Steven Madden Q4 and FY2004 sales increase
Steve Madden Ltd, an American designer, wholesaler and marketer of fashion footwear for women, men and children has announced positive financial results for the fourth quarter and fiscal year ended December 31, 2004.
Fourth quarter sales increased 18.9% to $84.5 million from $71.1 million in the same period last year. Gross margin was 32.2% versus 38.2% compared with 2003 which has been attributed to two main factors. First, the company experienced pressures in its wholesale business, including soft boot sales that led to high markdown levels and weakness in the l.e.i. division which continued to face a larger than expected sales decline coupled with a demanding markdown environment. Second, the company recorded higher than anticipated cost of goods sold primarily related to freight costs and sourcing from certain countries. Net income was $0.4 million versus $2.6 million in last year's fourth quarter.
Retail revenues for the quarter increased 17.2% to $33.9 million from $28.9 million in the same period of 2003. Same-store sales increased 9.5% versus a decrease of 3.3% in the prior year period due primarily to positive sales of dress shoes, a larger contribution from sales of men’s footwear, the early release and strong reception to spring sandals, and the success of casual footwear.
Full year sales increased 4.3% to $338.1 million from $324.2 million last year. Net income was $12.3 million versus $20.5 million in 2003. The company opened 10 stores and closed two during the year, ending 2004 with 91 company-owned retail locations, including the Internet store.
