Steve Madden meets earnings guidance in fiscal 2016, sales slip
Steve Madden reported on Tuesday that it has met the top end of its full year earnings per share guidance. The company achieved net income of $120.9 million, or $2.03 per diluted share for the year compared to $112.9 million, or $1.85 per diluted share in the previous year.
“We are pleased to have delivered solid earnings results in the fourth quarter, with EPS at the high end of our guidance range, despite a challenging retail environment,” said Edward Rosenfeld, Chairman and Chief Executive Officer.
Net income for the quarter also increased to $28.7 million, or $0.49 per diluted share, from $25.7 million, or $0.43 per diluted share, in the prior year.
Fourth quarter net sales decreased 2.3% to $336.4 million, with wholesale segment sales decreasing to $251.5 million and retail net sales increasing to $84.9 million. Full year net sales decreased 0.4% to $1.40 billion.
Rosenfeld added, “While overall sales declined modestly due primarily to softness in our private label footwear and cold weather accessories businesses, we had outstanding top line growth in our core Steve Madden Women’s wholesale business, and we also achieved strong gross margin improvement in both the wholesale footwear and wholesale accessories segments.”
Total gross margin expanded 260 basis points in the fourth quarter. Gross margin for the wholesale segment increased to 31.4% from 28.2% in the previous fourth quarter, and retail gross margin decreased to 60.5% from 62.3%.
Steve Madden expects its net sales for 2017 to increase between 8% and 10% over 2016, and it expects its 2017 diluted earnings per share to be in range of $2.12 and $2.18.
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