Steven Madden, Ltd. (SHOO) has reported a 12.50 percent fall in profit for the quarter ended Jun. 30, 2015. The company has earned $24.50 million, or $0.40 a share in the quarter, compared with $28 million, or $0.44 a share for the same period last year.
Revenue during the quarter grew 9.42 percent to $323.58 million from $295.72 million in the previous year period. Gross margin for the quarter contracted 31 basis points over the previous year period to 35.89 percent. Total expenses were 88.62 percent of quarterly revenues, up from 86.37 percent for the same period last year. That has resulted in a contraction of 225 basis points in operating margin to 11.38 percent.
Operating income for the quarter was $36.82 million, compared with $40.31 million in the previous year period.
Edward Rosenfeld, chairman and chief executive officer, commented, "We are pleased to have delivered sales and earnings results ahead of expectations in the second quarter. These results are attributable to outstanding performance in our retail segment, driven by robust comparable store sales growth of 18.5%, as well as a second consecutive quarter of mid-teens sales growth in our wholesale accessories business. As expected, sales in our wholesale footwear business excluding acquisitions were down, but we continue to see much-improved sell-through at our retail partners compared to 2014. Based on the improvement in the underlying trends in our business, we are confident in our ability to achieve our sales and earnings targets for 2015."
For the fiscal year 2015, the company expects revenue to grow in the range of 7% to 9% and diluted earnings per share to be in the range of $1.85 to $1.95.
Operating cash flow declines
Steven Madden, Ltd. has generated cash of $53.78 million from operating activities during the first half, down 20.69 percent or $14.03 million, when compared with the last year period.
The company has spent $17.81 million cash to meet investing activities during the first six months as against cash outgo of $25.88 million in the last year period.
The company has spent $48.43 million cash to carry out financing activities during the first six months as against cash outgo of $66.75 million in the last year period.
Cash and cash equivalents stood at $68.99 million as on Jun. 30, 2015, down 55.73 percent or $86.84 million from $155.84 million on Jun. 30, 2014.
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