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Steve Madden posts strong Q1 results, beats estimates

Published 05/01/2024, 07:27 PM
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NEW YORK - Steve Madden, Ltd. (NASDAQ: SHOO) has reported a robust start to 2024, with first-quarter earnings and revenue surpassing analyst expectations. The renowned footwear and accessories company announced an adjusted earnings per share (EPS) of $0.60, which is $0.04 higher than the consensus estimate of $0.56.

The company's revenue for the quarter was equally impressive at $552.4 million, significantly exceeding the analyst forecast of $524.52 million. It marked a notable 19.1% increase from the $463.8 million reported in the same quarter of the previous year.

Chairman and CEO Edward Rosenfeld attributed the strong performance to a 30% rise in adjusted diluted EPS compared to the first quarter of 2023 and highlighted the company's success in key strategic areas, including international markets, non-footwear categories, direct-to-consumer channels, and a resurgence in the U.S. wholesale footwear business.

Steve Madden's wholesale business experienced a 21.0% surge in revenue to $438.2 million, with the acquisition of Almost Famous contributing significantly to the growth. Excluding Almost Famous, the wholesale revenue still saw a healthy 9.7% increase.

The direct-to-consumer segment also reported a solid 12.8% growth, driven by both brick-and-mortar and e-commerce platforms, with gross profit margins improving due to reduced promotional activity.

Looking ahead, Steve Madden's outlook for fiscal 2024 remains optimistic. The company expects revenue to climb by 11% to 13% compared to 2023 and forecasts an adjusted diluted EPS in the range of $2.55 to $2.65. This guidance is in line with the analyst consensus of $2.62, reflecting confidence in the company's continued growth trajectory.

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Rosenfeld expressed confidence in the company's strategic execution, stating, "Looking ahead, we are confident that the continued execution of our strategy will enable us to drive sustainable revenue and earnings growth and create significant value for our stakeholders over the long term."

The company's balance sheet remains strong, with cash, cash equivalents, and short-term investments totaling $143.1 million as of March 31, 2024. Additionally, Steve Madden has announced a quarterly cash dividend of $0.21 per share, payable on June 21, 2024, to shareholders of record as of June 10, 2024.

Investors and analysts will be monitoring the company's performance closely, but no specific percentage movement in the stock price was reported following the earnings release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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