For the quarter ended March 31, the footwear and accessories company posted net income of $21.9 million, or 50 cents a share, vs. $17.9 million, or 42 cents a share in the same quarter 2011. The earnings mark the fifth straight quarter Steve Madden has reported double-digit growth.
Net revenue rose 60.5% to $266.0 million. The company’s comparable store sales at its retail stores rose 11.9%.
Steve Madden’s earnings were in line with analysts’ average estimate for 50 cents, but exceeded their sales forecast for $249.93 million.
“Our first quarter results reflect continued momentum throughout our business,” said Edward Rosenfeld, chairman/ceo. “We were particularly pleased with our core Steve Madden brand, which recorded strong growth across categories, channels and geographies. The ongoing momentum in our flagship brand, combined with the growth we are seeing from our newer brands and businesses, gives us confidence that we can continue to drive sales and earnings gains in 2012 and beyond.”
Gross margin narrowed to 36.1% compared with 41.7% a year ago, due mostly to sales mix shifts resulting from its acquisition of Topline and the growth of Adesso Madden private label, which grew 90% from a year ago.
“Excluding these mix shifts, wholesale gross margin was moderately higher compared to the same period in 2011. Retail gross margin increased to 60.1%, compared to 58.1% in the first quarter of 2011, reflecting improvement in both full-price and outlet stores,” the company said.
Given its strong first quarter performance, it’s no surprise that Steve Madden Ltd. also raised its full fiscal year forecast. The company now expects earnings between $2.62 to $2.72 a share on sales growth of 24% to 26%, approximately $1.2 billion to $1.22 billion. Previously the company expected earnings of $2.60 to $2.70 a share on 21% to 23% sales growth.
Analysts’ average estimate expects earnings of $2.67 on revenue of $1.19 billion.