SHOO - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the Q2 2024 Steven Madden Limited Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Danielle McCoy, Vice President of Corporate Development and Investor Relations. Please go ahead.

Danielle McCoy

Thanks, Tanya, and good morning, everyone. our XXXX joining Webcast. Call for you Second Earnings Quarter and Thank

release statements to we today remind may call meaning are discussed financial answers follow, call, update on have contain statements. to I'd to earnings issued these matters in of otherwise Act. most results to our we from that next basis, be we questions, Before Litigation like that press to the you We implied or unless to Private those today's begin, Reform if disclosures at within subject which could in forward-looking statements, A be our These statements our earlier Securities GAAP conference release. not remarks make directly your SEC. that with comparable the believe earnings financial associated include, the actual adjusted others, risks forward-looking contained on obligation described updated noted. forward-looking other an filings among risks These we reconciliation forward-looking statements results the cause any that expressed our disclaim by that and are until to and differ are such materially quarterly including measure all. The

over the call Joining to Mazouzi, Executive Officer; Ed. Chief Rosenfeld, today and call me the Chairman Ed? on Zine I'll that, Financial Ed is: and turn Chief Officer. With

Edward Rosenfeld

drivers. This diluted driven joining you second EPS Earnings. growth adjusted strategy right. international the and outstanding and for was that our to to apparel good We team's Well thank effective The categories the increasing creating thereby enabling results execution everyone, Steve our for in strong same our consumers combination in accessories growth ongoing period robust demonstrating compared revenue XX% of X deeper exceptional product of success quarter the with our through XX% us All foundation Madden's thanks, with and XXXX. the long-term and strategy business of in Quarter delivered Danielle, is performance creation. review connections rising our markets and in and value by channels, gains with Second and XXXX key direct-to-consumer morning, marketing, and

the on key first markets. track achieve our mid-teens long-term same driver view XX% and in the is in International expanding largest are in revenue opportunity to year. growth continue biggest growth. we business as the period what to our driver Revenue compared percentage quarter continues growth the the Our prior in EMEA and The of we year, full region international grew to for be to second

up more a We competition expect in take to revenue EMEA share challenging the continue market. Europe, In to XXXX. be retail and than in outperform XX% we

Europe, a also company largest opened UJV. and second most partner converted through our stores important X the Serbia mall and with Madden Croatia in in including Belgrade, in distributor We venture fashion joint the store we operate new the our now Steve business region, a and we May, quarter. In Galerija to Southeastern in the

the channels. year at outstanding continues We South driven from continues. to joint our in of XX expect strong in Madden the where we Middle up Steve end the our with And the and new also Africa built momentum growth in in Canada in are drive on XX the East lines. In brand a direct-to-consumer with to stores nice seen start after top growth region, our a heat clear And rebound traction by and year. strong market, region, Mexico, a that in and our XXXX, exceptional JV venture leader Americas bottom gaining we've the into tough in have

of year growth pace for percentage there. on revenue another are We double-digit

Ecuador, second quarter. Madden Colombia, countries stores. joint the and venture Central converted Republic, America, and Steve model Dominican certain to America JV Latin for also the in Paraguay XX We our in currently the covers Bolivia distributor operates This

Our business Almost our overall Famous accessories second outside business. business XX% is and quarter, acquired In apparel excluding the footwear. of or driver growing newly XX% second the key revenue rose

Steve in the XX% period year. the Madden standout increasing business remains same with a more the handbag revenue Our to quarter than compared of prior

spring making crossbodies importantly, the We our success structured sell-through Madden Apparel in grew [ mini performance overall satchels nearly as are on our with ] We we and our Based for continue to for Steve largest see the was materials for XXXX. Apparel for look are building within expanded well of performance, and business. quilting. in Madden strong, significant Apparel number Steve Madden brand expansion leading like in us XX% a quarter. Steve assortments in to and existing a we positioned And this making as on-trend accounts. wholesale as department denim progress the door season revenue also strong doors

to Turning Famous. Almost

Kohl's $XX is progressing added in contributed the Girl in acquisition revenue in see introduction Famous performance the continues Almost Macy's additional orders sell-through platform for Apparel million at compared prior launch a year. and back-to-school, After QX, new expanding to nicely. to robust fall. Madden The Our also successful we'll apparel strong through a a and of NYC of to for number the be in we quarter. retailers Madden increase

