Steve Madden Ltd. reported fourth-quarter revenue increased 10.4 percent to $519.7 million, compared to $470.6 million in the corresponding Q4 period in 2022.
- Wholesale business revenue was $354.8 million in the fourth quarter, a 14.9 percent increase compared to the fourth quarter of 2022.
- Wholesale footwear revenue decreased 0.4 percent, and wholesale accessories/apparel revenue increased 56.5 percent.
- Direct-to-consumer (DTC) revenue was $162.3 million, a 1.9 percent increase compared to the fourth quarter of 2022 driven by an increase in the brick-and-mortar business.
The company ended the quarter with 255 company-operated brick-and-mortar retail stores and five e-commerce websites, as well as 25 company-operated concessions in international markets.
Gross profit as a percentage of revenue was reportedly 41.3 percent in Q4, compared to 42.2 percent in the 2022 Q4 period. Adjusted gross profit as a percentage of revenue was 41.7 percent in the fourth quarter of 2023.
- Wholesale gross profit as a percentage of wholesale revenue increased to 31.7 percent compared to 30.5 percent in the fourth quarter of 2022 driven by increases in both the wholesale footwear and wholesale accessories/apparel businesses.
- DTC gross profit as a percentage of direct-to-consumer revenue was 62.7 percent compared to 64.0 percent in the fourth quarter of 2022 driven by an increase in promotional activity.
Operating expenses as a percentage of revenue were 32.4 percent in Q4, compared to 33.8 percent in the 2022 Q4 period. Adjusted operating expenses as a percentage of revenue were 31.5 percent in Q4, compared to 33.2 percent in the 2022 Q4 period.
Income from operations totaled $39.9 million, or 7.7 percent of revenue, compared to $39.8 million, or 8.4 percent of revenue, in the 2022 Q4 period. Adjusted income from operations totaled $53.0 million, or 10.2 percent of revenue, in Q4, compared to $42.2 million, or 9.0 percent of revenue, in the 2022 Q4 period.
Net income attributable to Steven Madden, Ltd. was $35.9 million, or 49 cents per diluted share, compared to $31.8 million, or 42 cents per diluted share, in the 2022 Q4 period. Adjusted net income attributable to Steven Madden, Ltd. was $45.0 million, or 61 cents per diluted share, compared to $33.7 million, or 44 cents per diluted share, in the 2022 Q4 period.
Edward Rosenfeld, chairman and CEO of Steve Madden, Ltd., commented, “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.
“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,” Rosenfeld concluded.
Full Year 2923 Headlines
- Revenue decreased 6.6 percent to $2.0 billion.
- Net income attributable to Steven Madden, Ltd. was $171.6 million, or $2.30 per diluted share, for the year ended December 31, 2023 compared to net income of $216.1 million, or $2.77 per diluted share, for the year ended December 31, 2022.
- Adjusted net income attributable to Steve Madden, Ltd. was $182.7 million, or $2.45 per diluted share, for the year ended December 31, 2023 compared to net income of $218.3 million, or $2.80 per diluted share, for the year ended December 31, 2022.
SHOO updated its fiscal 2023 guidance in November after a tough Q3 quarter, tempering its outlook to forecast revenue to decrease approximately 7 percent compared to 2022. The company lowered its diluted EPS forecast to approximately $2.35 a share and Adjusted diluted EPS to approximately $2.40 for the year.
Balance Sheet and Cash Flow Highlights
As of December 31, 2023, cash, cash equivalents and short-term investments totaled $219.8 million.
Inventory totaled $229.0 million as of the same date, approximately flat to the prior year.
During the fourth quarter and full year of 2023, the company spent approximately $38 million and $142 million, respectively, on repurchases of its common stock, which includes shares acquired through the net settlement of employees’ stock awards.
Quarterly Cash Dividend
The company’s Board of Directors has approved a quarterly cash dividend of 21 cents per share. The dividend is payable on March 22, 2024 to stockholders of record as of the close of business on March 8, 2024.
2024 Outlook
For 2024, the company expects revenue will increase 11 percent to 13 percent compared to full-year 2023 and expects diluted EPS will be in the range of $2.55 to $2.65 for the year.