Steve Madden's Wholesale Woes

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today we're talking about Steve Madden's latest results and Adidas' new NYC store. Plus we check in on what's new at Milan’s Micam shoe show .

Let's get into it.

Wholesale Troubles Prompt Weak Outlook From Steve Madden

Steve Madden is taking a cautious approach in 2023 as wholesale pressures weigh on the footwear brand’s results.

In Q4, wholesale revenue was $308.8 million , down 24.8% compared to last year.

Steve Madden also delivered a weak near-term outlook for 2023 , with CEO?Edward Rosenfeld?citing a “challenging operating environment” and “conservative initial spring orders” from wholesale partners looking to control inventory excesses.

Zoom out: In recent weeks, retailers have pulled back on orders amid inventory excesses and slowing consumer demand, which has meant bad news for brands that rely on department stores and other retailers to drive a significant portion of business.

Adidas Expands NYC Presence With First Bronx Store

Adidas is expanding its New York City presence with its first-ever retail store in the Bronx.

The nearly 11,000 square-foot store, located at the Mall at Bay Plaza, will officially open this weekend and will include a digital footwear wall to access more details about products, digital store windows and service areas to help assist in product searches.

Big picture: The store opening highlights Adidas’ commitment to deepening its local connection with consumers in “Key Cities,” such as New York.

International Buyers Return to Micam in Full Force

International buyers were back in full force at Milan’s Micam shoe show this week, giving a boost of confidence to both event organizers and brands.

The?95th edition of Micam?was held in conjunction with several other trade fairs — handbag show Mipel, jewelry event The One Milano and Homi Fashion and Jewels exhibition — all of which took place at the Rho convention center.

All told, more than 1,800 exhibitors and 48,000 visitors turned out for the trade fairs, a 25% increase over the?September editions. Kenneth Cole, Crocs and Steve Madden were among the major U.S. brands represented at Micam.

“At a pivotal moment for sustaining the economic recovery of the sector and bringing productivity back to pre-pandemic levels, [these shows] represented an extraordinary opportunity,” said?Giovanna Ceolini, chair of Assocalzaturifici and Micam.

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