Steven Madden Ltd announced financial results for the first quarter ended March 31, 2007.
First quarter net sales were $106.7 million compared to $108.3 million in the first quarter of 2006. Gross margin was 39.6% compared to 42.7% in the first quarter of the prior year, reflecting a margin decline in the wholesale division partially offset by a margin increase in the retail division. Operating expenses as a percent of sales were 30.0% versus 29.2% in the same period of 2006.
Operating income was $15.7 million, or 14.7% of sales, compared with operating income of $18.5 million, or 17.0% of sales, in the first quarter of 2006. In line with the Company's expectations, net income was $9.5 million, or $0.43 per diluted share, compared to $10.9 million, or $0.50 per diluted share, in the prior year's first quarter.
Revenues from the wholesale business were $82.3 million compared to $83.0 million in the first quarter of 2006. The decrease is principally due to the discontinuation of Rule and l.e.i. Gross margin in the wholesale business was 36.2% compared to 41.1% in the prior year's first quarter, primarily reflecting margin pressure from the poor performance of boots in Steve Madden Women's, sport fusion product in Steve Madden Men's and Betsey Johnson handbags in the Daniel M. Friedman division.
Retail revenues were $24.4 million compared to $25.3 million in the first quarter of the prior year. Same store sales decreased 1.7%. Retail gross margin increased 290 basis points to 50.9% from 48.0% in the comparable period of the prior year, due primarily to savings in freight costs.
marketing@alchempro.com
