Steven Madden is having a good run, and it just got a little better.
The company also bumped up its earnings-per-share forecast just a bit, after stripping out certain one-time items.
The move came after a quarter that beat what analysts were expecting. Sales to wholesalers and directly to customers in the three months ending June 30 came in ahead of the average estimate on Wall Street.
The company's updated revenue outlook arrives during a period when the footwear sector deals with evolving consumer tastes and economic unpredictability. Steven Madden's repeated upward revisions highlight how much consumers like its stylish products and the benefits of buying Kurt Geiger. While the private-label business has faced headwinds, the core Steve Madden brand continues to resonate with shoppers, driving wholesale and direct-to-consumer sales alike. The company's direct-to-consumer channel, including its website and retail stores, has been a particular strength, contributing to the better-than-expected quarterly results.
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Steven Madden, founded in 1990, has built a reputation for trendy footwear at accessible prices. The acquisition of Kurt Geiger last year expanded its presence into the luxury segment, diversifying its revenue streams. While the private-label division, which manufactures shoes for third parties, has faced challenges due to inventory adjustments by retailers, the company's owned brands continue to drive growth.
Investors liked what they saw.
Year-to-date through Wednesday's close, shares of Steven Madden had risen 4.2%.
The upgraded guidance comes amid a challenging retail environment where many footwear companies have struggled with inventory levels and shifting demand. Steven Madden's focus on fashion-forward styles and its successful integration of Kurt Geiger have helped it outperform peers. The company operates through wholesale and direct-to-consumer channels, with the latter including e-commerce and retail stores. Its private-label segment, which makes shoes for other brands, has been a drag, but the overall momentum remains strong.
The acquisition of Kurt Geiger for approximately £289 million last year has proven strategically beneficial, allowing Steven Madden to tap into the luxury market and offset weaknesses in its private-label operations. Meanwhile, the company's long-standing reputation for trendy, affordable footwear continues to attract consumers in both its wholesale and direct-to-consumer channels.
So what is going right? Two names are doing most of the heavy lifting.
The first is the company's own Steve Madden brand. "The Steve Madden brand was the highlight, continuing to gain momentum as consumers responded enthusiastically to the trend-right assortments," Chief Executive Officer Edward Rosenfeld said.
The second is Kurt Geiger, a UK luxury brand that Steven Madden acquired last year from private equity firm Cinven for roughly £289 million, equivalent to $360 million in cash. The purchase has provided a lift for Steven Madden while other segments, such as its private-label operations, have struggled.
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