Steve Madden on Wednesday reaffirmed its full-year outlook after reporting sales and earnings for the second quarter of 2024 that beat expectations.
Revenues in the second quarter were $523.6 million, up 17.6 percent compared to the same quarter in 2023. Adjusted net income was $41.2 million, or 57 cents per diluted share, compared to $34.9 million and 47 cents per diluted share the prior year. Sales and profits were ahead of what analysts surveyed by Yahoo were looking for: $515.4 million in revenues and 53 cents in EPS.
Chairman and chief executive officer Edward Rosenfeld said in a statement that growth in accessories and apparel as well as international sales helped drive the strong results this quarter.
“While the near-term operating environment remains choppy, we are confident that our core strengths —our brands, business model and people — will enable us to drive sustainable revenue and earnings growth over the long term,” Rosenfeld said.
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By channel, wholesale revenues were up 22.5 percent over the prior year to $385.3 million. Wholesale footwear revenue was up 0.9 percent and wholesale accessories and apparel revenue increased 86 percent. Gross profit as a percentage of wholesale revenue was up 33.1 percent. Gross profit as a percentage of wholesale revenue was 33.1 percent, which was driven by the impact of the newly acquired Almost Famous, which Steve Madden snapped up in October for $52 million to bolster its apparel business.
Direct-to-consumer revenues were up 6.4 percent to $136.4 million, driven by reduced promotional activity. As of the end of Q2, Steve Madden operated 273 brick-and-mortar retail stores.
Steve Madden reaffirmed its 2024 outlook and said it still expects revenues to increase 11 to 13 percent compared to the prior year. Adjusted diluted EPS is still expected to be in the range of $2.55 to $2.65.
