Source: Company reports

1Q16 RESULTS

Steve Madden reported solid 1Q16 results, with net sales of $329.4 million, up 1.7% from the year-ago quarter. The wholesale division reported revenues of $275.8 million, up 0.2% year over year, owing to strong sales in the Steve Madden and Dolce Vita divisions that were partially offset by a decline in wholesale accessories. The wholesale gross margin expanded by 40 basis points, to 31.2%, due to improvements in wholesale footwear. The retail division reported revenues of $53.6 million, up 12.4% year over year, driven by 10.7% comps. The retail gross margin expanded by 140 basis points, to 56.2%, due to reduced promotional activity. During the quarter, the company opened one store in Mexico and one store in the US, taking its store count to 171, including four Internet stores.

GUIDANCE

The company reiterated its FY16 guidance of a total sales increase of approximately 2%–4%, to $1.43–$1.46 billion, in line with the consensus estimate of $1.45 billion. Steve Madden also reiterated EPS guidance of $1.93–$2.03, in line with the consensus estimate of $2.02.