US: Higher sales lift Steve Madden Q4 profit by 35%
- Fourth-quarter net income up 34.9% to $23.8m
- Sales increased 73.7% to $279.8m
- Full-year net income rose 28.5% to $97.3m
- Sales grew 52.4% to $968.5m
Footwear and accessories maker Steve Madden has booked a double-digit jump in both fourth-quarter and full-year profit thanks to acquisitions and strong sales of its women's footwear and handbags.
For the three months to 31 December, net income increased 34.9% to $23.8m as sales rose 73.7% to $279.8m.
The company said the growth in net sales reflected the addition of Topline and Cejon, which it acquired in May 2011, the move of its Target private label and Olsenboye footwear business to a wholesale model, and strong growth in its wholesale footwear and accessories businesses.
Retail sales grew 18.9% to $58.3m, with comparable-store sales up 15.9% over the quarter. However, gross margin declined to 35.5% from 43.2%.
For the full-year, net income increased 28.5% to $97.3m as sales increased 52.4% to reach $968.5m.
Looking to the year ahead, the company is forecasting a 21-23% jump in net sales, with diluted EPS in the range of $2.60-2.70.
"We are pleased to have ended 2011 with record fourth quarter results. We delivered high-teen organic sales growth in each of our wholesale footwear, wholesale accessories and retail businesses," said chairman and CEO Edward Rosenfeld.
"Our flagship Steve Madden brand led the way, as we recorded strong gains in Steve Madden women's footwear and handbags in both wholesale and retail and in both the US and international markets.
"We also continued to integrate and capitalise on our new acquisitions, Topline and Cejon, which are proving to be excellent additions to the business."
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