Steve Madden’s net sales increased 4.9 percent to 278.9 million dollars for the first quarter ended March 31, 2013, compared to 266.0 million dollars in the same period of 2012. Retail comparable store sales increased 3.0 percent.
Gross margin expanded 70 basis points to 36.8 percent compared to 36.1 percent in the same period last year due primarily to an increased mix of retail, which has higher gross margins than the wholesale business. Consolidated operating expenses as a percentage of sales were 25.3 percent. Operating income totalled 36.4 million dollars, or 13.1 percent of net sales, compared with operating income of 35.4 million dollars, or 13.3 percent of net sales, in the same period of 2012. Net income increased 7.0 percent to 23.4 million dollars, or 0.52 dollars per diluted share, compared to 21.9 million dollars, or 0.50 dollars per diluted share in the prior year's first quarter.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We delivered solid sales and earnings results in the first quarter despite challenging weather conditions and retail traffic trends. These results are attributable to continued momentum in our accessories business, growth in our retail segment driven by both new stores and moderate comparable store sales growth, as well as expansion of our international business.”
The Company reaffirms fiscal year 2013 guidance that net sales will increase 6-8 percent from 2012. Diluted EPS is expected to be in the range of 2.95 dollars 3.05 dollars.