In This Article:
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Consolidated Revenue: $624.7 million, a 13% increase compared to Q3 2023.
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Wholesale Revenue: $495.7 million, up 14.4% compared to Q3 2023.
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Wholesale Footwear Revenue: $299.3 million, a 2.2% decrease from Q3 2023.
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Wholesale Accessories and Apparel Revenue: $196.4 million, up 54.2% compared to Q3 2023.
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Direct-to-Consumer Revenue: $125.5 million, a 7.8% increase compared to Q3 2023.
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Licensing Royalty Income: $3.5 million, compared to $2.9 million in Q3 2023.
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Consolidated Gross Margin: 41.6%, compared to 42.1% in Q3 2023.
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Operating Expenses: 27.9% of revenue, compared to 27% in Q3 2023.
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Operating Income: $85.4 million, 13.7% of revenue.
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Net Income: $64.8 million or $0.91 per diluted share.
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Cash and Cash Equivalents: $150.5 million with no debt.
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Inventory: $268.7 million, compared to $205.7 million in the prior year.
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Capital Expenditures: $2.4 million in Q3.
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Stock Repurchases: $20.2 million in Q3, totaling $95.8 million year-to-date.
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Quarterly Cash Dividend: $0.21 per share, payable on December 27, 2024.
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2024 Revenue Guidance: Expected to increase 13% to 14% compared to 2023.
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2024 EPS Guidance: Expected to be in the range of $2.62 to $2.67.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Steven Madden Ltd (NASDAQ:SHOO) delivered strong Q3 2024 results with revenue and earnings exceeding expectations.
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The accessories and apparel categories, particularly Steve Madden handbags, showed exceptional performance.
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International revenue grew 11% in Q3, with significant growth in the EMEA region and new joint ventures in the Middle East and Latin America.
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Direct-to-consumer revenue increased by 8% in Q3, with e-commerce revenue growing by 10%.
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The company raised its 2024 revenue and earnings guidance, reflecting confidence in continued growth.
Negative Points
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Wholesale footwear revenue declined by 4% in Q3, with branded business facing challenges.
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Gross margin decreased to 41.6% from 42.1% due to the impact of the Almost Famous acquisition.
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Operating expenses increased to 27.9% of revenue, driven by higher marketing investments and incentive compensation.
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Inventory levels rose to $268.7 million, primarily due to increased transit times.
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The company faces potential risks from tariffs on Chinese imports, with a significant portion of goods currently sourced from China.
Q & A Highlights
Q: Can you update us on your China sourcing exposure and how you plan to address potential tariffs? Also, what happened in the wholesale footwear channel? A: Edward Rosenfeld, CEO: We've been preparing to reduce our reliance on China due to potential tariffs. We've developed sourcing capabilities in countries like Cambodia, Vietnam, and Mexico. Currently, about two-thirds of our business involves US imports, with over 70% sourced from China. We aim to reduce this by 40-45% over the next year. Regarding wholesale footwear, we saw a sequential improvement but not as much as hoped. Some key customers delayed boot deliveries, impacting Q3, but we expect improvement in Q4.