Steven Madden, Ltd. saw third-quarter revenue decrease 0.7 percent to $552.7 million, compared to $556.6 million in the corresponding period of 2022. Gross margin was 42.1 percent of revenue in the quarter compared to 41.2 percent in the Q3 period last year.

  • Wholesale business revenue was $433.5 million in Q3, a 0.3 percent decrease compared to the third quarter of 2022. Wholesale footwear revenue decreased 7.5 percent, while wholesale accessories/apparel revenue increased 22.7 percent. Gross margin increased to 35.9 percent of wholesale channel revenue, compared to 35.3 percent in the third quarter of 2022, driven by margin improvement in the wholesale accessories/apparel segment.
  • Direct-to-consumer revenue was $116.4 million, a 1.8 percent decrease compared to the third quarter of 2022 driven by a decline in the e-commerce business. Gross margin improved to 63.7 percent of channel revenue compared to 61.2 percent in the third quarter of 2022, driven by lower freight expenses and reduced promotional activity.
  • The company ended the quarter with 251 brick-and-mortar retail stores and five e-commerce websites, as well as 22 company-operated concessions in international markets.

Operating expenses as a percentage of revenue were 27.1 percent, which is the same percentage as in the Q3 period of 2022. Adjusted operating expenses as a percentage of revenue were 27.0 percent, also the same percentage as in the third quarter 2022.

Income from operations totaled $82.7 million, or 15.0 percent of revenue, compared to $78.8 million, or 14.1 percent of revenue, in the year-ago comparable period. Adjusted income from operations totaled $83.4 million, or 15.1 percent of revenue, compared to $79.0 million, or 14.2 percent of revenue, in Q3 2022.

Net income attributable to Steven Madden, Ltd. was $64.4 million, or 87 cents per diluted share, compared to $61.3 million, or 79 cents per diluted share, in the 2022 third quarter. Adjusted net income attributable to Steven Madden, Ltd. was $65.1 million, or 88 cents per diluted share, compared to $61.5 million, or 79 cents per diluted share, in the corresponding period of 2022.

“We were pleased to return to year-over-year earnings growth in the third quarter, demonstrating the strength and durability of our business model in challenging operating environments,” shared company Chairman and CEO Edward Rosenfeld. “Our team prudently managed inventory and expenses – which enabled us to drive operating margin improvement in both wholesale and direct-to-consumer channels – while continuing to invest in our long-term growth initiatives. While softer trends across the industry since September have left us incrementally more cautious on the near-term outlook, we remain confident that our core strengths – our people, brands and business model – will enable us to deliver sustainable revenue and earnings growth over the long term.”

Balance Sheet and Cash Flow Highlights
Cash, cash equivalents and short-term investments totaled $206.4 million at quarter-end. Inventory totaled $205.7 million at quarter-end, a 15.8 percent decrease compared to the end of the third quarter in 2022.

During the third quarter of 2023, the company spent $40.0 million 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 approved a quarterly cash dividend of 21 cents per share. The dividend is payable on December 29, 2023 to stockholders of record as of the close of business on December 15, 2023.

Updated 2023 Outlook
SHOO updated its fiscal 2023 guidance and now expects revenue will decrease approximately 7 percent compared to 2022. The company now expects diluted EPS will be approximately $2.35 a share and now expects Adjusted diluted EPS will be approximately $2.40 for the year.

Photo courtesy Steve Madden