Steve Madden (Nasdaq: SHOO), a leading designer and marketer of
fashion footwear and accessories for women, men and children, today
announced financial results for the second quarter ended June 30,
2009 and updated full-year 2009 earnings guidance.
- Second quarter net sales
increased 6.5% to $116.5 million.
- Operating margin rose to 16.6%
in the second quarter 2009, compared with operating margin of 11.1%
in the same period of 2008.
- Net income for the second
quarter was $12.1 million, or $0.66 per diluted share, compared to
$7.6 million, or $0.43 per diluted share, in the second quarter of
2008.
- Increase in full-year 2009
guidance for diluted EPS to a range of $2.05 to $2.15.
Edward Rosenfeld, Chairman and Chief Executive Officer
commented, "We are pleased to have recorded healthy earnings growth
in the second quarter despite the difficult economic environment.
Our design team, led by Steve, continues to create compelling
product that resonates well with consumers. In addition to the
strong performance in our core Steve Madden Women’s and Madden Girl
wholesale divisions, we are encouraged by the results in our new
licensed businesses, l.e.i., Fabulosity and Elizabeth and James. As
we look ahead, we will remain focused on carefully managing our
inventory and controlling costs while continuing to deliver
trend-right product at attractive price points.”
Second Quarter 2009 Results:
Second quarter net sales were $116.5 million compared to $109.3
million reported in the comparable period of 2008. Net sales from
the wholesale business grew 11.0% to $88.2 million compared to
$79.4 million in the second quarter of 2008, driven by strength in
the Steve Madden Women’s, Kids’ and Madden Girl wholesale footwear
divisions. Retail net sales totaled $28.3 million compared to $29.9
million in the second quarter of the prior year. Same store sales
decreased 5.4% in the second quarter of 2009.
Gross margin improved to 42.6% as compared to 41.7% in the
second quarter of 2008. For the wholesale business, gross margin
was 36.8% as compared to 34.7% in the prior year's second quarter,
with the increase driven primarily by lower markdown allowances as
sell-through at retail continued to be strong. Retail gross margin
was 60.4% as compared to 60.3% for the comparable period last year,
with the benefit of reduced freight costs mostly offset by the
impact of a highly promotional environment.
Operating expenses as a percent of sales for the second quarter
of 2009 were 32.2% as compared to 33.5% in the same period of the
prior year. The improvement was driven by leverage on higher sales
as well as cost control initiatives.
Net income for the second quarter of 2009 totaled $12.1 million,
or $0.66 per diluted share as compared to net income of $7.6
million, or $0.43 per diluted share, in the same period of
2008.
The Company did not open any stores and closed two stores during
the second quarter of 2009, ending the quarter with 92 retail
locations, including the Internet store.
Six-Month 2009 Results:
For the first six months of 2009, net sales were $223.9 million
compared to $209.9 million in the comparable period last year.
Net income totaled $18.7 million, or $1.03 per diluted share,
for the first six months of 2009 compared to $9.7 million or $0.51
per diluted share in the first six months of 2008. Net income for
the first quarter of 2008 included a charge totaling $3.0 million
post-tax, or $0.16 per diluted share related to the resignation of
the Company’s former CEO.
At the end of the second fiscal quarter, cash, cash equivalents
and marketable securities totaled $111.6 million.
Arvind Dharia, Chief Financial Officer, commented, "We continue
to generate solid cash flow and maintain a strong balance sheet
attributable to the growth of our business and our conservative
capital management."
Company Outlook
The Company has updated its fiscal 2009 guidance.
For fiscal 2009, the Company now expects net sales to increase
2% to 4% compared to fiscal 2008. The Company previously expected
net sales to range from flat to a decline of 2% as compared to
fiscal 2008.
Diluted EPS for fiscal 2009 is now expected to be in the range
of $2.05 to $2.15 as compared to previous guidance in the range of
$1.85 to $1.95.
