Steven Madden Ltd. is still going strong.
The company blew past analysts’ mixed reviews leading up to its first-quarter earnings report. The firm posted profits of $34.5 million, or 41 cents per diluted share, compared with $28.7 million, or 33 cents, in the prior-year period. On an adjusted basis, the bottom line increased more than 13% year over year to $35.1 million, or 42 cents per diluted share — surpassing earnings estimates of a flat 36 cents.
Sales rose 5% to $410.9 million, compared with $389 million in the same period last year. That figure was also ahead of consensus bets of $404.7 million. (Analysts had cited the potential impact of the Easter calendar shift and dreary February temperatures on the company’s sales.)
“We are off to a strong start in 2019, with first-quarter results exceeding our expectations. Our flagship Steve Madden brand was the highlight in the quarter, with robust increases in the wholesale footwear and accessories businesses, as well as outstanding performance [online],” chairman and CEO Edward Rosenfeld said in a statement. “Looking ahead, we are confident that based on our strong brand portfolio, consistency in delivering on-trend product and proven business model, we are well positioned to drive sustainable growth and shareholder value over the long term.”
Steve Madden saw its stock rise nearly 4% at $35.25 before market open on Thursday.
Additionally, wholesale revenues rose 5.1 percent to $348.1 million in the first quarter, with growth in its Steve Madden and Anne Klein brands offset by Payless ShoeSource’s bankruptcy. (In February, the retailer filed its second Chapter 11 petition, subsequently shuttering all 2,500 of its North America stores.) Retail sales also trended positively, climbing 8.6% to $62.8 million. Overall, same-store sales improved 6.3% in the quarter, driven by the company’s e-commerce business.
Looking forward, Steve Madden announced that it would be raising its fiscal year 2019 guidance, expecting revenues to increase 5% to 7% over last year’s numbers, compared with the previous guidance of a 4% to 6% gain. It anticipates diluted EPS in the range of $1.76 to $1.84 and adjusted diluted EPS between $1.78 to $1.86.
Watch FN’s video below.
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