Add Steve Madden Ltd. to the growing list of shoe companies showing increased momentum in the second quarter.
The fashion footwear company’s share price is rising today after it posted a modest Wall Street beat driven by better-than-expected retail sales and improved gross margins. Net income however, was down year-over-year and sales in the company’s wholesale footwear business—excluding acquisitions—were also down.
Net Income: Net income was $24.5 million, for the quarter ended June 30, 2015, down 12.5 percent year-on-year from $28 million.
EPS: Earnings per diluted share were 40 cents per share down from the prior year’s same quarter EPS of 44 cents per diluted share.
Net Revenue: Net sales increased 9.4 percent to $323.6 million compared to $295.7 million in the same period of 2014.
Hit, Miss or Beat: Steve Madden beat Wall Street’s estimates for both revenues and EPS. Analysts polled by Yahoo Finance had predicted revenues of $315.5 million and EPS of 39 cents.
Executive Insights: “We are pleased to have delivered sales and earnings results ahead of expectations in the second quarter. These results are attributable to outstanding performance in our retail segment, driven by robust comparable store sales growth of 18.5 percent as well as a second consecutive quarter of mid-teens sales growth in our wholesale accessories business. As expected, sales in our wholesale footwear business excluding acquisitions were down, but we continue to see much-improved sell-through at our retail partners compared to 2014. Based on the improvement in the underlying trends in our business, we are confident in our ability to achieve our sales and earnings targets for 2015.” – Edward Rosenfeld, Steve Madden’s chairman and CEO, in a release.
Looking Ahead: Management reiterated FY15 guidance.