DTC the basis, high expanding a to in achieve for track we is X% a comp led Our DTC X% plan second growth third and business, year. key single-digit including grew on remain direct-to-consumer the digital. in business revenue our quarter, our on increase driver by of

challenging strong gross for disciplined our management retail promotional and second We reduce the also as expansion DTC margin quarter enabled environment. despite us to drove consecutive inventory product assortments in activity the

quarter. in our rose Revenue driver business X% business. the key core U.S. fourth our in business this wholesale footwear strengthening is Finally,

in customers label was of cautious this branded partially our by business decline saw to growth, largest quarter a the but offset as approach of another continue Our a many take business strong private to orders. wholesale

expect our over reliance several on and and footwear to remains a U.S. muted last year, of we the U.S. overall of markets, we U.S. In efforts reduce wholesale despite to business mix international pre-COVID our in our business demonstrate shifted business footwear XX% in us, consolidated apparel our up a revenue me, impact excuse have our as This performance business this wholesale XX% our make While that revenue for meaningfully our -- business years categories business overall include and accessories strong than important results, of the higher the XXXX, in direct-to-consumer revenue. diversify to represented footwear progress wholesale less penetration the of and channels.

demonstrates and So the disciplined the that execution of strong our strategy second performance strategy. our overall, quarter our soundness team's of in

long choppy, growth operating enable sustainable, detail and provide goals will ahead term. And the our remain Looking to balance And to our out us remains XXXX. environment we on profitable to our track to now further, we that drive XXXX. the significant I'll execution over year, of while looking our our the financial continued confident to stakeholders are it the for of meet turn for second quarter in review over outlook value the Zine for financial more and results strategy

Zine Mazouzi

good and our everyone. $XXX.X to Ed, was increase second the revenue million, compared of XX.X% morning, consolidated quarter, the a In XXXX. quarter Thanks, second

period year. the grew Excluding prior X.X% Almost Famous, consolidated compared to in the revenue same

to million, Our was XXXX. the XX.X% of quarter compared up wholesale $XXX.X second revenue

million, compared period the had to the in gain was apparel and a growth growth and XX businesses wholesale XXX XX.X% the handbag softness million, business. outlets, XX our $XXX.X revenue period from brick-and-mortar XXXX same and X.X% Wholesale same We a year the comparable in ended company-operated last $XXX second to compared X year. X.X% XX% of apparel period was revenue offset segment, to increased revenue Famous, X.X% in Almost quarter e-commerce. footwear Wholesale increase stores, in prior markets. with including outstanding Madden increase partially a business, the strong XXXX, in label last in the increase private Almost a to compared second our e-commerce Famous. Excluding more direct-to-consumer websites revenue brick-and-mortar branded Steve was $XXX.X up quarter in retail year. In concessions accessories Both quarter excluding including million, international the the by the or with company-operated modest and strong

our to licensing segment. Turning

the in XXXX. to income XXXX. quarter was in comparable $X.X Our million versus of was in the margin licensing the in gross quarter XX.X% $X.X quarter the of million XX.X% compared period second royalty Consolidated

activity. Operating XX Almost the margin XX.X% of points expenses second to consolidated points was year-over-year. tax And compared from down of as XXXX. margin XX.X% the XX.X% comparable quarter the in the for points $XX.X Direct-to-consumer gross reduction Excluding of increased The revenue, a in gross by revenue Famous, quarter wholesale gross XX.X%, compared from in second the XX basis the XXXX, up million excluding XX.X%, basis XX.X% of margin also gross period basis or Famous, rate Almost year-over-year. XXXX. XXXX. effective promotional Wholesale to in the up for Operating was driven of a comparable margin $XX.X quarter in was or XX quarter second revenue year. prior of million from XX.X% was quarter the percentage income was XX% was in up in period XX.X%

attributable share share $XX.X of diluted Finally, quarter diluted compared $X.XX in $X.XX to or to the income quarter second million Steve Limited or per was Madden $XX.X net XXXX. per for million the