Conference Call Information
The Company will host its second quarter 2009 earnings
conference call on Thursday, July 30, 2009, at 8:30 a.m. Eastern
Time. The call will be broadcast live over the Internet and can be
accessed by logging onto http://www.stevemadden.com under the
Investor Relations section and an online archive of the broadcast
will be available within one hour of the conclusion of the call
which will remain accessible for a period of 30 days following the
call. Additionally, a replay of the call can be accessed by dialing
888-203-1112, passcode 7725544, and will be available until August
30, 2009.
About Steve Madden
Steve Madden designs and markets fashion-forward footwear and
accessories for women, men and children. The shoes and accessories
are sold through company-owned retail stores, department stores,
apparel, footwear, and accessories specialty stores, and online at
http://www.stevemadden.com/. The Company has several licensees for
its brands, including for outerwear, cold weather accessories,
eyewear, hosiery, and bedding and bath products and owns and
operates 92 retail stores, including its online store. The Company
is the licensee for footwear, handbags and belts for Fabulosity,
for footwear for Elizabeth and James, Candie’s and l.e.i. and for
handbags and belts for Betsey Johnson and Daisy Fuentes.
Safe Harbor
This press release contains certain statements which are
“forward-looking statements” as that term is defined in the federal
securities laws. The events described in forward-looking statements
contained in this press release may not occur. Generally these
statements are based on current expectations and assumptions
relating to business plans or strategies, projected or anticipated
benefits or other consequences of the Company's plans or
strategies, projected or anticipated benefits from acquisitions to
be made by the Company, or projections involving anticipated
revenues, earnings or other aspects of the Company's operating
results. The words "may," "will," "expect," "believe,"
"anticipate," "project," "plan," "intend," "estimate," and
"continue," and their opposites and similar expressions are
intended to identify forward-looking statements. The Company
cautions you that these statements are not guarantees of future
performance or events and are subject to a number of uncertainties,
risks and other influences, many of which are beyond the Company's
control, that may influence the accuracy of the statements and the
projections upon which the statements are based. Factors which may
affect the Company's results include, but are not limited to, the
risks and uncertainties discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2008. Any one or more of
these uncertainties, risks and other influences could materially
affect the Company's results of operations and whether
forward-looking statements made by the Company ultimately prove to
be accurate. The Company's actual results, performance and
achievements could differ materially from those expressed or
implied in these forward-looking statements.
All information in this release is as of July 30, 2009. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether from new information, future
events or otherwise.
STEVEN MADDEN LTD
CONSOLIDATED STATEMENT OF OPERATIONS (In thousands, except
per share data) Three Months Ended Six
Months Ended
Consolidated:
June 30, 2009 June 30, 2008 June
30, 2009 June 30, 2008 (Unaudited)
(Unaudited) (Unaudited)
(Unaudited) Net Sales $ 116,472 $ 109,317 $ 223,901 $
209,856 Cost of Sales 66,909 63,780 130,851
124,104 Gross Profit 49,563 45,537 93,050 85,752 Commission
and licensing fee income 7,362 3,203 10,267 6,559 Operating
Expenses 37,553 36,593 73,641 77,327
Income from Operations 19,372 12,147 29,676 14,984 Interest and
other Income, Net 368 368 764 894
Income Before provision for Income Taxes 19,740 12,515 30,440
15,878 Provision for Income Tax 7,596 4,881
11,719 6,192 Net Income $ 12,144 $ 7,634 $ 18,721 $ 9,686
Basic income per share $ 0.67 $ 0.43 $ 1.04 $ 0.51
Diluted income per share $ 0.66 $ 0.43 $ 1.03 $ 0.51
Weighted average common shares
outstanding - Basic 18,014
17,662 17,952 18,839 Weighted average
common shares
outstanding - Diluted 18,294 17,810
18,133 19,023
BALANCE SHEET HIGHLIGHTS
June 30 2009 Dec 31, 2008 June 30, 2008
Consolidated Consolidated
Consolidated (Unaudited)
(Unaudited) Cash and cash equivalents $ 53,276
$ 89,588 $ 18,849 Investment Securities 58,359 35,224 27,462 Total
Current Assets 166,426 194,736 158,198 Total Assets 282,884 284,693
227,498 Advances Payable - Factor - 30,168 - Total Current
Liabilities 48,395 72,490 38,968 Total Stockholder Equity 229,253
206,242 184,032
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