Dive Brief:
- Steve Madden Ltd. saw its third quarter revenue rise 13% year over year to $624.7 million, according to a press release Thursday.
- The company’s wholesale business rose 14.4% to $495.7 million. Wholesale footwear, however, fell 2.2%, while accessories and apparel in the category grew 54.2%, driven by a surge from the newly acquired Almost Famous brand. DTC grew 7.8%.
- Steve Madden’s revenue boost exceeded the company’s expectations, driven by the surge in accessories and apparel, Edward Rosenfeld, chairman and CEO, said in the release. The Steve Madden brand’s handbags were also a point of growth.
Dive Insight:
Acquiring the Almost Famous apparel brand in October 2023 has been a significant revenue driver for Steve Madden, which in addition to its namesake brand also owns Dolce Vita, Betsey Johnson and Blondo.
Excluding Almost Famous, Steve Madden Q3 wholesale revenue still would have grown 4.8%, and wholesale accessories and apparel would have grown 21.6%. Nonetheless, Q3’s results represent a slowdown from the growth it saw in wholesale in the second quarter, when it reported an 86% surge in accessories and apparel wholesale revenue.
In 2023, Steve Madden saw flat and decreasing revenue each quarter, but the company began to see a turnaround in Q4. It has reported revenue increases in each quarter of 2024.
The company raised its full-year revenue outlook following Thursday’s results. It now expects revenue to increase 13% to 14%. Rosenfeld said the results and subsequent outlook change were driven by the company’s strong execution of its strategic initiatives.
In August, Steve Madden sold the Greats sneaker brand to Unified Commerce Group, and through the deal, became a shareholder of UCG through one of its subsidiaries.
Also during the quarter, Steve Madden partnered with circular fashion platform Trashie to launch a recycling and takeback program. The company called the partnership a key step in its effort to manage the end-of-life cycle for its products.
