NEW YORK — Strong sales in each of its divisions combined with reduced expenses paved the way for Steven Madden Ltd. to report a 19 percent increase in its second-quarter profits and raise its outlook for the year.
For the quarter ended June 30, the Long Island City, N.Y.-based maker of shoes and accessories yielded net income of $5.3 million, or 38 cents a diluted share, beating Wall Street’s consensus estimates by 3 cents. Last year, the company reported income of $4.4 million, or 34 cents a diluted share. Sales skyrocketed to $88.1 million, registering 47.9 percent higher than year-ago sales of $59.6 million.
“We are extremely encouraged by our performance year-to-date and are very excited about the direction of our business,” Jamieson Karson, chief executive, said in a statement. “As we move forward into the balance of the year and beyond, we intend to focus not only on further strengthening our core brands, but also on identifying new areas of growth and diversifying our business through additional licensing arrangements and international expansion.”
Revenues from the wholesale business, comprising SM’s five brands — Steve Madden Women’s, Steve Madden Men’s, Stevies, LEI and David Aaron — significantly exceeded plan, increasing 66.5 percent to $65.7 percent from $39.5 million. Results were driven by high double-digit increases across the board and the strong sales of Madden Men’s, which grew 600 percent year-over-year.
Retail revenues were boosted 11.5 percent to $22.4 million and up 5.1 percent on a comparable-store basis. The company currently operates 74 stores, including its Internet site, and plans to add eight more during the rest of the year.
Based on the quarter’s results and current sales trends, SM bumped its earnings target for the year to between $1.33 and $1.38 a share, from the previous range of $1.28 to $1.33.
For the first half, income rose 15.9 percent to $9.4 million, or 68 cents a diluted share, compared with income of $8.1 million, or 63 cents, in the corresponding period last year. Sales grew 37 percent to $154.7 million versus $113 million.
This story first appeared in the July 30, 2002 issue of WWD. Subscribe Today.