Payless Shoesource closures hit Steve Madden results
08/11/2017
The group’s wholesale division saw an 8.7% increase in revenue, driven by strength in the Steve Madden men’s and Steve Madden women’s business.
The news about retail same-store sales was not so good with a decline of 3.8% year on year. This came primarily as a result of declines in the dress and boot categories.
“We delivered solid results in the quarter, which were in line with our expectations on a consolidated basis on both the top and bottom lines,” CEO Ed Rosenfeld told investors. “Strong performance in our largest segment, wholesale footwear, was partially offset by softness in retail and wholesale accessories.”
Mr Rosenfeld also revealed that Steve Madden has been affected by retail group Payless Shoesource’s entry in chapter 11 bankruptcy protection.
Although Payless completed its financial restructuring and emerged from chapter 11 in August, he said the group’s decision to close 900 stores will continue to impact Steve Madden. This is because it produce private-label footwear for Payless.
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