Steve Madden Spring 2018

Steve Madden Announces Q1 Earnings; Boots Decline

In What's New, Industry News by Lauren Parker, Accessories Magazine

Steve Madden Spring 2018

Steve Madden released its first quarter earnings.

Retail net sales in the first quarter increased 8.6% to $57.9 million compared to $53.3 million in the first quarter of the prior year. Same store sales decreased 1.2% in the quarter as the result of a decline in the boot category. Retail gross margin decreased to 56.7% in the first quarter of 2018 as compared to 58.7% in the first quarter of the prior year due primarily to deep discounting of slow-selling inventory in the boot category.

Net sales for the wholesale business increased 5.8% to $331.2 million in the first quarter of 2018, with strong gains in both the wholesale footwear and wholesale accessories businesses. Gross margin in the wholesale business was 32.6%. Gross margin in the wholesale business in last year’s first quarter was 32.4%. Adjusted gross margin in the wholesale business in last year’s first quarter was 32.8%. The modest decline in wholesale gross margin compared to the prior year’s first quarter Adjusted gross margin was the result of strong growth in the Company’s private label business, which carries a lower gross margin.

Retail net sales in the first quarter increased 8.6% to $57.9 million compared to $53.3 million in Q1 2017. Same store sales decreased 1.2% in the quarter as the result of a decline in the boot category. Retail gross margin decreased to 56.7% in the first quarter of 2018 (compared to Q1 2017’s 58.7%) primarily to deep discounting of slow-selling inventory in the boot category.

Steve Madden opened two stores and closed five stores in the United States during the first quarter, also opening one store in Mexico and China, each. The Company ended the quarter with 207 company-operated retail locations, including six Internet stores. In addition, during the first quarter, the Company opened two concessions in China and ended the quarter with 40 company-operated concessions in international markets.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are off to a good start in 2018, with first quarter results that exceeded our expectations. Our on-trend product assortments and speed-to-market capability continue to set us apart from the competition. We are particularly pleased with the strong growth we saw in international markets in the first quarter, as the investments we have made in our flagship Steve Madden brand and our international infrastructure bear fruit.”

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