Steve Madden ends year with revenue decline
American footwear, accessories and apparel group Steve Madden Ltd. announced a 32.8 percent decrease in full year revenues on Thursday, as the company continues to feel the effects of the Covid-19 pandemic.
For the full year ended December 31, 2020, the company, which owns brands including its namesake Steve Madden label, Dolce Vita and Betsey Johnson, reported revenue of $1.2 billion, down from $1.8 billion in 2019.
Net loss was $18.4 million, or $0.23 per basic share, for the year, compared to net income of $141.3 million, or $1.69 per diluted share, for the year ended December 31, 2019.
Likewise, in the fourth quarter revenue decreased 15.9 percent to $353 million compared to $419.6 million in the same period of 2019.
The Long Island City, New York-based company’s wholesale business posted the biggest decline, dropping 16.2 percent to $263 million in the fourth quarter, including a 19.7 percent decline in wholesale footwear and a 5.9 percent decline in wholesale accessories/apparel.
Similarly, its retail revenue decreased 14.9 percent to $86.1 million in the fourth quarter of 2020 due to a significant decline in its brick-and-mortar business, partially offset by continued strength in its e-commerce business.
In the fourth quarter, net income was $22.6 million, or $0.28 per diluted share, compared to $17.8 million, or $0.21 per diluted share, reported in the same period last year.
Nonetheless, Steve Madden chairman and CEO Edward Rosenfeld struck an optimistic tone in the company’s earnings release where he said he was “pleased” with the results in the fourth quarter, which exceeded expectations.
“We faced unprecedented challenges in 2020, but we relied on our strengths – an agile business model, a strong balance sheet, and our talented and resourceful employees – to successfully navigate the crisis. We continued investing in our brands and our digital capabilities while reducing expenses in other areas, and we utilized our test-and-react strategy and speed-to-market capability to quickly adjust our product mix to align with changing consumer preferences.”
Looking ahead, Steve Madden did not provide financial guidance in light of the continued uncertainty surrounding the coronavirus pandemic.
“As we look ahead, we remain focused on delivering trend-right product, deepening connections with our consumers, enhancing our digital commerce business, and efficiently managing our inventory and expenses. And while we are cautious on the near-term outlook due to continued headwinds from Covid-19, we are confident that the steps we have taken during the crisis – combined with the strength of our brands and our business model – leave us well-positioned to capitalize on market share opportunities and create value for our stakeholders over the long term.”
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