Steve Madden reported its first quarter earnings this week, revealing a positive sales outlook for the rest of the year.
For the quarter ending March 31, company net sales increased 1.7 percent to $329.4 million, compared to $323.9 million in the same period last year. Net income was $20 million, or $0.33 per diluted share, compared to $19.8 million in 2015.
Steve Madden Chairman and CEO Edward Rosenfeld attributed the brand’s success to its wholesale footwear business, led by strong gains in its Steve Madden women’s and Dolce Vita divisions, although those gains were partially offset by a decline in Steve Madden wholesale accessories.
“We were pleased with our first quarter results, which were in line with our expectations. Our retail segment was again a standout, with a comparable store sales increase of 10.7 percent on top of an 11.6 percent increase in last year’s first quarter,” said Rosenfeld in a statement. “While we remain cautious with respect to our outlook for the year due to the uncertain retail environment, we are heartened by the strength of our current product assortments and the renewed momentum in our core business.”
Retail was also another strong area for the brand, as same store sales increased 10.7 percent, helping to boost first quarter net sales to $53.6 million, up from $47.7 million in 2015. The company said reduced promotional activity in-store helped increase retail gross margin to 56.2 percent, compared to 54.8 pecent in the first quarter of 2015.
For fiscal year 2016, the company says it expects net sales to increase two percent to four percent over net sales in 2015. Diluted EPS for fiscal year 2016 is expected to be in the range of $1.93 to $2.03.