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Steve Madden Stock Gaps 6% Higher Despite Reporting a $16.6 Million Q2 Loss

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Updated: 29 July 2020

Shares of US fashion company Steven Madden (NASDAQ: SHOO) today gapped 6% higher despite the fashion retailer reporting a net loss of $16.6 million in Q2 as compared to the $36.6 million profit generated in Q2 2019.

The firm reported that retails sales in Q2 fell 49.2% leading to total revenues of $142.8 million versus the $449.6 million recorded in 2019, a 68% decline.

The company reported that sales across its digital channels grew 88% causing its gross margins to expand to 67.4% as compared to the 59.7% figure reported last year.

Edward Rosenfeld, Chairman and Chief Executive Officer, said: “We are encouraged by the strong performance we are seeing in digital commerce channels – including 88% revenue growth on in the second quarter – which underscores the strength of our brands and the continued consumer demand for our products.”

Steve Madden share price

Tradingview chart showing Steve Maden share price 29072020

The company expects to continue growing its e-commerce sales channels given the shifting consumer shopping trends triggered by the coronavirus pandemic lockdowns.