Footwear and accessories retailer Steve Madden has reported a drop in revenue for the second quarter of the year, with sales falling 16.8 percent to 445.3 million dollars.

According to the company’s chairman and CEO, Edward Rosenfield, the earnings fell in line with expectations for the period “despite the challenging operating environment”.

In the release, Rosenfield added: “Our performance in the quarter reflects our disciplined control of inventory and expenses, even as we continue to invest in product innovation, consumer engagement and our long-term growth initiatives.

“While the retail environment remains choppy, we are confident that the power of our brands and the strength of our business model position us for sustainable growth and value creation over the long term.”

Wholesale and D2C revenues take a hit

Steve Madden’s gross profit was up 42.6 percent compared to 40.7 percent, while its operating expenses were 32.7 percent, rising from 28.5 percent.

Its income from operations totaled 44 million dollars, or 9.9 percent of revenue, compared to 65.2 million dollars, or 12.2 percent, in 2022.

Meanwhile, net income fell to 34.5 million dollars, of 46 cents per diluted share, down from its previous 48.5 million dollars, or 62 cents.

Revenue for the brand’s wholesale business decreased 20.8 percent to 314.6 million dollars, with accessories dropping 24.6 percent and footwear falling 19.4 percent.

Despite this, gross profit for wholesale increased to 33.6 percent compared to 31.6 percent.

Direct-to-consumer took less of a hit, falling 5.4 percent to 128.2 million dollars, with declines seen in both physical and e-commerce.

For 2023, the company's revenue outlook has been adjusted from a decrease of 6.5 percent to 8 percent, with a forecasted diluted EPS in the range of 2.38 to 2.48 dollars.