- Prachi Singh |
For the third quarter of 2019, Steve Madden said, net sales increased 8.5 percent to 497.3 million dollars, while gross margin was 38.4 margin compared to 38.2 percent in the same period last year, an increase of 20 basis points. Net income attributable to Steven Madden, Ltd. was 52.5 million dollars or 63 cents per diluted share compared to 55.6 million dollars or 64 cents per diluted share, in the prior year’s third quarter. Adjusted net income was 56 million dollars or 67 cents per diluted share, compared to 55.9 million dollars or 65 cents per diluted share, in the prior year’s third quarter.
Commenting on the third quarter trading, Edward Rosenfeld, Steve Madden’s Chairman and Chief Executive Officer, said in a statement: “Adjusted earnings significantly exceeded our expectations driven by strong performance in our Steve Madden and Blondo brands. We also completed acquisitions of Greats, a pioneering digitally native sneaker brand, and BB Dakota, a contemporary women’s apparel company. Based on the strong performance in third quarter and the continued momentum in our underlying business, we are raising our 2019 EPS guidance despite incremental earnings pressure from the implementation of the 15 percent tariff on List 4 products from China.”
Highlights of Steve Madden’s third quarter segment results
Steve Madden said, net sales for the wholesale business increased 8.5 percent to 421.6 million dollars in the third quarter, with strong growth in the wholesale footwear and the wholesale accessories/apparel segments. Wholesale footwear net sales rose 6.3 percent driven by gains in Blondo, Steve Madden Women’s and private label. Wholesale accessories/apparel net sales increased 15.8 percent driven by strong growth in Steve Madden handbags as well as the addition of the BB Dakota apparel business. Gross margin in the wholesale business decreased to 33.9 percent compared to 34.3 percent in last year’s third quarter.
Retail net sales rose 8.3 percent to 75.7 million dollars, while same store sales increased 5.1 percent in the quarter driven by strong performance in the company’s e-commerce business. Retail gross margin increased to 63.3 percent compared to 60.1 percent. The company ended the quarter with 227 company-operated retail locations, including eight Internet stores, as well as 32 company-operated concessions in international markets.
Steve Madden updates FY19 outlook, raises dividend by 7 percent
The company is raising its fiscal year 2019 net sales and diluted EPS guidance. For fiscal year 2019, the company now expects net sales will increase 7 percent to 7.5 percent over net sales in 2018 compared to previous guidance of a 5 percent to 7 percent increase. The company now expects diluted EPS for fiscal year 2019 will be in the range of 1.83 dollars to 1.86 dollars compared to the previous range of 1.74 dollars to 1.82 dollars. The company now expects adjusted diluted EPS will be in the range of 1.92 dollars to 1.95 dollars compared to the previous range of 1.78 dollars to 1.86 dollars.
The company’s board of directors approved a quarterly cash dividend of 15 cents per share, reflecting a 7 percent increase over the previous quarterly dividend to be paid on December 27, 2019, to stockholders of record at the close of business on December 16, 2019.