Steven Madden, Ltd. reported second quarter revenue increased 17.6 percent to $523.6 million, compared to $445.3 million for the same period in 2023, said to be driven by “exceptional growth” in the accessories and apparel categories and robust gains in international markets and direct-to-consumer channels.

Gross margin was 41.5 percent of net sales for Q2, down 90 basis points compared to 42.6 percent for the same period in 2023.

Operating expenses, as a percentage of revenue, were 31.3 percent, compared to 32.7 percent for the same period in 2023. Adjusted operating expenses, as a percentage of revenue, were 31.1 percent, compared to 32.6 percent for the same period in 2023.

Income from operations totaled $46.9 million, or 9.0 percent of revenue, compared to $44.0 million, or 9.9 percent of revenue, for the same period in 2023. Adjusted income from operations totaled $54.5 million, or 10.4 percent of revenue, compared to $44.5 million, or 10.0 percent of revenue, for the same period in 2023.

Net income attributable to Steven Madden, Ltd. was $35.4 million, or 49 cents per diluted share, compared to $34.5 million, or 46 cents per diluted share, for the Q2 period in 2023.

Adjusted net income attributable to Steven Madden, Ltd. was $41.2 million, or 57 cents per diluted share, compared to $34.9 million, or 47 cents per diluted share, for the Q2 period in 2023.

Edward Rosenfeld, chairman and CEO, commented, “We delivered strong results in the second quarter, with revenue increasing 18 percent and Adjusted diluted EPS rising 23 percent compared to the same period in 2023. This performance was driven by exceptional growth in the accessories and apparel categories and robust gains in international markets and direct-to-consumer channels, demonstrating our team’s strong execution of our key strategic initiatives. While the near-term operating environment remains choppy, we are confident that our core strengths—our brands, business model and people—will enable us to drive sustainable revenue and earnings growth over the long term.”

Second Quarter 2024 Channel Results
Revenue for the company’s wholesale business was $385.3 million, a 22.5 percent increase compared to the second quarter of 2023. Excluding the newly acquired Almost Famous, wholesale revenue increased 8.2 percent. Wholesale footwear revenue increased 0.9 percent. Wholesale accessories/apparel revenue increased 86.0 percent, or 29.8 percent, excluding Almost Famous. As a percentage of wholesale revenue, gross profit was 33.1 percent, compared to 33.6 percent in the second quarter of 2023, driven by the impact of Almost Famous.

Direct-to-consumer revenue was $136.4 million, a 6.4 percent increase compared to the second quarter of 2023. Gross profit, as a percentage of direct-to-consumer revenue, increased to 64.3 percent, compared to 63.7 percent in the second quarter of 2023, driven by reduced promotional activity.

The company ended the quarter with 273 brick-and-mortar retail stores, five e-commerce websites and 27 company-operated concessions in international markets.

Balance Sheet and Cash Flow Highlights
As of June 30, 2024, cash, cash equivalents and short-term investments totaled $192.2 million. Inventory totaled $241.6 million, compared to $207.8 million at the end of the second quarter 2023.

During the second quarter of 2024, the company spent $38.2 million on repurchases of its common stock, including shares acquired through the net settlement of employees’ stock awards.

Quarterly Cash Dividend
The company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on September 23, 2024, to stockholders of record as of the close of business on September 13, 2024.

2024 Outlook
For fiscal 2024, the company continues to expect revenue to increase 11 percent to 13 percent compared to 2023. The company expects diluted EPS will be in the range of $2.43 to $2.53. The company continues to expect Adjusted diluted EPS will be in the range of $2.55 to $2.65.

In addition to marketing products under its own brands, including Steve Madden, Dolce Vita, Betsey Johnson, Blondo and Greats, Steve Madden licenses footwear, handbags and other accessories for the Anne Klein brand. Steve Madden also designs and sources products under private-label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, and independent stores.

Image courtesy Steve Madden