Steven Madden's Q3 2023 Revenue Declines Slightly by 0.7%
Segments of revenue
In the third quarter of 2023, Steven Madden reported a total revenue of $552.7 million, a decrease of 0.7% compared to the same period in the prior year. This decline was primarily driven by decreases in both the Wholesale Footwear and Direct-to-Consumer businesses. However, there was an increase in revenue from the Wholesale Accessories/Apparel segment, which accounted for $127.4 million or 23.0% of total revenue.
Despite the overall decline in revenue, Steven Madden showcased some strengths in its financial performance. The Wholesale Accessories/Apparel segment experienced a significant increase of 22.7% in revenue compared to the same quarter of the previous year. This growth was driven by the strength of Steve Madden handbags. Additionally, the company saw an improvement in gross profit as a percentage of total revenue, reaching 42.1% in Q3 2023 compared to 41.2% in the prior-year period. This increase was primarily due to improved gross margin in the Wholesale Accessories/Apparel and Direct-to-Consumer segments.
One of the challenges faced by Steven Madden in the latest quarter was the decrease in revenue from both the Wholesale Footwear and Direct-to-Consumer businesses. The Wholesale Footwear segment experienced a decline in revenue, leading to a decrease in income from operations. This decline was primarily attributed to expense deleverage on a lower revenue base. The company will need to address this weakness and find strategies to improve revenue in these segments.
It is worth mentioning that Steven Madden's net income attributable to the company increased to $64.4 million in Q3 2023 compared to $61.3 million in the same period of the prior year. The effective tax rate also slightly increased to 23.1% in Q3 2023. These factors indicate some positive financial performance for the company.
Steven Madden's Q3 2023 revenue declined by 0.7% compared to the same period in the prior year. The decrease was primarily driven by declines in the Wholesale Footwear and Direct-to-Consumer businesses. However, the Wholesale Accessories/Apparel segment showed strength with a significant increase in revenue. The company demonstrated improvements in gross profit as a percentage of total revenue, but challenges remain in the Wholesale Footwear and Direct-to-Consumer segments. Overall, Steven Madden's financial performance in the latest quarter had some strengths but also faced challenges that need to be addressed.