Steven Madden (NASDAQ: SHOO) reported Q2 EPS of $0.61, $0.02 better than the analyst estimate of $0.59. Revenue for the quarter came in at $395.8 million versus the consensus estimate of $390.57 million.

For the Second Quarter 2018:

• Net sales increased 5.8% to $395.8 million compared to $374.1 million in the same period of 2017.
• Gross margin was 37.3%. Gross margin in the second quarter of 2017 was 37.3%. Adjusted gross margin in the second quarter of 2017 was 37.4%.
• Operating expenses as a percentage of sales were 27.4% compared to 26.6% of sales in the same period of 2017. Adjusted operating expenses as a percentage of sales were 26.8% compared to 26.4% in the same period of 2017.
• Operating income totaled $41.6 million, or 10.5% of net sales, compared to $41.9 million, or 11.2% of net sales, in the same period of 2017. Adjusted operating income was $44.0 million, or 11.1% of net sales, compared to Adjusted operating income of $43.1 million, or 11.5% of net sales, in the same period of 2017.
• Net income was $32.4 million, or $0.56 per diluted share, compared to $29.0 million, or $0.50 per diluted share, in the prior year\'s second quarter. Adjusted net income was $35.2 million, or $0.61 per diluted share, compared to $29.7 million, or $0.51 per diluted share, in the prior year\'s second quarter.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased with our second quarter results, which were in line with our expectations. Our flagship Steve Madden brand was the highlight in the quarter, with strong growth in the wholesale channel in both domestic and international markets as well as a return to positive comparable store sales growth in the retail channel. In addition, the Dolce Vita and Blondo brands also recorded strong percentage increases on both the top and bottom lines. Looking ahead, we remain on track to achieve our sales and Adjusted EPS guidance for 2018, and we are confident that our brands and our business model position the Company for sustainable growth for years to come.”

Company Outlook

For fiscal year 2018, the Company continues to expect net sales will increase 5% to 7% over net sales in 2017. The Company expects diluted EPS for fiscal year 2018 will be in the range of $2.51 to $2.58. The Company expects Adjusted diluted EPS for fiscal year 2018 will be in the range of $2.60 to $2.67.

GUIDANCE:

Steven Madden sees FY2018 EPS of $2.60-$2.67, versus the consensus of $2.71.

For earnings history and earnings-related data on Steven Madden (SHOO) click here.