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Steve Madden posts Q1 net sales growth of 5.6 percent

By Prachi Singh

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Business

Net sales at Steve Madden increased 5.6 percent to 410.9 million dollars for the first quarter to March 31, 2019. The company said, gross margin was 38.2 percent compared to 36.2 percent in the same period last year, an increase of 200 basis points, while net income attributable to Steven Madden, Ltd. was 34.5 million dollars or 41 cents per diluted share compared to 28.7 million dollars or 33 cents per diluted share, in the prior year’s first quarter. Adjusted net income was 35.1 million dollars or 42 cents per diluted share compared to 31 million dollars or 36 cents per diluted share, in the prior year’s first quarter.

Commenting on the first quarter trading, Edward Rosenfeld, Chairman and Chief Executive Officer of Steve Madden said in a statement: “Our flagship Steve Madden brand was the highlight in the quarter with robust increases in the wholesale footwear and accessories businesses as well as outstanding performance on stevemadden.com. Given the strong performance in the first quarter and the encouraging trends we are seeing in the business, we are raising our net sales and adjusted EPS guidance for 2019.”

First quarter segment results at Steve Madden

Net sales for the wholesale business, the company added, increased 5.1 percent to 348.1 million dollars, driven by strong growth in wholesale accessories. Wholesale footwear net sales increased slightly, as strong growth in Steve Madden and the addition of Anne Klein were mostly offset by not recognizing sales to Payless ShoeSource in the current period. Gross margin in the wholesale business increased to 34.5 percent compared to 32.6 percent in last year’s first quarter.

Retail net sales rose 8.6 percent to 62.8 million dollars, same store sales increased 6.3 percent in the quarter driven by strong performance in the company’s e-commerce business. Retail gross margin rose to 58.5 percent in the first quarter of 2019, up 180 basis points compared to 56.7 percent in the first quarter of the prior year due to improved gross margin in the company’s e-commerce business. The company ended the quarter with 225 company-operated retail locations, including seven internet stores, as well as 33 company-operated concessions in international markets.

Steve Madden raises FY19 outlook

The company is raising its fiscal year 2019 guidance. For fiscal year 2019, the company now expects net sales will increase 5 percent to 7 percent over net sales in 2018 compared to the previous guidance of a 4 percent to 6 percent increase over net sales in 2018. The company now expects diluted EPS will be in the range of 1.76 cents to 1.84 cents compared to the prior range of 1.70 cents to 1.78 cents. The company now expects adjusted diluted EPS will be in the range of 1.78 cents to 1.86 cents compared to the prior range of 1.75 cents to 1.83 cents.

The company’s board of directors approved a quarterly cash dividend of 14 cents per share, to be paid on June 28, 2019, to stockholders of record at the close of business on June 18, 2019.

Picture:Facebook/Steve Madden

Steve Madden