Steve Madden (Nasdaq:SHOO), a leading designer and marketer of
fashion footwear and accessories for women, men and children, today
announced financial results for the third quarter ended September
30, 2015.
For the Third Quarter 2015:
- Net sales increased 5.5% to $413.5
million compared to $392.0 million in the same period of 2014.
- Gross margin expanded 130 basis points
to 36.0% as compared to 34.7% in the same period last year.
- Operating expenses as a percentage of
sales were 21.6% compared to 20.9% of sales in the same period of
2014.
- Operating income totaled $66.3 million,
or 16.0% of net sales, compared with operating income of $59.3
million, or 15.1% of net sales, in the same period of 2014.
- Net income was $42.9 million, or $0.70
per diluted share, compared to $39.2 million, or $0.62 per diluted
share, in the prior year's third quarter.
Edward Rosenfeld, Chairman and Chief Executive Officer,
commented, “We are pleased with our third quarter results, which
included an increase in diluted EPS of 13% compared to the prior
year period. Our retail segment was once again the standout, with a
third consecutive quarter of double-digit comparable store sales
growth. We also benefited from earnings contributions from the
recently acquired Dolce Vita, Blondo and SM Mexico. While the
overall retail environment is choppy, we are pleased with the
momentum in our business and remain on track to meet our earnings
targets for the year.”
Third Quarter 2015 Segment Results
Net sales for the wholesale business were $357.0 million in the
third quarter compared to $343.3 million in the third quarter of
2014. Gross margin in the wholesale business increased to 32.1%
compared to 31.3% in last year’s third quarter due to improvement
in the wholesale footwear segment.
Retail net sales in the third quarter were $56.4 million
compared to $48.7 million in the third quarter of the prior year.
Same store sales increased 11.2% for the third quarter. Retail
gross margin increased to 60.4% in the third quarter of 2015
compared to 58.9% in the third quarter of 2014 as a result of
decreased promotional activity.
During the third quarter, the Company opened two full price
stores in Canada, one full price store in Mexico and one U.S.
outlet location. The Company ended the quarter with 165
company-operated retail locations, including 120 full price stores,
37 outlets, four Internet stores and four joint venture locations
in South Africa.
The effective tax rate for the third quarter of 34.1% compares
to 35.0% in the third quarter of the prior year.
Balance Sheet and Cash Flow
During the third quarter of 2015, the Company repurchased
approximately 763,000 shares of the Company’s common stock for
$29.7 million.
As of September 30, 2015, cash, cash equivalents, and current
and non-current marketable securities totaled $151.2 million.
Company Outlook
Based on lower-than-anticipated back half sales in its private
label footwear business, the Company has adjusted its sales outlook
for fiscal year 2015. The Company now expects that net sales will
increase 6% to 7% over net sales in 2014. The Company continues to
expect diluted EPS for fiscal year 2015 to be in the range of $1.85
to $1.95.
Conference Call Information
Interested stockholders are invited to listen to the first
quarter earnings conference call scheduled for today, Thursday,
October 29, 2015, at 8:30 a.m. Eastern Time. The call will be
broadcast live over the Internet and can be accessed by logging
onto http://www.stevemadden.com. An online archive of the broadcast
will be available within one hour of the conclusion of the call and
will be accessible for a period of 30 days following the call.
Additionally, a replay of the call can be accessed by dialing
1-877-870-5176 (U.S.) and 1-858-384-5517 (international), passcode
1949549, and will be available until November 29, 2015.
About Steve Madden
Steve Madden designs, sources and markets fashion-forward
footwear and accessories for women, men and children. In addition
to marketing products under its own brands including Steve Madden®,
Dolce Vita®, Betsey Johnson®, Report®, Big Buddha®, Brian Atwood®,
Cejon®, Blondo® and Mad Love®, Steve Madden is the licensee of
various brands, including Superga® for footwear in North America.
Steve Madden also designs and sources products under private label
brand names for various retailers. Steve Madden's wholesale
distribution includes department stores, specialty stores, luxury
retailers, national chains and mass merchants. Steve Madden also
operates 165 retail stores (including Steve Madden's four Internet
stores). Steve Madden licenses certain of its brands to third
parties for the marketing and sale of certain products, including
for ready-to-wear, outerwear, intimate apparel, eyewear, hosiery,
jewelry, fragrance, luggage and bedding and bath products. For
local store information and the latest Steve Madden booties, pumps,
men’s and women’s boots, dress shoes, sandals and more, visit
http://www.stevemadden.com/
Safe Harbor
This press release and oral statements made from time to time by
representatives of the Company contain certain “forward looking
statements” as that term is defined in the federal securities laws.
The events described in forward looking statements may not occur.
