Fashion Accessory Company Steve Madden Takes A Cautious View On Its Near-Term Outlook: Read Why

Steven Madden Ltd SHOO reported a slight sales decline of 0.7% year-on-year to $552.73 million for the third quarter of FY23, beating the consensus of $549.32 million.

Revenue for the wholesale business decreased 0.3% Y/Y to $433.5 million, and Direct-to-consumer revenue fell 1.8% to $116.4 million.

Gross profit margin was 42.1% compared to 41.2% in the same period of 2022. The operating margin was 15.1%, up 81 bps, and operating income for the quarter was $82.74 million (+5.1% Y/Y).

Adjusted EPS improved to $0.88 from $0.79 in 3Q22, beating the consensus of $0.86.

Adjusted operating expenses as a percentage of revenue were 27.0%, the same as in 3Q22.

Steven Madden held $206.4 million in cash and equivalents as of September 30, 2023. Operating cash flow for the nine months totaled $77.76 million, compared to $66.75 million a year ago.

Also Read: Steven Madden Completes Acquisition Of Apparel Designer Almost Famous For $52M.

Dividend: The company declared a quarterly cash dividend of $0.21 per share, payable on December 29, 2023, to stockholders of record as of the close of business on December 15, 2023.

The company ended Q3 with 251 brick-and-mortar retail stores, five e-commerce websites, and 22 company-operated concessions in international markets. 

FY23 Outlook: Steven Madden now expects adjusted EPS of $2.40 (prior view: $2.40-$2.50) vs. consensus of $2.45. The company now sees a revenue decline of 7% (prior view: 6.5%-8.0% decline).

"While softer trends across the industry since September have left us incrementally more cautious on the near-term outlook, we remain confident that our core strengths – our people, brands and business model – will enable us to deliver sustainable revenue and earnings growth over the long term," commented Edward Rosenfeld, Chairman and Chief Executive Officer.

Price Action: SHOO shares are trading lower by 0.18% at $33.92 on the last check Wednesday.