American footwear brand Steve Madden announced on Wednesday a 15.2% increase in 2024 full-year revenue to $2,282.9 million, following a double-digit jump in wholesale revenues in the fourth quarter.
Steve Madden reports 15% revenue surge in 2024. – Steve Madden
The Long Island City, New York-based company said fourth quarter revenue increased 12% to $582.3 million, backed by a 13.6% increase in its wholesale business. Wholesale footwear revenue increased 1%, while wholesale accessories and apparel revenue increased 35.4%.
In the quarter, direct-to-consumer revenue was $176.0 million, an 8.4% increase compared to the fourth quarter of 2023, driven by increases in both the brick-and-mortar and e-commerce businesses.
Profit as a percentage of direct-to-consumer revenue was relatively flat at 62%, compared to 62.7% in the fourth quarter of 2023, driven by an increase in promotional activity.
“We are pleased to have delivered earnings results at the high end of our guidance range for the fourth quarter and full year 2024. For the year, revenue grew 15% and Adjusted diluted EPS increased 9% compared to 2023,” said Edward Rosenfeld, chairman and chief executive officer.
“Our strong performance in 2024 was driven by our team’s disciplined execution of our key strategic initiatives, with robust gains in international markets, non-footwear categories and direct-to-consumer channels, as well as a return to revenue growth in our U.S. wholesale footwear business.”
Earlier this month, Steve Madden announced plans to buy UK-based luxury brand Kurt Geiger in an all-cash deal valued at $360.09 million, expanding its presence in international markets.
For 2025, the company expects revenue will increase 17% to 19% compared to 2024. Diluted EPS is expected to be in the range of $2.30 to $2.40, assuming the Kurt Geiger acquisition closes on May 1, 2025.
“Looking ahead, we are cautious on the near-term outlook, as we face meaningful headwinds in 2025, most notably the impact of new tariffs on goods imported into the United States. That said, we have a proven ability to navigate difficult market conditions with our agile business model, and we are set to add a powerful new growth engine to the company with the pending acquisition of Kurt Geiger, which we expect to close in the second quarter of 2025,” added Rosenfeld.
Retail property giant British Land may have been focusing more heavily on retail parks in recent periods but it still has major flagship shopping centre sites in its portfolio and has just announced a raft of fashion signings for its prestigious Broadgate development in central London.
Broadgate – British Land
It said this week that it’s seen “a strong start to the year at Broadgate, further strengthening the campus’s retail offering”.
Major fashion brands Ralph Lauren, Mango, Luca Faloni, Hobbs and Whistles are taking space at Broadgate Central, which spans the ground and lower ground floors of 1 Broadgate and 100 Liverpool Street, linking Liverpool Street station to Finsbury Avenue Square
1 Broadgate will complete later this year with the building’s office space 96% pre-let. The wider campus continues to see strong office leasing activity and since the start of the calendar year, British Land has agreed terms or placed under offer 200,000 sq ft to businesses across a range of sectors.
What that means for retailers in that, as well as sizeable footfall passing through Liverpool Street station, there’s a massive pool of potential customers who’ll be working in the immediate vicinity on multiple days each week.
Overall, the company said Broadgate consistently attracts high footfall of over 29 million visitors a year, with retailers most recently seeing a 4.6% increase in sales year-on-year.
CEO Simon Carter said: “This is a strong start to the year for Broadgate. The demand we’ve seen for workspace across the campus is due to its excellent connectivity and unrivalled range of amenities, with businesses seeking high quality space within a well located, thriving environment. The fantastic additions to our retail offer at Broadgate Central will only enhance the campus’s appeal.”
Premium brand Represent has been ramping up its launch programme of late and fresh from its womenswear debut and Selfridges pop-up, the company has now unveiled its biggest collection yet for its performance-wear label, 247.
Represent 247
It’s a good time to expand the scope of the label that was launched only in 2020. Performance labels across the price spectrum are seeing strong results, from premium names like Castore that continues to grow fast to mass-market offers such as M&S’s Goodmove and H&M’s Move that are among those retailers’ best-selling products.
Only this week, a new study from CACI also showed that gym membership in the UK is soaring and fitness brands are booming.
So what has Represent come up with? The fast-growing 247 has launched a 65-piece offer for SS25 with a ‘nature-inspired’ collection that includes popular 247 staples in seasonal colours, alongside new products that offer layering options for the colder months, such as the Lightweight Gilet and Running Quarter Zip.
Rivington Pike, a favourite hometown running destination of Represent founder and creative director George Heaton, forms the inspiration for several pieces within the collection — a concept that first featured in the Arc-2 Trainer, 247’s entry into performance footwear that launched in January.
Also important are the Realtree print, “building upon the success of” the recent sell-out ‘Represent x Realtree’ mainline collection. The trending camo print is seen on core training items such as the 2-in-1 Short and Hooded Training Jacket.
The collection also features a new colourway — bold ‘Speed Green’ — on key pieces, as well as introducing a new Motion design for the Oversized T-Shirt and Oversized Hoodie. Essential training accessories such as headwear, chest rigs, and gym bags complete the range.
The offer also features technical fabrics, seamless designs and features such as sweat-wicking and antibacterial treatments.
A recent Experian and Reward report showed interest in fitness surging in the UK and now a new study from data specialist CACI has reinforced that, with the company revealing a “significant spending increase in gyms and [on] fitness focused brands” in December compared to the year before.
CACI
It added that the more premium end of the market benefitted from the greatest year-on-year growth, matched by the popularity of athleisure, both offline and online, “as consumers show increased appetite for health and wellness beyond the traditional ‘New Year’s Resolution’ months of January and February”.
Popular gyms such as David Lloyd and Third Space saw the strongest double-digit growth (having seen similar success the previous year), while Nuffield Health, Pure Gym and The Gym also saw healthy jumps.
Importantly, a consequence of this was that the data pointed to athleisure as both a fashion and fitness choice showing no sign of slowing down.
Sweaty Betty was up 21% year-on-year for December, Lululemon rose 34.5%, and Gymshark 78.2%. Footwear brands that are pitching more at the fitness market are having success too, with Asics up 38.6% not long after a concerted marketing campaign for its Padel shoes.
CACI said the trend is also reflected by “online native brands moving into bricks-and-mortar, seeing the headroom for offline spend in athleisure and the value of physical experience”.
Alo Yoga has recently opened on Regent Street and in Covent Garden, and TALA has just announced its first physical store on Carnaby Street, “both set to benefit significantly from the online halo, gaining exposure to wider audiences and the increased online spend that results from having showrooms in prime West End locations”.
Lily Payne, Senior Consultant at CACI, said: “Some might see this as spending in December for use in the New Year, the old resolution habit. But the patterns and scale of growth for gyms and fitness brands suggests behavioural change. There’s a more consistent trend, positioning wellness experiences as more of an essential outgoing than an added expense, even in December when the spending pressures are usually on gifting and socialising.
“The rise in spending on gyms, particularly on the more premium end of the scale and with ‘club’ style offers over one-off visits, matched with the domination of athleisure, makes it very clear that consumers are fully invested in this space because of the positive wellness outcomes.”
Interestingly she added that it means “the higher cost associated with brands like Third Space and Lululemon becomes less of an obstacle; people want to experience luxury when it comes to fitness and wellness, and want the garments to match. The popularity of athleisure will continue as more and more ‘tribe’ brands like Alo and TALA come to the fore with their collections, as well as gyms which can offer a holistic experience, ticking all the right boxes for an increasingly wellness-focused consumer.”