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Steve Madden raises full year guidance

Oct 29, 2019 United States
Steve Madden raises full year guidance
The designer and marketer of fashion products announced financial results for the third quarter and adjusted its full year guidance
Edward Rosenfeld, Chairman and Chief Executive Officer, commented: “We are pleased with our third quarter results, which included adjusted earnings that significantly exceeded our expectations driven by strong performance in our Steve Madden and Blondo brands. We also completed two acquisitions during the quarter that provide meaningful growth opportunities going forward: GREATS, a pioneering digitally native sneaker brand, and BB Dakota, a contemporary women’s apparel company. Based on the strong performance in third quarter and the continued momentum in our underlying business, we are raising our 2019 EPS guidance despite incremental earnings pressure from the implementation of the 15% tariff on List 4 products from China. Looking out further, the power of our brands and the strength of our business model give us confidence that we can continue to drive earnings growth and create value for shareholders over the long term”.

Quarter Results


For the third quarter of the current year Steve Madden net sales increased by 8.5% totalling 497.3 million US dollars compared to 458.5 million US dollars in the same period of 2018. Net income attributable to Steven Madden reached 52.5 million US dollars, or 0.63 US dollars per diluted share, compared to 55.6 million US dollars, or 0.64 US dollars per diluted share, in the prior year’s third quarter. Adjusted net income attributable to Steven Madden totalled 56.0 million US dollars, or 0.67 US dollars per diluted share, compared to 55.9 million US dollars, or 0.65 US dollars per diluted share, in the prior year’s third quarter.

Net sales for the wholesale business increased by 8.5% totalling 421.6 million US dollars in the third quarter of 2019, with strong growth in the wholesale footwear and the wholesale accessories/apparel segments. Wholesale footwear net sales rose by 6.3% driven by gains in Blondo, Steve Madden Women's and private label. Wholesale accessories/apparel net sales increased by 15.8% driven by strong growth in Steve Madden handbags as well as the addition of the BB Dakota apparel business. Gross margin in the wholesale business decreased to 33.9% compared to 34.3% in last year’s third quarter as an increase in the wholesale footwear gross margin was more than offset by a decrease in the wholesale accessories/apparel gross margin due primarily to the tariff on goods imported from China.

Retail net sales in the third quarter rose by 8.3% to 75.7 million US dollars compared to 69.9 million US dollars in the third quarter of the prior year. Same store sales increased by 5.1% in the quarter driven by strong performance in the company’s e-commerce business. Retail gross margin increased to 63.3% in the third quarter of 2019 compared to 60.1% in the third quarter of the prior year due primarily to reduced promotional activity.


Retail Network

Steve Madden ended the quarter with 227 company-operated retail locations, including eight Internet stores, as well as 32 company-operated concessions in international markets.

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