Steven Madden, Ltd. (SHOO) Bundle
A Brief History of Steven Madden, Ltd.
Steven Madden, Ltd. has established itself as a leading player in the global footwear and accessories market since its inception in 1990. The company has grown through a combination of innovation, strategic acquisitions, and robust marketing efforts.
Financial Performance Overview
As of September 30, 2024, Steven Madden, Ltd. reported a total revenue of $624,675,000, marking an increase of 13.0% from $552,732,000 during the same period in 2023. The net income attributable to the company was $55,278,000, down from $64,413,000 in the previous year.
| Financial Metrics | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Total Revenue | $624,675,000 | $552,732,000 |
| Net Income | $55,278,000 | $64,413,000 |
| Diluted Earnings Per Share | $0.77 | $0.87 |
| Effective Tax Rate | 25.5% | 23.1% |
Segment Performance
The company's performance is segmented into Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to-Consumer, and Licensing segments.
| Segment | Total Revenue (Q3 2024) | Income from Operations (Q3 2024) |
|---|---|---|
| Wholesale Footwear | $299,315,000 | $64,255,000 |
| Wholesale Accessories/Apparel | $196,400,000 | $30,661,000 |
| Direct-to-Consumer | $125,455,000 | $1,499,000 |
| Licensing | $3,505,000 | $3,228,000 |
Operational Highlights
As of September 30, 2024, the company operated 287 brick-and-mortar stores, five e-commerce websites, and 67 concessions in international markets. This is an increase from 256 stores, five websites, and 22 concessions as of the previous year.
Cash Flow and Liquidity Position
Steven Madden, Ltd. reported cash and cash equivalents of $139,414,000 and total stockholders' equity of $860,066,000 as of September 30, 2024. The company had working capital of $491,880,000 and no outstanding debt.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $139,414,000 |
| Total Stockholders' Equity | $860,066,000 |
| Working Capital | $491,880,000 |
| Debt | $0 |
Strategic Initiatives
The company continues to focus on product diversification, digital expansion, sustainability, global market penetration, operational efficiency, and brand building to foster growth and enhance market presence. Key initiatives include expanding product offerings and enhancing e-commerce capabilities.
Recent Developments
In 2024, Steven Madden, Ltd. completed the sale of its GREATS® business, which impacted its financials through impairment charges totaling $10,335,000 due to the write-off of the remaining carrying amounts of net intangible assets. The company also implemented changes in accounting estimates regarding the useful life of certain trademarks, reflecting ongoing adjustments to its asset management strategies.
A Who Owns Steven Madden, Ltd. (SHOO)
Major Shareholders
As of 2024, the ownership structure of Steven Madden, Ltd. includes various institutional and individual shareholders. The largest shareholders are:
- Steven Madden - Founder and CEO, holds approximately 7.5% of the company's shares.
- BlackRock, Inc. - One of the largest institutional investors, owning about 12.2% of outstanding shares.
- The Vanguard Group, Inc. - Holds around 10.1% of shares as a significant institutional investor.
- State Street Global Advisors - Owns approximately 6.8% of the company's shares.
Ownership Breakdown
The following table summarizes the ownership distribution of Steven Madden, Ltd. as of early 2024:
| Shareholder | Percentage Ownership | Type of Ownership |
|---|---|---|
| Steven Madden | 7.5% | Individual |
| BlackRock, Inc. | 12.2% | Institutional |
| The Vanguard Group, Inc. | 10.1% | Institutional |
| State Street Global Advisors | 6.8% | Institutional |
| Other Institutional Investors | 20.4% | Institutional |
| Retail Investors | 42.0% | Individual |
Recent Stock Performance
As of September 30, 2024, Steven Madden, Ltd. reported a net income of $134.589 million, with total revenue reaching $1.700 billion for the nine months ended September 30, 2024. The company experienced a revenue increase of 16.3% compared to the same period in the previous year. The effective tax rate for the company was 24.3%.
Share Repurchase Program
The company has an ongoing share repurchase program, with a total authorization of approximately $250 million. As of September 30, 2024, around $85.310 million remains available for future repurchases.
Market Capitalization
Steven Madden, Ltd. had a market capitalization of approximately $3.1 billion as of October 2024. The stock price fluctuated between $35 and $55 throughout 2024, with recent trading around $44.
Board of Directors
The Board of Directors comprises several key individuals in the retail and fashion industry, including:
- Steven Madden - Founder and CEO
- Edward R. Rosenfeld - Executive Chairman
- Other independent directors representing various sectors
Conclusion of Ownership Analysis
The ownership structure of Steven Madden, Ltd. reflects a combination of individual and institutional holdings, with significant representation from major investment firms. The company continues to focus on growth and shareholder value through strategic initiatives and share repurchase programs.
