Steven Madden (SHOO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 17.6% year-over-year to $523.6 million, driven by strong growth in accessories/apparel, international markets, and direct-to-consumer channels.

• Adjusted diluted EPS rose 23% year-over-year to $0.57, reflecting robust operational execution.

• Net income attributable to Steven Madden, Ltd. was $35.4 million ($0.49 per diluted share), up from $34.5 million in Q2 2023.

• Strategic focus on international expansion, diversification beyond footwear, and strengthening DTC and U.S. wholesale businesses.

• Ended quarter with 273 retail stores, five e-commerce sites, and 27 international concessions.

Financial highlights

• Consolidated revenue was $523.6 million, up 17.6% year-over-year; excluding Almost Famous, revenue grew 7.5%.

• Gross margin was 41.5% (down from 42.6%); DTC gross margin rose to 64.3%.

• Operating income was $54.5 million (10.4% of revenue), up from $44.5 million (10%).

• Net income was $41.2 million ($0.57 per diluted share) on an adjusted basis.

• Ended quarter with $192.2 million in cash, cash equivalents, and short-term investments, and no debt.

Outlook and guidance

• Maintaining 2024 guidance: revenue growth of 11%–13% and adjusted diluted EPS of $2.55–$2.65.

• Expect mid-teens percent international revenue growth for the year, with EMEA up over 20%.

• DTC expected to achieve high single-digit growth for the year; comps to remain in line with recent trends.

• Guidance assumes a slowdown in accessories and apparel growth in the back half, with low single-digit growth ex-Almost Famous.

• Q4 earnings expected to decline due to tax and freight headwinds.