Home / Knowledge / News / Fashion / Steve Madden generates healthy growth in Q2
Steve Madden generates healthy growth in Q2
03
Aug '09
Steve Madden, a leading designer and marketer of fashion footwear and accessories for women, men and children, announced financial results for the second quarter ended June 30, 2009 and updated full-year 2009 earnings guidance.

• Second quarter net sales increased 6.5% to $116.5 million.
• Operating margin rose to 16.6% in the second quarter 2009, compared with operating margin of 11.1% in the same period of 2008.
• Net income for the second quarter was $12.1 million, or $0.66 per diluted share, compared to $7.6 million, or $0.43 per diluted share, in the second quarter of 2008.
• Increase in full-year 2009 guidance for diluted EPS to a range of $2.05 to $2.15.

Edward Rosenfeld, Chairman and Chief Executive Officer commented, "We are pleased to have recorded healthy earnings growth in the second quarter despite the difficult economic environment. Our design team, led by Steve, continues to create compelling product that resonates well with consumers. In addition to the strong performance in our core Steve Madden Women's and Madden Girl wholesale divisions, we are encouraged by the results in our new licensed businesses, l.e.i., Fabulosity and Elizabeth and James. As we look ahead, we will remain focused on carefully managing our inventory and controlling costs while continuing to deliver trend-right product at attractive price points.”

Second Quarter 2009 Results:
Second quarter net sales were $116.5 million compared to $109.3 million reported in the comparable period of 2008. Net sales from the wholesale business grew 11.0% to $88.2 million compared to $79.4 million in the second quarter of 2008, driven by strength in the Steve Madden Women's, Kids' and Madden Girl wholesale footwear divisions. Retail net sales totaled $28.3 million compared to $29.9 million in the second quarter of the prior year. Same store sales decreased 5.4% in the second quarter of 2009.

Gross margin improved to 42.6% as compared to 41.7% in the second quarter of 2008. For the wholesale business, gross margin was 36.8% as compared to 34.7% in the prior year's second quarter, with the increase driven primarily by lower markdown allowances as sell-through at retail continued to be strong. Retail gross margin was 60.4% as compared to 60.3% for the comparable period last year, with the benefit of reduced freight costs mostly offset by the impact of a highly promotional environment.

Operating expenses as a percent of sales for the second quarter of 2009 were 32.2% as compared to 33.5% in the same period of the prior year. The improvement was driven by leverage on higher sales as well as cost control initiatives.

Net income for the second quarter of 2009 totaled $12.1 million, or $0.66 per diluted share as compared to net income of $7.6 million, or $0.43 per diluted share, in the same period of 2008.

The Company did not open any stores and closed two stores during the second quarter of 2009, ending the quarter with 92 retail locations, including the Internet store.


Must ReadView All

Courtesy: Amazon

Apparel/Garments | On 23rd Sep 2018

Consumers in Turkey get access to Amazon

Amazon has launched in Turkey giving customers in the country...

Value in omni-channel retail with Flipkart buying: Walmart

Apparel/Garments | On 23rd Sep 2018

Value in omni-channel retail with Flipkart buying: Walmart

With the acquisition of Flipkart, Walmart sees great value in...

E-com to result in common SE Asian consumer market: BCG

Textiles | On 23rd Sep 2018

E-com to result in common SE Asian consumer market: BCG

The rapid spread of e-commerce and digital technologies is binding...

Interviews View All

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Hannah Lane, Redress

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Carolin Russ,

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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


September 2018

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

news category


Related Categories:

Advanced Search