Generally these statements relate to business plans or strategies,
projected or anticipated benefits or other consequences of the
Company's plans or strategies, projected or anticipated benefits
from acquisitions to be made by the Company, or projections
involving anticipated revenues, earnings or other aspects of the
Company's operating results. The words "may," "will," "expect,"
"believe," "anticipate," "project," "plan," "intend," "estimate,"
and "continue," and their opposites and similar expressions are
intended to identify forward looking statements. The Company
cautions you that these statements concern current expectations
about the Company’s future results and condition and are not
guarantees of future performance or events and are subject to a
number of uncertainties, risks and other influences, many of which
are beyond the Company's control, that may influence the accuracy
of the statements and the projections upon which the statements are
based. Factors which may affect the Company's results include, but
are not limited to, the risks and uncertainties discussed in the
Company's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K filed with the Securities and
Exchange Commission. Any one or more of these uncertainties, risks
and other influences could materially affect the Company's results
of operations and financial condition and whether forward looking
statements made by the Company ultimately prove to be accurate and,
as such, the Company's actual results, performance and achievements
could differ materially from those expressed or implied in these
forward looking statements. The Company undertakes no obligation to
publicly update or revise any forward looking statements, whether
as a result of new information, future events or otherwise.
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In thousands, except per share
amounts)
Unaudited
Three Months Ended Nine Months Ended
September
30, 2015 September 30, 2014
September 30, 2015 September 30,
2014 Net sales $ 413,462 $ 391,992 $ 1,060,989 $
992,331 Cost of sales 264,691 255,895
684,694 640,826 Gross profit 148,771 136,097 376,295 351,505
Commission and licensing fee income, net 6,643 5,103 13,689 11,461
Operating expenses 89,130 81,867 253,991 227,328 Impairment charge
- - 3,045 - Income from
operations 66,284 59,333 132,948 135,638 Interest and other
(loss)/income, net (895 ) 1,132 273
3,218 Income before provision for income taxes 65,389 60,465
133,221 138,856 Provision for income taxes 22,298
21,163 45,428 47,385 Net income 43,091 39,302
87,793 91,471 Net income (loss) attributable to noncontrolling
interest 206 54 578 584 Net
income attributable to Steven Madden, Ltd. $ 42,885 $ 39,248
$ 87,215 $ 90,887 Basic income per share $ 0.73 $ 0.64 $
1.47 $ 1.47 Diluted income per share $ 0.70 $ 0.62 $ 1.42 $ 1.42
Basic weighted average common shares
outstanding
58,911 61,019 59,271 61,936
Diluted weighted average common shares
outstanding
61,060 63,215 61,516 64,184
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands)
As of
September 30, 2015
December 31, 2014
September 30, 2014
(Unaudited) (Unaudited) Cash and cash equivalents $ 38,654 $ 81,450
$ 169,911 Marketable securities (current & non current) 112,539
121,644 19,562 Accounts receivables, net 284,835 194,594 260,433
Inventories 123,768 92,677 103,151 Other current assets 37,965
42,307 31,051 Property and equipment, net 71,162 68,905 63,092
Goodwill and intangibles, net 291,269 294,416 274,848 Other assets
9,693 15,242 12,484 Total assets $ 969,885 $
911,235 $ 934,532 Accounts payable $ 130,556 $ 92,635 $
118,817 Contingent payment liability (current & non current)
33,179 38,633 29,558 Other current liabilities 90,480 73,501 73,724
Other long term liabilities 30,408 36,937 26,754 Total Steven
Madden, Ltd. stockholders' equity 684,887 669,255 685,390
Noncontrolling interest 375 274 289 Total
liabilities and stockholders' equity $ 969,885 $ 911,235 $ 934,532
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED CASH FLOW DATA
(In thousands)
Unaudited
Nine Months Ended
September 30, 2015
September 30, 2014 Net cash provided by
operating activities $ 50,148 $ 74,437
Investing
Activities Purchases of property and equipment (13,524 )
(12,605 ) Purchases / sales of marketable securities, net 4,627
94,873 Repayment of notes receivable 342 - Acquisitions, net of
cash acquired (9,129 ) (61,414 ) Net cash (used
in)/provided by investing activities (17,684 ) 20,854
Financing Activities Common stock share repurchases
for treasury (103,892 ) (101,751 ) Payment of contingent liability
(2,950 ) (8,475 ) Proceeds from exercise of stock options 21,154
2,940 Tax benefit from the exercise of stock options 10,428
1,631 Net cash used in financing activities
(75,260 ) (105,655 ) Net decrease in cash and cash
equivalents (42,796 ) (10,364 ) Cash and cash equivalents -
beginning of period 81,450 180,275 Cash and cash
equivalents - end of period $ 38,654 $ 169,911
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151029005449/en/
ICR, Inc.Investor RelationsJean Fontana/Megan Crudele,
203-682-8200www.icrinc.com
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