- Prachi Singh |
For the second quarter, net sales at Steve Madden increased 15 percent to 374.1 million dollars compared to 325.4 million dollars in the same period of 2016. The company reported net income of 29 million dollars or 0.50 dollar per diluted share, while adjusted net income was 29.7 million dollars or 0.51 dollar per diluted share, compared to 24.7 million dollars or 0.41 dollar per diluted share, in the prior year's second quarter.
Commenting on the company’s results, Edward Rosenfeld, Chairman and CEO, said in a press release: “The strong momentum in our business continued into the second quarter, as we delivered another quarter of robust sales and earnings growth despite the challenging retail environment. The strength of our brands and our business model gives us confidence that we are well-positioned to navigate the uncertain environment.”
Financial highlights of Steve Madden’s Q2 results
Net sales for the wholesale business increased 16.3 percent to 305.6 million dollars in the second quarter of 2017. Excluding the results of the recently acquired Schwartz & Benjamin, wholesale net sales increased 8.4 percent to 284.9 million dollars, driven by a strong increase in the wholesale footwear business. Gross margin in the wholesale business was 31.6 percent. Excluding the non-cash expense associated with the Schwartz & Benjamin acquisition, adjusted gross margin was 31.7 percent, driven by strong margin improvement in the Steve Madden women’s wholesale footwear division.
Retail net sales also increased 9.6 percent to 68.5 million dollars, while same store sales increased 2.2 percent in the quarter compared to a 5.4 percent same store sales increase in the second quarter of 2016. Retail gross margin decreased slightly to 62.6 percent compared to 62.8 percent in the second quarter of the prior year. During the second quarter, the company opened one full price store and one outlet store in the US as well as one full price store in Canada, and converted one US full price store to an outlet location. The Company ended the quarter with 193 company-operated retail locations, including four Internet stores.
Overall gross margin was 37.3 percent, while adjusted gross margin was 37.4 percent compared to 37.2 percent in the same period last year, an increase of 20 basis points. Operating income totalled 41.9 million dollars or 11.2 percent of net sales and adjusted operating income was 43.1 million dollars or 11.5 percent of net sales, compared with operating income of 35.9 million dollars or 11 percent of net sales, in the same period of 2016.
The company now expects that net sales in fiscal year 2017 will increase 9 percent to 11 percent over net sales in 2016. Diluted EPS on a GAAP basis is expected to be in the range of 2.03 dollars to 2.09 dollars and adjusted diluted EPS in the range of 2.18 dollars to 2.24 dollars.
Picture:Steve Madden website