Shares of Steve Madden were down by as much as 5 percent on Tuesday afternoon following the announcement of the company’s second-quarter earnings report.
The footwear company posted second-quarter net sales of $325.4 million, up 0.6% from $323.6 million during the same period of 2015. This was slightly lower than the $330.1 million analysts had expected.
Madden Chairman and CEO Edward Rosenfeld expressed his satisfaction with the company’s Steve Madden women’s and Dolce Vita wholesale footwear divisions, as well as 5.4% bump in same-store sales. However, the company was still hurt by softer than anticipated trends at the company’s private label, which Rosenfeld said missed the mark with international distributors.
“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,” Rosenfeld said. “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.”
Steve Madden lowered its guidance for the year as a result, with the company now saying it expects growth in the range of flat to 1 percent, down from the predicted range of 2-4 percent.