354.8 million US dollars to its total revenue, up by 14.9% as compared to the fourth quarter of fiscal 2022, with the wholesale footwear revenue decreasing by 0.4% year-over-year and the wholesale accessories/apparel revenue growing by 56.5% year-over-year.

As for the direct-to-consumer business, Steve Madden recorded a revenue of 162.3 million US dollars in the last quarter of 2023, up by 1.9% on a comparable basis to a similar period of the prior year, “driven by an increase in the brick-and-mortar business”.

The US-based company’s gross profit as a percentage of revenue was 41.3% in the fourth quarter of the past fiscal year, as compared to 42.2% in the same quarter of 2022; adjusted gross profit as a percentage of revenue was 41.7%.

In the three months to the 31^st of December, Steve Madden posted a net income of 35.9 million US dollars, or 0.49 US dollars per diluted share, on a comparable basis to 31.8 million US dollars, or 0.42 US dollars per diluted share, in a similar period of the previous year.

Additionally, the company’s adjusted net income for the period was 45.0 million US dollars, or 0.61 US dollars per diluted share, on a comparable basis to 33.7 million US dollars, or 0.44 US dollars per diluted share, in the fourth quarter of 2022.

Full Year Results

In 2023, Steve Madden's revenue amounted to 2.0 billion US dollars, down by 6.6% as compared to the prior financial year.

The company’s full year profits also declined last year, with a net income of 171.6 million US dollars, or 2.30 US dollars per diluted share, as compared to a net income of 216.1 million US dollars, or 2.77 US dollars per diluted share in 2022.

Fiscal 2024

“As we look ahead, while the operating environment remains choppy, we believe the on-trend product assortments created by Steve and his team have us well-positioned for 2024. Looking out further, we are confident that the combination of our strong brands and proven business model will enable us to drive sustainable revenue and earnings growth for years to come”, added Rosenfeld.

For 2024, the US-based footwear, apparel and accessories company expects revenue to grow between 11% to 12% over 2023 and earnings per share in the range of 2.55 US dollars to 2.65 US dollars.

Image Credits: numeromag.nl

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