Steve Madden’s gross margin in the first quarter of the year was 37.2% compared with 38.9% in the same quarter of 2019. Operating expenses as a percentage of revenue were 41.8%, up from the 28.2% recorded in the same period of the previous year. Adjusted operating expenses as a percentage of revenue were 33.2% compared with 28.1% in the first quarter of 2019. Loss from operations totalled US$26.2 million, or 7.3% of revenue, compared with income from operations of US$44.7 million, or 10.7% of revenue, in the same period of 2019.  Adjusted income from operations was US$14.2 million, or 4% of revenue, compared with US$45.1 million, or 10.8% of revenue, in the first quarter of the previous year.

Net loss attributable to Steven Madden Ltd was US$17.5 million, or US$0.22 per diluted share, compared with a net income of US$34.5 million, or US$0.41 per diluted share, in the prior year’s first quarter. Adjusted net income was US$13 million, or US$0.16 per diluted share, compared with US$35.1 million, or US$0.42 per diluted share, in the first quarter of 2019.

“After a strong 2019, we got off to a good start to 2020, with revenue and earnings trending above plan through the first two months of the year and very positive consumer reaction to the Spring product in our flagship Steve Madden brand. Beginning in March, however, our business weakened materially due to the effects of the COVID-19 pandemic”, said Edward Rosenfeld, Chairman and CEO, Steve Madden. “We entered this crisis with an exceptionally strong balance sheet, but we have nonetheless taken a number of precautionary but significant measures to preserve liquidity and enhance financial flexibility”, he added.