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Steve Madden Announces Second Quarter 2023 Results

LONG ISLAND CITY, N.Y., Aug. 02, 2023 (GLOBE NEWSWIRE) -- Steven Madden, Ltd. (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel for women, men and children, today announced financial results for the second quarter ended June 30, 2023.

Amounts referred to as “Adjusted” are non-GAAP measures that exclude the items defined as “Non-GAAP Adjustments” in the “Non-GAAP Reconciliation” section.

Second Quarter 2023 Results

  • Revenue decreased 16.8% to $445.3 million compared to $535.0 million in the same period of 2022.
  • Gross profit as a percentage of revenue was 42.6% compared to 40.7% in the same period of 2022.
  • Operating expenses as a percentage of revenue were 32.7% compared to 28.5% in the same period of 2022. Adjusted operating expenses as a percentage of revenue were 32.6% compared to 28.2% in the same period of 2022.
  • Income from operations totaled $44.0 million, or 9.9% of revenue, compared to $65.2 million, or 12.2% of revenue, in the same period of 2022. Adjusted income from operations totaled $44.5 million, or 10.0% of revenue, compared to $67.0 million, or 12.5% of revenue, in the same period of 2022.
  • Net income attributable to Steven Madden, Ltd. was $34.5 million, or $0.46 per diluted share, compared to $48.5 million, or $0.62 per diluted share, in the same period of 2022. Adjusted net income attributable to Steven Madden, Ltd. was $34.9 million, or $0.47 per diluted share, compared to $49.8 million, or $0.63 per diluted share, in the same period of 2022.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We were pleased to deliver earnings results in line with expectations for the second quarter despite the challenging operating environment. Our performance in the quarter reflects our disciplined control of inventory and expenses, even as we continue to invest in product innovation, consumer engagement and our long-term growth initiatives. While the retail environment remains choppy, we are confident that the power of our brands and the strength of our business model position us for sustainable growth and value creation over the long term.”

Second Quarter 2023 Channel Results

Revenue for the wholesale business was $314.6 million, a 20.8% decrease compared to the second quarter of 2022, including a 19.4% decrease in wholesale footwear revenue and a 24.6% decrease in wholesale accessories/apparel revenue. Gross profit as a percentage of wholesale revenue increased to 33.6% compared to 31.6% in the second quarter of 2022 driven by margin improvement in the wholesale accessories/apparel segment.

Direct-to-consumer revenue was $128.2 million, a 5.4% decrease compared to the second quarter of 2022 driven by declines in both the brick-and-mortar and e-commerce businesses. Gross profit as a percentage of direct-to-consumer revenue was 63.7% compared to 66.4% in the second quarter of 2022 driven by increased promotional activity.

The Company ended the quarter with 242 brick-and-mortar retail stores and five e-commerce websites, as well as 22 company-operated concessions in international markets.

Balance Sheet and Cash Flow Highlights

As of June 30, 2023, cash, cash equivalents and short-term investments totaled $274.4 million. Inventory totaled $207.8 million, a 32.2% decrease compared to the second quarter of 2022.

During the second quarter of 2023, the Company spent approximately $25.8 million on repurchases of its common stock, which includes shares acquired through the net settlement of employees’ stock awards.

Quarterly Cash Dividend

The Company’s Board of Directors approved a quarterly cash dividend of $0.21 per share. The dividend is payable on September 25, 2023 to stockholders of record as of the close of business on September 15, 2023.

2023 Outlook

For 2023, the Company continues to expect revenue will decrease 6.5% to 8.0% compared to 2022. The Company expects diluted EPS will be in the range of $2.38 to $2.48. The Company continues to expect Adjusted diluted EPS will be in the range of $2.40 to $2.50.

Conference Call Information

Interested stockholders are invited to listen to the conference call scheduled for today, August 2, 2023, at 8:30 a.m. Eastern Time, which will include a discussion of the Company's second quarter 2023 earnings results and 2023 outlook. The call will be webcast live on the Company’s website at A webcast replay of the conference call will be available on the Company's website or via the following webcast link beginning today at approximately 10:00 a.m. Eastern Time.

About Steve Madden

Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo® and GREATS®, Steve Madden licenses footwear and handbag categories for the Anne Klein® brand. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers and independent stores. Steve Madden also directly operates brick-and-mortar retail stores and e-commerce websites. Steve Madden also licenses certain of its brands to third parties for the marketing and sale of certain products in the apparel, accessory and home categories. For local store information and the latest sandals, dress shoes, fashion sneakers, boots, booties and more, please visit and our other branded websites.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, “estimate”, or “confident” and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the Company’s current beliefs, expectations, and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. As such, investors should not rely upon them. Important risk factors include:

