- Prachi Singh |
Steve Madden net sales for the third quarter increased 8 percent to 441.2 million dollars compared to 408.4 million dollars in the same period of 2016. Net income for the quarter was 44.2 million dollars or 0.77 dollar per diluted share, while adjusted net income was 44.5 million dollars or 0.77 dollar per diluted share, compared to 43.8 million dollars or 0.74 dollar per diluted share, in the prior year's third quarter.
Commenting on the third quarter trading, Edward Rosenfeld, Chairman and Chief Executive Officer, said in a press release: “We recorded solid sales and EPS growth in the quarter despite the challenging retail environment, led by strong performance across our Steve Madden wholesale footwear businesses. As we look ahead, we expect that we will continue to face industry headwinds, and as a result, we are planning our business prudently.”
Highlights of Steve Madden’s third quarter
The company’s gross margin was 37.6 percent compared to 37.8 percent in the same period last year, a decrease of 20 basis points. Operating income totalled 65.4 million dollars or 14.8 percent of net sales, while adjusted operating income was 65.9 million dollars or 14.9 percent of net sales, compared with operating income of 63.8 million dollars or 15.6 percent of net sales, in the same period of 2016.
Net sales for the wholesale business increased 8.7 percent to 376.9 million dollars. Excluding the results of recently acquired Schwartz & Benjamin, the company said, wholesale net sales increased 1.6 percent to 352 million dollars from 346.6 million dollars in the third quarter of 2016, as an increase in the wholesale footwear business was partially offset by a decline in wholesale accessories. Gross margin in the wholesale business was 33.9 percent, flat compared to last year’s third quarter.
Retail net sales increased 4 percent to 64.3 million dollars compared to 61.8 million dollars in the third quarter of the prior year. Same store sales decreased 3.8 percent in the quarter compared to a 1.3 percent increase in the third quarter of 2016. Retail gross margin decreased to 59.3 percent compared to 59.9 percent in the third quarter of the prior year.
During the quarter, the company opened one full price store and three outlet stores in the US as well as five full price stores in international markets. The company ended the quarter with 202 company-operated retail locations, including four internet stores. In addition, during the third quarter the company opened 15 concessions in Asia and ended the quarter with 32 company-operated concessions in international markets.
Stave Madden maintains full year outlook
The company is maintaining its full-year outlook and expects that net sales in fiscal year 2017 will increase 9 percent to 11 percent over net sales in 2016. The company expects that diluted EPS on a GAAP basis will be in the range of 2.03 dollars to 2.09 dollars and adjusted diluted EPS in the range of 2.18 dollars to 2.24 dollars.