Steve Madden exceeds expectations in Q3, adjusts full year EPS outlook
Steve Madden on Tuesday reported its third quarter results, which exceeded expectations on both the top and bottom lines.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We were pleased with our third quarter results. Our core Steve Madden Women’s footwear business achieved outstanding growth during the quarter, as did our Dolce Vita line. In addition, we delivered strong gross margin expansion, as our on-trend merchandise assortment and disciplined inventory management resulted in higher initial mark-ups and reduced close-outs and markdown allowances. While the overall retail environment continues to be challenging and our wholesale partners remain cautious, our third quarter results enable us to narrow our guidance range for fiscal 2016 diluted EPS to the upper half of our previous range.”
Net sales for the wholesale segment decreased to $346.6 million from $357.0 million in the previous third quarter, but were offset by the increase in retail net sales to $61.8 million from $56.4 million. A one-time Madden Girl capsule helped the wholesale business in the third quarter of 2015.
Retail gross margin decreased to 59.9% from 60.4% due to the negative impact of a stronger US dollar, and gross margin for the wholesale business increased to 33.9% from 32.1%.
Overall net sales fell 1.2% to $408.4 million from $413.5 million, gross margin expanded 180 basis points to 37.8% from 36.0%, and net income increased to $43.8 million, or $0.74 per diluted share, from to $42.9 million, or $0.70 per diluted share, in the previous third quarter.
Steve Madden updated its fiscal year 2016 outlook and continues to expect net sales to increase 0% to 1% over 2015, and for diluted EPS to be in range of $1.98 and $2.03.
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