- Prachi Singh |
Steve Madden’s net sales in the first quarter increased 6.2 percent to 389 million dollars, while gross margin was 36.2 percent. Adjusted gross margin in the first quarter of 2017 was 36.6 percent. Net income was 28.7 million dollars or 0.50 dollar per diluted share, compared to 20.2 million dollars or 0.35 dollar per diluted share, in the prior year's first quarter.
Commenting on the company’s performance, Edward Rosenfeld, the company’s Chairman and CEO said in a media statement: “We are off to a good start in 2018, with first quarter results that exceeded our expectations. As we look ahead, we are confident that, based on the power of our brands and the strength of our business model, we are well-positioned to drive sales and earnings growth in 2018 and beyond.”
Q1 operating income increases 36.6 mn dollars
Operating income for the quarter totalled 36.6 million dollars or 9.4 percent of net sales, compared to 30.8 million dollars or 8.4 percent of net sales, in the same period of 2017. Adjusted operating income was 39.6 million dollars or 10.2 percent of net sales compared to 39.5 million dollars or 10.8 percent of net sales, in the same period of 2017. Adjusted net income was 31 million dollars or 0.54 dollar per diluted share, compared to 27.5 million dollars or 0.47 dollar per diluted share, in the prior year's first quarter.
Net sales for the wholesale business increased 5.8 percent to 331.2 million dollars, with strong gains in both the wholesale footwear and wholesale accessories businesses. Gross margin in the wholesale business was 32.6 percent compared to 32.4 percent last year. Adjusted gross margin in the wholesale business in last year’s first quarter was 32.8 percent was the result of strong growth in the company’s private label business, which carries a lower gross margin.
Retail net sales increased 8.6 percent to 57.9 million dollars. The company said, same-store sales decreased 1.2 percent in the quarter as the result of a decline in the boot category. Retail gross margin decreased to 56.7 percent compared to 58.7 percent in the same quarter of the prior year due primarily to deep discounting of slow-selling inventory in the boot category.
During the first quarter, the company opened two stores and closed five stores in the United States. The company also opened one store in Mexico and one store in China and ended the quarter with 207 company-operated retail locations, including six Internet stores. In addition, during the first quarter, the company opened two concessions in China and ended the quarter with 40 company-operated concessions in international markets.
FY18 net sales expected to rise between 5 to 7 percent
For fiscal year 2018, the company continues to expect net sales will increase 5 percent to 7 percent over net sales in 2017 and diluted EPS for fiscal year is anticipated in the range of 2.55 dollars to 2.62 dollars. The company expects adjusted diluted EPS to be in the range of 2.60 dollars to 2.67 dollars.
Steve Madden’s board of directors has declared a quarterly cash dividend of 0.20 dollar per share, which will be paid on June 29, 2018, to shareholders of record at the close of business on June 12, 2018.
Picture:Facebook/Steve Madden EU