Steven Madden expects to report third quarter net sales of approximately $113 million compared with $123.2 million in the same period of the prior year. This reflects a decrease in wholesale revenues of approximately 6% for the quarter. Net sales also include a decline in total retail sales of approximately 13% and a same-store sales decrease of approximately 15% versus the comparable period.
The selling environment throughout the quarter was more challenging than expected due to a lack of strong direction in footwear fashion trends as well as generally softer retail trends compared to the prior year, which resulted in top line declines for both the wholesale and retail divisions.
The Company anticipates that third quarter earnings will range between $0.50 and $0.52 per diluted share, which includes a one-time gain of $0.13 per diluted share resulting from tax savings related to prior periods, partially offset by a one-time charge of $0.03 per diluted share related to a provision for prior year customs duties. Excluding these items, adjusted earnings for the third quarter are expected to range between $0.40 and $0.42 per diluted share.
With respect to the outlook for the full year, after a review of recent and expected business and industry trends, the Company is updating its guidance. The Company now anticipates that total annual sales will decrease between 9% to 11% versus the prior year. The Company expects full year earnings will be between $1.60 and $1.70 per diluted share, including the aforementioned one-time items expected to be recorded in the third quarter. Excluding these items, the Company expects adjusted full year earnings per diluted share to range between $1.50 and $1.60.
“We experienced a more challenging than expected sales environment during the third quarter due in part to an absence of big footwear fashion trends in the marketplace,” said Jamieson Karson, Chairman and Chief Executive Officer. “While we have a more conservative outlook regarding our near-term business based on recent softer than expected market trends, we remain confident in our business long-term. We will continue to leverage our strong financial position as we focus on growing through our diversified business model.”