Dive Brief:
- Steve Madden reported revenue of $552.7 million in its third quarter results Wednesday, a 0.7% decrease from the same period last year, despite a 22.7% increase in wholesale accessories and apparel revenue.
- The company’s DTC revenue dropped 1.8% compared to the same quarter last year, which the company attributed to a decline in its e-commerce business. The company operates 251 brick-and-mortar retail stores and five e-commerce websites.
- Revenue for Steve Madden’s wholesale business decreased 0.3% to $433.5 million compared to the same period last year. The relatively flat change in wholesale revenue marks a difference from the company’s wholesale results last quarter, where it reported a 21% drop.
Dive Insight:
Within the company’s wholesale category, the footwear segment decreased 7.5%, offsetting the gains from accessories and apparel in the category.
The earnings come after Steve Madden acquired privately-held apparel brand Almost Famous last month for $52 million in cash. That brand distributes its products to wholesale customers including mass merchants, department stores, off-price retailers and chain stores.
Prior to the deal, Almost Famous had been the exclusive licensee of Madden NYC since 2022. Almost Famous’ results weren’t included in Steve Madden’s third quarter, which ended on Sept. 30. At the time of the acquisition, Steve Madden said Almost Famous’ most recent annual revenue was $163 million.
Steve Madden also updated its full year outlook for its 2023 fiscal year. It now expects its revenue to decline about 7% compared to 2022. It previously estimated decreased revenue of between 6.5% and 8%.
Edward Rosenfeld, chairman and CEO of Steve Madden, said “softer trends” in the industry since September have made the company “incrementally more cautious on the near-term outlook.”
The company’s other holdings include Dolce Vita, Betsey Johnson, Blondo, Greats and its namesake brand. It licenses the footwear and handbag categories for the Anne Klein brand.
