Sales slip at Steven Madden
US designer, wholesaler and retailer of footwear and accessories for women, men and children Steven Madden, Ltd. has posted lower sales for the first quarter ended March 31. Net sales declined to $106.7 million from $108.3 million in the comparable quarter of 2006.
Operating income was $15.7 million, or 14.7% of sales, compared with $18.5 million, or 17% of sales. In line with expectations, net income fell to $9.5 million from $10.9 million.
Revenues from the wholesale business slipped slightly to $82.3 million from $83 million, principally due to the discontinuation of the company’s Rule and l.e.i lines. Gross margin in the wholesale business was 36.2% compared with 41.1% in the prior year, reflecting margin pressure from the poor performance of boots in Steve Madden Women's, sport fusion in Steve Madden Men's and Betsey Johnson handbags in the Daniel M. Friedman division.
Retail revenues were $24.4 million compared with $25.3 million, whilst same store sales decreased 1.7%.
Based on trends to date this year, the company expects 2007 net sales to be flat to 2% higher than in 2006.
The company’s shoes and accessories are sold through company-owned retail stores, department stores, apparel and footwear specialty stores, and online.
