“We delivered strong results in the third quarter, with revenue and Adjusted earnings exceeding expectations. This performance was driven by outstanding growth in the accessories and apparel categories – including another quarter of exceptional performance in Steve Madden handbags and a strong contribution from the newly acquired Almost Famous – and robust top line gains in international markets and direct-to-consumer channels, demonstrating our team’s strong execution of our key strategic initiatives. Based on these results, we are raising our guidance for 2024 revenue and Adjusted earnings”, commented Edward Rosenfeld, Chairman and Chief Executive Officer.

Third Quarter Results

In the third quarter of fiscal 2024, the company’s total revenue reached 624.7 million US dollars, an increase of 13.0%, on a comparable basis to the same period of last year.

Wholesale contributed 495.7 million US dollars to Steve Madden’s total third quarter revenue, up by 14.4%, as compared to the same period of the prior year, or by 4.8% excluding the newly acquired Almost Famous. Specifically, while footwear wholesale revenue declined by 2.2% year-over-year, accessories/apparel wholesale revenue increased by 54.2% year-over-year, or by 21.6% excluding Almost Famous.  

Direct-to-consumer revenue contributed the remaining 125.5 million US dollars to the company’s third quarter revenue, up by 7.8% year-over-year.

In the third quarter of the current fiscal year, Steve Madden reported a gross profit as a percentage of revenue of 41.5%, as compared to 42.1% in the same period of fiscal 2023, and an adjusted gross profit as a percentage of revenue of 41.6%.

The US company’s income from operations decreased to 74.6 million US dollars in this period from 82.7 million US dollars in the third quarter of 2023. On the contrary, adjusted income from operations increased to 85.4 million US dollars from 83.4 million US dollars.

In the three months to the end of September, Steve Madden’s net income was 55.3 million US dollars, or 0.77 US dollars per diluted share, as compared to 64.4 million US dollars, or 0.87 US dollars per diluted share, in the same period a year ago. Adjusted net income slightly contracted to 64.8 million US dollars, or 0.91 US dollars per diluted share, from 65.1 million US dollars, or 0.88 US dollars per diluted share, in the same period a year ago.

Full Year Outlook

The company now expects its revenue for fiscal 2024 to increase between 13% and 14% over 2023, as compared to the previous guidance of between 11% to 13%. While diluted earnings per share are now anticipated in the range of 2.36 US to 2.41 US dollars (previously: 2.43 to 2.53 US dollars), adjusted diluted earnings per share are anticipated in the range of 2.62 US dollars to 2.67 US dollars (previously: 2.55 to 2.65 US dollars).