Minor growth for Steve Madden in third quarter

Worldwide
Published:  09 November, 2022
Credit: Steve Madden

Footwear brand Steve Madden has reported its financial results for the third quarter of the 2022 fiscal year, with revenue up by 5.3%.

The company achieved revenue of US$556.6 million (up 5.3%) in the period, with a gross profit as a percentage of revenue of 41.2%, slightly down year-on-year.

Operating expenses as a percentage of revenue were 27.1% compared to 24.9% in the same period of 2021, while net income attributable to Steve Madden was US$61.3 million.

Wholesale revenue during the third quarter was up by 8.1% year-on-year to US$434.6 million, with wholesale footwear revenue specifically up by 8.7% and wholesale accessories/apparel revenue increasing by 6.2%.

Direct-to-consumer revenue was US$118.5 million, a 3.7% decrease compared to the third quarter of 2021 and driven by a decline in the e-commerce business.

Steve Madden operated 216 physical stores and six e-commerce websites at the end of the third quarter, alongside 20 company-operated concessions in international markets.

Edward Rosenfeld, Chairman and CEO of Steve Madden, said: “We delivered solid results in the third quarter despite the challenging environment, with revenue increasing 5% and earnings in line with expectations.

“Consumer demand for our brands and products remains healthy, and our direct-to-consumer business continues to trend in line with previous expectations. That said, many of our wholesale customers have pulled back on orders in the near term as they prioritise inventory control, and we have adjusted our fiscal 2022 outlook accordingly.

“While we expect the macroeconomic backdrop to remain unpredictable in the coming quarters, we believe we are well-positioned due to our strong brands, agile business model and proven ability to navigate difficult market conditions. Looking out further, we are confident that our unique competitive advantages will enable us to drive sustainable growth and value creation over the long term.”