On an earnings call in late July, Steve Madden execs said the company was on the lookout for potential acquisitions, and the shoe retailer has already made good on that promise. Steve Madden announced Thursday afternoon that it has bought up Dolce Vita Holdings, the privately-held parent company of the footwear lines Dolce Vita (an Urban Outfitters favorite), DV by Dolce Vita, DV8 and J.D. Fisk.
According to Steve Madden, the sale went down for $60.3 million in cash. It's the company's second acquisition in the last six months: In late March, Steve Madden purchased Brian Atwood from Jones Group as the company offloaded certain underperforming brands in preparation for its own sale to Sycamore Partners. As of Madden's second quarter earnings statements, which came out July 31, it was still unclear how well Brian Atwood has fared under its new ownership. Steve Madden, for its own part, says it has seen its sales suffer from declining mall traffic and a lack of trends in the past few months.
Dolce Vita founders Van Lamprou and Nick Lucio will stay on through the acquisition. The 13-year-old company targets roughly the same consumer base as Steve Madden. While Dolce Vita hits a slightly higher price point, with shoes in the $189 to $360 range, DV by Dolce Vita retails for around $80 to $130, and DV8 falls in the $30-and-up range.
If we had to guess, we'd say that this acquisition is going to prove more lucrative than the Brian Atwood deal. The question is, how will Dolce Vita's sales stack up against Steve Madden's namesake line?