Steven Madden reports preliminary results for Q4

31 Jan '06

3 min read

Steven Madden Ltd, a leading designer, wholesaler and marketer of fashion footwear for women, men and children, has announced preliminary results for the fourth quarter. It is important to note that the estimated results included herein are unaudited.

Based on higher than anticipated sales in the wholesale segment, the company expects to report fourth quarter net sales in the range of $90 million to $91 million, an approximate 7 percent to 8 percent increase over the $84.5 million reported in the same quarter last year.

Net sales reflect an approximate 14 percent increase in total wholesale sales, partially offset by a decline in total retail sales of approximately 1.6 percent.

Same store sales in the retail division decreased approximately 6.5 percent versus an increase of 9.5 percent last year. This is due primarily to the phase out of previous accessory items in order to prepare for the first quarter re-launch of accessories, including licensed handbags and belts by Daniel M. Friedman & Associates, as well as a reduction in promotional sales.

During the fourth quarter, the company has achieved significant improvements in gross margins with increases in all of the wholesale divisions. Gross margin also improved in the retail division primarily due to less promotional selling versus the prior year period. Lastly, even while continuing to invest in the business, the company effectively managed expenses which contributed to improved operating margin for the quarter.

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