Steve Madden Down in Q2

by MR Magazine Staff

LONG ISLAND CITY – Footwear and accessories designer Steve Madden announced lower second quarter numbers than last year, with net sales down to $108.3 million compared to $129.5 million in the second quarter of 2006. Net income was $10.5 million (49 cents per diluted share) compared to $12.7 million (58 cents per diluted share) in the second quarter of 2006.

“We experienced a challenging sales environment during the second quarter which, combined with a lack of big fashion trends, negatively impacted the performance of certain segments of our wholesale division as well as our retail division,” said CEO Jamieson Karson in a statement. “While we experienced challenges in our Candie’s, Daniel M. Friedman and Steve Madden Men’s segments during the quarter, we generated sales increases in Stevies, Madden Girl and Steven by Steve Madden. Moreover, we managed our business very prudently, and our focus on effectively managing our inventory and increasing efficiencies is reflected in our ability to maintain our gross margin and reduce operating expense dollars on a year over year basis.”

The Queens, New York-based company expects sales to decline 2%-4% from 2006. It will be maintaining its previous guidance of 2007 earnings per diluted share in the range of $2.00 to $2.10, according to a statement released this week.