Steve Madden Limited Delivers Strong Q4 Results, Showcasing Brands' Power and Business Model Strength
The Fourth Quarter 2024 Steve Madden Limited Earnings Conference Call highlighted the company's impressive performance, capping off a strong year of growth. Ed Rosenfeld, Chairman and Chief Executive Officer, reported that the company delivered earnings results at the high end of its guidance range for the fourth quarter of 2024, demonstrating the power of their brands and the strength of their business model.
The company's top priority is always to win with product, as stated by Rosenfeld. In 2024, their teams utilized a proven model that combines talented design teams, a test and react strategy, and an industry-leading speed-to-market capability to create trend-right product assortments across various brands and product categories that resonated with consumers.
Key business drivers for the company include expanding its business in international markets. In 2024, their international revenue grew 12% versus the prior year, driven by strong expansion in regions such as Europe (18%), the Middle East, and South Africa. Additionally, revenue in the Americas ex U.S. grew 9%, with mid-single-digit percentage gains in Canada and Mexico and a contribution from their new joint venture in Latin America.
The company has been transitioning from a distributor model to an ownership model in key markets, forming partnerships such as the joint venture for Singapore with Valiram Group, a leading regional player. They have also converted their partnership with Valiram in Malaysia to a majority-owned JV structure and formed a new JV in Australia.
Another key business driver is expanding into categories outside of footwear like accessories and apparel. In 2024, the company's overall accessories and apparel revenue increased 53% compared to 2023 or 25% excluding Almost Famous. The Steve Madden handbag business was outstanding, crossing the $300 million mark in revenue for the first time and increasing 31% compared to the prior year.
The Almost Famous division exceeded expectations in its first full year under the company's ownership, contributing $179 million in revenue with an operating margin of nearly 11%. Rosenfeld emphasized that these results demonstrate the team's disciplined execution of their strategy and the strength of their business model.
Steve Madden Limited has delivered a strong Q4 performance, showcasing the power of its brands and the effectiveness of its business model. The company's focus on product, international expansion, and diversification into accessories and apparel have yielded impressive results, setting the stage for continued growth in 2025."
