Third Quarter Net Sales Increase 23.2%, Third Quarter Operating Margin Improves 870 Basis Points, Third Quarter Diluted EPS is $0.57 versus $0.26 Last Year.
Steven Madden Ltd announced financial results for the third quarter and nine months ended September 30, 2006.
Net sales for the third quarter increased 23.2% to $123.2 million from $100.1 million last year. Gross margin increased significantly to 41.4% from 35.2% in the comparable period last year, reflecting margin improvement in both the wholesale and retail divisions. Operating expenses were 26.8% of sales compared to 28.5% of sales last year due to the Company's ability to leverage costs against the increased sales base.
Third quarter operating income grew to $21.9 million, or 17.7% of sales, compared to $9.0 million, or 9.0% of sales, last year. Net income increased to $12.6 million, or $0.57 per diluted share, versus $5.5 million, or $0.26 per diluted share, in the third quarter of fiscal 2005.
Revenues from the wholesale business were up 29.2% to $91.8 million from $71.0 million last year. The Company recorded particular strength in the Steve Madden Women's and Steven by Steve Madden divisions, and also benefited from sales contributions from the recently acquired Daniel M. Friedman & Associates and the recently launched SM New York division. Strong consumer demand for the Company's products helped drive a 790 basis point improvement in wholesale gross margin, which increased to37.9% from 30.0% last year.
marketing@alchempro.com
