Steven Madden(US:SHOO)2022-04-27 19:44Financial Data and Key Metrics Changes - The company reported a record quarterly revenue of $559.7 million, a 55% increase compared to the previous year and a 34.6% increase compared to 2019 [15] - Diluted EPS increased by 180% year-over-year, reaching $0.92 per share, up from $0.33 in the prior year [21] - Consolidated gross margin expanded to 40.7%, an increase of 220 basis points from the prior year [19] Business Line Data and Key Metrics Changes - Wholesale Footwear segment revenue increased by 60% year-over-year, driven primarily by the Steve Madden brand [11] - Direct-to-consumer (DTC) revenue grew by 61% compared to the prior year, with e-commerce revenue increasing by 57% [13] - The Wholesale Accessories and Apparel segment saw a revenue increase of 37% compared to the previous year, with Steve Madden handbags growing by over 60% [12] Market Data and Key Metrics Changes - International revenue increased by over 60%, with triple-digit growth in Canada and Mexico, and strong performance in Europe [9] - The company ended the quarter with 213 brick-and-mortar retail stores, including 66 outlets [18] Company Strategy and Development Direction - The company is focusing on expanding its direct-to-consumer business, growing in international markets, and diversifying product categories beyond footwear [9] - The strategic initiatives are aimed at driving sustainable growth, with confidence in continued top and bottom line growth [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain pressures, particularly related to freight costs and extended lead times, but noted no material changes in supply chain conditions [25] - The company raised its revenue and EPS guidance for the year, expecting revenue to increase by 13% to 16% compared to 2021 [24] Other Important Information - The company repurchased $42.4 million of its common stock during the quarter and declared a quarterly cash dividend of $0.21 per share [23] - Inventory levels were higher than historical levels due to supply chain disruptions, but management expressed comfort with inventory content and ability to meet customer demand [22] Q&A Session Summary Question: Supply chain developments and near-term expectations - Management noted no material changes in the supply chain, with continued pressure on freight and extended lead times [25] Question: Impact of pulled forward deliveries on Q1 and Q2 - Management confirmed that Q1 saw a change in delivery timing, which may lead to a deceleration in Q2 wholesale revenue growth [27] Question: Price increases and cost expectations for the second half - Management indicated ongoing cost pressures but noted successful price increases with customer acceptance, particularly for new products [29] Question: Guidance adjustments for the full year - Management clarified that the guidance was adjusted based on a strong Q1 performance, with expectations for a more front-half weighted revenue split [40] Question: Category performance and pricing increases - Management highlighted strong performance in the '90s and Y2K trend across categories, with price increases varying by category [75][76] Question: International market performance - Management reported strong momentum in international markets, particularly in Europe, with expectations for continued growth [77] Question: Promotional activity outlook - Management acknowledged an uptick in promotional activity compared to last year but noted it remains below pre-pandemic levels [81]