Steven Madden, Ltd. (SHOO) Mission Statement
The mission statement of Steven Madden, Ltd. emphasizes a commitment to providing innovative and fashionable footwear while maintaining a strong brand identity. The company aims to deliver high-quality products that resonate with contemporary consumers, focusing on style, quality, and affordability.
Financial Overview for the Third Quarter of 2024
In the third quarter of 2024, Steven Madden, Ltd. reported a total revenue of $624,675,000, marking a 13.0% increase compared to $552,732,000 in the same period of the previous year. The net income attributable to Steven Madden, Ltd. was $55,278,000, down from $64,413,000 in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $624,675,000 | $552,732,000 |
| Net Income | $55,278,000 | $64,413,000 |
| Diluted Earnings Per Share | $0.77 | $0.87 |
| Gross Profit | $259,544,000 | $232,625,000 |
| Operating Expenses | $178,915,000 | $149,887,000 |
Segment Performance
The company's revenue is segmented into several categories, which include Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer. The performance of these segments for Q3 2024 is as follows:
| Segment | Revenue | Gross Profit | Income from Operations |
|---|---|---|---|
| Wholesale Footwear | $299,315,000 | $110,778,000 | $64,255,000 |
| Wholesale Accessories/Apparel | $196,400,000 | $64,963,000 | $30,661,000 |
| Direct-to-Consumer | $125,455,000 | $80,298,000 | $1,499,000 |
Year-to-Date Financial Performance
For the nine months ended September 30, 2024, Steven Madden, Ltd. reported total revenue of $1,700,609,000, up 16.3% from $1,461,868,000 in the same period of 2023. The net income for this period was $134,589,000, a slight decrease from $135,673,000 in the previous year.
| Financial Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Revenue | $1,700,609,000 | $1,461,868,000 |
| Net Income | $134,589,000 | $135,673,000 |
| Gross Profit | $701,488,000 | $617,587,000 |
| Operating Expenses | $507,343,000 | $444,298,000 |
Balance Sheet Highlights
As of September 30, 2024, Steven Madden, Ltd. had total stockholders' equity of $860,066,000 and no outstanding debt. The cash and cash equivalents stood at $150,478,000.
| Balance Sheet Item | Amount |
|---|---|
| Cash and Cash Equivalents | $150,478,000 |
| Total Stockholders' Equity | $860,066,000 |
| Working Capital | $491,880,000 |
| Debt | $0 |
Market Position and Strategic Focus
Steven Madden, Ltd. continues to invest in brand building and marketing initiatives aimed at enhancing consumer engagement. The company's strategy includes expanding its product offerings and focusing on e-commerce growth.
Recent Acquisitions
In 2024, the company acquired Almost Famous, which contributed to a significant increase in revenue within the Wholesale Accessories/Apparel segment, growing by 69.8% year-over-year.
How Steven Madden, Ltd. (SHOO) Works
Company Overview
Steven Madden, Ltd. (SHOO) operates primarily in the footwear and accessories sector, focusing on the design, marketing, and selling of branded footwear and accessories for women, men, and children. The company has established a significant presence through both wholesale and direct-to-consumer channels.
Financial Performance
For the third quarter ended September 30, 2024, Steven Madden reported total revenue of $624,675,000, marking a 13.0% increase from $552,732,000 in the same quarter of 2023. The net income attributable to Steven Madden, Ltd. for the same period was $55,278,000, compared to $64,413,000 in the prior year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $624,675,000 | $552,732,000 |
| Net Income | $55,278,000 | $64,413,000 |
| Effective Tax Rate | 25.5% | 23.1% |
| Diluted Earnings Per Share | $0.77 | $0.87 |
Revenue Segments
Steven Madden operates through several key segments, including Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to-Consumer, and Licensing. The revenue breakdown for the third quarter of 2024 is as follows:
| Segment | Revenue ($000) | Percentage of Total Revenue |
|---|---|---|
| Wholesale Footwear | $299,315 | 47.9% |
| Wholesale Accessories/Apparel | $196,400 | 31.4% |
| Direct-to-Consumer | $125,455 | 20.1% |
| Licensing | $3,505 | 0.6% |
Operating Expenses and Income
Operating expenses for the third quarter of 2024 totaled $178,915,000, or 28.6% of total revenue, compared to $149,887,000, or 27.1% of total revenue in the same quarter of 2023. The increase in operating expenses was primarily driven by higher payroll-related expenses and continued investments in marketing efforts.
Balance Sheet Highlights
As of September 30, 2024, Steven Madden reported:
- Cash, cash equivalents, and short-term investments: $150,478,000
- No debt
- Total stockholders’ equity: $860,066,000
- Working capital: $491,880,000
Inventory and Accounts Receivable
The company’s inventory turnover for the quarter was 5.5 times, compared to 5.4 times in the previous year. The average collection days for accounts receivable increased to 66 days from 61 days year-over-year.