Moving to the balance sheet.

remains Our financial strong. foundation

second cash, cash no prior $X.X and up and $XXX.X short-term [ $XXX.X June quarter the the the debt. of XX, equivalents and investments XX.X% we in end year, our at million was of ] As XXXX, had was million. to Inventory of million, the CapEx quarter

stock, company employees including spent dividend Directors of XX, of on acquired a million the The the record quarter, second cash on quarterly awards. common of shares $X.XX September on XXXX. the to payable approved through the company's $XX.X will XX, per September share. stock dividend as stockholders settlement close its of be business XXXX, repurchases The of Board of net During of

outlook. Turning to our

maintaining our are annual guidance. We

and $X.XX XX% to We to range expect $X.XX. be XX% increase for revenue to to we XXXX to in continue continue the of compared to XXXX, EPS diluted to expect

questions. Now I'd to turn Tanya? over like call for operator to the the

Operator

from question. BNP from one [Operator Aubrey Tianello come Instructions] moment And Paribas. It of our will first

Aubrey Tianello

hear me you okay? Can

Edward Rosenfeld

Yes.

Aubrey Tianello

revenue start I guidance wanted XX% growth the with out XX% year. for to to the

from from Almost of what perspective there Just any a changes or from whether guide you're expecting the to segment curious composition are that Famous?

Edward Rosenfeld

same were really No, the we place in as before.

wholesale, low in DTC. overall, we in high singles really mid-singles, place. mid-singles Famous if so and still to the So exclude Almost it's And still same

Aubrey Tianello

growth And quarter, rate apparel some the about of accessories the the really of Perfect. lapping I next the think segment, you half side, on we organic should and growth think back into strong accessories going handbags the year? How the in category. start then the apparel in forward, and

Edward Rosenfeld

lap start Yes, that's right. much We tougher to comparison. do

that So the into in slowdown have guidance built we a business.

and potential sources that's but the fact, how upside Famous, you're assumes that do for Almost looking if accessories In of built kind the think, that half, singles wholesale I momentum apparel. one, of given be in the we back low excluding could the forecast. guidance

Operator

And for our next question. one moment

question next coming Trading. Sam from Poser Our will be Williams of

Samuel Poser

-- a you to just it XX%, that business out said you up, and were a up confused, is Because little is you count? DTC? store X%. up count comp figure store your sort trying your of like I'm I'm so apples-to-apples the on and on, your is What but significantly because looked

Edward Rosenfeld

had keep -- tail quarter. in So But through XXX JVs end of the we we the the second revenue ago, mind, we new quarter contribute XX we this end year XXX. on didn't and tail-end those added the in stores of stores of QX. at that -- had year at came much A opened the

So X% or And was exact. DTC the growth versus was be comp overall the again, at to if revenue you're comp in X.X%. looking total, X.X%

Samuel Poser

the look was full-line much at do how think you And and that how I of driven and that breakdown -- then by between and e-commerce, outlets? stores when mean, we of that? that about does the comp how --

Edward Rosenfeld

was comp gap performed better outlet brick-and-mortar narrowed the than X% looking price, in you're at significantly. So was quarter. was then although full And price, Digital X%. that U.S. in outlets still the versus full if has

price. was a comp -- basis was basis higher point period a difference was points X,XXX we XXX Now were full only or where about time. There outlet there running this more running there than

