Steve Madden ends year with 10.5% sales jump
Steve Madden managed to deliver results that were in line with forecasts in the fourth quarter and full year ended December 31, 2017, driven primarily by its flagship brand.
The designer and marketer of fashion footwear and accessories including Blondo, Brian Atwood, and Dolce Vita, to name a few, reported on Tuesday a net sales increase of 10.5 percent reaching $1.55 billion, up from $1.40 billion in the prior year. Net income was $117.9 million, or $2.04 per diluted share.
In the fourth quarter, net sales equally jumped 8.3 percent to $364.4 million, compared to $336.4 million in the same period of 2016. Meanwhile, net income was $24.6 million, or $0.43 per diluted share. Adjusted net income was $27.5 million, or $0.48 per diluted share, compared to $28.7 million, or $0.49 per diluted share, in the prior year's fourth quarter.
“The solid performance in Q4 capped a strong year for the Company, with double-digit percentage growth in both net sales and Adjusted diluted EPS driven by the outstanding performance of our flagship Steve Madden brand in the wholesale channel,” said Edward Rosenfeld, Chairman and CEO, in a news statement.
Net sales for the wholesale business were on the rise, but the company’s retail business saw some shortfalls including a decline in same-store sales.
A decline in wholesale accessories was offset by footwear, resulting in net sales for the wholesale business of $278.2 million, up 10.6 percent in the fourth quarter of 2017, including sales from Schwartz & Benjamin, acquired in January 2017.
Retail net sales in the fourth quarter increased 1.5 percent to $86.2 million compared to $84.9 million in the fourth quarter of the prior year, though same store sales decreased 5.1 percent in the quarter.
For fiscal 2018, the company expects net sales will increase 5 to 7 percent over net sales in 2017. Diluted EPS is expected in the range of $2.60 to $2.67.
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