Steven Madden, Ltd. (NASDAQ:SHOO) Q4 2022 Results Conference Call February 23, 2023 8:30 AM ET

Company Participants

Danielle McCoy - Vice President of Investor Relations and Corporate Development

Ed Rosenfeld - Chairman and Chief Executive Officer

Zine Mazouzi - Chief Financial Officer

Conference Call Participants

Aubrey Tianello - BNP Paribas

Laura Champine - Loop Capital

Sam Poser - Williams Trading

Tom Nikic - Wedbush Securities

Mauricio Serna - UBS

Tracy Kogan - Citigroup

Dana Telsey - Telsey Group

Operator

Good morning, and welcome to the 4Q 2022 Steve Madden Limited Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. This event is being recorded.

I would now like to turn the conference over to Danielle McCoy, Vice President of Investor Relations and Corporate Development. Please go ahead.

Danielle McCoy

Thanks, Debbie, and good morning, everyone. Thank you for joining our Fourth Quarter and Full Year 2022 Earnings Call and Webcast. Before we begin, I'd like to remind you that our remarks that follow, including answers to your questions, contain statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to materially differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have described in our press release issued earlier today and filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. The financial results discussed on today's call are on an adjusted basis, unless otherwise noted. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release. Joining me today on the call is Ed Rosenfeld, Chairman and Chief Executive Officer; and Zine Mazouzi, Chief Financial Officer. With that, I'll turn the call over to Ed. Ed?

Ed Rosenfeld

Well, thanks, Danielle, and good morning, everyone, and thank you for joining us to review Steve Madden's Fourth Quarter and Full Year 2022 Results. We are pleased to have delivered fourth quarter earnings results in line with our expectations despite an increasingly challenging backdrop. For the full year 2022, we achieved record financial performance, crossing the $2 billion mark in revenue for the first time with double-digit percentage growth on both the top and bottom lines. These results demonstrate the power of our brands and the strength of our business model as well as the disciplined execution of our strategy. Let me briefly walk you through that strategy and the progress we made on our key initiatives in 2022. First and foremost, our top priority, as always, is winning with product. By utilizing our proven model, which combines talented design teams, a test and react strategy and an industry-leading speed-to-market capability, we consistently create trend-right product assortments and get them to market ahead of the competition. We are then supporting this great product with an always-on full funnel marketing and consumer engagement strategy. By combining outstanding product and effective marketing, we are creating deeper connections with our consumers, which in turn is enabling our success with our four key business drivers. The first of which is driving our direct-to-consumer business led by digital. In 2022, our DTC revenue increased 7% over 2021 and exceeded $500 million for the first time. Compared to pre-COVID 2019, DTC revenue was up 62%, including a 192% increase in digital, and we have increased our overall DTC penetration by approximately 700 basis points over this time period.