Samuel Poser

sort going you branded of -- of how the do the, intend these largest given Steve cautiousness then And the Madden better get -- secondly, Vita days? you Dolce like turned brand keep on business, Madden customers say, businesses to Okay. and all do with the apparel footwear and your the larger your how this the Steve

Edward Rosenfeld

U.S. I delivering market the impressive on approach. pretty to Yes. do the our doing are what And history equally recent Look, numbers is an customers see most branded The feel been is can that that. We that it certainly from what eventually, week resonates the we The strong. products. environment assortments. taken just collection that, the that's that channel. But to that just Shoe customers channel. have wholesale to very, point, And about to was a think we've And product has I the your a footwear very collections control, on we focusing we're focus we'll we're Sam, think cautious in need in We to and -- our product next our we delivering doing attended challenging June, feel consumers. And and what very we right we wholesale good going think week. Show, us in reaction you right keep show in wholesale when do tells the that got with

Operator

-- And moment first next one for our question.

from Tom of Nikic Our Securities. next question be Wedbush will coming

Tom Nikic

Famous first about points. down ask half, for Like to at about gross think margins, think Obviously, were gross like on to mix? is still down been than the the you largely Almost margins the XX I it's worse I'd we year, XX%? the of that basis talking Zine, year margins start the due in should gross being

Zine Mazouzi

still gross Almost We're and that down. the XX.X% that as maintaining coming down XX%, margin is Famous know, margin, you driving Yes. impact, from

Tom Nikic

it. about then, footwear. the could Got branded I All question Sam's right. follow up And on if

so nervous, Ed, like are like, I you they environment. still is in are big your fear of like to against inventory a the that's pretty from why view, wholesale partners seeing year in than been of there? there kind declines do still channel, more even I think pressure -- it guess, just guess, and like got obviously, inventory us like recover they've the general a clearance levels I just, You're understand I lean just like caution it's it's causing feel help the macro ago? what tough maybe want? guess kind but like slow

Edward Rosenfeld

do I an think point question. good excess the with channel. in a lot that not it's this a It's inventory at Yes. of issue

if channel Obviously, categories appear inventory think look they in inventories retailers the line. in sure to be are in they more they'd But where you controlled. I'm that certain inventory at I than overall have well the reasonably are overall, like. levels,

Our issue. inventory they think But that I that the they're we that's And think on don't more we would add levels goods do Again, think we are certainly our line. in the low. too more of floor business. if

look in the them us at think of important of many overall I issue is to their comping bigger are the majority big of you are lot that still for the a that customers in if wholesale negatively them seeing think to and the cautious. are footwear. that's still on I And soft sales be continue leading and still them cautious sales U.S., forecast

Tom Nikic

DTC. I Understood. on you're And could said I the you still if single-digit in sneak high year. believe more expecting full for one just growth

the got saw unless if in JV, some that's what from Given the from accounting I guidance we growth converts lower comp -- first But you contribution turn treatment. understand is don't assume should the account the the embedded case, retail you that revenue distributors half? assume the you've I than that's like the in which the that wholesale to that

Edward Rosenfeld

the they've line recently. No. expect to been we where comps in No. with -- We comp remain think roughly that

Operator

next And question. one our moment for

Our Stichter will from of coming next Janine question BTIG. be

Janine Hoffman Stichter

just could I recently What a on Zine. I went guess, had I through was wondering comment think the you process renegotiating question you freight. for of you're your seeing, contracts. I if

So you're kind side? more locked you've visibility what on of seeing broadly in of some in terms what the freight just and

Zine Mazouzi

rate below scores least those April China. The imports the under in think and come typically rates. [ previously and mentioned, somewhere do talking we spring the utilize $X,XXX in range contracts able $X,XXX before were X/X contractual and falling just current in to we're relationship we the negotiated $X,XXX ] negotiate is we we the in out this seeing to open our charges is, all We're about we talked it, as our just the of what and that spot. the spot rates most able to Janine, in in I and actually are that about there. imports of our -- were as is and was -- everybody spot everything mitigate from happening up freight And we continue development, And to Yes. for contracts, balance, those at around at to spring. what recent normally our use

