22 Oct Steve Madden Sees Q3 Shortfall
Steve Madden warned that third quarter results would come in below forecasts. For the third quarter, net sales were $392.0 million, a 0.7 percent decrease compared to the same period of 2013. Net sales for the wholesale division were $343.3 million compared to $345.9 for the same period of 2013. Retail net sales were $48.7 million compared to $48.9 for the same period of 2013. Retail comparable store sales for the third quarter of 2014 decreased 7.4 percent. The C]company expects third quarter EPS to be approximately 61 to 62 cents per diluted share.
Factoring in the recent acquisition of Dolce Vita and current expectations for the remainder of the year, for fiscal year 2014, the company now expects that net sales will increase 1 percent to 2 percent over net sales in 2013. Diluted EPS for fiscal year 2014 is now expected to be in the range of $1.81 to $1.86.
Edward Rosenfeld, chairman and chief executive officer, commented, “Our third quarter results were disappointing, coming in below our forecast due primarily to weaker than anticipated performance in our retail segment. Given the continued lack of significant fashion trends in the footwear space, our assumption that retail segment trends will remain difficult through the fourth quarter, and a reduced forecast for reorders in our wholesale segment, we are lowering our full year guidance. While our recent performance has been below our expectations, we remain confident in the strength of our business model, and we continue to take steps, including our recent acquisitions of Dolce Vita and our Mexican licensee, that will drive the business forward over the long term.”
The company intends to release third quarter fiscal 2014 financial results on Oct. 30.