  • the Company’s ability to navigate shifting macro-economic environments, including but not limited to, inflation and the potential for recessionary conditions;
  • the Company’s ability to accurately anticipate fashion trends and promptly respond to consumer demand;
  • the Company’s ability to compete effectively in a highly competitive market;
  • the Company’s ability to adapt its business model to rapid changes in the retail industry;
  • supply chain disruptions to product delivery systems and logistics, and the Company’s ability to properly manage inventory;
  • the Company’s reliance on independent manufacturers to produce and deliver products in a timely manner, especially when faced with adversities such as work stoppages, transportation delays, public health emergencies, social unrest, changes in local economic conditions, and political upheavals as well as their ability to meet the Company’s quality standards;
  • the Company’s dependence on the retention and hiring of key personnel;
  • the Company’s ability to successfully implement growth strategies;
  • changes in trade policies and tariffs imposed by the United States government and the governments of other nations in which the Company manufactures and sells products;
  • the Company’s ability to adequately protect its trademarks and other intellectual property rights;
  • the Company’s ability to maintain adequate liquidity when negatively impacted by unforeseen events such as an epidemic or a pandemic, which may cause disruption to the Company’s business operations for an indeterminable period of time;
  • legal, regulatory, political and economic risks that may affect the Company’s sales in international markets;
  • changes in U.S. and foreign tax laws that could have an adverse effect on the Company’s financial results;
  • additional tax liabilities resulting from audits by various taxing authorities;
  • cybersecurity risks and costs of defending against, mitigating, and responding to data security threats and breaches impacting the Company;
  • the Company’s ability to achieve operating results that are consistent with prior financial guidance; and
  • other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

The Company does not undertake, and disclaims, any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments, or otherwise.



(In thousands, except per share amounts)
  Three Months Ended Six Months Ended
  June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Net sales $442,837 $532,680  $904,574 $1,090,024 
Commission and licensing fee income  2,465  2,309   4,562  4,699 
Total revenue  445,302  534,989   909,136  1,094,723 
Cost of sales  255,432  317,224   524,174  649,060 
Gross profit  189,870  217,765   384,962  445,663 
Operating expenses  145,830  152,526   294,411  282,528 
Income from operations  44,040  65,239   90,551  163,135 
Interest and other income/(expense) – net  1,956  (1,291)  3,976  (1,234)
Income before provision for income taxes  45,996  63,948   94,527  161,901 
Provision for income taxes  10,923  15,033   22,668  38,393 
Net income  35,073  48,915   71,859  123,508 
Less: net income attributable to noncontrolling interest  544  455   600  535 
Net income attributable to Steven Madden, Ltd. $34,529 $48,460  $71,259 $122,973 
Basic net income per share $0.47 $0.63  $0.96 $1.60 
Diluted net income per share $0.46 $0.62  $0.95 $1.55 
Basic weighted average common shares outstanding  73,613  76,556   74,053  76,902 
Diluted weighted average common shares outstanding  74,883  78,714   75,361  79,190 
Cash dividends declared per common share $0.21 $0.21  $0.42 $0.42 



(In thousands)
    As of  
  June 30, 2023 December 31, 2022 June 30, 2022
  (Unaudited)   (Unaudited)
Current assets:      
Cash and cash equivalents $258,056 $274,713 $150,929
Short-term investments  16,358  15,085  29,569
Accounts receivable, net of allowances  41,332  37,937  31,377
Factor accounts receivable  256,627  248,228  344,716
Inventories  207,839  228,752  306,547
Prepaid expenses and other current assets  24,282  22,989  31,047
Income tax receivable and prepaid income taxes  23,405  15,853  12,225
Total current assets  827,899  843,557  906,410
Note receivable – related party  201  401  598
Property and equipment, net  42,267  40,664  35,004
Operating lease right-of-use asset  116,871  90,264  85,608
Deposits and other  10,858  12,070  4,029
Deferred taxes  2,135  1,755  6,517
Goodwill – net  168,967  168,085  167,959
Intangibles – net  101,047  101,192  107,167
Total Assets $1,270,245 $1,257,988 $1,313,292
Current liabilities:      
Accounts payable $130,417 $130,542 $105,130
Accrued expenses  134,469  138,523  219,005
Operating leases – current portion  36,593  29,499  31,074
Income taxes payable  7,773  9,403  14,100
Contingent payment liability – current portion  1,153  1,153  2,000
Accrued incentive compensation  7,237  11,788  8,334
Total current liabilities  317,642  320,908  379,643
Operating leases – long-term portion  96,277  79,128  76,023
Deferred tax liabilities  3,923  3,923  3,378
Other liabilities  10,686  10,166  10,930
Total Liabilities  428,528  414,125  469,974
Total Steven Madden, Ltd. stockholders’ equity  824,516  831,553  833,534
Noncontrolling interest  17,201  12,310  9,784
Total stockholders’ equity  841,717  843,863  843,318
Total Liabilities and Stockholders’ Equity $1,270,245 $1,257,988 $1,313,292



