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Steve Madden Q2 net sales increase 0.6 percent

By Prachi Singh

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Business

Steve Madden net sales for the second quarter ended June 30, 2016 increased

0.6 percent to 325.4 million dollars compared to 323.6 million dollars in the same period of 2015. Net income was 24.7 million dollars or 0.42 dollar per diluted share, compared to 24.5 million dollars or 0.40 dollars per diluted share, in the prior year's second quarter.

“While core businesses are meeting or exceeding expectations, we are seeing softer than anticipated trends in our private label footwear business and certain international distributors. Therefore, we are adjusting our sales outlook and now expect net sales for 2016 to increase 0 percent to 1 percent compared to 2015,” said Edward Rosenfeld, Chairman and CEO of Steve Madden, adding, “Despite the lower sales expectation, we continue to expect that diluted EPS will be in the range of 1.93 dollars to 2.03 dollars due to better than anticipated gross margin trends and a reduction in our forecasted full year tax rate.”

Second quarter result highlights

Gross margin expanded 130 basis points to 37.2 percent as compared to 35.9 percent and operating income totaled 35.9 million dollars or 11 percent of net sales, compared with operating income of 36.8 million dollars or 11.4 percent of net sales, in the same period of 2015.

Net sales for the wholesale business were 262.9 million dollars compared to 266.7 million dollars in the second quarter of 2015. Gross margin in the wholesale business increased to 31.1 percent driven by improvement in the wholesale footwear segment.

Retail net sales were 62.5 million dollars compared to 56.9 million dollars in the second quarter of the prior year, while same store sales increased 5.4 percent. Retail gross margin decreased to 62.8 percent compared to 64.5 percent in the second quarter of 2015 due to the negative impact of a stronger US dollar on the company’s international retail businesses. During the second quarter, the company opened two full price stores and seven outlet locations. The company ended the quarter with 180 company-operated retail locations, including four internet stores.

Photo: Steve Madden

Steve Madden