Dive Brief:
- Steve Madden reported a 10.4% revenue increase to $519.7 million for Q4 on Wednesday, marking a contrast from its last two consecutive quarters of flat or decreased revenue.
- Despite the Q4 revenue bump, Steve Madden’s full-year 2023 revenue fell 6.6% year over year to $2 billion.
- The company set its outlook for the 2024 fiscal year, and it expects revenue to increase between 11% and 13% year over year, despite an operating environment that remains “choppy,” according to CEO Edward Rosenfeld.
Dive Insight:
Rosenfeld said the Q4 results exceeded company’s expectations due to growth in wholesale and DTC, supplemented by the newly acquired apparel brand Almost Famous. Steve Madden bought Almost Famous in October 2023 for $52 million.
“While there are turnaround opportunities at [Steve Madden], the macro remains tough and the stock already seems to reflect a lot of the turnaround potential,” Tom Nikic, analyst for Wedbush, said in emailed commentary.
Steve Madden’s wholesale revenue grew almost 15% to $354.8 million, with wholesale accessories and apparel revenue jumping 56.5%. Wholesale footwear revenue, however, decreased 0.4%.
DTC grew almost 2% to $162.3 million, which the company attributed to an increase in its brick-and-mortar business. This growth follows five consecutive quarters of year-over-year declines, Nikic said.
The wholesale growth contrasts the company’s previous wholesale results earlier in the fiscal year. Wholesale revenue dropped 21% in Q2 and 0.3% in Q3.
“[W]e believe the on-trend product assortments created by Steve and his team have us well-positioned for 2024,” Rosenfeld said in the release. “Looking out further, we are confident that the combination of our strong brands and proven business model will enable us to drive sustainable revenue and earnings growth for years to come.”
Beyond its namesake brand, the company’s other holdings include Dolce Vita, Betsey Johnson, Blondo and Greats. It also licenses the footwear and handbag categories for Anne Klein.
