This morning, fashion footwear and accessories maker Steve Madden announced its Third Quarter 2017 results, reporting a net sales increase of 8% over last year. Overall, the numbers illustrated a strong business, with Gross Margins on par at 37.6% (compared with 37.8% in the same period in 2016).
Additionally, operating expenses as a percentage of sales were 23.8%. Adjusted operating expenses as a percentage of sales were 23.7% with a slight uptick from 23.5% of sales in the same period of 2016.
“We recorded solid sales and EPS growth in the quarter despite the challenging retail environment, led by strong performance across our Steve Madden wholesale footwear businesses, including Steve Madden Women’s, Men’s and Kids’ as well as Madden Girl,” adds Edward Rosenfeld, Chairman and Chief Executive Officer. “As we look ahead, we expect that we will continue to face industry headwinds, and as a result, we are planning our business prudently. That said, we believe that our strong brands, proven business model and on-trend product offerings position us well to meet our financial targets for the year and continue to enhance shareholder value over the long-term.”
Wholesale business for the company was strong, seeing an increase of 8.7% to $376.9 million in the third quarter of 2017. Meanwhile, new store openings helped bolster retail net sales, which showed and increase of 4% to $64.3 million compared to $61.8 million in the prior year. Same-store sales, however, took a hit of 3.8% in the quarter compared to a 1.3% same-store sales increase in the same period last year.
Still, outlook for the future remains bright. The Company is maintaining its full-year outlook and expects that net sales in fiscal year 2017 will increase 9% to 11% over net sales in 2016.