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Quarterly profit fall sharply at shoe maker Steven Madden
02 May '08
4 min read
Further, we improved our wholesale gross margin as a result of strong branded product performance in our Daniel M. Friedman accessories division. Given the weak consumer spending trends, we were pleased with the sell-through of our merchandise. Overall, we have continued to focus on strengthening the business and our brands, and we believe the Company is well positioned in the current environment."
Arvind Dharia, Chief Financial Officer, commented, "We ended the quarter with $55.8 million in cash, cash equivalents, and marketable securities, no debt, and total stockholders' equity of $175.2 million. We were pleased to have completed a Dutch Auction share repurchase at the end of the quarter which allowed us to return $44.2 million to our shareholders.
Moreover, we were able to complete this share repurchase while also maintaining our very strong financial position during a difficult macroeconomic environment. We continue to position our business for future growth and remain confident in the long-term potential of the Company."
Company Outlook:
Based on trends to date this year and current visibility, the Company is maintaining its guidance for the full fiscal year. The Company continues to expect 2008 net sales will be flat to an increase of 2% compared to fiscal 2007 and earnings per diluted share will range between $1.55 and $1.65, excluding the impact of the one-time charge recognized in first quarter.
Including the impact of the one-time charge, earnings per diluted share are expected to range between $1.39 and $1.49. All earnings per share estimates reflect the benefit from the Company's recently completed share repurchase through a Dutch Auction tender offer. Mr. Rosenfeld concluded, "We have been encouraged by the more positive consumer response to our merchandise that we have begun to see this year as well as the current strength of our brands in the market. Given the persisting weak consumer trends, we plan to maintain a conservative approach to managing our business.
However, we are seeing some initial improvement in footwear trends that we believe may benefit us as we move into the latter half of 2008. Overall, we continue to be confident in the strength of our diversified business model and the Company's ability to generate long-term growth."
Arvind Dharia, Chief Financial Officer, commented, "We ended the quarter with $55.8 million in cash, cash equivalents, and marketable securities, no debt, and total stockholders' equity of $175.2 million. We were pleased to have completed a Dutch Auction share repurchase at the end of the quarter which allowed us to return $44.2 million to our shareholders.
Moreover, we were able to complete this share repurchase while also maintaining our very strong financial position during a difficult macroeconomic environment. We continue to position our business for future growth and remain confident in the long-term potential of the Company."
Company Outlook:
Based on trends to date this year and current visibility, the Company is maintaining its guidance for the full fiscal year. The Company continues to expect 2008 net sales will be flat to an increase of 2% compared to fiscal 2007 and earnings per diluted share will range between $1.55 and $1.65, excluding the impact of the one-time charge recognized in first quarter.
Including the impact of the one-time charge, earnings per diluted share are expected to range between $1.39 and $1.49. All earnings per share estimates reflect the benefit from the Company's recently completed share repurchase through a Dutch Auction tender offer. Mr. Rosenfeld concluded, "We have been encouraged by the more positive consumer response to our merchandise that we have begun to see this year as well as the current strength of our brands in the market. Given the persisting weak consumer trends, we plan to maintain a conservative approach to managing our business.
However, we are seeing some initial improvement in footwear trends that we believe may benefit us as we move into the latter half of 2008. Overall, we continue to be confident in the strength of our diversified business model and the Company's ability to generate long-term growth."
Steven Madden Ltd
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