US' Steven Madden's revenue soars 17.6% in Q2 FY24

Steven Madden, a leading US-based designer and marketer of fashion-forward footwear, accessories and apparel, has reported a 17.6 per cent increase in revenue to $523.6 million for the second quarter of fiscal 2024 (Q2 FY24), compared to $445.3 million in the same period of 2023. Gross profit as a percentage of revenue stood at 41.5 per cent, slightly down from 42.6 per cent in the same period of 2023.

Income from operations totalled $46.9 million, representing 9.0 per cent of revenue, compared to $44.0 million, or 9.9 per cent of revenue, in Q2 FY23. Adjusted income from operations was $54.5 million, or 10.4 per cent of revenue, up from $44.5 million, or 10.0 per cent of revenue, in the same period last year.

Net income attributable to Steven Madden was $35.4 million, or $0.49 per diluted share, compared to $34.5 million, or $0.46 per diluted share, in Q2 FY23. On an adjusted basis, net income 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, the company said in a press release.

The company's wholesale business generated $385.3 million in revenue, marking a 22.5 per cent increase compared to Q2 FY23. Excluding the newly acquired Almost Famous, wholesale revenue saw an increase of 8.2 per cent. Wholesale footwear revenue rose by 0.9 per cent, while wholesale accessories and apparel revenue surged by 86.0 per cent, or 29.8 per cent excluding Almost Famous. The gross profit margin for wholesale revenue was 33.1 per cent, slightly lower than the 33.6 per cent recorded in Q2 FY23, primarily due to the impact of Almost Famous.

Direct-to-consumer revenue also showed growth, reaching $136.4 million, a 6.4 per cent increase compared to Q2 FY23. Gross profit as a percentage of direct-to-consumer revenue improved to 64.3 per cent, up from 63.7 per cent in the same quarter last year, driven by reduced promotional activity.

The company concluded the quarter with 273 brick-and-mortar retail stores, five e-commerce websites, and 27 company-operated concessions in international markets.

“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,” said Edward Rosenfeld, chairman and chief executive officer.

Fibre2Fashion News Desk (DP)