Janine Hoffman Stichter

maybe they've Great. headwind kind -- about of thinking business in being product where general, Ed, about or color. you're for successful on the the how love would then wholesale for just the Court helpful how you've And on hear the That's been. to in cycle. some talked business we are bit I of I with know a Casual potentially of little a Sneakers you just

you're trend speak we bit you think in what seeing just that? a And product are from So where to do a standpoint? maybe

Edward Rosenfeld

Yes, sorry. I'm

-- -- frieghts can just pause important. a conversation. because I if having the on think impact I the just -- we Zine give to were So Zine the we just question that's wanted you could

Zine Mazouzi

Yes.

the So points. basis recall, already And that built now we were have that was guide we in. built XX about impact if our XX previously, talking in you is about

now around us So all points, which impacting basis fall. in XX is it's

about bps. take it's So on the a impact XX I'll let question. heavier fall Ed next And

can you great. be That it. repeat If would

Edward Rosenfeld

think, was at where we it correct? are point, just I [ ] this

Janine Hoffman Stichter

clarify, for a you're now margin ] bigger the guide, so but maintaining freight there's built to Just headwind slightly in? gross [

Edward Rosenfeld

Correct.

Janine Hoffman Stichter

And terms where fashion of was we in just second Yes. kind of then on are Okay. question, cycle. the the

Sneakers of a the You talked maybe fashion about brand. business some Court Madden the of for the even bit being a and into headwind the Casual little side

fashion and we cycle? where that you So just are think what trend-wise you're seeing in product

Edward Rosenfeld

some I a introduced some reaction interesting channels. getting recently good in sneakers on. new our Yes. capitalize also new that we've We've very are got think direct-to-consumer Look, that to fashion

DTC in I that, from many package. draw although want where that's sneaker And year Boots they well. as see are ago, to too a obviously in happening new good conclusions in some -- don't very feel but it's in interesting that running early our from the dress season, category were it's we encouraging. we the July So channels about ahead things

overall, it's are the seen, I've there but things I feel here. good not on to ever some So most that think fashion pretty robust that we cycle capitalize

Operator

next question. our for moment One

come will from Paul Citi. question next of Our Lejuez

Paul Lejuez

I'm the in relative terms for just curious discounting And characterize in come promos what the just seeing there, of side? you'd how wholesale in also need the how out but you're environment on planned the you DTC that for what in general. channel, did to both XQ, promotional

said reduced to DTC, think curious what you I activity, is thought? you if on this promotional plan, relative but

Edward Rosenfeld

would it We but activity promo we the pretty Yes. say pleased super all light that margin there, around. It's it way aggressive, normal. in out it I wouldn't where QX to. And performance had -- I'm would the characterize we as it expected either. with not as pretty characterize much the in came I gross

out As gross you the if from even we And margin Famous Almost drill impact in Almost were if you if greater ahead we you And further you year -- DTC you in in the mix point don't we down in label, in compared where out, there. of exclude apparel, you we up. were and ahead impact, were private back exclude Famous, to were impact footwear, if if ago. And accessories we a again, up. the were wholesale,

the the margin quarter. improvement around, So in a organic all in way nice gross

Paul Lejuez

just is of U.S. is current What China. talk to of us plan products specifically just attack see we your are what exposure where Got and a you secondly, strategy would Can higher on just China percent and you if it. do of ] total sales the And in remind [ sourcing of of terms in about tariffs? out to be China? there then tariff higher potential lot imports there

Edward Rosenfeld

Sure.

into total come So currently goods And the XX% our U.S., of the that from business. of come U.S. about the of China. is them about XX%

several that about coming So you remember, from XX% ago, China. number may years was

