Post Earnings Coverage as Steve Madden’s Quarterly Sales Jumped 11%, Adjusted EPS Soared 21%

Upcoming AWS Coverage on Coach

LONDON, UK / ACCESSWIRE / April 26, 2017 / Active Wall St. announces its post-earnings coverage on Steven Madden, Ltd. (NASDAQ: SHOO). The Company disclosed its first quarter fiscal 2017 results on April 21, 2017. The footwear and accessories retailer outperformed top- and bottom-line expectations. Register with us now for your free membership at:

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One of Steven Madden’s competitors within the Textile – Apparel Footwear & Accessories space, Coach, Inc. (NYSE: COH), is estimated to report earnings on April 25, 2017. AWS will be initiating a research report on Coach following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on SHOO; touching on COH. Get our free coverage by signing up to:

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Earnings Reviewed

Steve Madden announced that for the first quarter ended March 31, 2017, net sales increased 11.2% to $366.4 million compared to $329.4 million in Q1 2016. Steve Madden’s sales numbers surpassed analysts’ consensus of $359.5 million.

For Q1 2017, Steve Madden’s gross margin was 36.2%., while adjusted gross margin totaled 36.6% compared to 35.3% in the same period last year; an increase of 130 basis points. The Company’s operating income totaled $30.8 million for the reported quarter, or 8.4% of net sales. Steve Madden’s adjusted operating income was $39.5 million, or 10.8% of net sales, for the reported quarter compared with operating income of $29.9 million, or 9.1% of net sales, in the year earlier comparable quarter.

Steve Madden’s Q1 2017 operating expenses as a percentage of sales were 28.9%. Adjusted operating expenses as a percentage of sales were 26.8% in the reported quarter compared to 26.9% of sales in the corresponding year earlier same period.

Steve Madden’s net income was $20.2 million, or $0.35 per diluted share, for Q1 2017. The Company’s adjusted net income was $27.5 million, or $0.47 per diluted share, for the reported quarter, compared to $23.7 million, or $0.39 per diluted share, in the prior year’s first quarter. Steve Madden’s earnings numbers exceeded Wall Street’s expectations of $0.43 per share.

Segment Results

During Q1 2017, Steve Madden’s net sales for the wholesale business increased 13.6% to $313.3 million. Excluding the results of the recently acquired Schwartz & Benjamin, wholesale net sales increased 8.5% to $299.2 million from $275.8 million in the year earlier corresponding quarter, with strong gains in both wholesale footwear and wholesale accessories. Gross margin in the wholesale business was 32.4%. Excluding the non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition, adjusted gross margin in the wholesale business was 32.8% compared to 31.2% in the year ago same period, driven by an increase in the wholesale footwear segment.

Steve Madden’s Q1 2017 retail net sales totaled $53.1 million compared to $53.6 million in Q1 2016. The segment’s same store sales decreased 6.0% in the reported quarter compared to a 10.7% same store sales increase in the prior year’s comparable period. Retail gross margin increased to 58.7% in Q1 2017 compared to 56.2% in Q1 2016 due to a lower level of promotional activity.

Store Update

During Q1 2017, the Company opened one full price store and one outlet location, and closed one full price store. Steve Madden ended the quarter with 190 Company-operated retail locations, including 53 outlets and 4 ecommerce sites.

Balance Sheet and Cash Flow

During Q1 2017, the Company repurchased 912,050 shares of its common stock for approximately $33.2 million, which includes shares acquired through the net settlement of employee stock awards. As of March 31, 2017, Steve Madden’s cash, cash equivalents, and current and non-current marketable securities totaled $193.2 million. Inventory totaled $97 million compared to $80.4 million in the prior year. Excluding inventory related to Schwartz & Benjamin, inventory was $88.9 million, or up 10.6%.

Company Outlook

Steve Madden continues to expect that net sales in FY17 will increase 8% to 10% over net sales in 2016. The Company expects that diluted EPS on a GAAP basis for fiscal year 2017 will be in the range of $1.97 to $2.03. Steve Madden is projecting adjusted diluted EPS for FY17 in the band of $2.12 to $2.18.

Stock Performance

On Tuesday, April 25, 2017, the stock closed the trading session at $38.30, marginally up 0.26% from its previous closing price of $38.20. A total volume of 455.42 thousand shares have exchanged hands. Steven Madden’s stock price advanced 8.35% in the last three months, 15.81% in the past six months, and 8.16% in the previous twelve months. Furthermore, on a year to date basis, the stock gained 7.13%. Shares of the company have a PE ratio of 18.79 and currently have a market cap of $2.25 billion.

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