Steven Madden Ltd. said Tuesday that second-quarter earnings fell but still beat Wall Street expectations.
This story first appeared in the August 4, 2008 issue of WWD. Subscribe Today.
The Long Island City, N.Y.-based footwear and accessories firm reported second-quarter earnings declined 27.6 percent to $7.6 million, or 43 cents a diluted share, from $10.5 million, or 49 cents a share, in the same period last year. Analysts on average expected earnings per share of 40 cents in the most recent quarter.
Sales in the three months ended June 30 rose 0.9 percent to $109.3 million from $108.3 million.
“While our performance in the second quarter once again reflected the ongoing weakness of the economy, we continued to build on our momentum from earlier in the year,” Edward Rosenfeld, interim chief executive officer, said during a conference call.
The company’s Madden Girl and Daniel M. Friedman divisions both had strong sales growth year-to-year, but other brands such as Steve Madden Women’s and Steven were more affected by the “challenging environment,” Rosenfeld said.
For the first half of the year, net income fell 51.5 percent to 9.7 million, or 51 cents a share, from $20 million, or 92 cents a share, in the previous year as sales slid 2.3 percent to $209.8 million from $214.9 million.
The second-quarter results combined with the announcement of a Steven Madden-produced, Kimora Lee Simmons-designed Fabulosity shoe line and an overall market surge to send shares of the shoemaker up on Tuesday. The company closed at $23.71, up 5.5 percent.