So bit and or But been we methodically. a here Vietnam have we've countries countries brought previously, these migrate diversify other by philosophy down our to to diversifying talked as Cambodia, that like to Mexico. about has

these is risk moving we sourcing the we with we countries able alternative if factory base a come infrastructure much can that establishing on don't a have to that worked to. introduce be what that step done such are But positioned have we feel accelerator in hard too move So fast. to at and more and very we quickly

moving more or years. than down down right of that. we're it new bit we're do we'll again, you'll has if aggressively it little that few and But a obviously such a needed be a that over past has also, China, So to feel come and faster position see tariffs little we prepared down now, come much number move that were to been bit we the implemented, faster, out coming in

Paul Lejuez

Got can't percent there a just certain that a of Is as get below about it. you think you percentage when total? China

Edward Rosenfeld

risk associated don't I Well, but I we that is -- I -- that. think mean think the the no, obviously so. with faster you go, more

year do so, to it if methodically. like think more is gross faster and then And sales we that, -- it lot of by risk do we'd to to margin, without to go we I could a have or could if down go becomes like forward bring that much per challenging. And than this we I'd comfortably. XX% something the

Paul Lejuez

Got then follow-up. one And just it.

I something And was said? well Can you general? any think just you quarter-to-date what in you in on repeat July. comments working said

Edward Rosenfeld

talking product in trends. think well working about Yes, we I Something July? were

our running well of sneaker mentioned new I we've in think very ahead boots is channels. doing that DTC. in which also package, LOI introduced DTC a I And are

Operator

one for next question. And moment our

from your next be of Paribas. sorry, is will Tianello Aubrey Our line question open. BNP coming Aubrey, And I'm

participant. next our to Moving

from will coming question of next Champine be Loop. Our Laura

Laura Champine

the and in Given the Famous? lapping Almost guidance growth of Or strong, and that the growth have calendar the election? does tougher imply been you being purses conservative on your the Are first half a is this just results the QX in the half macro? just relatively relatively back given

Edward Rosenfeld

half the in it's than face comparisons think first in both. some do the we half. We do of I tougher much back

reflected in So guidance. that's the

first in half. We the do headwinds have half meaningful in have that some also back the we didn't

which in tax the again, also about that's then Zine that QX, there's $X.XX, we the built freight. called out So in that in is from all $X.XX impact, we in have about back a headwind half the didn't impact, almost And half. back freight

$X.XX tried in then balance the So we the there. And be conservative of all the about headwinds the to macro, how through that, of think we think I year. about given have addition about uncertainty relatively to

Laura Champine

thinking. And to just keep in then more your maybe with us line

is Is of in give in So a how extreme to the back implication the you're Or that down about year. QX quarters that tax half the earnings the of change? kind more we impact the granularity? should assuming willing think given

Edward Rosenfeld

that see -- QX of Yes, absolutely the the is the impact. decline quarter where tax should because you the

Operator

One next our question. moment for

will Jefferies. Our next question coming Tarlowe from be of Corey

Corey Tarlowe

Great. give us expectations? tracking would you Ed, Almost That Famous an be maybe if just could great. that's and update on how versus

Edward Rosenfeld

with far that with Famous Really Yes. Madden going. mentioned the and platform. success that's we're running through pleased Madden Almost having of that the NYC, Girl performance that I how we're brands the apparel and so

thought that's So where we the would very financials, in revenue it tracking terms exciting really then right be. is the overall to see. And of

are running ahead little we bit far, so profitability. And a on

operating improvement that coming margin we some bit originally than a were faster gross So anticipated. of the are we and efficiencies little for looking

Corey Tarlowe

you've maybe success that might think Just what -- in see that in drive you've the any seen times curious outsized the regions significant the highlighted multiple business. then a that Great. EMEA, seen specifically Any driver growth Are on there And really growth? what products for there just as where of and specific that growth resonating ahead? you've you are to that geography?

