Steven Madden Reports Q1 Earnings Ahead Of Expectations Despite Challenging Environment

Steven Madden Ltd SHOO reported a first-quarter FY23 sales decline of 17.1% year-on-year to $463.83 million, beating the consensus of $447.85 million.
Revenue for the wholesale business decreased 19.3% to $362.1 million, and Direct-to-consumer revenue fell 8.1% to $99.6 million.
Gross profit margin contracted 140 basis points Y/Y to 42.1%.
The operating margin was 10%, and operating income for the quarter was $46.5 million.
Adjusted EPS of $0.50 beat the analyst consensus of $0.48.
Steven Madden held $223.7 million in cash and equivalents as of March 31, 2023. Cash used in operating activities for the quarter totaled $(13.3) million.
The company's Board approved a quarterly cash dividend of $0.21 per share, payable on June 23, 2023, to stockholders of record on June 12, 2023.
The company ended the quarter with 235 brick-and-mortar retail stores and five e-commerce websites.
Edward Rosenfeld, Chairman and CEO, commented, "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."
Outlook: Steven Madden continues to expect Adjusted EPS of $2.40 - $2.50 versus the consensus of $2.43.
The company continues to expect FY22 revenue to decrease 6.5% - 8%.
Price Action: SHOO shares are trading higher by 0.25% at $32.84 on the last check Tuesday.