Q3 2024 Steven Madden Ltd Earnings Call

Speaker Change: We've been talking for some time about outlets outperforming full price stores that has reversed itself over the last couple of months and in fact in recent months, we've seen full price store is actually outpacing outlets.

Speaker Change: Got it.

et cetera, anything in.

Speaker Change: a lot in that sort of soccer-inspired space, and those are performing very well.

Speaker Change: and we're now updating those by taking them up on platforms and those are also seeing good demand from the consumer, so we feel good about that.

Speaker Change: And then on the casual, you know, in some of the other categories, casuals, etc., you know, we called out Mary Janes as being very good. We've also got some loafers that are performing. So, the team has done a really good job with the product on the footwear side and feel good about how we're positioned there.

Thank you.

Thank you. One moment for our next question.

Speaker Change: Our next question comes from the line of Laura Champagne of Loop. Your line is now open.

Laura Champagne: Thanks for taking my question, and thanks for being so specific about the plans you've got to move production out of China. Obviously, you know, you were there for a reason. What's the likely gross margin impact of that move, or do you think you can just pass on any change in costs to your customers?

I think it's really...

It's really...

Laura Champagne: difficult to quantify the potential impact here, you know, and especially if we are contemplating

Laura Champagne: you know, a new policy where there are significant tariffs on China, that's going to have all sorts of wide-ranging implications, not only in the supply chain, but the overall economy, supply and demand impacts.

Speaker Change: in all these countries where we would be sourcing from. So I think it's a little too early to speculate about what the impact will be.

Understood. Thank you.

One moment for our next question.

Speaker Change: Our next question comes from the line of Janine Stitcher of BTIG. Your line is now open.

Janine Stitcher: Good morning. I'm just hoping you could elaborate a bit on what you saw with the marketing campaign in September. Any learnings there? And then I think you've been making some investments in your stores. Where are we on that and just any initial reads from from those tests? Thank you.

Speaker Change: Sure. Yeah, we were really excited with the marketing campaign and the results that we saw there.

Speaker Change: I think it was I think it was our best campaign in in some time and really resonated with the consumer and And again, you know drove

growth results. We talked about the lift that we saw.

Speaker Change: in folks, you know, searching for us, searching for our brand. We saw a big lift across the United States, and we focused a lot of our

Speaker Change: offline activations in the New York area, and we saw a much more significant lift in New York. So we saw that those marketing activities really worked. I mean, also.

Speaker Change: Of course, Trove Revenue, that's critically important. And we've got some really great data from some of our media partners, YouTube, for example.

Speaker Change: on the lift that we saw in awareness, consideration, et cetera, from folks that saw the ad. So it really worked. We felt very good about it. And the nice thing about doing this top of funnel,

Speaker Change: marketing is we saw that it also made our performance marketing dollars work harder and we got and we saw better returns there. So overall a successful campaign and we'll look to do more of that going forward.

Speaker Change: In terms of the investments in stores, was that the second part of the question? Right, yeah.

Speaker Change: Yeah, those are ongoing. I know we've talked about Times Square on this call before. That one's gonna open right before Black Friday. So we're under construction there right now and we're super excited to get that flagship store open and we'll continue to refresh the fleet going forward.

Awesome, thank you.

Speaker Change: At this time, I am showing no further questions. I would now like to turn the call back over to Edward Rosenfeld for closing remarks.

Edward Rosenfeld: Great. Well, thanks everybody for joining us today. Enjoy the rest of your day. Have a great holiday season and we will speak to you soon.

Speaker Change: Thank you for your participation in today's conference. This concludes the program. You may now disconnect.