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 first quarter ended March 31,
2016.
For the First Quarter 2016:
- Net sales increased 1.7% to $329.4
million compared to $323.9 million in the same period of 2015.
- Gross margin expanded 90 basis points
to 35.3% as compared to 34.4% in the same period last year.
- Operating expenses as a percentage of
sales were 26.9% compared to 25.4% of sales in the same period of
2015.
- Operating income totaled $29.9 million,
or 9.1% of net sales, compared with operating income of $29.8
million, or 9.2% of net sales, in the same period of 2015.
Operating income in the first quarter of 2015 included a $3.0
million net benefit related to early lease termination of the
Company’s 5th Avenue store location. Operating income in the first
quarter of 2015 also included a $3.0 million loss related to the
partial impairment of the Company’s Wild Pair trademark. As the
aforementioned items offset, operating income for the first quarter
of 2015 excluding these items was $29.8 million.
- Net income was $20.0 million, or $0.33
per diluted share, compared to $19.8 million, or $0.32 per diluted
share, in the prior year's first quarter. Net income for the first
quarter of 2015 included the aforementioned items. As these items
offset, net income excluding these items was $19.8 million, or
$0.32 per diluted share.
Edward Rosenfeld, Chairman and Chief Executive Officer,
commented, “We were pleased with our first quarter results, which
were in line with our expectations. Our retail segment was again a
standout, with a comparable store sales increase of 10.7% on top of
an 11.6% increase in last year’s first quarter. Our wholesale
footwear business also grew in the quarter, led by strong gains in
our Steve Madden Women’s and Dolce Vita divisions. As expected,
these increases were partially offset by a decline in our wholesale
accessories segment. While we remain cautious with respect to our
outlook for the year due to the uncertain retail environment, we
are heartened by the strength of our current product assortments
and the renewed momentum in our core business.”
First Quarter 2016 Segment Results
Net sales for the wholesale business were $275.8 million in the
first quarter of 2016 compared to $276.2 million in the first
quarter of 2015. Gross margin in the wholesale business increased
to 31.2% compared to 30.8% in last year’s first quarter due to
improvement in the wholesale footwear segment.
Retail net sales in the first quarter were $53.6 million
compared to $47.7 million in the first quarter of the prior year.
Same store sales increased 10.7% for the first quarter. Retail
gross margin increased to 56.2% in the first quarter of 2016
compared to 54.8% in the first quarter of 2015 as a result of
reduced promotional activity.
During the first quarter, the Company opened 1 full price store
in Mexico and 1 outlet location in the United States. The Company
ended the quarter with 171 company-operated retail locations,
including 4 Internet stores.
The effective tax rate for the first quarter of 2016 was 32.0%
compared to 34.3% in the first quarter of the prior year.
Balance Sheet and Cash Flow
During the first quarter of 2016, the Company repurchased
391,685 shares of the Company’s common stock for approximately
$14.0 million.
As of March 31, 2016, cash, cash equivalents, and current and
non-current marketable securities totaled $192.9 million.
Company Outlook
For fiscal year 2016, the Company continues to expect that net
sales will increase 2% to 4% over net sales in 2015. Diluted EPS
for fiscal year 2016 is expected to be in the range of $1.93 to
$2.03.
Conference Call Information
Interested stockholders are invited to listen to the first
quarter earnings conference call scheduled for today, Friday, April
22, 2016, 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
6224588, and will be available until May 22, 2016.
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 171 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, hosiery, jewelry,
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 STATEMENTS OF OPERATIONS DATA
(In thousands, except per share amounts) (Unaudited)
Three Months Ended
March 31,
2016
March 31,
2015
Net sales $ 329,357 $ 323,945 Cost of sales 213,155
212,567 Gross profit 116,202 111,378 Commission and
licensing fee income, net 2,171 3,918 Operating expenses 88,493
82,404 Impairment charge - 3,045 Income from
operations 29,880 29,847 Interest and other (expense) income, net
(176 ) 496 Income before provision for income taxes
29,704 30,343 Provision for income taxes 9,505
10,408 Net income 20,199 19,935 Net income attributable to
noncontrolling interest 237 111 Net income
attributable to Steven Madden, Ltd. $ 19,962 $ 19,824
Basic income per share $ 0.35 $ 0.33 Diluted income per
share $ 0.33 $ 0.32 Basic weighted average common shares
outstanding 57,709 59,605 Diluted weighted average common shares
outstanding 59,770 62,078
STEVEN MADDEN,
LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(In thousands) As of
March 31,
2016
December 31,
2015
March 31,
2015
(Unaudited) (Unaudited) Cash and cash equivalents $ 70,905 $ 72,414
$ 50,455 Marketable securities (current & non current) 121,994
120,889 118,244 Accounts receivables, net 217,136 198,384 215,082
Inventories 80,356 102,080 76,029 Other current assets 54,931
52,517 54,602 Property and equipment, net 72,727 72,010 69,262
Goodwill and intangibles, net 288,642 286,855 295,618 Other assets
8,809 9,236 12,564 Total assets $ 915,500 $
914,385 $ 891,856 Accounts payable $ 86,831 $ 79,790 $
99,314 Contingent payment liability (current & non current)
21,292 24,775 39,060 Other current liabilities 49,183 78,246 55,754
Other long term liabilities 54,528 52,911 37,037 Total Steven
Madden, Ltd. stockholders' equity 703,319 678,404 660,306
Noncontrolling interest 347 259 385 Total
liabilities and stockholders' equity $ 915,500 $ 914,385 $ 891,856
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED CASH FLOW DATA
(In thousands) (Unaudited) Three Months Ended
March 31, 2016 March 31,
2015 Net cash provided by (used in) operating
activities $ 11,980 $ (2,446 )
Investing
Activities
Purchases of property and equipment (4,384 ) (3,669 ) Sales
(purchases) of marketable securities, net 1,037 2,431 Acquisition,
net of cash acquired - (9,129 ) Net cash used
in investing activities (3,347 ) (10,367 )
Financing
Activities
Common stock share repurchases for treasury (14,034 ) (52,777 )
Payment of contingent liability (3,483 ) - Proceeds from exercise
of stock options 3,678 16,807 Tax benefit from the exercise of
stock options 3,697 8,319 Advances from factor -
9,469 Net cash used in financing activities (10,142 )
(18,182 ) Net decrease in cash and cash equivalents (1,509 )
(30,995 ) Cash and cash equivalents - beginning of period
72,414 81,450 Cash and cash equivalents - end of
period $ 70,905 $ 50,455
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160422005160/en/
ICR, Inc.Investor RelationsJean Fontana/Megan
Crudele203-682-8200www.icrinc.com
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