Steven Madden Ltd. (Long Island City, N.Y.) reported an 18.9 percent increase in sales for its fourth quarter ended Dec. 31, 2004.
Retail revenues for the quarter increased 17.2 percent and same-store sales increased 9.5 percent, primarily due, the company said, to positive sales of dress shoes, a larger contribution from sales of mens footwear, the early release and strong reception to spring sandals and the success of casual footwear.
During the quarter, the company opened one Steve Madden store and converted one Shoe Biz outlet store to a Steve Madden store.
“During the quarter, our strong sales growth was offset by greater than planned price pressure in most divisions of our wholesale business as well as higher cost of goods sold, and these factors negatively impacted overall gross margin,” said president and coo Richard Olicker. “ At the retail level, we achieved solid revenue and same-store sales increases in the quarter and continued an emphasis on not only expanding our store base but also closing underperforming locations. Retail continues to be an important segment of our business that allows us to quickly test our products and showcase the power of our brand.”
Full-year sales increased 4.3 percent. The company opened 10 stores and closed 2 during the year, ending 2004 with 91 company-owned retail locations, including the Internet store.
Chairman and ceo Jamieson Karson said, “We are extremely pleased to announce the anticipated return of Steve Madden to the company in spring of 2005. As the founder and emotional inspiration behind the Steve Madden brand, he adds an invaluable dimension to the company. His return is very positive news from every perspective for Steven Madden Ltd. and we look forward to again having the benefit of his unique vision, talent, and expertise.” Founder Madden (who owns 10 percent of the company) pleaded guilty to securities fraud in May 2001 and in 2002 was sentenced to 41 months in prison.