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Steve Madden reports 10.5 percent rise in FY17 net sales

By Prachi Singh

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Business

Net sales at Steve Madden increased 8.3 percent in the fourth quarter to 364.4 million dollars compared to 336.4 million dollars in the same period of 2016. For the full year ended December 31, 2017, net sales increased 10.5 percent to 1.55 billion dollars against the prior year. Net income was 117.9 million dollars or 2.04 dollars per diluted share, while adjusted net income was 129.3 million dollars or 2.24 dollars per diluted share for the year compared to 120.9 million dollars or 2.03 dollars per diluted share, for the year ended December 31, 2016.

Commenting on the company’s performance, Edward Rosenfeld, the company’s Chairman and CEO said in a press release: “The solid performance in Q4 capped a strong year for the company, with double-digit percentage growth in both net sales and adjusted diluted EPS driven by the outstanding performance of our flagship Steve Madden brand in the wholesale channel.”

Q4 and full year highlights of Steve Madden results

Gross margin for the fourth quarter was 38.4 percent, while adjusted gross margin was 38.1 percent compared to 38.7 percent in the same period last year, a decrease of 60 basis points. Operating income totalled 31.7 million dollars or 8.7 percent of net sales and adjusted operating income was 36.3 million dollars or 10 percent of net sales, compared with 39.6 million dollars or 11.8 percent of net sales, in the same period of 2016.

Net income for the quarter was 24.6 million dollars or 0.43 dollar per diluted share, while adjusted net income was 27.5 million dollars or 0.48 dollar per diluted share, compared to 28.7 million dollars or 0.49 dollar per diluted share, in the prior year's fourth quarter.

Fourth quarter segment results at Steve Madden

Net sales for the wholesale business increased 10.6 percent to 278.2 million dollars in the fourth quarter of 2017. Excluding the results of Schwartz & Benjamin, acquired in January 2017, wholesale net sales increased 2.5 percent to 257.9 million dollars, as the company said, an increase in the wholesale footwear business was partially offset by a decline in wholesale accessories.

Retail net sales in the quarter increased 1.5 percent to 86.2 million dollars compared to 84.9 million dollars in the fourth quarter of the prior year. Same store sales decreased 5.1 percent in the quarter against 1.1 percent same store sales increase in the fourth quarter of 2016. Retail gross margin increased to 60.8 percent compared to 60.5 percent in the fourth quarter of the prior year.

During the quarter, the company opened one full price store and one outlet store in the US as well as two full price stores in international markets and ended the quarter with 206 company-operated retail locations, including four internet stores. In addition, during the fourth quarter, Steve Madden opened six concessions in Asia and ended the quarter with 38 company-operated concessions in international markets.

Steve Madden declares first quarterly dividend

The board of directors of the company has approved the initiation of a quarterly cash dividend, the first quarterly dividend since the company went public in December 1993. The initial quarterly dividend of 0.20 dollar per share will be paid on March 29, 2018 to stockholders of record as of the close of business on March 12, 2018.

For fiscal year 2018, the company expects net sales will increase 5 percent to 7 percent over net sales in 2017. The company expects diluted EPS for fiscal year 2018 to be in the range of 2.60 dollars to 2.67 dollars.

Picture:Steve Madden website

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