Edward Rosenfeld

recently, a the new this getting more in been Middle that terms the hot. have has the we part what products, from having And important venture and that's an sneakers. But region, for a with secondarily, years, we're been outperform. our in with and of and just East doing the red Europe, over several that do much in higher penetration handbags continues been to Continental biggest sneakers I well growth that well in the really we say been us is has would region, South we're last bigger critical of we're performance venture driver that And quite of which that's joint Africa, story. then the joint that growth in is then as as So see contribution fashion driver a

Operator

our One question. next moment for

be coming question Sole next Our will UBS. from of Jay

Jay Sole

what in into retail you your given mentioned boot given a just questions boots boot just Great. and you that thinking it last the year? choppy heading XQ, comments, about talk partners you're about ago. the happened thinking are And how business Can you consumer Ed, about in business just before? QX, how environment few the your said just

Edward Rosenfeld

Yes, it's a good tell and industry definitely customers, boot question. that cautious Look, wholesale the fashion the are will the think, you on I overall category. I

customers wholesale that conservatively. planning are category Our

our that obviously into built forecast have We here.

how DTC it, we're well, take In as terms about conservative category of we've thinking think look I even tried our to that at fairly a in channels.

feel have early the do that of about good we I have product and assortment Although some the indications we on products. those

a be So upside. source that, can potential that certainly hoping of

Jay Sole

to it inventory approach. year position than mean, taking conservative to everybody the get faster people in season, this Obviously, always Are else. tough, the you're kind But, is the some a in materializes, environment maybe way if was if going if and cooperates? company -- to the weather's if winter of position -- if you market turn -- is I a last Yes. there find any upside a faster and chase inventory just where the little the cold, to to

Edward Rosenfeld

makes Yes. arises. And to transit the prepared We'll Mexico -- reduced it ability in we have boots move obviously, quite and have times. if Mexico because of quickly to chase we're the our out working always of the be when opportunity

is chase if category some in ability opportunity to will that have we that there. So

Operator

And a our Sam next Poser follow-up is question of from Williams Trading.

Samuel Poser

that mentioned talk more footwear? branded footwear the higher stuff. you you improves can the Two the and in attached couple SG&A you but how and that I works. of the -- margin the lower months little Because private -- response see things. wholesale we'll if One, it from back have that's the when branded margin we next again have story a -- label, would footwear products then on really in are wholesale think you given And very the you product I gross the have branded gross sell EBIT margin half, anticipating that week? you the mean, higher the because the SG&A -- ago, retailers margin then to here, about think

could you and other if just question. one So give color us some I there, have

Edward Rosenfeld

half. is we in and Yes, to flattish first better improving it in then up branded the in to it the expect expect footwear QX I do than the and first back wholesale was singles down be the in half It was the back in half, more business QX. half. low the be in in Sure. going would we obviously that say,

terms private EBIT operating I gross in nail lower a lower also the margins expense branded has business, has you've label, of much a the hit it the the structure. wholesale than footwear, In obviously, the that head margin but on think

And the margin the is gross the considerably between between the than the margins. Nevertheless, as not business. obviously, higher EBIT wide a so margin the still branded gap as gap EBIT private label business has

see the footwear of mix And margin so, wholesale EBIT this shift. we down that do coming year because

Samuel Poser

were are early some But boots I know you the you. of what in people responding to us it's then, mentioned boots initially? can -- you idea Got selling. of And July. that boots give type

Edward Rosenfeld

reasons, competitive for season the in early I'd rather this Honestly, not. Yes.

Operator

conference back remarks. now And like to I for closing Rosenfeld the to would turn Ed

Edward Rosenfeld

look Well, everybody, the We next forward Enjoy the us day. of the joining Great. with speaking on for thanks, rest to today. call. you

Operator

And this you participating. Thank for today's call. conference concludes

You disconnect. may now

Steven Madden (SHOO) 31 Jul 242024 Q2 Earnings call transcript