Steve madden Steve Madden happy with Q2 results despite revenue drop
Revenue from the wholesale business totalled US$314.6 million, falling by 20.8% year-on-year, including a 19.4% decrease in wholesale footwear revenue and a 24.6% decrease in wholesale accessories/apparel revenue.
Direct-to-consumer revenue was down by 5.4% to US$128.2 million, driven by a drop in brick-and-mortar and e-commerce revenues.
Steve Madden ended the second quarter with 242 brick-and-mortar retail stores and five e-commerce websites, as well as 22 company-operated concessions in international markets.
Gross profit as a percentage of revenue was 42.6% in the quarter and net income totalled US$34.5 million, down from US$48.5 million in Q2 2022.
Looking forward, the company has maintained its forecast and expects revenue to fall by 6.5-8% in the full 2023 fiscal year.
Chairman and CEO Edward Rosenfeld said: “We were pleased to deliver earnings results in line with expectations for the second quarter despite the challenging operating environment. Our performance in the quarter reflects our disciplined control of inventory and expenses, even as we continue to invest in product innovation, consumer engagement and our long-term growth initiatives.
“While the retail environment remains choppy, we are confident that the power of our brands and the strength of our business model position us for sustainable growth and value creation over the long term.”