Steve Madden shares dipped a little more than 1 percent in pre-market trading after the company reported earnings for the third quarter and downgraded its full-year outlook.

In the third quarter, the company reported revenues of $552.7 million, down 0.7 percent compared to the same quarter in 2022. Adjusted net income was $65.1 million, or $0.88 per diluted share, compared to $61.5 million and $0.79 per diluted share the prior year. Sales and profits were ahead of what analysts surveyed by Yahoo were looking for: $549.32 million in revenues and $0.86 in EPS.

Steve Madden chairman and CEO Edward Rosenfeld said that “softer trends across the industry since September” pushed the company to adopt a more cautious near-term outlook but said the Q3 earnings growth reflects the strength of the company’s business model during “challenging operating environments.”

By channel, wholesale revenue declined 0.3 percent to $433.5 million. Wholesale footwear revenue decreased 7.5 percent, while accessories and apparel revenue in the segment increased 22.7 percent. Direct-to-consumer revenue declined 1.8 percent to $116.4 million year over year, driven by e-commerce decline. Lower freight costs and diminished promotional activity drove gross profit as a percentage of direct-to-consumer revenue to 63.7 percent in Q3.

Inventories, a pain point for shoe brands like Steve Madden in the first half of the year, have gotten under control, and were down 15.8 percent to $205.7 million.

Steve Madden downgraded its 2023 outlook and now expects revenue to decline about 7 percent compared to 2022, a reduction from the highest end of its prior outlook of down between 6.5 percent and 8.0 percent. The company expects adjusted diluted EPS to be approximately $2.40, down from its previously expected range of between $2.40 and $2.50.