Steve Madden wholesale business jumps in first quarter, offsets retail sales dip
Steve Madden on Friday announced its first quarter results, ended on March 31, 2017. Net sales increased 11.2% to $366.4 million, and adjusted net income increased to $27.5 million, or $0.47 per diluted share, from $23.7 million, or $0.39 per diluted share.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased to have started off 2017 with a strong first quarter. The highlight was our Steve Madden Women’s wholesale footwear division, where we had another quarter of outstanding growth in a challenging retail environment."
The wholesale business increased 13.6% to $313.3 million, and increased 8.5% excluding the Schwartz & Benjamin acquisition in January. Gross margin for the wholesale business was 32.4% and adjusted gross margin was 32.8% driven by an increase in the wholesale footwear segment.
Retail net sales fell slightly to $53.1 million from $53.6 million in the prior year, and same store sales decreased 6.0% compared to an increase of 10.7% in the previous year. In addition, retail gross margin increased to 58.7% from 56.2% due to a lower level of promotional activity.
For the fiscal year, Steve Madden still expects net sales to increase by 8% to 10%, GAAP diluted earnings per share to range from $1.97 to $2.03 and adjusted diluted earnings per share to range from $2.12 to $2.18.
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