Steven Madden posts better than expected preliminary Q1 results
20 Apr '06
2 min read
Fashion footwear and accessories designer for women, men and children Steven Madden Ltd has announced preliminary results for the first quarter.
The net sales are expected to increase approx. 30 percent over last year to $108 million, driven by stronger than anticipated sales in the wholesale segment. Wholesale net sales increased approx. 46 percent, including the contribution from recently acquired Daniel Friedman & Associates.
Total retail sales decreased approx. 4 percent, while same store sales were down approx. 8 percent versus a 5.5 percent increase last year. The year-over-year decline in the retail business is primarily due to planned declines in the accessories and men's categories as well as a reduction in promotional sales.
The company's previously stated strategic initiatives to improve gross margin are gaining traction at a faster pace than anticipated and delivered strong tangible results during the quarter. As such, gross margins improved across all divisions, and this was a key driver of the company's solid and better than planned first quarter performance.
Due to the broad based strength in the business, the company expects first quarter earnings per diluted share will be in the range of $0.72 to $0.74 based on approx. 14.6 million diluted weighted shares outstanding. This compares to earnings per diluted share of $0.07 on 13.8 million diluted weighted shares outstanding in the first quarter of last year.
"We continued our strong and steady momentum during the first quarter of 2006," said Jamieson Karson, Chairman and CEO.
marketing@alchempro.com
