Upcoming AWS Coverage on Wolverine World Wide Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 16, 2017 / Active Wall St. announces its post-earnings coverage on Steven Madden, Ltd. (NASDAQ: SHOO). The Company posted its financial results for the fourth quarter fiscal 2016 and full year 2016 on February 28, 2017. The footwear and accessories retailer outperformed top-line estimates. Register with us now for your free membership at:

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One of Steven Madden's competitors within the Textile - Apparel Footwear & Accessories space, Wolverine World Wide, Inc. (NYSE: WWW), reported on February 22, 2017, its financial results for the fourth quarter ended December 31, 2016. AWS will be initiating a research report on Wolverine World Wide in the coming days.

Today, AWS is promoting its earnings coverage on SHOO; touching on WWW. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended December 31, 2016, Steven Madden's net sales declined 2.3% to $336.4 million compared to $344.3 million in the year ago period; however the Company's reported numbers surpassed market expectations of $336.3 million. For the full year ended December 31, 2016, Steven Madden's net sales fell 0.4% to $1.40 billion from $1.41 billion in the prior year.

For Q4 2016, Steven Madden's gross margin expanded 260 basis points to 38.7% compared to 36.1% in the same period last year. The Company's operating income totaled $39.6 million, or 11.8% of net sales, in the reported quarter compared with operating income of $38.7 million, or 11.2% of net sales, in the year earlier quarter.

Steven Madden generated net income of $28.7 million, or $0.49 per diluted share, for Q4 2016 compared to $25.7 million, or $0.43 per diluted share, in Q4 2015. The Company's earnings numbers matched market estimates of $0.49 per share. Steven Madden's net income was $120.9 million, or $2.03 per diluted share, for the year ended December 31, 2016, compared to net income of $112.9 million, or $1.85 per diluted share, for the year ended December 31, 2015.

Edward Rosenfeld, Chairman and Chief Executive Officer of Steven Madden, commented:

"We are pleased to have delivered solid earnings results in the fourth quarter, with EPS at the high end of our guidance range, despite a challenging retail environment."

Segment Results

During Q4 2016, net sales for Steven Madden's wholesale business were $251.5 million compared to $265.0 million in Q4 2015. Under the Wholesale segment, Wholesale Footwear net sales decreased 5.3% to $189.4 million compared to $200 million in the prior year, driven by continued softness in the Company's private label business and a decline in its international distributor business. In Wholesale Accessories, net sales were $62.2 million in Q4 2016 compared to $65 million in Q4 2015.

Sales declines in private label footwear, cold weather accessories, and the international business were partially offset by strong growth in the Steve Madden Women's division. Gross margin in the wholesale business increased to 31.4% in the reported quarter compared to 28.2% in the prior year's comparable period, driven by strong improvement in both the wholesale footwear and wholesale accessories segments.

For Q4 2016, Steven Madden's retail net sales totaled $84.9 million up 7.1% compared to $79.3 million in Q4 2015. Same store sales increased 1.1% for the reported quarter. Strong performance in sneakers offset softness in boots and booties. Retail gross margin decreased to 60.5% in Q4 2016 compared to 62.3% in Q4 2015 due to the decision to proactively clear through slower-moving product, primarily casual boots and booties, as well as the negative impact of a stronger US dollar on the Company's international business.

During the reported quarter, Steven Madden opened two full price stores and one outlet location. The Company ended the quarter with 189 Company-operated retail locations, including 52 outlets and four ecommerce sites.

Balance Sheet and Cash Flow

During Q4 2016, Steven Madden repurchased 515,837 shares of its common stock for approximately $19.6 million, which includes shares acquired through the net settlement of employee stock awards. As of December 31, 2016, the Company's cash, cash equivalents, and current and non-current marketable securities totaled $236.2 million.

Steven Madden's inventory increased 17.4% to $119.8 million compared to $102.1 million in the prior year. The Company's on-hand inventory was flat to the prior year; however in-transit inventory was higher due to the earlier Chinese New Year as well as forecasted sales increases in Q1 2017. Steven Madden's consolidated inventory turn for the last 12 months ended December 31 was 8.2 times and the Company's CapEx for the reported quarter was $3 million bringing its full-year CapEx to $15.9 million.

Company Outlook

For fiscal year 2017, Steven Madden expects net sales to increase 8% to 10% over net sales in FY16. The Company expects diluted EPS for FY17 to be in the range of $2.12 to $2.18.

Stock Performance

At the closing bell, on Wednesday, March 15, 2017, Steven Madden's stock rose slightly by 1.06%, ending the trading session at $38.00. A total volume of 469.14 thousand shares were traded at the end of the day. In the last month and previous six months, shares of the Company have advanced 5.12% and 12.03%, respectively. Moreover, the stock gained 6.29% since the start of the year. Shares of the company have a PE ratio of 18.65.

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SOURCE: Active Wall Street