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US company Steve Madden shifts production from China to Mexico and Brazil

American apparel company Steve Madden has shifted about half of its women’s production to Mexico and Brazil for the fall, as supply chain turmoil remains a major challenge. This is a big move from China. The company witnessed a 178.6% increase in revenue in the second quarter of 2021. $ 397Compared to .9 million $ 142.8 million At the same time in 2020.

“Brazil and Mexico also have challenges. Brazil has some COVIDs and it has been a challenge to secure space for the plane. If you want to fly goods in Mexico, some components are It’s from China and there is a delay, so it helps to move to Mexico and Brazil, but it still poses a challenge. ” Chairman and Chief Executive Officer Edward Rosenfeld He said when he was talking to investors in the second quarter 2021 earnings announcement.

Steve Madden’s gross margin increased from 39.1% in the same period in 2020 to 42.7% in the second quarter. Operating expenses as a percentage of revenue were 30.6% and adjusted operating expenses as a percentage of revenue was 29.9%. Said in the media release.

In the second quarter of this year, operating revenue totaled $ 47.7 million, or 12% of revenue, while adjusted operating revenue was $ 51 million, or 12.8% of revenue.

“The second quarter had a huge impact, especially on the wholesale business from supply chain challenges. If there was a sell-through like this spring in a normal year, there would be more business in the second quarter. We would have been chasing more reorders in the second quarter, but the supply chain was disrupted, “Rosenfeld added.

Fiber2Fashion News Desk (KD)

American apparel company Steve Madden has shifted about half of its women’s production to Mexico and Brazil for the fall, as supply chain turmoil remains a major challenge. This is a big move from China. The company generated $ 397.9 million in revenue in the second quarter of 2021, up 178.6%. That’s compared to $ 142.8 million for the same period in two years.



US company Steve Madden shifts production from China to Mexico and Brazil

Source link US company Steve Madden shifts production from China to Mexico and Brazil

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