Edward Rosenfeld, Chairman and Chief Executive Officer, commented: “We were pleased with our second quarter performance, which was highlighted by robust gains in our Steve Madden Women’s and Dolce Vita wholesale footwear divisions as well as continued strong comparable store sales growth in our retail segment. While these core businesses are meeting or exceeding expectations, we are seeing softer than anticipated trends in our private label footwear business and with certain international distributors. Therefore, we are adjusting our sales outlook”.

Net sales for the wholesale business totaled 262.9 million US dollars in the second quarter of 2016 compared to 266.7 million US dollars in similar period in 2015. Gross margin in the wholesale business increased to 31.1% compared to 29.8% in last year’s second quarter driven by improvement in the wholesale footwear segment.

Retail net sales in the second quarter reached 62.5 million US dollars compared to 56.9 million US dollars in the second quarter of the prior year. Same store sales increased by 5.4% for the second quarter. Retail gross margin decreased to 62.8% in the second quarter of 2016 suffering the negative impact of a stronger US dollar on the company’s international retail businesses.

During the second quarter, Steve Madden opened 2 full price stores and 7 outlet location, with the company ending up the quarter with 180 company-operated retail locations, including 4 Internet stores.

The company has adjusted its sales outlook for fiscal year 2016, now expecting net sales to increase between 0% to 1% over net sales in 2015.