Steven Madden Ltd (SHOO) Misses Q2 EPS by 1c; FY EPS Guidance Falls Below the Street

Steven Madden Ltd (NASDAQ: SHOO) reported Q2 EPS of $0.44, $0.01 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $295.7 million versus the consensus estimate of $313.5 million.

Steven Madden Ltd sees FY2014 EPS of $2.00-$2.10, versus the consensus of $2.15. The Company now expects that net sales will increase 2% to 4% over net sales in 2013

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “The second quarter proved difficult for Steve Madden, as we continued to face a challenging retail environment, weak mall traffic, and a women’s footwear market with few significant fashion trends. In our wholesale segment, our branded footwear business grew sales in the mid-single digits range, led by our Steve Madden Men’s, Steve Madden Women’s, and Steven lines, while our private label footwear business experienced a sales decrease, as expected, due primarily to a temporary reduction in sales with one customer during the quarter. We also had a strong sales gain in our wholesale accessories business, driven primarily by growth in private label accessories. On the retail side, the absence of fashion drivers and continued weak traffic negatively impacted our full-price stores, while our outlet stores had a modest comparable store sales increase. Finally, we saw solid gains in our international business during the quarter. While we are confident that the long-term growth prospects for our Company remain strong, based on current trends we are lowering our guidance for the full year. This is due primarily to a reduction in our forecast for the wholesale accessories segment due to pressure on our branded handbag business. We will continue to carefully manage our inventory and control costs as we work through this tough environment.”

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

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