Steve Madden Announces a Pair of Acquisitions
On Monday, Steve Madden Ltd. announced that it has acquired Greats, a Brooklyn-based digitally native maker of Italian-made sneakers. Greats is a player in the expanding athletic shoe sector at a time when casual styles, even for the office, are on-trend. Greats was founded in 2014. Following up on its acquisition of Greats, Steve Madden Ltd. announced this morning that it's purchasing BB Dakota, a California-based contemporary women’s apparel company. Founded in 2005, BB Dakota products are distributed to wholesale customers, including department stores, e-commerce retailers and specialty boutiques, as well as on bbdakota.com. BB Dakota’s brand portfolio includes owned brands BB Dakota and Jack by BB Dakota, as well as licensed brand Cupcakes and Cashmere. BB Dakota had net sales in the 12 months ended June 30, 2019 of approximately $43 million.
Total Retail's Take: This has proven to be a busy and company-altering week for Steve Madden Ltd. The brand, known for its fashion footwear and accessories for women, men and children, is looking to build upon its strong second quarter results with the acquisition of two digital-native startups. BB Dakota offers a complementary product line to Steve Madden, and figures to attract a similar audience. There should be natural synergies between the two companies. Steve Madden's acquisition of Greats strengthens the former's position in the men's footwear category, an area in which it has yet to capture a large share of the market.