American footwear brand Steve Madden announced on Tuesday a 17.1% plummet in first-quarter revenue to $463.8 million, following a double-digit decline in wholesale revenues and a dip in direct-to consumer sales.
The Long Island City, New York-based company said revenue for its wholesale business was $362.1 million, a 19.3% decrease compared to the first quarter in the prior-year, when wholesale revenue experienced outsized growth of 29%.
Likewise, wholesale footwear revenue decreased 18.6% compared to the first quarter of 2022, and wholesale accessories/apparel revenue decreased 22%.
Direct-to-consumer revenue was $99.6 million, an 8.1% decrease compared, driven by declines in both the brick-and-mortar and e-commerce businesses.
Profit was also slashed with Steve Madden reporting a net income of $36.7 million, or $0.48 per diluted share, compared to $74.5 million, or $0.94 per diluted share, in the same period last year.
“In light of the challenging setup we faced in the first quarter – including a choppy retail environment, conservative order patterns from our wholesale customers, and difficult comparisons with the prior year – we were pleased to deliver revenue and earnings slightly ahead of expectations,” said Edward Rosenfeld, chairman and CEO.
“We also further reduced our inventory levels while driving strong gross margin performance despite a promotional retail landscape, demonstrating the benefits and durability of our business model in challenging operating environments. As we move forward, we remain focused on executing our strategic initiatives – most importantly, utilizing our proven model to create trend-right products and bring them to market quickly – and are confident that we can drive sustainable growth and value creation over the long term.”
For 2023, the company continues to expect revenue will decrease 6.5% to 8% compared to 2022, while diluted EPS will be in the range of $2.39 to $2.49.
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