Steve Madden reaffirms FY despite Q1 declines
- Earnings drop to US$19.8m
- Gross margin narrows to 34.4%
- Sales grow 18.4%
US fashion footwear and accessories specialist Steve Madden has reaffirmed its full-year outlook despite recording a decline in first-quarter earnings and a narrowing of gross margin.
Earnings in the three months to the end of March amounted to US19.8m, from $23.6m a year earlier. The 2014 figure included a $3m loss related to the partial impairment of its Wild Pair trademark.
Gross margin narrowed to 34.4% as compared to 35.6% in the same period last year, while total sales were up 6.3% to $323.9m.
Retail net sales in the quarter were up 18.4% to $46.9m, while same store sales increased 11.6%. Retail gross margin, however, decreased to 55.1% from 55.7% due to increased promotional activity in the company's outlet stores.
CEO Edward Rosenfeld said the company was "pleased" with the results, with both sales and earnings meeting plan.
He added: "While sales in our wholesale footwear business excluding acquisitions were down, as expected, in the first quarter, we saw a meaningful improvement in sell-through at our retail partners compared to the prior year. Overall, we are pleased with the underlying trends we are seeing in our business and remain on track to meet our sales and earnings targets for 2015."
For fiscal year 2015, the company continues to expect net sales to increase 7% to 9%. Diluted EPS is expected to be in the range of $1.85 to $1.95.
Help test our new apparel sourcing tool.
- Digitalisation and data to disrupt supply chains
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- What TTIP might mean for US, EU textiles & apparel
- Geo-political uncertainty and how to survive it
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Levi Strauss and ILO probe Cambodia factory death
- Next books first FY profit fall in eight years
- Big data to help US firms improve clothing fit
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing