On July 31, 2024, Steven Madden Ltd (SHOO, Financial) released its 8-K filing announcing financial results for the second quarter ended June 30, 2024. Steven Madden Ltd designs and sells brand-name and private-label footwear and accessories, targeting fashion-conscious adults and children. The company operates through segments such as Wholesale Footwear, Wholesale Accessories or Apparel, Direct-to-Consumer, and Licensing, with the wholesale footwear segment contributing the majority of revenue.
Second Quarter 2024 Financial Highlights
Steven Madden Ltd reported a 17.6% increase in revenue to $523.6 million, surpassing the analyst estimate of $515.41 million. The company's earnings per share (EPS) stood at $0.49, missing the estimated $0.52 per share. Adjusted net income attributable to Steven Madden Ltd was $41.2 million, or $0.57 per diluted share, compared to $34.9 million, or $0.47 per diluted share, in the same period of 2023.
Performance and Challenges
Steven Madden Ltd's performance in Q2 2024 was driven by exceptional growth in the accessories and apparel categories, as well as robust gains in international markets and direct-to-consumer channels. Revenue for the wholesale business increased by 22.5% to $385.3 million, while direct-to-consumer revenue rose by 6.4% to $136.4 million. However, the company faced challenges such as a slight decline in gross profit margin to 41.5% from 42.6% in the same period of 2023, primarily due to the impact of the newly acquired Almost Famous.
Financial Achievements
Steven Madden Ltd's financial achievements are significant for the apparel and accessories industry. The company's ability to increase revenue and adjusted EPS demonstrates strong execution of strategic initiatives. Gross profit as a percentage of revenue was 41.5%, and operating expenses as a percentage of revenue decreased to 31.3% from 32.7% in the same period of 2023. These metrics highlight the company's efficiency in managing costs while driving revenue growth.
Income Statement, Balance Sheet, and Cash Flow Highlights
Key details from the financial statements include:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $523.6 million | $445.3 million |
| Gross Profit | $217.1 million | $189.9 million |
| Operating Expenses | $163.7 million | $145.8 million |
| Net Income | $35.4 million | $34.5 million |
| EPS (Diluted) | $0.49 | $0.46 |
As of June 30, 2024, Steven Madden Ltd had cash, cash equivalents, and short-term investments totaling $192.2 million. Inventory levels increased to $241.6 million from $207.8 million at the end of Q2 2023. The company also spent $38.2 million on repurchases of its common stock during the quarter.
Commentary and Outlook
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We delivered strong results in the second quarter, with revenue increasing 18% and Adjusted diluted EPS rising 23% compared to the same period in 2023. This performance was driven by exceptional growth in the accessories and apparel categories and robust gains in international markets and direct-to-consumer channels, demonstrating our team’s strong execution of our key strategic initiatives. 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.”
For fiscal 2024, Steven Madden Ltd expects revenue to increase by 11% to 13% compared to 2023, with diluted EPS projected to be in the range of $2.43 to $2.53. The company continues to expect adjusted diluted EPS to be in the range of $2.55 to $2.65.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Steven Madden Ltd for further details.
