Steve Madden Q3 hurt by "lack of trends"
- Q3 profit down 10.9% to $39.2m
- Sales slip 0.7% to $392m
- Wholesale sales fall 0.8% to $343.3m
US fashion footwear and accessories specialist Steve Madden has posted softer than expected results in the third quarter, weighed down by lower sales and a "lack of fashion footwear trends."
Net income amounted to US$39.2m for the three months to 30 September, compared to $44m in the same period of the prior year.
Net sales edged down 0.7% to $392m from $394.8m last year. Retail sales dropped 0.4% to $48.7m from $48.9m, while same store sales fell 7.4%. Wholesale sales slipped 0.8% to $343.3m from $345.9m.
Gross margin dropped to 34.7% from 35.4%.
"As previously reported, business during the third quarter was softer than we anticipated, particularly in our retail segment, as we continue to be impacted by a lack of significant fashion footwear trends on which to capitalise," said chairman and CEO Edward Rosenfeld.
Earlier this month, the company lowered its full-year sales guidance to a 1-2% increase, down from its earlier forecast of 2-4%. Diluted earnings per share are predicted to range from $1.81 to $1.86, down from its previous expectations of $2-2.10.
Help test our new apparel sourcing tool.
US footwear and accessories specialist Steve Madden has promoted two of its executives to the newly-created roles of president and chief merchandising officer....
US footwear and accessories specialist Steve Madden has reported a better-than-expected performance in the second quarter, despite posting a 12.5% decline in net profit....
- Li & Fung eyes speed, innovation & digitalisation
- Digitalisation and data to disrupt supply chains
- 3D CAD comes of age
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- Li & Fung forms supply chain partnership with PVH
- Big data to help US firms improve clothing fit
- Labour rights risk Bangladesh EU trade benefits?
- US Q4 in brief – G-III Apparel, Finish Line
- Apparel group Sae-A opens second school in Haiti
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack