Steven Madden (SHOO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 13% year-over-year to $624.7M, driven by strong growth in accessories, apparel, international markets, and direct-to-consumer channels.

• Handbags and the Almost Famous acquisition were key contributors to top-line gains.

• Net income attributable to Steven Madden, Ltd. was $55.3M ($0.77 per diluted share), down from $64.4M in Q3 2023; adjusted net income was $64.8M ($0.91 per diluted share).

• Product innovation and effective marketing, including the 'Never Miss a Beat' campaign, deepened consumer engagement.

• Significant events included the divestiture of the GREATS® business and impairment of the Almost Famous trademark.

Financial highlights

• Consolidated Q3 revenue was $624.7M, up 13% year-over-year; excluding Almost Famous, revenue grew 5.5%.

• Gross margin was 41.5% (adjusted 41.6%), down from 42.1% last year, mainly due to the Almost Famous acquisition.

• Operating income was $74.6M (11.9% margin), adjusted $85.4M (13.7% margin), up from $83.4M (15.1%) YoY.

• DTC revenue grew 7.8% to $125.5M; e-commerce up 10%, brick-and-mortar up 6%.

• Cash and equivalents at quarter-end were $150.5M; inventory increased to $268.7M from $205.7M a year ago.

Outlook and guidance

• 2024 revenue guidance raised to 13%-14% growth over 2023.

• Diluted EPS expected in the range of $2.36–$2.41; adjusted diluted EPS at $2.62–$2.67.

• International revenue on track for mid-teens % growth; EMEA expected up over 20% for 2024.

• DTC expected to achieve high single-digit growth for the year.

• Management anticipates ongoing macroeconomic and geopolitical headwinds, including inflation, high interest rates, and global conflicts.