Steve Madden Q2 net sales rise 9.4 percent

Thursday, 30 July 2015

REPORT Steve Madden, for the second quarter ended June 30, 2015 said that its net sales increased 9.4 percent to 323.6 million dollars compared to 295.7 million dollars in the same period of 2014. Gross margin was 35.9 percent compared to 36.2 percent in the same period last year. Operating income totaled 36.8 million dollars, or 11.4 percent of net sales, compared with operating income of 40.3 million dollars, or 13.6 percent of net sales, in the same period of 2014. Net income was 24.5 million dollars, or 0.40 dollars per diluted share, compared to 28 million dollars, or 0.44 dollars per diluted share, in the prior year's second quarter.

Commenting on the company’s performance, Edward Rosenfeld, Chairman and Chief Executive Officer, said, “These results are attributable to outstanding performance in our retail segment, driven by robust comparable store sales growth of 18.5 percent, as well as a second consecutive quarter of mid-teens sales growth in our wholesale accessories business. Based on the improvement in the underlying trends in our business, we are confident in our ability to achieve our sales and earnings targets for 2015.”

Net sales for the wholesale business were 266.7 million dollars compared to 249.8 million dollars in the second quarter of 2014. Gross margin in the wholesale business decreased to 29.8 percent compared to 31.3 percent in last year’s second quarter with declines in both wholesale footwear and wholesale accessories. Retail net sales in the second quarter were 56.9 million dollars compared to 45.9 million dollars in the second quarter of the prior year. Same store sales increased 18.5 percent. Retail gross margin increased to 64.5 percent compared to 62.8 percent as a result of decreased promotional activity.

During the second quarter, the company opened one full price store and four outlet locations and closed two full price locations. Additionally, stevemadden.ca was launched in Canada. The company ended the quarter with 161 company-operated retail locations, including 117 full price stores, 36 outlets, four Internet stores and four joint venture locations in South Africa. For fiscal year 2015, the company continues to expect that net sales will increase 7 percent to 9 percent over net sales in 2014. Diluted EPS for fiscal is expected to be in the range of 1.85 dollars to 1.95 dollars.