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Steve Madden Q2 revenues increase 178.6 percent

By Prachi Singh

Jul. 29, 2021

Business

Image: Steve madden, Facebook

Steven Madden, Ltd. reported revenue increase of 178.6 percent to 397.9 million dollars compared to the same period of 2020. The company’s gross margin increased to 42.7 percent compared to 39.1 percent in the same period of 2020.

Net income attributable to Steven Madden, Ltd. was 36.9 million dollars or 45 cents per diluted share, compared to net loss of 16.6 million dollars or 21 cents per diluted share, in the same period of 2020. The company said in a release that adjusted net income was 39.7 million dollars or 48 cents per diluted share compared to adjusted net loss of 14.7 million dollars or 19 cents per diluted share, in the same period of 2020.

Commenting on the trading update, Edward Rosenfeld, chairman and chief executive officer of Steve Madden said: “Our second quarter results significantly exceeded our expectations, with earnings slightly ahead of pre-Covid-19 second quarter 2019. Looking ahead, while the environment remains volatile, we are confident that the strength of our brands and momentum in our business position us to drive revenue and earnings growth in the back half of 2021 and beyond.”

Highlights of Steve Madden’s second quarter segment results

The company added that revenue for the wholesale business was 262.1 million dollars, a 162.2 percent increase compared to the second quarter of 2020, with a 154.1 percent increase in wholesale footwear and a 190.7 percent increase in wholesale accessories/apparel.

Gross margin in the wholesale business rose to 30.6 percent compared to 26.6 percent in the second quarter of 2020.

Retail revenue was 132.7 million dollars, a 220.6 percent increase compared to the second quarter of 2020. Retail gross margin decreased to 65.4 percent compared to 67.4 percent in the second quarter of 2020.

The company ended the quarter with 216 company-operated retail stores, including six internet stores, as well as 15 company-operated concessions in international markets.

Steve Madden expects FY21 revenue to rise between 43 to 47 percent

For fiscal 2021, the company expects revenue will increase 43 percent to 47 percent over fiscal 2020. The company expects diluted EPS will be in the range of 1.90 dollars to 2 dollars and adjusted diluted EPS will be in the range of 2 dollars to 2.10 dollars.

The company’s board of directors approved a quarterly cash dividend of 15 cents per share payable on September 27, 2021 to stockholders of record as of the close of business on September 17, 2021.