Home / Knowledge / News / Fashion / Quarterly profit fall sharply at shoe maker Steven Madden
Quarterly profit fall sharply at shoe maker Steven Madden
02
May '08
Steven Madden Ltd, a leading designer, wholesaler and marketer of fashion footwear and accessories for women, men and children, announced financial results for the first quarter ended March 31, 2008.

First quarter net sales were $100.5 million compared to $106.7 million in the first quarter of 2007. Gross margin increased to 40.0% compared to 39.6% in the first quarter of the prior year due to a margin increase in the wholesale division, partially offset by a margin decline in the retail division.

Operating expenses as a percent of sales were 40.5% versus 30.0% in the same period of 2007, due largely to a one-time pre-tax charge of $4.9 million resulting from the resignation of the Company's former Chief Executive Officer as well as reduced leverage on lower sales versus the prior year period. Operating income including the aforementioned one-time charge was $2.8 million, or 2.8% of sales, compared with operating income of $15.7 million, or 14.7% of sales, in the first quarter of 2007.

Net income was $2.1 million, or $0.10 per diluted share, compared to $9.5 million, or $0.43 per diluted share, in the prior year's first quarter. Net income includes a one-time after-tax charge of $3.0 million, or $0.15 per diluted share, resulting from the aforementioned resignation of the Company's former Chief Executive Officer. Excluding the one-time charge, first quarter 2008 adjusted net income was $5.1 million, or $0.25 per diluted share.

Revenues from the wholesale business were $75.6 million compared to $82.3 million in the first quarter of 2007 due primarily to revenue declines in Candie's and Stevies. Gross margin in the wholesale business increased to 37.4% from 36.2% in last year's first quarter, primarily as a result of margin improvement in the Daniel M. Friedman division.

Retail revenues increased 2.6% to $25.0 million compared to $24.4 million in the first quarter of the prior year, due to sales from new stores. Same store sales decreased 3.7%. Retail gross margin decreased to 47.8% from 50.9% in the comparable period of the prior year, due to increased promotional activity. During the first quarter of 2008, the Company opened one new Steve Madden retail store and closed two Steve Madden stores.

"While our results in the first quarter continued to reflect an overall challenging macroeconomic environment, we experienced an improvement in certain areas of our business compared to the latter half of 2007," stated Edward Rosenfeld, Interim Chief Executive Officer. "We were pleased with the sales increases we were able to achieve in Madden Girl, Steven and our newest line, Steve Madden's Fix.


Must ReadView All

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

China’s JD.com announces financing pacts for JD Logistics

Textiles | On 21st Feb 2018

China’s JD.com announces financing pacts for JD Logistics

China’s largest retailer JD.com Inc recently announced it has entered ...

Courtesy: Indorama Ventures

Textiles | On 21st Feb 2018

IVL 2017 revenue up 17% y-o-y to $8,438 million

Indorama Ventures Public Company Limited (IVL) has reported revenue...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search