Steven Madden (SHOO) has reported 11.75 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $28.75 million, or $0.49 a share in the quarter, compared with $25.73 million, or $0.43 a share for the same period last year.
Revenue during the quarter went down marginally by 2.28 percent to $336.41 million from $344.25 million in the previous year period. Gross margin for the quarter expanded 263 basis points over the previous year period to 38.71 percent. Total expenses were 88.22 percent of quarterly revenues, down from 88.76 percent for the same period last year. This has led to an improvement of 54 basis points in operating margin to 11.78 percent.
Operating income for the quarter was $39.64 million, compared with $38.70 million in the previous year period.
Edward Rosenfeld, chairman and chief executive officer, 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. While overall sales declined modestly due primarily to softness in our private label footwear and cold weather accessories businesses, we had outstanding top line growth in our core Steve Madden Women’s wholesale business, and we also achieved strong gross margin improvement in both the wholesale footwear and wholesale accessories segments."
For fiscal year 2017, Steven Madden forecasts revenue to grow in the range of 8 percent to 10 percent. The company expects diluted earnings per share to be in the range of $2.12 to $2.18.
Operating cash flow improves
Steven Madden has generated cash of $153.60 million from operating activities during the year, up 12.97 percent or $17.64 million, when compared with the last year.
The company has spent $3.88 million cash to meet investing activities during the year as against cash outgo of $33.66 million in the last year.
The company has spent $95.45 million cash to carry out financing activities during the year as against cash outgo of $110.10 million in the last year period.
Cash and cash equivalents stood at $126.12 million as on Dec. 31, 2016, up 74.16 percent or $53.70 million from $72.41 million on Dec. 31, 2015.
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