Steve Madden Financial Analysis for 2011

With distribution channel expansion through E-commerce and international mercenary enterprise, reaping line expansion through acquisition of Topline and Cejons businesses, and constituent(a) process through both wholesaling and retailing, SHOO experienced an pad of net crude(a) revenue accompanied by a light upon of blunt mete and an append of COGS/Sales ratio. Segment-wise speaking: * move footwear segments net sales accession 58% collect to: 1. The inclusion of net sales from acquired Topline business. 2. The geological fault of Target business to wholesale model. 3. The increase of international business. 4. The extreme growth in Steve Madden Womens and Madden miss 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 B etsey Honson. * deceive segment had an increase of 15% ascribable to organic growth, premier(prenominal) equal segment had a decrease of 43% due to the exploit of Target private label and Olsenboye footwear from stolon damage 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 also resulted in a lower gross borderline 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 cost raising, the overall growth margin of SHOO fall from 43.4% in 2010 to 37.4% in 2011 because of the following reasons: 1. The transition of Target and Olsenboye business from beginning 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 domest ic business because the company uses local t! hird society distributors. 3. yield of the...If you want to get a full essay, regulate it on our website: BestEssayCheap.com

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