Steven Madden reported earnings Thursday morning, reporting quarterly earnings that met analysts’ expectations, causing stock price to fall 1.45% by market’s close Thursday evening. Sales reached $266 million, a 60.5% jump from last year, beating estimates of $250 million. Net income increased 22.5% to $21.9 million. First quarter EPS rose 19%, continuing 15 straight quarters of double digit EPS growth. This was the fifth consecutive quarter of double digit sales growth for the company. Sales growth was a result of expansion within the core Steve Madden brand, expanding into to new categories, geographies, and channels. Same stores sales increased 11.9%, proving overall development of the brands products and diversified categories. The wholesale business gross margin narrowed to 32.3% from 37.9% from the acquisition of shoemaker Topline. Gross margins within the retail segment increased by 2% from 58.1% to 60.1%.
Guidance was increased bringing EPS for 2012 to 2.62-2.72 from 2.60-2.70, with net sales expected to increase by 26%. E-Commerce is continually growing for Steve Madden, up $24 million from the previous quarter. The largest segment a growth came from Women’s wholesale footwear, which Steve Madden’s attests to its constant effort to be on trend, and the success of its “test and react” sales model. Sales of Steve Madden handbags doubled from Q1 2011, and will be in Nordstrom stores this fall. Steve Madden as a company is pleased with the consumer interest of their outlet store chain, recently adding a 7th, as well as the consumer reaction to its newly opened flagship store in Manhattan. The company expects future double digit sales growth through the development of the Steve Madden shoe and accessory line, as well as through all other Steve Madden owned brands, Betsey Johnson, Elizabeth and James, Madden Men, and Big Buddha.