Fashion footwear retailer Steven Madden Ltd has announced financial results for the fourth quarter and fiscal year ended December 31st 2005.
In line with recently updated expectations, fourth quarter sales increased 8.2 percent to $91.4 million from $84.5 million reported in the comparable period last year. Gross margin increased significantly to 43.1 percent from 32.2 percent reflecting margin expansion in all of the wholesale segments as well as the retail division.
The net income increased to $7.4 million versus $373 thousand in last year's fourth quarter.
Revenues from the wholesale business comprised of the company's seven brands, Steve Madden Women's, Steve Madden Men's, Steven by Steve Madden, Stevie's, SM New York, Candie's, and l.e.i., increased 14.7 percent to $58.1 million from $50.6 million in the fourth quarter of last year.
Retail revenues were $33.4 million in the fourth quarter compared with $33.9 million in the same period last year. Same store sales decreased 6.3 percent versus a 9.5 percent increase in the fourth quarter 2004. This was primarily due to the planned phase out of certain items in preparation for the 2006 re-launch of accessories, including handbags and belts by the recently acquired Daniel M. Friedman & Associates, as well as a reduction in promotional sales.
Jamieson Karson, Chairman and CEO, said, "The fourth quarter marked a positive conclusion to an exciting and impressive year for our company."