Steven Madden, Ltd., a leading designer, wholesaler and marketer of fashion footwear for women, men and children, today announced preliminary results for the third quarter.
Based on stronger than anticipated sales trends in both the wholesale and retail divisions throughout the quarter, the Company expects to report third quarter net sales in the range of approximately $99 million to $100 million, compared with $88.6 million in the same period of the prior year, an increase of approximately 12% to 13%. This reflects an increase in total retail sales of approximately 22% and a same-store sales increase of approximately 12% for the quarter. Net sales also include an approximate 9% increase in wholesale revenues.
The Company's overall gross margin for the quarter increased versus the comparable period last year as margin improvement in nearly all of the wholesale divisions was partially offset by a margin decline in the retail division. Further, SG&A as a percentage of sales declined versus the same period last year in both the wholesale and retail divisions, contributing to increased operating margin for the quarter. As a result, the Company anticipates that third quarter earnings will be in the range of $0.36 to $0.39 per diluted share based on approximately 14 million diluted weighted average shares outstanding. This compares to earnings per diluted share of $0.26 on 14.2 million diluted weighted average shares outstanding in the third quarter last year.
“Our third quarter performance is a strong testament to the continued progress we are making in improving our overall operations, and accordingly, we are optimistic about the long-term,” said Jamieson Karson, Chairman and Chief Executive Officer. “We look forward to building on the current momentum by continuing to improve operating efficiencies, increase profitability, further build the Steve Madden brand, and in turn enhance shareholder value.”
The Company plans to report final third quarter results and provide its outlook for the fourth quarter on Thursday, November 3, 2005. The Company will hold a conference call the same day at 10 a.m. Eastern Time.
Steven Madden, Ltd. designs and markets fashion-forward footwear for women, men and children. The shoes are sold through Steve Madden retail stores, department stores, apparel and footwear specialty stores, and on-line at http://www.stevemadden.com. The Company has several licenses for the Steve Madden brand, including handbags, eyewear, hosiery, and belts, owns and operates two retail stores under its Steven brand, and is the licensee for l.e.i Footwear, Candie's Footwear and UNIONBAY Men's Footwear.
