Steven Madden. (SHOO) has reported 14.80 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $20.16 million, or $0.35 a share in the quarter, compared with $23.66 million, or $0.39 a share for the same period last year. On an adjusted basis, the company has earned $27.51 million, or $0.47 a share for the quarter.
Revenue during the quarter grew 11.24 percent to $366.39 million from $329.36 million in the previous year period. Gross margin for the quarter expanded 94 basis points over the previous year period to 36.22 percent. Total expenses were 91.60 percent of quarterly revenues, up from 90.93 percent for the same period last year. That has resulted in a contraction of 67 basis points in operating margin to 8.40 percent.
Operating income for the quarter was $30.78 million, compared with $29.88 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $39.52 million.
Edward Rosenfeld, chairman and chief executive officer, commented, "We are pleased to have started off 2017 with a strong first quarter. The highlight was our Steve Madden Women’s wholesale footwear division, where we had another quarter of outstanding growth in a challenging retail environment. Steve and his design team have created an exceptional product assortment that is enabling us to outperform the competition and take market share with our flagship brand. As we look ahead to the balance of the year, we are taking a prudent approach to planning our business in light of retail industry headwinds. That said, the strength in our core business gives us confidence that we are well-positioned to navigate the uncertain environment."
For financial year 2017, Steven Madden projects revenue to grow in the range of 8 percent to 10 percent. The company forecasts diluted earnings per share to be in the range of $1.97 to $2.03, the company forecasts diluted earnings per share to be in the range of $2.12 to $2.18 on adjusted basis.
Operating cash flow drops significantlySteven Madden has generated cash of $8.51 million from operating activities during the quarter, down 44.16 percent or $ 6.73 million, when compared with the last year period. The company has spent $9.40 million cash to meet investing activities during the quarter as against cash outgo of $3.35 million in the last year period.
The company has spent $31.35 million cash to carry out financing activities during the quarter as against cash outgo of $13.84 million in the last year period.
Cash and cash equivalents stood at $94.26 million as on Mar. 31, 2017, up 32.94 percent or $23.36 million from $70.90 million on Mar. 31, 2016.
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