Steve Madden reports better-than-expected sales growth of 6% in first quarter

NYC-based footwear and accessories company Steve Madden released its Q1 2018 results on Friday, reporting mid to high single-digit growth in both its wholesale and retail segments, as well as strong progress in international markets.


Steve Madden's sales rose 6.2% in Q1 2018 - Instagram: @stevemadden
 
The company’s net income for the first quarter ended March 31, 2018 rose to $28.7 million, compared to $20.2 million in the same period in the previous year.
 
This growth was pushed by a 6.2% rise in net sales, which reached $389.0 million in the quarter, compared to $366.4 million in the prior year period.
 
By segment, net sales for the company’s wholesale business increased 5.8% to $331.2 million, and rose 8.6% to $57.9 million in its retail business. Same-store sales, however, fell 1.2%, a decrease that the company attributed to a decline in its boot category.
 
“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,” stated the company’s Chairman and CEO Edward Rosenfeld in a release, “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.”
 
During the first quarter of 2018, Steve Madden closed five stores in the US and opened two. It also opened one store in Mexico and another in China, meaning that the company currently operates through 207 retail locations worldwide, including six e-commerce platforms.
 
“As we look ahead, we are confident that, based on the power of our brands and the strength of our business model, we are well-positioned to drive sales and earnings growth in 2018 and beyond,” concluded Rosenfeld.
 
Steve Madden maintains its outlook for fiscal 2018, expecting to see a 5% to 7% increase in sales compared to 2017.

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