US: Steve Madden Q2 profit up as sales increase
- Q2 net income up 13.1% to $26.9m
- Sales rose 38% to $288.7m
- Retail comparable store sales were up 6.8%
Footwear and accessories maker Steve Madden saw its second quarter net profit rise on the back of higher sales of wholesale footwear and accessories and new acquisitions.
Net income for the quarter ended 30 June increased 13.1% to US$26.9m, while income from operations edged up 0.8% to $37.5m.
Net sales jumped 38% to $288.7m, driven by growth in wholesale footwear and accessories, as well as the impact of acquiring Topline, Cejon and SM Canada. Retail comparable store sales were up 6.8%.
Gross margin fell to 36.1% in the quarter, compared to 40.2% in the same period last year. Retail gross margin declined to 63.7%, compared to 64.8% in the same period last year, due to increased markdowns in the sandal category.
Meanwhile, gross margin in the wholesale business was 31.6% compared to 35.4% in the prior year's second quarter. The decline was primarily due to a shift in the sales mix as a result of acquiring Topline and Cejon, as well as growth in the Adesso Madden wholesale private label business, which increased 68% in the quarter.
Edward Rosenfeld, chairman and CEO said: "We delivered solid sales and earnings results in the second quarter despite a challenging retail environment."
Over the half year, net income rose 17.5% to $48.8m, while income from operations was up 12.7% to $72.9m. Net sales surged 47.9% to $554.7m.
Rosenfeld added: "With our diversified platform spanning multiple brands, product categories, distribution channels and geographies, we believe we are well-positioned to drive top and bottom line growth in the second half of 2012 and beyond."
Footwear and accessories maker Steve Madden has today (1 November) seen its third-quarter net profit rise on the back of double-digit sales growth and improved margins....
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