Home / Knowledge / News / Fashion / Steve Madden posts 36.2% growth in Q2 sales

Steve Madden posts 36.2% growth in Q2 sales

03
Aug '10
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, 2010.

• Second quarter net sales increased 36.2% to $158.7 million.
• Operating margin reached 20.2% of sales in the second quarter of 2010, compared with operating margin of 16.6% in the same period of 2009.
• Second quarter net income increased 63.0% to $19.8 million, or $0.70 per diluted share, compared to $12.1 million, or $0.44 per diluted share in the prior year's second quarter.
• Increase in fiscal 2010 diluted EPS guidance to a range of $2.45 to $2.55.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, "We are pleased to have reported the highest quarterly sales and earnings in our Company's history during our second quarter 2010. Our performance reflects broad-based strength in our business, with sales and profitability gains in the wholesale footwear, wholesale accessories and retail segments.

“We believe that our ability to deliver outstanding top and bottom line growth in a difficult retail environment demonstrates the strength of our business model and the creativity of Steve and our design team as they consistently deliver on-trend product that drives consumer demand. We are confident in our belief that the strength in our core business combined with the growth opportunities from some of our new businesses position us to achieve our long term goal of doubling EPS by 2014."

Second Quarter 2010 Results
Second quarter net sales were $158.7 million compared to $116.5 million reported in the comparable period of 2009. Net sales from the wholesale business were $129.2 million compared to $88.2 million in the second quarter of 2009, a 46.5% increase driven by sales increases across all existing divisions as well as contributions from our recent acquisitions, Madden Zone and Big Buddha, and our new men's brand, Madden. Sales also benefitted from the transition of one of the Company's mass merchant customers from a buying agency model to a selling agency model. Retail net sales grew 4.2% to $29.5 million compared to $28.3 million in the second quarter of the prior year despite a smaller store base. Same store sales increased 7.4%.

Gross margin improved to 43.4% in the second quarter from 42.6% in the comparable period of 2009, reflecting margin improvement in both the wholesale and retail segments. Gross margin in the wholesale business increased to 38.7% in the second quarter from 36.8% in the prior year's second quarter driven primarily by improvement in our accessories division as a result of fewer markdown allowances and the addition of the higher margin Big Buddha business. Retail gross margin increased to 63.9% for the second quarter from 60.4% in the comparable period of the prior year as a result of less discounting.

Operating expenses as a percent of sales declinedto 26.5% for the second quarter compared to 32.2% in the same period of the prior year, due to leverage on increased sales.


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Textile Industry, Head honchos

Textile Industry
Head honchos

Trade buzz: This could be a landmark budget

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Marcel Moser,

Marcel Moser

Switzerland-based Benninger is a leading manufacturer of technologically...

Mirella Sardini,

Mirella Sardini

A leading manufacturer of automated machinery and equipment for the...

Francesco Gozio,

Francesco Gozio

Italian company Marzoli is a leading manufacturer of the complete line of...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

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

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

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


February 2020

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


Advanced Search