Steven Madden, Ltd. reported third quarter revenue increased 13.0 percent to $624.7 million, compared to $552.7 million in the Q3 period of 2023.

Revenue for the Wholesale business was $495.7 million, a 14.4 percent increase compared to the third quarter of 2023. Excluding the newly acquired Almost Famous, Wholesale revenue increased 4.8 percent. Gross profit as a percentage of Wholesale revenue was 35.5 percent, compared to 35.9 percent in the third quarter of 2023, driven by the impact of Almost Famous.

Wholesale footwear revenue decreased 2.2 percent. Wholesale accessories/apparel revenue increased 54.2 percent, or 21.6 percent, excluding Almost Famous.

Direct-to-Consumer (DTC) revenue was $125.5 million in Q3, a 7.8 percent increase compared to the third quarter of 2023. Gross margin increased to 64.0 percent of direct-to-consumer revenue, compared to 63.7 percent in the third quarter of 2023, driven by reduced promotional activity.

The company ended the quarter with 282 brick-and-mortar retail stores, five e-commerce websites and 67 company-operated concessions in international markets.

Gross profit as a percentage of revenue was 41.5 percent, compared to 42.1 percent in the same period of 2023. Adjusted gross profit, as a percentage of revenue, was 41.6 percent in the third quarter of 2024.

Operating expenses, as a percentage of revenue, were 28.6 percent, compared to 27.1 percent in the same period of 2023. Adjusted operating expenses as a percentage of revenue were 27.9 percent, compared to 27.0 percent in the same period of 2023.

Income from operations totaled $74.6 million, or 11.9 percent of revenue, compared to $82.7 million, or 15.0 percent of revenue, in the same period of 2023. Adjusted income from operations totaled $85.4 million, or 13.7 percent of revenue, compared to $83.4 million, or 15.1 percent of revenue, in the same period of 2023.

Net income attributable to Steven Madden, Ltd. was $55.3 million, or $0.77 per diluted share, compared to $64.4 million, or $0.87 per diluted share, in the same period of 2023. Adjusted net income attributable to Steven Madden, Ltd. was $64.8 million, or $0.91 per diluted share, compared to $65.1 million, or $0.88 per diluted share, in the same period of 2023.

Chairman and CEO Edward Rosenfeld commented, “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 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.”

Balance Sheet and Cash Flow Highlights
As of September 30, 2024, cash, cash equivalents and short-term investments totaled $150.5 million. Inventory totaled $268.7 million, compared to $205.7 million at the end of the third quarter of 2023.

During the third quarter of 2024, the company spent $20.2 million on repurchases of its common stock, including shares acquired through the net settlement of employee 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 December 27, 2024 to stockholders of record as of the close of business on December 13, 2024.

Updated 2024 Outlook
For fiscal 2024, the company expects revenue to increase 13 percent to 14 percent compared to 2023 and diluted EPS to be in the range of $2.36 to $2.41 per share. The company also expects Adjusted diluted EPS to be in the range of $2.62 to $2.67.

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/Anne Klein