Footwear & accessories marketer Steven Madden posts Q2 results
07 Aug '07
3 min read
Retail revenues were $29.6 million compared to $33.3 million in the second quarter of the prior year. Same store sales decreased 13.0% versus an increase of 3.0% in the second quarter of 2006. Retail gross margin increased 840 basis points to 62.4% from 54.0% in the comparable period of the prior year, primarily due to lower freight expense and reduced markdowns.
For the first six months of fiscal 2007, net sales were $214.9 million compared to $237.8 million in the comparable period last year. Net income totaled $20.0 million, or $0.92 per diluted share, for the first six months of fiscal 2007, compared to $23.6 million, or $1.07 per diluted share, in the comparable period last year.
"We experienced a challenging sales environment during the second quarter which, combined with a lack of big fashion trends, negatively impacted the performance of certain segments of our wholesale division as well as our retail division," stated Jamieson Karson, Chairman and Chief Executive Officer.
"While we experienced challenges in our Candie's, Daniel M. Friedman and Steve Madden Men's segments during the quarter, we generated sales increases in Stevies, Madden Girl and Steven by Steve Madden. Moreover, we managed our business very prudently, and our focus on effectively managing our inventory and increasing efficiencies is reflected in our ability to maintain our gross margin and reduce operating expense dollars on a year over year basis."
Arvind Dharia, Chief Financial Officer, commented, "We continue to maintain a very strong financial position and effectively manage our balance sheet. We ended the quarter with $93.9 million in cash, cash equivalents, and marketable securities, no debt and $226.8 million in total stockholders equity."
marketing@alchempro.com
