US fashion retailer Steve Madden exceeded market expectations in the third quarter of 2022 despite a slight drop in profits. Due to the current adverse market conditions, parent company Steven Madden Ltd. on Wednesday but their annual forecasts.
In the months of July to September, the group generated sales of 556.6 million US dollars (564.0 million euros), which meant an increase of 5.3 percent compared to the same period last year. However, higher costs ensured that operating profit slipped 10.9 percent to 78.8 million US dollars. Net income attributable to shareholders was $61.3 million, down 8.0 percent from the prior-year quarter.
In the first nine months of the year, consolidated sales reached $1.65 billion, up 28.2 percent from the same period last year. Net income attributable to shareholders increased 47.8 percent to $184.3 million.
Chairman and CEO Edward Rosenfeld described the latest figures in the current interim report as “solid”. However, due to the “continued unpredictable macroeconomic conditions” and the recent decline in the number of orders from trading partners, management felt compelled to correct its annual forecasts downwards. It now only expects sales growth of 12.5 to 13.5 percent compared to 2021, after an increase of 13 to 16 percent had previously been promised. Diluted earnings per share target was lowered to $2.77-$2.79 from $2.87-$2.97.