Steve Madden’s wholesale business boosted second quarter net sales. The fashion footwear brand, which opened its largest brand store in Times Square on Tuesday, reported that net sales for the quarter increased 15 percent to $374.1 million, compared to $325.4 million during the same period last year.
Net income was $29 million, or $0.50 per diluted share. Adjusted net income was $29.7 million or $0.51 per diluted share, up from $24.7 million or $0.41 per diluted share during the second quarter of 2016.
The brand’s net sales for wholesale increased 16.3% to $305.6 million, with the women’s footwear category as a main driver of growth. Retail net sales grew 9.6% to $68.5 million, up from $62.5 million during the same quarter last year. Same store sales increased 2.2% for the quarter, down compared to 5.4% increase during the same period last year. Retail gross margin dropped slightly to 62.6% percent, compared to 62.8% during the second quarter of 2016.
What the execs say
“The strong momentum in our business continued into the second quarter, as we delivered another quarter of robust sales and earnings growth despite the challenging retail environment. Once again, we saw outstanding performance in our core Steve Madden Women’s wholesale footwear division, where our trend-right product assortment continues to resonate with consumers and drive market share gains,” said Steve Madden CEO and Chairman Edward Rosenfeld.
The company updates its outlook for the fiscal year, reporting that net sales will increase 9 to 11 percent, over net sales last year. Steve Madden now expects diluted EPS and GAAP basis for the year to be between $2.03 and $2.09, with an adjusted EPS for the year between $2.18 and $2.24.
“As we look ahead to the balance of the year, we are taking a prudent approach to planning our business in light of industry headwinds,” Rosenfeld said. “That said, the strength of our brands and our business model gives us confidence that we are well-positioned to navigate the uncertain environment.”