~ Provides 2025 Outlook ~
LONG ISLAND CITY, N.Y., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel, today announced financial results for the fourth quarter and full year ended December 31, 2024 and provided its 2025 outlook.
Amounts referred to as "Adjusted” are non-GAAP measures that exclude the items defined as "Non-GAAP Adjustments” in the "Non-GAAP Reconciliation” section.
Full Year 2024 Results
- Revenue increased 15.2% to $2,282.9 million, compared to $1,981.6 million in 2023.
- Gross profit as a percentage of revenue was 41.0%, compared to 42.0% in 2023. Adjusted gross profit as a percentage of revenue was 41.1%, compared to 42.1% in 2023.
- Operating expenses as a percentage of revenue were 30.6%, compared to 30.9% in 2023. Adjusted operating expenses as a percentage of revenue were 30.0%, compared to 30.6% in 2023.
- Income from operations totaled $224.9 million, or 9.9% of revenue, compared to $213.2 million, or 10.8% of revenue, in 2023. Adjusted income from operations totaled $253.5 million, or 11.1% of revenue, compared to $228.5 million, or 11.5% of revenue, in 2023.
- Net income attributable to Steven Madden, Ltd. was $169.4 million, or $2.35 per diluted share, compared to $171.6 million, or $2.30 per diluted share, in 2023. Adjusted net income attributable to Steven Madden, Ltd. was $192.4 million, or $2.67 per diluted share, compared to $182.7 million, or $2.45 per diluted share, in 2023.
- Revenue increased 12.0% to $582.3 million, compared to $519.7 million in the same period of 2023.
- Gross profit as a percentage of revenue was 40.4%, compared to 41.3% in the same period of 2023. Adjusted gross profit as a percentage of revenue was 40.4%, compared to 41.7% in the same period of 2023.
- Operating expenses as a percentage of revenue were 32.9%, compared to 32.4% in the same period of 2023. Adjusted operating expenses as a percentage of revenue were 31.4%, compared to 31.5% in the same period of 2023.
- Income from operations totaled $46.7 million, or 8.0% of revenue, compared to $39.9 million, or 7.7% of revenue, in the same period of 2023. Adjusted income from operations totaled $52.6 million, or 9.0% of revenue, compared to $53.0 million, or 10.2% of revenue, in the same period of 2023.
- Net income attributable to Steven Madden, Ltd. was $34.8 million, or $0.49 per diluted share, compared to $35.9 million, or $0.49 per diluted share, in the same period of 2023. Adjusted net income attributable to Steven Madden, Ltd. was $39.3 million, or $0.55 per diluted share, compared to $45.0 million, or $0.61 per diluted share, in the same period of 2023.
"Looking ahead, we are cautious on the near-term outlook, as we face meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the United States. That said, we have a proven ability to navigate difficult market conditions with our agile business model, and we are set to add a powerful new growth engine to the company with the pending acquisition of Kurt Geiger, which we expect to close in the second quarter of 2025. The Kurt Geiger London brand has exhibited exceptional growth over the last several years driven by its unique brand image, distinctive design aesthetic and compelling value proposition. Its differentiated and elevated positioning - and its alignment with our strategic initiatives of expanding in international markets, accessories categories and direct-to-consumer channels - make it a highly attractive and complementary addition to our portfolio.”
Fourth Quarter 2024 Channel Results
Revenue for the wholesale business in the fourth quarter of 2024 was $402.9 million, a 13.6% increase compared to the fourth quarter of 2023. Wholesale footwear revenue increased 1.0%, and wholesale accessories/apparel revenue increased 35.4%. Gross profit as a percentage of wholesale revenue was 30.5%, compared to 31.7% in the fourth quarter of 2023, primarily driven by a greater mix of private label business.
Direct-to-consumer revenue in the fourth quarter of 2024 was $176.0 million, an 8.4% increase compared to the fourth quarter of 2023, driven by increases in both the brick-and-mortar and e-commerce businesses. Gross profit as a percentage of direct-to-consumer revenue was 62.0%, compared to 62.7% in the fourth quarter of 2023, driven by an increase in promotional activity.
The Company ended the year with 291 Company-operated brick-and-mortar retail stores and five e-commerce websites, as well as 42 Company-operated concessions in international markets.
Balance Sheet and Cash Flow Highlights
As of December 31, 2024, cash, cash equivalents and short-term investments totaled $203.4 million. Inventory totaled $257.6 million as of the same date, compared to $229.0 million at the end of 2023.
During the fourth quarter and full year of 2024, the Company spent approximately $2.6 million and $98.4 million, respectively, 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 March 21, 2025 to stockholders of record as of the close of business on March 10, 2025.
2025 Outlook
For 2025, the Company expects revenue will increase 17% to 19% compared to 2024. The Company expects diluted EPS will be in the range of $2.30 to $2.40. This outlook assumes the Kurt Geiger acquisition closes on May 1, 2025.
