Steven Madden Ltd, a leading designer and marketer of fashion footwear and accessories for women, men and children, today announced financial results for the second quarter and six months ended June 30, 2006.
Net sales for the second quarter increased 28.3% to $129.5 million from $101.0 million last year. It included a $17.3 million contribution from Daniel Friedman & Associates, which was acquired on February 7, 2006.
Gross margin increased significantly to 42.1% from 37.3% in the comparable period last year, reflecting margin improvement in both the wholesale and retail divisions. Operating expenses as a percentage of sales decreased to 27.8% compared to 29.9% last year due to the company's ability to leverage the increased sales base while continuing to invest in the business.
Second quarter operating income grew to $21.3 million, or 16.5% of sales, compared to $8.7 million, or 8.6% of sales, last year. Net income rose 140% to $12.7 million versus $5.3 million in the second quarter of fiscal 2005. Reflecting the 3-for-2 stock split that took place on May 25, 2006, diluted earnings per share were $0.58, based on 22.0 million diluted shares outstanding, over $0.26, based on 20.2 million diluted shares outstanding, last year.
Revenues from the wholesale business were up 40.8% to $96.2 million driven by strong performance from the company's existing brands as well as solid contributions from recently acquired Daniel Friedman & Associates and the recently launched SM New York segment. Excluding the Daniel Friedman & Associates business, wholesale revenues increased approximately 15.5%. Wholesale gross margin increased 680 basis points to 38.0%.
marketing@alchempro.com