(In thousands)
  Six Months Ended
  June 30, 2023 June 30, 2022
Cash flows from operating activities:    
Net income $71,859  $123,508 
Adjustments to reconcile net income to net cash provided by operating activities:    
Stock-based compensation  12,239   12,150 
Depreciation and amortization  7,257   10,471 
Loss on disposal of fixed assets  193   260 
Impairment of lease right-of-use asset  95    
Deferred taxes     (1,936)
Accrued interest on note receivable - related party  (4)  (8)
Notes receivable - related party  204   204 
Change in valuation of contingent payment liabilities     (4,960)
Other operating activities  26    
Changes, net of acquisitions, in:    
Accounts receivable  (3,395)  (4,564)
Factor accounts receivable  (6,256)  20,589 
Inventories  22,417   (53,222)
Prepaid expenses, income tax receivables, prepaid taxes, and other assets  (8,572)  (7,676)
Accounts payable and accrued expenses  (7,316)  (44,197)
Accrued incentive compensation  (4,551)  (6,537)
Leases and other liabilities  (1,939)  (3,457)
Payment of contingent consideration     (339)
Net cash provided by operating activities  82,257   40,286 
Cash flows from investing activities:    
Capital expenditures  (7,793)  (5,263)
Purchase of a trademark     (2,000)
Purchases of short-term investments  (11,406)  (38,951)
Maturity/sale of short-term investments  10,445   53,803 
Net cash (used in)/provided by investing activities  (8,754)  7,589 
Cash flows from financing activities:    
Proceeds from exercise of stock options  870   415 
Investment of noncontrolling interest  4,582    
Common stock purchased for treasury  (64,235)  (77,027)
Cash dividends paid on common stock  (31,895)  (33,389)
Payment of contingent consideration     (4,770)
Net cash used in financing activities  (90,678)  (114,771)
Effect of exchange rate changes on cash and cash equivalents  518   (1,674)
Net decrease in cash and cash equivalents  (16,657)  (68,570)
Cash and cash equivalents – beginning of period  274,713   219,499 
Cash and cash equivalents – end of period $258,056  $150,929 



(In thousands, except per share amounts)


The Company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business.   Additionally, the Company believes the information assists investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business.   The non-GAAP financial information is provided in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.  

Table 1 - Reconciliation of GAAP operating expenses to Adjusted operating expenses    
  Three Months Ended Six Months Ended
  June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
GAAP operating expenses $145,830  $152,526  $294,411  $282,528
Non-GAAP Adjustments  (495)  (1,713)  (1,676)  1,753
Adjusted operating expenses $145,335  $150,813  $292,735  $284,281

Table 2 - Reconciliation of GAAP income from operations to Adjusted income from operations
  Three Months Ended Six Months Ended
  June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
GAAP income from operations $44,040 $65,239 $90,551 $163,135 
Non-GAAP Adjustments  495  1,713  1,676  (1,753)
Adjusted income from operations $44,535 $66,952 $92,227 $161,382 

Table 3 - Reconciliation of GAAP provision for income taxes to Adjusted provision for income taxes
  Three Months Ended Six Months Ended
  June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
GAAP provision for income taxes $10,923 $15,033 $22,668 $38,393 
Non-GAAP Adjustments  116  399  394  (1,934)
Adjusted provision for income taxes $11,039 $15,432 $23,062 $36,459 

Table 4 - Reconciliation of GAAP net income attributable to Steven Madden, Ltd. to Adjusted net income attributable to Steven Madden, Ltd.
  Three Months Ended Six Months Ended
  June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022
GAAP net income attributable to Steven Madden, Ltd. $34,529 $48,460 $71,259 $122,973
Non-GAAP Adjustments  378  1,313  1,282  180
Adjusted net income attributable to Steven Madden, Ltd. $34,907 $49,773 $72,541 $123,153
GAAP diluted net income per share $0.46 $0.62 $0.95 $1.55
Adjusted diluted net income per share $0.47 $0.63 $0.96 $1.56

Table 5 - Reconciliation of GAAP diluted net income per share to Adjusted diluted net income per share in 2023 outlook
  2023 Outlook
  Low End High End
GAAP diluted net income per share $2.38 $2.48
Non-GAAP Adjustments  0.02  0.02
Adjusted diluted net income per share $2.40 $2.50

Non-GAAP Adjustments include the items below.

For the second quarter of 2023:

  • $0.5 million pre-tax ($0.4 million after-tax) expense in connection with certain severances and termination benefits, included in operating expenses.

For the second quarter of 2022:

  • $1.8 million pre-tax ($1.4 million after-tax) expense in connection with the accelerated amortization of a trademark, included in operating expenses.
  • $0.1 million pre-tax ($0.04 million after-tax) benefit in connection with the change in valuation of contingent considerations, included in operating expenses.

For the 2023 outlook:

  • $1.7 million pre-tax ($1.3 million after-tax) expense in connection with certain severances, termination benefits and a corporate office relocation, included in operating expenses.


Steven Madden, Ltd.
VP of Corporate Development & Investor Relations
Danielle McCoy


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