Long Island City, NY—Steve Madden Ltd. today reported a 39% jump in its fourth quarter profit driven by strong sales of its namesake brand.
For the quarter ended Dec. 31, the footwear and accessories company posted earnings of $33 million, or 74 cents a share, compared to $23.8 million, or 55 cents a share, a year earlier. (A lower tax rate of 35% compared to 38.6% in the prior-year period also helped results).
Net revenue rose 13% to $315.5 million from $279.8 million. Comparable store sales at its own stores increased 5.9%.
Gross margin, too, widened to 39.3% from 35.5% in fourth quarter last year.
The company’s earnings beat analysts’ average estimate for 71 cents a share and were in line with their estimate for $315.4 million in sales.
“We are pleased to have delivered strong results in the fourth quarter, capping off an outstanding year for the company,” said Edward Rosenfeld, chairman/ceo. “Our flagship Steve Madden brand was the key driver in the quarter, with robust growth across categories, channels and geographies. The strength in our flagship brand, combined with the opportunities we have with our newer brands, gives us confidence that we can continue to drive sales and earnings growth as we move ahead.”
For its full fiscal year, Steven Madden Ltd. earned $119.6 million, or $2.71 a share, compared to $97.3 million, or $2.25 a share, in the prior year.
Total net sales increased 26.7% to $1.2 billion from $968.5 million in the comparable period last year.
Looking ahead to its fiscal 2013, Steve Madden forecast earnings between $2.95 and $3.05 a share. Sales are expected to grow 6% to 8% in the range of
approximately $1.3 billion to $1.33 billion.
Analysts’ consensus forecast higher earnings of $3.08 a share on revenue of $1.37 billion.