Steve Madden posts 68.2 percent drop in Q2 revenues
By Prachi Singh
29 Jul 2020
Revenue at Steve Madden decreased 68.2 percent to 142.8 million dollars compared to 449.6 million dollars in the same period of 2019. The company said in a statement that gross margin was 39.1 percent compared to 37.8 percent in the same period last year, while loss from operations totalled 23.7 million dollars or 16.6 percent of revenue compared to income from operations of 44.6 million dollars or 9.9 percent of revenue, in the same period of 2019. Adjusted loss from operations was 21 million dollars or 14.7 percent of revenue compared to adjusted income from operations of 49.1 million dollars or 10.9 percent of revenue, in the same period of 2019.
Commenting on the results, Edward Rosenfeld, Steve Madden’s Chairman and Chief Executive Officer, said: “The past few months have been challenging for all of us due to the Covid-19 pandemic. We are encouraged by the strong performance we are seeing in digital commerce channels – including 88 percent revenue growth on Stevemadden.com in the second quarter.”
Highlights of Steve Madden’s second quarter results
The company added that net loss attributable to Steven Madden, Ltd. was 16.6 million dollars or 21 cents per diluted share, compared to net income of 36.6 million dollars or 44 cents per diluted share, in the prior year’s second quarter. Adjusted net loss was 14.7 million dollars or 19 cents per diluted share, compared to adjusted net income of 39.5 million dollars or 47 cents per diluted share, in the prior year’s second quarter.
Revenue for the wholesale business decreased 72.5 percent to 100 million dollars in the second quarter, including a 72.8 percent decline in wholesale footwear and a 71.5 percent decline in wholesale accessories/apparel, driven by significant order cancellations resulting from the Covid-19 pandemic. Gross margin in the wholesale business decreased to 26.6 percent compared to 32.1 percent in last year’s second quarter.
Retail revenue decreased 49.2 percent to 41.4 million dollars due to the closure of the vast majority of the company’s retail stores for most or all of the quarter, partially offset by strong performance in the company’s e-commerce business. Retail gross margin increased to 67.4 percent compared to 59.7 percent in the second quarter of the prior year.
The company ended the quarter with 225 company-operated retail stores, including eight Internet stores, as well as 17 company-operated concessions in international markets.