Steve Madden revenues decline by 13.6 percent in the first quarter
By Prachi Singh
28 May 2020
Revenue at Steve Madden decreased 13.6 percent to 359.2 million dollars compared to the same period of 2019. The company said in a statement that gross margin for the quarter was 37.2 percent compared to 38.9 percent in the same period last year. The company added that net loss attributable to Steven Madden, Ltd. was 17.5 million dollars or 22 cents per diluted share, compared to net income of 34.5 million dollars or 41 cents per diluted share, in the prior year’s first quarter, while adjusted net income was 13 million dollars or 16 cents per diluted share compared to 35.1 million dollars or 42 cents per diluted share, in the prior year’s first quarter.
Commenting on the first quarter trading, Edward Rosenfeld, the company’s Chairman and Chief Executive Officer, said: “After a strong 2019, we got off to a good start to 2020, with revenue and earnings trending above plan through the first two months of the year and very positive consumer reaction to the spring product in our flagship Steve Madden brand. Beginning in March, however, our business weakened materially due to the effects of the Covid-19 pandemic.”
The company said, revenue for the wholesale business decreased 13 percent to 302.7 million dollars in the first quarter, including a 15 percent decline in wholesale footwear and a 5.4 percent decline in wholesale accessories/apparel driven by significant order cancellations in March resulting from the Covid-19 pandemic. Retail revenue decreased 15.8 percent to 52.9 million dollars due to the closure of all the company’s retail stores outside of China in March. The company ended the quarter with 224 company-operated retail stores, including eight Internet stores, as well as 30 company-operated concessions in international markets.