Home / Knowledge / News / Fashion / Steven Madden reaffirms outlook for 2008

Steven Madden reaffirms outlook for 2008

05
Aug '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 second quarter ended June 30, 2008.

Second quarter net sales were $109.3 million compared to $108.3 million in the second quarter of 2007. Gross margin decreased slightly to 41.7% compared to 42.0% in the second quarter of the prior year due to a margin decline in the retail division, which was partially offset by a margin increase in the wholesale division.

Operating expenses as a percent of sales were 33.5% versus 31.0% in the same period of 2007, due primarily to increased expenses in the retail division for new stores, the write-off of fixed assets related to store closures and remodels, and severance.

Operating income was $12.1 million, or 11.1% of sales, compared with operating income of $17.5 million, or 16.2% of sales, in the second quarter of 2007. This decline was due primarily to higher operating expenses as a percent of sales and a decline in commission income from the private label business versus the prior year period. Net income was $7.6 million, or $0.43 per diluted share, compared to $10.5 million, or $0.49 per diluted share, in the prior year's second quarter.

Revenues from the wholesale business were $79.4 million compared to $78.6 million in the second quarter of 2007 due primarily to the strength of the Madden Girl and Daniel M. Friedman divisions, which offset relative softness in the Steve Madden Women's and Steve Madden Men's divisions during the quarter. Gross margin in the wholesale business increased to 34.7% from 34.2% in last year's second quarter as a result of margin improvement in both the wholesale footwear and Daniel M. Friedman accessories divisions.

Retail revenues were $29.9 million compared to $29.6 million in the second quarter of the prior year due to sales from new stores. Same store sales decreased 3.3%. Retail gross margin decreased to 60.3% from 62.4% in the comparable period of the prior year, due primarily to increased promotional activity due to the challenging retail environment. During the second quarter of 2008, the Company closed two stores.

For the first six months of fiscal 2008, net sales were $209.9 million compared to $214.9 million in the comparable period last year. Net income totaled $9.7 million, or $0.51 per diluted share, for the first six months of fiscal 2008, compared to $20.1 million, or $0.92 per diluted share, in the comparable period last year.

Excluding a one-time after-tax charge of $3.0 million in first quarter resulting from the resignation of the Company's former Chief Executive Officer, net income totaled $12.7 million, or $0.67 per diluted share, for the first six months of fiscal 2008.

Edward Rosenfeld, Interim Chief Executive Officer, stated, "In wholesale, Madden Girl and Daniel M. Friedman were bright spots as we generated strong sales increases in these two divisions in the second quarter. We also remain pleased with our wholesale gross margin, which rose modestly and reflects positive trends in both footwear and accessories.


Must ReadView All

Pic: Hai Huy Ton That | Dreamstime.com

Textiles | On 29th Nov 2021

Vietnam’s textile-garment industry may flourish in 2022: Industry body

Vietnam’s textile-garment sector is expected to earn $40 billion in...

Pic: Andy Nowack | Dreamstime.com

Textiles | On 29th Nov 2021

US textile & apparel exports up 20.15% in Jan-Sept 2021

The exports of textile and apparel from United States increased by...

Pic: craig hastings | Dreamstime.com

Textiles | On 29th Nov 2021

Germany’s GDP rises by 1.7% in Q3 2021 over Q2: Destatis

Germany’s gross domestic product (GDP) rose by 1.7 per cent in the...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

Textile Industry, Head honchos

Textile Industry
Head honchos

Trainers faced immense challenges as most were not tech-savvy

J Vargas,

J Vargas

With a vision to be the world's top tier textile manufacturer, Badjatex...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Bav Tailor, Label Bav Tailor

Bav Tailor
Label Bav Tailor

Born in London and Indian by origin, <b>Bav Tailor </b>is the Founder of...

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

Leave your Comments


November 2021

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


Advanced Search