Steve Madden Ltd., a leading American footwear, accessories, and apparel group, has reported a staggering decline in sales for the third quarter of 2020. As the coronavirus pandemic continues to wreak havoc on businesses worldwide, the company’s revenues plummeted by 30.9% compared to the same period last year.

In the quarter ended September 30, 2020, Steve Madden generated $346.9 million in sales, a significant drop from $502.1 million in the same quarter of 2019. The wholesale segment experienced the largest decline, with revenues falling by 32.7% to $283.8 million. Within this category, footwear sales dropped by 32.5%, while accessories and apparel sales declined by 33.3%.

Revenues in the retail segment also took a hit, decreasing by 22.1% to $59.0 million. The decline in this segment was mainly driven by a decrease in brick-and-mortar sales, although e-commerce saw strong growth, partially offsetting the overall decrease in revenue. In terms of net income, Steve Madden reported a loss of $6.9 million, or $0.09 per diluted share, for the third quarter, compared to a net income of $52.5 million, or $0.63 per diluted share, in the same period of 2019.

Despite these challenging conditions, Edward Rosenfeld, the chairman and CEO of Steve Madden, remains optimistic about the company’s future performance. Rosenfeld expressed satisfaction with the third-quarter revenue and earnings, which surpassed expectations. He firmly believes that the company’s strong brands, solid balance sheet, and proven business model will enable them to achieve sustainable revenue and earnings growth once the situation returns to normal.

Looking at the year-to-date figures, Steve Madden’s sales for 2020 total $839.9 million, a significant decrease from $1.35 billion in the same period last year. The company recorded a net loss of $41.0 million, or $0.52 per diluted share, for the first nine months of 2020, compared to an income of $123.6 million, or $1.55 per diluted share, in the same period in 2019.

Due to the ongoing uncertainty surrounding the coronavirus pandemic, Steve Madden has opted not to provide any financial guidance at this time. The company currently operates 221 retail stores, including eight e-commerce stores and 17 international concessions.

In conclusion, Steve Madden’s third-quarter sales have been severely impacted by the ongoing COVID-19 pandemic. However, there is optimism that the company’s strong brands and strategic business model will allow for growth once conditions improve in the future.

Useful links:
Steve Madden Official Website
Statista: Footwear Industry Statistics