Steve Madden on Thursday raised its full-year outlook after reporting sales and earnings for the third quarter of 2024 that were ahead of its expectations.
Revenues in the third quarter were $624.7 million, up 13 percent compared to the same quarter in 2023. Adjusted net income was $64.8 million, or 91 cents per diluted share, compared to $65.1 million and 88 cents per diluted share the prior year. Sales and profits were ahead of what analysts surveyed by Yahoo were looking for: $607.86 million in revenues and 89 cents in EPS.
Chairman and chief executive officer Edward Rosenfeld said in a statement that accessories and apparel sales, including strong performance in Steve Madden handbags, helped drive the solid results in the quarter. Contributions from the newly acquired Almost Famous brand, which Steve Madden snapped up in October for $52 million, continued to bolster the apparel business.
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Rosenfeld also cited “robust top line gains in international markets and direct-to-consumer channels.”
By channel, wholesale revenues were up 14.4 percent over the prior year to $495.7 million. Wholesale footwear revenue was down 2.2 percent and wholesale accessories and apparel revenue increased 54.2 percent. Gross profit as a percentage of wholesale revenue was 35.5 percent. Direct-to-consumer revenues were up 7.8 percent to $125.5 million, driven by reduced promotional activity. As of the end of Q3, Steve Madden operated 282 brick-and-mortar retail stores.
Steve Madden updated its 2024 outlook and now expects revenues to increase 13 to 14 percent compared to the prior year. Adjusted diluted EPS is expected to be in the range of $2.62 to $2.67.
