Steven Madden reported a sharply stronger third quarter, with revenue, margins and earnings all higher than a year earlier. The footwear and accessories company also raised its full-year revenue and adjusted earnings-per-share outlook and declared a quarterly cash dividend.
Revenue for the three months ended September 30 rose 15.7% to $772.6 million. The board declared a dividend of 21 cents per share, payable December 24 to shareholders of record at the close of business December 11.
Key details
- Profitability improved: Gross margin increased to 44.6% from 41.5% a year earlier. Operating expenses fell to 34.9% of revenue from 36.8%.
- Operating income more than doubled: Income from operations was $73.2 million, or 9.5% of revenue, compared with $31.4 million, or 4.7%, in the prior-year quarter. On an adjusted basis, operating income rose to $78.9 million from $46.3 million.
- Net income and per-share earnings climbed: Net income attributable to Steven Madden was $52.4 million, or 72 cents per diluted share, versus $20.5 million, or 29 cents, a year earlier. Adjusted net income was $57.3 million, or 79 cents per diluted share, compared with $30.4 million, or 43 cents.
- Wholesale revenue grew 19.4% to $528.7 million. Wholesale footwear revenue increased 21.0%, while accessories and apparel revenue rose 17.0%. Wholesale gross margin was 36.8%, up from 32.7%.
- The company raised its full-year outlook for revenue and adjusted diluted earnings per share, citing strong year-to-date results and continued business momentum. The announcement provided no revised numerical targets.
- The dividend is unchanged at 21 cents per share per quarter as announced here; the payment is scheduled for December 24.
What changes for investors: The results show revenue growth accompanied by wider margins and substantially higher reported and adjusted earnings. The dividend declaration sets the next payment and record dates, while the company’s outlook update signals higher expectations for full-year revenue and adjusted per-share earnings. Adjusted figures exclude certain items and are non-GAAP measures.