For the quarter ended Sept. 30, the footwear and accessories company posted net income of $44 million, or 66 cents a share, compared with $37.9 million, or 57 cents a share, a year earlier. That was in line with analysts’ average estimate. (Results were adjusted for a 3-for-2 stock split that went into effect last month).
Net revenue was up 11% to $394.8 million, ahead of analysts’ estimate for $383.3 million in sales. At its retail stores, comparable store sales fell 3.5% while total retail sales rose about 8% helped by new store openings.
Accessories ‘More Challenging’
Gross margin narrowed to 35.4% from 36.8% a year ago due mostly to a shift to lower-margin private label footwear.
“Our wholesale footwear business exhibited broad-based strength, with 11% growth in branded footwear and 38% growth in private label footwear,” said Edward Rosenfeld, chairman/ceo. “Our accessories business was more challenging, with a sales decline due primarily to weakness in the cold weather accessories and belt categories. Our retail business was also softer than expected, due in large part to weak retail traffic trends.”
“Despite these challenges, we believe that this quarter demonstrated that our flagship Steve Madden brand is stronger than ever. We recorded double-digit percentage gains in our Steve Madden wholesale business in both footwear and accessories, both domestically and abroad, as well as in our Steve Madden Men’s and Madden Girl wholesale footwear businesses,” Rosenfeld added.
Steve Madden maintained its fiscal full year forecast for earnings of $1.97 to $2.03 a share with revenue increasing 6% to 8%.