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Steve Madden FY15 net sales step-up 5.3 percent

By Prachi Singh

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Business |REPORT

For the full year ended December 31, 2015, net sales at Steve Madden increased 5.3 percent to 1.4 billion dollars from 1.3 billion dollars in the prior year. Net sales increased 0.5 percent in the fourth quarter to 344.3 million dollars compared to 342.6 million dollars in the same period of 2014.

“We are pleased to have achieved 27 percent growth in diluted EPS in the fourth quarter despite a challenging retail environment and unfavourable weather that negatively impacted sales of seasonal products like boots and cold weather accessories. Our retail business continued its strong performance with a 6.1 percent comparable store sales gain, and we delivered solid gross margin improvement in both our wholesale and retail segments in spite of the headwinds from a heavily promotional retail environment,” said Edward Rosenfeld, Chairman and Chief Executive Officer of the company.

Fourth quarter and fiscal 2015 segment results

Net sales for the wholesale business during the fourth quarter were 265 million dollars compared to 269.9 million dollars in the fourth quarter of 2014. Gross margin in the wholesale business increased to 28.2 percent due to improvement in both the wholesale footwear and wholesale accessories segments.

Retail net sales were 79.3 million dollars compared to 72.8 million dollars in the fourth quarter of the prior year. Same store sales increased 6.1 percent and retail gross margin increased to 62.3 percent.

Gross margin expanded 180 basis points to 36.1 percent and operating income totaled 38.7 million dollars, or 11.2 percent of net sales during the quarter, compared with operating income of 32 million dollars, or 9.3 percent of net sales, in the same period of 2014. Net income was 25.7 million dollars, or 0.43 dollar per diluted share, compared to 21 million dollars, or 0.34 dollar per diluted share, in the prior year's fourth quarter.

During the fourth quarter, the company opened one full price store in Mexico and three outlet locations in the United States and ended the quarter with 169 company-operated retail locations, including 121 full price stores, 40 outlets, four Internet stores and four joint venture locations in South Africa.

Net income for the full year was 112.9 million dollars, or 1.85 dollars per diluted share, for the year ended December 31, 2015.

Outlook for fiscal 2016

For fiscal year 2016, the company expects that net sales will increase 2 percent to 4 percent over net sales in 2015. Diluted EPS is expected to be in the range of 1.93 dollars to 2.03 dollars.

Steve Madden