Steve Madden reports better than expected results for Q2
Steve Madden, the American footwear designer, distributor and licensor, on Thursday announced better than expected results for its second quarter despite profits being down.
Net sales for the wholesale business were $266.7 million, compared to $249.8 million for the same period last year. Gross margin in the wholesale business decreased to 29.8% compared to 31.3% in last year’s second quarter with declines in both wholesale footwear and wholesale accessories.
Retail net sales were $56.9 million, up from $45.9 million a year prior. Same store sales increased 18.5% for the second quarter. Retail gross margin increased to 64.5%, compared to 62.8% in the second quarter of 2014 as a result of decreased promotional activity.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “As expected, sales in our wholesale footwear business excluding acquisitions were down, but we continue to see much-improved sell-through at our retail partners compared to 2014. Based on the improvement in the underlying trends in our business, we are confident in our ability to achieve our sales and earnings targets for 2015.”
During the three months, the company opened one full price store and four outlet locations and closed two full price locations. Additionally, stevemadden.ca was launched in Canada.
The company ended the quarter with 161 company-operated retail locations, including 117 full price stores, 36 outlets, four Internet stores and four joint venture locations in South Africa.
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