Steve Madden Financial Analysis for 2011

With distribution channel expansion through E-commerce and international commercialized enterprise, reaping line expansion through acquisition of Topline and Cejons businesses, and complete process through both wholesaling and retailing, SHOO experienced an subjoin of net crude(a) revenue accompanied by a advert of crying(a) mete and an append of COGS/Sales ratio. Segment-wise speaking: * move footwear segments net sales join on 58% collect to: 1. The inclusion of net sales from acquired Topline business. 2. The transformation of Target business to wholesale model. 3. The increase of international business. 4. The innate growth in Steve Madden Womens and Madden missy brands and two new brands--Big Buddha shoes and Betsey Johnson shoes. * Wholesale accessories segments net sales significantly increased by 79% resulting from: 1. The acquisition of Cejon. 2. Strong organic growth driven by core handbag brandsBig Buddha, Steve Madden, Madden Zone and Bet sey Honson. * trade in segment had an increase of 15% ascribable to organic growth, premier(prenominal) apostrophize segment had a decrease of 43% due to the exertion of Target private label and Olsenboye footwear from stolon bell to whole sale model. Licensing segment had an increase of 66% driven by Betsey Johnsons licensing business.

However, some of the drivers that boosted net sales to a fault resulted in a lower gross rim and a higher COGS/Sales ratio: * Despite the increase of gross margin in retail segment from 60.6% to 61.4% due to a decrease in promotional selling and selective charge raising, th e overall growth margin of SHOO fall from 4! 3.4% in 2010 to 37.4% in 2011 because of the following reasons: 1. The transition of Target and Olsenboye business from firstly 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 domesticated business because the company uses local third society distributors. 3. proceeds of the...If you want to get a full essay, regulate it on our website: OrderCustomPaper.com

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