Retail sales drive growth at Steve Madden
Feb 27, 2020
Steve Madden, Ltd., the New York-based owner of brands including Steve Madden, Dolce Vita, Blondo and Brian Atwood, reported increases in fourth-quarter and full-year sales and earnings on Thursday, as retail revenues continued to rise despite growing headwinds.
For the fourth quarter ended December 31, 2019, the footwear, accessories and apparel company reported revenue of $419.6 million, reflecting a slight increase of 0.7% from the sales of $416.8 million reported by the group in the same period in the previous year.
Wholesale revenues fell 1.1% to $313.8 million in the quarter, a slip pushed by a 3.6% dip in wholesale accessories and apparel revenue related primarily to declines in sales of private label handbags and cold weather accessories.
Retail sales, on the other hand, rose 8.7% to $101.1 million, with same-store sales increasing 6.7% thanks largely to growth in the company’s e-commerce channel.
The group’s quarterly net income totaled $17.8 million, or $0.21 per diluted share, up from $12.5 million, or $0.15 per diluted share, in the prior-year period.
For the full fiscal year 2019, Steve Madden, Ltd. reported net income of $141.3 million, or $1.69 per diluted share, up from $129.1 million, or $1.50 per diluted share, in fiscal 2018. Annual revenues increased 6.5% from $1.7 billion to $1.8 billion.
“Fiscal year 2019 was a strong year for the company,” commented Steve Madden, Ltd. chairman and CEO Edward Rosenfeld in a release, highlighting the group’s growth “despite significant headwinds from the bankruptcy of Payless ShoeSource and the tariffs implemented on accessories, footwear and apparel from China.”
“Looking ahead, while we are cautious on the near-term outlook due to additional headwinds from the coronavirus outbreak, China tariffs and the termination of the Kate Spade footwear license, we are confident that the strength of our brands and our business model will enable us to drive earnings growth and shareholder value creation over the long term,” he added.
In fiscal 2020, the company currently expects its revenue to remain flat or increase up to 1%, while diluted earnings per share are predicted to be in the range of $1.70 to $1.80.
This outlook takes into account a negative impact amounting to around $0.35 per share related to the combined effects of the coronavirus, tariffs on goods imported from China, the end of the Kate Spade footwear license and a higher anticipated tax rate.
Steve Madden, Ltd. ended fiscal 2019 with a total of 227 company-operated retail locations, including eight Internet stores, as well as 31 company-operated concessions in international markets.
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