Steve Madden acquires remainder of European joint venture
American footwear, accessories and apparel group Steve Madden, Ltd. announced on Wednesday that it has completed the acquisition of the 49.9% share that it did not previously own of its European joint venture.
With this transaction, the company takes full control of its European business, which distributes Steve Madden-branded footwear and accessories to a number of countries throughout the continent.
According to the group, the joint venture, which was founded in June 2016, has seen strong double-digit percentage revenue growth every year over the last four years. This includes a 21% year-over-year revenue gain in 2020, achieved despite the negative effects of the Covid-19 pandemic.
“We are pleased to take full ownership of our business in this critical market, and look forward to continued growth in the region as we capitalize on our strong momentum and digital-first positioning,” said Steve Madden chairman and CEO Edward Rosenfeld in a release.
The company, which owns brands including its namesake Steve Madden label, Dolce Vita and Betsey Johnson, reported annual revenues of $1.2 billion in 2020, a year-over-year decrease of 32.8% from $1.8 billion in 2019. The decline was largely due to disruptions caused by the coronavirus crisis.
The group’s annual net loss was $18.4 million, compared to net income of $141.3 million in the previous fiscal year.
As of the end of 2020, Steve Madden has 218 company-operated retail locations, including seven internet stores, as well as 17 concessions in international markets.
Steve Madden intends to report its first-quarter financial results on Wednesday, April 28.
Copyright © 2021 FashionNetwork.com All rights reserved.