Steve Madden Q3 revenues climb 8% on strong wholesale, comps weak
Steve Madden managed to deliver increased sales and an overall strong performance in the third quarter ended September 30, steering clear of industry-wide challenges.
The designer and marketer of fashion footwear and accessories saw net sales jump 8 percent to $441.2 million compared to $408.4 million in the same period of 2016. Meanwhile, net income was $44.2 million, or $0.77 per diluted share. Adjusted net income was $44.5 million, or $0.77 per diluted share.
“We recorded solid sales and EPS growth in the quarter despite the challenging retail environment, led by strong performance across our Steve Madden wholesale footwear businesses, including Steve Madden Women’s, Men’s and Kids’ as well as Madden Girl,” said Edward Rosenfeld, Chairman and Chief Executive Officer.
Net sales for both the wholesale business and retail business increased.
Despite a decline in wholesale accessories, net sales for the wholesale business jumped 8.7 percent to $376.9 million thanks to wholesale footwear businesses.
Retail net sales in the third quarter increased 4 percent to $64.3 million compared to $61.8 million. Still, some challenges included a decrease of 3.8 percent in same store sales.
For the fiscal year, Steve Madden still expects net sales to increase by 9 to 11 percent, GAAP diluted earnings per share to range from $2.03 to $2.09 and adjusted diluted earnings per share to range from $2.18 to $2.24.
However, looking forward, Rosenfeld is still cautious.
“As we look ahead, we expect that we will continue to face industry headwinds, and as a result, we are planning our business prudently. That said, we believe that our strong brands, proven business model and on-trend product offerings position us well to meet our financial targets for the year and continue to enhance shareholder value over the long-term.”
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