Market Presence
As of September 30, 2024, Steven Madden operated 287 brick-and-mortar stores, along with five e-commerce websites and 67 concessions in international markets. This represents an increase in store count from 256 stores in the previous year.
Stock Performance and Dividends
The company has been active in returning value to shareholders, declaring a dividend of $0.21 per share in Q3 2024. The total cash used in financing activities, which includes share repurchases and dividends, was $140,582,000 for the nine months ended September 30, 2024.
| Stock Metrics | Value |
|---|---|
| Dividends Paid | $45,880,000 |
| Share Repurchases | $95,788,000 |
Future Commitments
As of September 30, 2024, Steven Madden's contractual obligations are detailed below:
| Obligation Type | Total ($000) | Due in 2024 | Due 2025-2026 | Due 2027-2028 | Due 2029 and After |
|---|---|---|---|---|---|
| Operating Lease Obligations | $184,366 | $13,467 | $88,982 | $49,024 | $32,893 |
| Purchase Obligations | $245,573 | $187,526 | $58,047 | - | - |
| Future Minimum Royalty Payments | $13,500 | $1,500 | $6,000 | $6,000 | - |
| Transition Tax | $4,884 | $4,884 | - | - | - |
| Total | $448,323 | $207,377 | $153,029 | $55,024 | $32,893 |
Conclusion
Steven Madden, Ltd. continues to show a robust performance in the footwear and accessories market, leveraging its diverse revenue streams and maintaining a strong balance sheet while investing in future growth opportunities.
How Steven Madden, Ltd. (SHOO) Makes Money
Revenue Segments
Steven Madden, Ltd. generates revenue through several key segments, including Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to-Consumer, and Licensing. The breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Total Revenue (in thousands) | Percentage of Total Revenue | Gross Profit (in thousands) | Operating Income (in thousands) |
|---|---|---|---|---|
| Wholesale Footwear | $832,000 | 48.9% | $298,186 | $166,309 |
| Wholesale Accessories/Apparel | $487,252 | 28.7% | $158,558 | $64,178 |
| Direct-to-Consumer | $374,194 | 22.0% | $237,581 | $14,564 |
| Licensing | $7,163 | 0.4% | $7,163 | $5,924 |
| Total | $1,700,609 | 100.0% | $701,488 | $178,194 |
Wholesale Footwear Segment
The Wholesale Footwear segment is a major revenue driver for Steven Madden, contributing approximately 48.9% of total revenue for the nine months ended September 30, 2024. This segment recorded total revenue of $832 million, with a gross profit margin of 35.8% and an operating income of $166 million.
In the third quarter of 2024, total revenue for this segment was $299 million, a slight decrease of 2.2% compared to the same quarter in 2023. The gross profit for the quarter was $110 million, representing 37.0% of revenue.
Wholesale Accessories/Apparel Segment
This segment has shown significant growth, with total revenue reaching $487 million for the nine months ended September 30, 2024, a 69.8% increase from the previous year. The gross profit margin was 32.5%, with operating income of $64 million. The growth was largely driven by the acquisition of Almost Famous and increased demand for Steve Madden handbags and apparel.
In the third quarter of 2024, revenue rose to $196 million, compared to $127 million in the same quarter of 2023, marking a 54.2% increase.
Direct-to-Consumer Segment
The Direct-to-Consumer segment includes sales from both e-commerce and brick-and-mortar stores. For the nine months ended September 30, 2024, it accounted for $374 million in revenue, or 22.0% of total revenue. The gross profit margin was notably high at 63.5%, but operating income was lower at $14 million due to increased operating expenses attributed to marketing and occupancy costs.
In the third quarter of 2024, this segment generated $125 million in revenue, representing a 7.8% increase from the previous year.
Licensing Segment
The Licensing segment contributed $7 million in revenue, accounting for 0.4% of total revenue. This segment has shown stable growth, with income from operations of $5.9 million.
Cost Structure and Profitability
For the nine months ended September 30, 2024, Steven Madden reported a total cost of sales of $999 million, which is 58.8% of total revenue. Gross profit was $701 million, representing a margin of 41.2%. Operating expenses totaled $507 million, or 29.8% of revenue, leading to an operating income of $178 million.
Net Income
Net income attributable to Steven Madden, Ltd. for the nine months ended September 30, 2024, was $134 million, a slight decrease from $135 million in the previous year. The effective tax rate during this period was 24.3%.
Market Position and Strategy
Steven Madden continues to invest in marketing and brand positioning to enhance consumer engagement and drive sales across all segments. The company's expansion into new markets and product lines is also a critical component of its growth strategy.
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Resources:
- Steven Madden, Ltd. (SHOO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Steven Madden, Ltd. (SHOO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Steven Madden, Ltd. (SHOO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.