Steven Madden(US:SHOO)2023-11-09 17:49Financial Performance - Total revenue for the quarter ended September 30, 2023 decreased 0.7% to $552,732 compared to $556,643 in the same period of last year [83]. - Net income attributable to Steven Madden, Ltd. was $64,413 in the third quarter of 2023 compared to $61,297 in the same period of last year [83]. - Diluted earnings per share was $0.87 per share on 74,071 diluted weighted average shares outstanding compared to $0.79 per share on 77,396 diluted weighted average shares outstanding in the third quarter of last year [83]. - Total revenue for the nine months ended September 30, 2023, decreased by 11.5% to $1,461,868 from $1,651,366 in the same period of 2022 [95]. Profitability - Gross profit was $232,625, or 42.1% of total revenue, compared to $229,476, or 41.2% of total revenue, in the prior-year period [86]. - Income from operations for the three months ended September 30, 2023 increased to $82,738, or 15.0% of total revenue, compared to $78,752, or 14.1% of total revenue, in the prior-year period [86]. - Gross profit for the nine months ended September 30, 2023, was $617,587, or 42.2% of total revenue, compared to $675,139, or 40.9% in the prior year [95]. - Income from operations for the nine months ended September 30, 2023, decreased to $173,289, or 11.9% of total revenue, from $241,887, or 14.6% in the prior year [95]. Segment Performance - Total revenue for the Wholesale Accessories/Apparel segment increased to $127,395 in the third quarter of 2023 compared to $103,851 in the same period of last year [85]. - Revenue from the Wholesale Footwear segment in Q3 2023 was $306,058, a decrease of 7.5% from $330,775 in Q3 2022, accounting for 55.4% of total revenue [87]. - Revenue from the Wholesale Accessories/Apparel segment increased by 22.7% to $127,395 in Q3 2023, up from $103,851 in Q3 2022, representing 23.0% of total revenue [88]. - Direct-to-Consumer segment revenue decreased by 1.8% to $116,393 in Q3 2023, compared to $118,494 in Q3 2022, accounting for 21.1% of total revenue [89]. - The Wholesale Footwear segment's revenue for the first nine months of 2023 was $823,288, a 15.0% decrease from $968,886 in the same period of 2022 [96]. - Revenue from the Wholesale Accessories/Apparel segment decreased by 8.0% to $286,935, accounting for 19.6% of total revenue in the first nine months of 2023 [97]. - Direct-to-Consumer segment revenue decreased by 5.0% to $344,197, representing 23.5% of total revenue in the first nine months of 2023 [98]. Operational Metrics - Inventory turnover for the quarter ended September 30, 2023 was 5.4 compared to 5.1 times at September 30, 2022 [84]. - Operating expenses for the Corporate segment were $21,615, or 3.9% of total revenue, in Q3 2023, compared to $21,892, or 3.9% in Q3 2022 [92]. - Income from operations for the Direct-to-Consumer segment fell to $15,823, or 4.6% of revenue, compared to $42,667, or 11.8% in the same period last year [98]. Cash Flow and Equity - Cash provided by operations increased to $77,756 for the nine months ended September 30, 2023, compared to $66,747 in the same period last year [106]. - Cash used in investing activities was $13,543, with capital expenditures of $13,899 primarily for leasehold improvements and new stores [107]. - As of September 30, 2023, the company had working capital of $521,823 and cash and cash equivalents of $191,804 [104]. - Total stockholders' equity was $853,714 as of September 30, 2023 [84]. Tax and Dividends - The effective tax rate for the third quarter of 2023 increased to 23.1% compared to 22.9% in the third quarter of last year [83]. - The company declared a quarterly cash dividend of $0.21 per share, payable on December 29, 2023 [113]. Royalty Income - Royalty income from the Licensing segment was $2,886, or 0.5% of total revenue, in Q3 2023, down from $3,522, or 0.6% in Q3 2022 [91]. - Royalty income from the Licensing segment increased to $7,448, or 0.5% of total revenue, compared to $7,308, or 0.4% in the prior year [100].