- Prachi Singh |
Steve Madden net sales increased 11.2 percent to 366.4 million dollars compared to 329.4 million dollars in the same period of 2016. Net income was 20.2 million dollars or 0.35 dollar per diluted share, while adjusted net income was 27.5 million dollars or 0.47 dollar per diluted share, compared to 23.7 million dollars or 0.39 dollar per diluted share, in the prior year's first quarter.
Commenting on the first quarter trading, Edward Rosenfeld, Chairman and CEO said in a media release, “We are pleased to have started off 2017 with a strong first quarter. The highlight was our Steve Madden women’s wholesale footwear division, where we had another quarter of outstanding growth in a challenging retail environment. The strength in our core business gives us confidence that we are well-positioned to navigate the uncertain environment.”
Review of the first quarter trading
Net sales for the wholesale business increased 13.6 percent to 313.3 million dollars. Excluding the results of the recently acquired Schwartz & Benjamin, the company said, wholesale net sales increased 8.5 percent to 299.2 million dollars from 275.8 million dollars in the first quarter of 2016, with strong gains in both wholesale footwear and wholesale accessories.
Retail net sales were 53.1 million dollars compared to 53.6 million dollars in the first quarter of the prior year. Same store sales decreased 6 percent in the quarter compared to a 10.7 percent same store sales increase in the first quarter of 2016. Retail gross margin increased to 58.7 percent compared to 56.2 percent, due to a lower level of promotional activity.
During the quarter, the company opened one full price store and one outlet location, and closed one full price store and ended the quarter with 190 company-operated retail locations, including four internet stores.
Operating income totaled 30.8 million dollars or 8.4 percent of net sales and adjusted operating income was 39.5 million dollars or 10.8 percent of net sales, compared with operating income of 29.9 million dollars or 9.1 percent of net sales, in the same period of 2016. Gross margin was 36.2 percent, while adjusted gross margin was 36.6 percent compared to 35.3 percent in the same period last year, an increase of 130 basis points.
Steve Madden expects FY17 net sales to increase 8 to 10 percent
The company continues to expect that net sales in fiscal year 2017 will increase 8 percent to 10 percent over net sales in 2016. The Company expects that diluted EPS on a GAAP basis will be in the range of 1.97 dollars to 2.03 dollars and adjusted diluted EPS to be in the range of 2.12 dollars to 2.18 dollars.