• Home
  • Executive
  • Management
  • Steve Madden Q4 net sales rise by 13 percent, adjusted diluted EPS up 31 percent

Steve Madden Q4 net sales rise by 13 percent, adjusted diluted EPS up 31 percent

By Prachi Singh

loading...

Scroll down to read more

Management

Steve Madden, for its fourth quarter reported net sales increase of 12.6 percent to 410.4 million dollars. Gross margin for the quarter was 37.1 percent compared to 38.4 percent in the previous year, while adjusted gross margin was 38.1 percent. Net income attributable to Steven Madden, Ltd. was 12.5 million dollars or 15 cents per diluted share, compared to 24.6 million dollars or 28 cents per diluted share, in the prior year's fourth quarter, while adjusted net income was 35.7 million dollars or 42 cents per diluted share compared to 27.5 million dollars or 32 cents per diluted share, in the prior year's fourth quarter.

Commenting on the results, Edward Rosenfeld, Steve Madden’s Chairman and Chief Executive Officer, said in a statement: “We are pleased to have delivered a strong fourth quarter, with net sales growing 13 percent and adjusted diluted EPS increasing 31 percent compared to the prior year period. While we face a near-term headwind due to the bankruptcy of Payless ShoeSource, we are confident that our diversified business model positions us for long-term growth and value creation going forward.”

Fourth quarter segment performance at Steve Madden

Net sales for the wholesale business, the company said, increased 14.1 percent to 317.4 million dollars driven by strong growth in both wholesale footwear and wholesale accessories. Gross margin in the wholesale business decreased to 30.1 percent compared to 31 percent in last year’s fourth quarter.

Steve Madden added that retail net sales rose 7.9 percent to 93 million dollars, while same store sales increased 4 percent in the quarter driven by strong performance in the company’s e-commerce business. Retail gross margin rose to 61 percent in the fourth quarter, up 20 basis points compared to 60.8 percent in the prior year’s fourth quarter due to improved gross margin in the company’s e-commerce business.

The company ended the quarter with 229 company-operated retail locations, including seven internet stores, as well as 42 company-operated concessions in international markets.

Steve Madden’s full year net sales improve 7 percent

For the full year ended December 31, 2018, the company’s net sales increased 7 percent to 1.65 billion dollars. Net income was 129.1 million dollars or 1.50 dollars per diluted share compared to 117.9 million dollars or 1.36 dollars per diluted share, for the year ended December 31, 2017. On an adjusted basis, net income was 157.7 million dollars or 1.83 dollars per diluted share compared to 129.3 million dollars or 1.49 dollars per diluted share, in 2017.

The company’s board of directors approved a quarterly cash dividend of 14 cents per share, which will be paid on March 29, 2019, to stockholders of record at the close of business on March 19, 2019.

For fiscal year 2019, the company expects net sales will increase 4 percent to 6 percent over net sales in 2018 and expects diluted EPS will be in the range of 1.70 dollars to 1.78 dollars. The company expects adjusted diluted EPS to be in the range of 1.75 dollars to 1.83 dollars. Compared to the prior year, the company said, adjusted diluted EPS range reflects an adverse impact of approximately 16 cents from the Payless ShoeSource bankruptcy as well as an adverse impact of approximately 05 cents from a higher forecasted tax rate.

Picture credit:Facebook/Steve Madden, Elaine Constantine

Steve Madden