Conference Call Information
Interested stockholders are invited to listen to the conference call scheduled for today, February 26, 2025 at 8:30 a.m. Eastern Time, which will include a discussion of the Company's fourth quarter and fiscal year end 2024 earnings results and fiscal year 2025 outlook. The call will be webcast live on the Company's website at https://investor.stevemadden.com. A webcast replay of the conference call will be available on the Company's website or via the following webcast link https://edge.media-server.com/mmc/p/qhnpppyo 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. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo®, and ATM®, Steve Madden licenses footwear, handbags and certain accessories for the Anne Klein® brand. In addition, Steve Madden 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. In addition, Steve Madden 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 boots, booties, fashion sneakers, dress shoes, sandals, and more, please visit www.stevemadden.com, www.dolcevita.com and the Company's 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 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 hiring and retention of key personnel;
- the Company's ability to successfully implement growth strategies and integrate acquired businesses;
- risks associated with the pending acquisition of Kurt Geiger, including the possibility that the transaction may not be completed on the anticipated timeline or at all;
- the Company's ability to navigate current changes in and potential future 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;
- geopolitical tensions in the regions in which we operate and any related challenging macroeconomic conditions globally that may materially adversely affect our customers, vendors, and partners, and the duration and extent to which these factors may impact our future business and operations, results of operations and financial condition;
- the Company's ability to navigate shifting macroeconomic environments, including but not limited to inflation and the potential for recessionary conditions;
- legal, regulatory, political and economic risks that may affect the Company's sales in international markets;
- changes in United States 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.
| STEVEN MADDEN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Net sales | $ | 578,820 | $ | 517,054 | $ | 2,272,266 | $ | 1,971,474 | |||||
| Commission and licensing fee income | 3,498 | 2,660 | 10,661 | 10,108 | |||||||||
| Total revenue | 582,318 | 519,714 | 2,282,927 | 1,981,582 | |||||||||
| Cost of sales | 346,874 | 304,887 | 1,345,995 | 1,149,168 | |||||||||
| Gross profit | 235,444 | 214,827 | 936,932 | 832,414 | |||||||||
| Operating expenses | 191,593 | 168,374 | 698,936 | 612,672 | |||||||||
| Change in valuation of contingent payment liability | (2,894 | ) | - | 2,722 | - | ||||||||
| Impairment of intangibles | - | 6,520 | 10,335 | 6,520 | |||||||||
| Income from operations | 46,745 | 39,933 | 224,939 | 213,222 | |||||||||
| Interest and other income, net | 1,229 | 1,494 | 5,538 | 7,392 | |||||||||
| Income before provision for income taxes | 47,974 | 41,427 | 230,477 | 220,614 | |||||||||
| Provision for income taxes | 10,171 | 4,420 | 54,575 | 46,639 | |||||||||
| Net income | 37,803 | 37,007 | 175,902 | 173,975 | |||||||||
| Less: net income attributable to noncontrolling interest | 3,002 | 1,126 | 6,512 | 2,421 | |||||||||
| Net income attributable to Steven Madden, Ltd. | $ | 34,801 | $ | 35,881 | $ | 169,390 | $ | 171,554 | |||||
| Basic income per share | $ | 0.49 | $ | 0.50 | $ | 2.38 | $ | 2.34 | |||||
| Diluted income per share | $ | 0.49 | $ | 0.49 | $ | 2.35 | $ | 2.30 | |||||
| Basic weighted average common shares outstanding | 70,555 | 72,321 | 71,274 | 73,337 | |||||||||
| Diluted weighted average common shares outstanding | 71,459 | 73,491 | 71,963 | 74,565 | |||||||||
| Cash dividends declared per common share | $ | 0.21 | $ | 0.21 | $ | 0.84 | $ | 0.84 | |||||
| STEVEN MADDEN, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||
| As of | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 189,924 | $ | 204,640 | ||
| Short-term investments | 13,484 | 15,173 | ||||
| Accounts receivable, net of allowances | 45,653 | 40,246 | ||||
| Factor accounts receivable | 348,659 | 320,723 | ||||
| Inventories | 257,625 | 228,990 | ||||
| Prepaid expenses and other current assets | 34,463 | 29,009 | ||||
| Income tax receivable and prepaid income taxes | 4,887 | 16,051 | ||||
| Total current assets | 894,695 | 854,832 | ||||
| Property and equipment, net | 57,388 | 47,199 | ||||
| Operating lease right-of-use asset | 139,695 | 122,783 | ||||
| Deferred tax assets | 610 | 609 | ||||
| Deposits and other | 22,214 | 16,250 | ||||
| Goodwill | 183,737 | 180,003 | ||||
| Intangibles, net | 113,432 | 126,267 | ||||
| Total Assets | $ | 1,411,771 | $ | 1,347,943 | ||
| LIABILITIES | ||||||
| Current liabilities: | ||||||
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