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, 2009.
- Third quarter consolidated net
sales increased 9.4% to $140.1 million.
- Operating margin rose to 20.2%
in the third quarter 2009, compared with operating margin of 13.8%
in the same period of 2008.
- Net income for the third quarter
was $17.8 million, or $0.97 per diluted share, compared to $11.1
million, or $0.62 per diluted share, in the third quarter of
2008.
- Full-year 2009 guidance for
diluted EPS is in the range of $2.55 to $2.65.
Edward Rosenfeld, Chairman and Chief Executive Officer
commented, "We were extremely pleased to have delivered record
sales and earnings for the third quarter of 2009. The strength in
our business is a reflection of Steve and his team’s ability to
consistently create trend-right product and our organization’s
speed in getting that merchandise to market. Looking ahead, we are
very enthusiastic about our recently announced business ventures
including the launch of our newly licensed Steve Madden apparel
line as well as our new license agreement for Olsenboye footwear
and accessories. Both of these ventures offer significant growth
opportunity. Overall, we feel good about our portfolio of brands
and the long term growth prospects for our company.”
Third Quarter 2009 Results:
Third quarter consolidated net sales were $140.1 million
compared to $128.1 million reported in the comparable period of
2008. Net sales from the wholesale business grew 15.0% to $112.0
million compared to $97.3 million in the third quarter of 2008,
driven by strength in the Madden Girl, Steven by Steve Madden,
Steve Madden Women’s and Steve Madden Men’s wholesale footwear
divisions. In addition, the new Elizabeth and James brand and the
recently acquired Madden Zone, formerly SML Brands, also
contributed to the sales growth.
Retail net sales totaled $28.2 million compared to $30.7 million
in the third quarter of the prior year. Same store sales decreased
7.6% in the third quarter of 2009 compared to a 7.8% same store
sales increase in the same period of 2008.
Gross margin improved to 44.0% as compared to 41.4% in the third
quarter of 2008. For the wholesale business, gross margin was 41.2%
as compared to 36.3% in the prior year's third quarter, with the
increase driven primarily by reduced markdown allowances as a
result of strong sell-through at retail. Retail division gross
margin was 55.2% as compared to 57.4% for the comparable period
last year. The decrease in retail gross margin was primarily due to
increased promotional activity at retail stores as compared to last
year’s third quarter.
Operating expenses as a percent of sales for the third quarter
of 2009 were 27.9% as compared to 31.0% in the same period of the
prior year. The 310 basis point improvement was mainly driven by
leverage on higher sales as well as fewer stores and reduced store
payroll expense in the Company’s remaining stores.
Net income for the third quarter of 2009 totaled $17.8 million,
or $0.97 per diluted share as compared to net income of $11.1
million, or $0.62 per diluted share, in the same period of
2008.
The Company closed one retail location and licensed out three
stores during the third quarter of 2009, ending the quarter with 88
retail locations, including the Internet store.
Nine-Month 2009 Results:
For the first nine months of 2009, consolidated net sales were
$364.0 million compared to $337.9 million in the comparable period
last year.
Net income totaled $36.6 million, or $2.00 per diluted share,
for the first nine months of 2009 compared to $20.8 million or
$1.11 per diluted share in the first nine months of 2008. Net
income for the first nine months of 2008 included a charge totaling
$3.0 million post-tax, or $0.16 per diluted share, related to the
resignation of the Company’s former CEO.
As of September 30, 2009, cash, cash equivalents and marketable
securities totaled $125.7 million.
Arvind Dharia, Chief Financial Officer, commented, "Our balance
sheet remains very healthy as a result of the continuation of
strong growth in our earnings and prudent capital management."
Company Outlook
For fiscal 2009, the Company expects net sales to increase in
the range of 7%-8% compared to net sales in 2008.
Diluted EPS for 2009 is expected to be in the range of $2.55 to
$2.65.
Conference Call Information
The Company will host its third quarter 2009 earnings conference
call on Tuesday, November 3, 2009, 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 under the
Investor Relations section and an online archive of the broadcast
will be available within one hour of the conclusion of the call
which will remain accessible for a period of 30 days following the
call. Additionally, a replay will also be available two hours
following the call through December 3, 2009, via telephone at
1-888-203-1112 (U.S.) and 1-719-457-0820 (international) by
entering the replay pin 8357547.
About Steve Madden
Steve Madden designs and markets fashion-forward footwear and
accessories for women, men and children. The shoes and accessories
are sold through 88 company-owned retail stores (including the
Company’s online store), department stores, and apparel, footwear,
and accessories specialty stores. The Company has several licensees
for its brands, including for apparel, outerwear, cold weather
accessories, eyewear, hosiery, and bedding and bath products. The
Company is the licensee for footwear, handbags and belts for
Fabulosity and Olsenboye, for footwear for Elizabeth and James and
l.e.i. and for handbags and belts for Betsey Johnson and Daisy
Fuentes.
Safe Harbor
This press release contains certain statements which are
“forward-looking statements” as that term is defined in the federal
securities laws. The events described in forward-looking statements
contained in this press release may not occur. Generally these
statements are based on current expectations and assumptions
relating 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 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 for the year ended December 31, 2008. Any one or more of
these uncertainties, risks and other influences could materially
affect the Company's results of operations and whether
forward-looking statements made by the Company ultimately prove to
be accurate. The Company's actual results, performance and
achievements could differ materially from those expressed or
implied in these forward-looking statements.
All information in this release is as of November 3, 2009. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether from new information, future
events or otherwise.
STEVEN MADDEN LTD
CONSOLIDATED STATEMENT OF
OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Consolidated:
Sep
30, 2009
Sep
30, 2008
Sep
30, 2009
Sep
30, 2008
Net Sales $ 140,138 $ 128,093 $ 364,039 $ 337,949 Cost of
Sales 78,462 75,114 209,313 199,218
Gross Profit 61,676 52,979 154,726 138,731 Commission and licensing
fee income 5,726 4,497 15,993 11,056 Operating Expenses
39,088 39,770 112,729 117,097 Income from
Operations 28,314 17,706 57,990 32,690 Interest and other Income,
Net 488 248 1,252 1,142 Income Before
provision for Income Taxes 28,802 17,954 59,242 33,832 Provision
for Income Tax 10,971 6,866 22,690
13,058 Net Income $ 17,831 $ 11,088 $ 36,552 $ 20,774
Basic income per share $ 0.99 $ 0.62 $ 2.03 $ 1.12 Diluted income
per share $ 0.97 $ 0.62 $ 2.00 $ 1.11 Weighted average
common shares outstanding -
Basic 18,101 17,763 18,002
18,478 Weighted average common shares
outstanding - Diluted 18,449 17,986
18,239 18,675
STEVEN MADDEN LTD
BALANCE SHEET HIGHLIGHTS
(In thousands, except per share data) Sep 30
2009 Dec 31, 2008 Sep 30, 2008
Consolidated
Consolidated
Consolidated
(Unaudited)
(Unaudited)
Cash and cash equivalents $ 47,622 $ 89,588 $ 33,115
Investment Securities 78,069 35,224 23,554 Total Current Assets
182,550 194,736 175,996 Total Assets 316,290 284,693 246,296
Advances Payable - Factor - 30,168 - Total Current Liabilities
61,144 72,490 42,824 Total Stockholder Equity 249,898 206,242
198,864
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