Long Island City, NY—Steve Madden continues to be a step ahead of the competition. Today, the footwear and accessories company reported its third quarter results, posting a 39.3% increase in its profit as sales surged aided by its Topline and Cejon acquisitions.
For the quarter ended Sept. 30, net income increased to $31.9 million, or 74 a share, compared to $22.9 million, or 54 cents a share in the same period a year ago.
Net sales increased 70.5% to $313.9 million, up from $184.1 million a year ago. The company’s wholesale business grew 81.8% to $278.3 million from $153.1 million, boosted by the company’s purchase of Topline and Cejon as well as the transition of its Target private label Osenboye footwear changing from a buying agency model to a wholesale model. The company also said its existing wholesale footwear and accessories business also showed strong growth.
The company’s retail division posted a 14.7% increase to $35.6 million as comparable store sales increased 13.2% on top of a 15.7% increase in the prior year’s third quarter.
Raises Full Year Forecast
The results topped analysts’ average estimates for the fourth quarter in a row. Analysts’ average estimate had expected earnings of 70 cents a share on a sales estimate of $307.9 million.
Commenting on the results, Edward Rosenfeld, chairman/ceo, said, “In addition to the significant sales contributions in the quarter from Topline and Cejon, which we acquired in May 2011, we delivered double-digit organic sales growth in each of our wholesale footwear, wholesale accessories and retail segments. Our flagship Steve Madden brand was particularly strong, as the on-trend merchandise assortment created by Steve and his design team drove robust gains with Steve Madden women’s footwear and handbags in both wholesale and retail.”
Due to what Rosenfeld called a continuing “momentum” the company raised it full year forecast to earnings of $2.20 to $2.25 a share from the previous guidance of $2.15 to $2.20 a share. That’s ahead of the revised analysts’ average estimate expecting $2.19 a share for the year.