Steve Madden sales drop 31% in Q3
American footwear, accessories and apparel group Steve Madden Ltd. announced a 30.9% decrease in its third-quarter revenues on Tuesday, as the coronavirus pandemic continues to have a negative effect on its business.
For the third quarter ended September 30, 2020, the company, which owns brands including its namesake Steve Madden label, Dolce Vita and Betsey Johnson, reported sales of $346.9 million, down from $502.1 million in the prior-year period.
The Long Island City, New York-based company’s wholesale business posted the biggest decline, with revenues in the channel falling 32.7% to $283.8 million. This reflected a 32.5% decrease in wholesale footwear and a 33.3% decline in wholesale accessories and apparel.
Over in the group’s retail segment, revenues dropped 22.1% to $59.0 million, largely due to a downturn in brick-and-mortar sales, which was partially offset by strong growth in e-commerce.
Quarterly net loss at Steve Madden was $6.9 million, or $0.09 per diluted share, compared to net income of $52.5 million, or $0.63 per diluted share, in the same period in the previous year.
Nonetheless, Steve Madden chairman and CEO Edward Rosenfeld struck an optimistic tone in the company’s earnings release.
“While the Covid-19 pandemic continues to have a negative impact on our business, we were pleased to deliver third quarter revenue and earnings that significantly exceeded our expectations,” he said. “We remain confident that our strong brands, pristine balance sheet and proven business model will enable us to drive sustainable revenue and earnings growth as conditions normalize.”
Year to date the company’s sales totaled $839.9 million, down from $1.35 billion in the same period in 2019. The group’s net loss for the nine-month period was $41.0 million, or $0.52 per diluted share, compared to income of $123.6 million, or $1.55 per diluted share, in the first nine months of the previous year.
In light of the continued uncertainty surrounding the coronavirus pandemic, Steve Madden is not currently providing financial guidance. The group ended the third quarter with 221 company-operated retail stores, including eight e-commerce stores and 17 international concessions.
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