Steve Madden Beats Expectations Despite Supply Chain Disruptions

Steve Madden beat earnings and revenue estimates in Q1, despite persisting supply chain headwinds. The fashion brand reported Q1 revenues of $559.7 million beating estimates of 466.56 million from analysts surveyed by Yahoo Finance. Net income was $74.5 million, or 94 cents a diluted share, which also beat analyst estimates of 51 cents. Steve Madden shares were up over 1.5% as of early afternoon on Wednesday. CEO Edward Rosenfeld said in call with investors on Wednesday that the company is still dealing with supply chain headwinds, including extended lead and transit times. Steve Madden is currently experiencing 70-day transit times up from the typical 30 days prior to the pandemic. Freight pressure has also been amplified. “I think the freight pressure has gotten incrementally a little worse since the last time we were on the call, at least in terms of the impact to our forecast for the year,” Rosenfeld explained. Factory delays, though prevalent, have been less problematic thus far. However, the company said it is monitoring the situation, especially in China, where a strict “zero-Covid” policy means continuous lockdowns across the country. As mentioned in previous quarters, Steve Madden is in the process of moving some production from China to countries such as Brazil

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