Steve Madden Ltd. said it was pleased with its fourth-quarter financial performance as it saw gains in sales and profit and also hit Wall Street’s estimates.
The fashion footwear maker’s net income climbed 22.5 percent year-over-year to $25.7 million, or 43 cents per diluted share, from $21 million, or 34 cents per diluted share, in the comparable quarter.
Q4 revenue totaled $344.3 million, a 0.5 percent improvement from the same year-ago quarter’s revenue of $342.6 million.
Analysts had predicted revenue of $344.2 million and EPS of 43 cents.
“We are pleased to have achieved 27 percent growth in diluted EPS in the fourth quarter despite a challenging retail environment and unfavorable weather that negatively impacted sales of seasonal products like boots and cold weather accessories,” said Steve Madden Chairman and CEO Edward Rosenfeld in a release. “Our retail business continued its strong performance with a 6.1 percent comparable store sales gain and we delivered solid gross margin improvement in both our wholesale and retail segments in spite of the headwinds from a heavily promotional retail environment.”
For the full year, net sales increased 5.3 percent to $1.4 billion, from $1.3 billion in the prior year. Net income was $112.9 million, or $1.85 per diluted share, compared to net income of $111.9 million, or $1.76 per diluted share, in the prior year.
Echoing the same sentiment as other footwear-and-apparel companies, Rosenfeld said the firm is “cautious about the overall environment” in 2016.
“But are pleased with the underlying fundamentals in our business, and we remain confident that the strength of our brands, combined with our proven business model, will enable us to drive meaningful earnings growth over the long term,” the CEO said.
For fiscal year 2016, the company expects that net sales will increase 2 percent to 4 percent over net sales in 2015. Diluted EPS is expected to be in the range of $1.93 to $2.03