Steve Madden sales down 68.2% in the second quarter of the year. They can enjoy two positive facts though: downturn is not so heavy as formerly estimated by financial analysts, while online sales have increased by 88%. “We know we will be going through some difficulties in the near future – commented Edward Rosenfeld, president and Chief Executive Officer of the brand –, yet we are confident about our best qualities”.
The business trend in the quarter
Due to the pandemic, caused by Covid-19 outbreak, in the second quarter, ended on 30th June, revenues have been decreasing considerably. As we said earlier, earnings have slumped by 68.2%, down to 142.8 million dollars. Looking at the overall economic scenario, the company also suffered from a 14.7-million-dollar adjusted net loss: in other words, 0.19 dollars per share. Last year, in the same period, adjusted net profits amounted to 39.5 million dollars, that is, 0.47 dollars per share. Market analysts, mentioned by Footwear News, estimated that loss would amount to 27 cents per share and revenues from sales would reach 183.5 million US dollars.
Two positive facts
“We can rely on the outstanding performance we have been achieving on our digital channels: in the second quarter of the year, revenues from sales on stevemadden.com have increased by 88% – pointed out Rosenfeld -. Such positive figures evidence how strong our brands are and highlight, at the same time, buyers’ non-stop demand for our products. Therefore, we shall successfully tackle the present crisis and our profits will go up again as soon as things go back to normal”.
Half-year period forecast
At the end of the first half-year period, Steve Madden earnings amounted to 865.42 million dollars (-42%). The company’s adjusted net loss reached 1.71 million dollars, compared to profits, which amounted to 74.6 million dollars, made in the first six months of 2019.
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