Companies

Steve Madden cuts full year outlook

Nov 4, 2022 United States

Despite a revenue increase in the third quarter of 2022, the US-based designer and marketer of footwear, accessories and apparel for women, men and children lowered its full year outlook

"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 prioritize 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", commented Edward Rosenfeld, Chairman and Chief Executive Officer.

Third Quarter Results

In the third quarter of fiscal 2022, Steve Madden posted a revenue increase of 5.3%, reaching 556.6 million US dollars, on a comparable basis to 528.7 million US dollars in the same period of last year.

The company's wholesale business was up by 8.1% in the third quarter of the current year, amounting to 434.6 million US dollars, with wholesale footwear revenue and wholesale accessories/apparel revenue growing by 8.7% and 6.2%, respectively.

In turn, in the same period, the direct-to-consumer revenue totalled 118.5 million US dollars, down by 3.7% year-over-year, driven by a decline in the e-commerce business; brick-and-mortar revenue was approximately flat to the third quarter of 2021.

Steve Madden added that it ended the third quarter with 216 brick-and-mortar retail stores and six-ecommerce websites, as well as 20 company-operated concessions in international markets.

In the three months to the 30^th of September, the net income attributable to the company was 61.3 million US dollars, or 0.79 US dollars per diluted share, as compared to 66.6 million US dollars, or 0.82 US dollars per diluted share, in the third quarter of fiscal 2021; adjusted net income was 61.5 million US dollars, or 0.79 US dollars per diluted share.

Full Year Outlook

Steve Madden revised its outlook for fiscal 2022, expecting now revenue to increase by 12.5% to 13.5% over fiscal 2021 (previous guidance: up by 13% to 16%). Diluted earnings per share are estimated in the range of 2.77 US dollars to 2.79 US dollars (previous guidance: 2.87 US dollars to 2.97 US dollars) and adjusted diluted earnings per share between 2.77 US dollars to 2.82 US dollars (previous guidance: 2.90 US dollars to 3.00 US dollars).

Image Credits: numeromag.nl

United States Accessories Companies Footwear Quarter Results Results Shoes Steve Madden