Steve Madden Financial Analysis for 2011

With distribution channel amplification with E-commerce and international commercialized enterprise, reaping line expansion through acquisition of Topline and Cejons businesses, and innate process through twain wholesaling and selling, SHOO experienced an set forth of net crude(a) revenue attended by a gleam of gain mete and an extend of COGS/Sales dimension. Segment-wise speaking: * move footwear atoms net sales adjoin 58% collect to: 1. The cellular inclusion of net sales from acquired Topline business. 2. The teddy of Target business to in large quantities model. 3. The increase of international business. 4. The original growth in Steve madden Womens and Madden missy brands and two new brands-- voluminous Buddha spot and Betsey Johnson shoes. * Wholesale accessories segments net sales importantly increased by 79% resulting from: 1. The acquisition of Cejon. 2. Strong natural growth control by core handbag brandsBig Buddha, Steve Madden, Madden Zone and Betsey Honson. * trade segment had an increase of 15% ascribable to organic growth, premier(prenominal) equal segment had a slack of 43% due to the movement of Target private mark off and Olsenboye footwear from stolon salute to whole sale model. Licensing segment had an increase of 66% driven by Betsey Johnsons licensing business.

However, round of the drivers that boosted net sales excessively resulted in a overthrow gross bank and a higher COGS/Sales ratio: * Despite the increase of gross strand in retail segment from 60.6% to 61.4% due to a decrease in promotional selling and selective footing raising, the boilers suit growth margin of SHOO fall from 43.4% in 2010 to 37.4% in 2011 because of the following reasons: 1. The passageway of Target and Olsenboye business from frontmost cost to wholesale model, which carries a lower gross margin than SHOOs overall business. 2. Faster growth in the lower margin international business, which is less remunerative than the national business because the company uses topical anaesthetic third society distributors. 3. harvesting of the...If you want to get a full essay, regulate it on our website: Orderessay

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