Steven Madden, Ltd. , a leading designer, wholesaler and marketer of fashion footwear for women, men and children, today announced financial results for the first quarter ended March 31, 2004.
Net sales were $78.8 million compared with $78.7 million in the first quarter last year. Net income was $4.1 million, or $0.29 per diluted share on 14,374,000 diluted weighted average shares outstanding, which is in line with the current analyst estimate. In the prior year period, net income was $5.0 million, or $0.36 per diluted share on 13,872,000 diluted weighted average shares outstanding.
Retail revenues increased 12% to $23.7 million from $21.1 million in the same period last year. Same-store sales increased 8% over the comparable period last year primarily due to an improved product mix and higher unit sales. The Company ended the first quarter with 83 Company-owned retail locations, including the Internet store, and remains on schedule to open approximately 8 to 12 new stores this year.
Revenues from the wholesale division, comprising the Company's seven brands, Steve Madden Womens, Steve Madden Mens, Stevies, l.e.i., Steven, Candie's, and UNIONBAY, were $55.1 million versus $57.6 million in the year-ago period. As previously announced, in response to changing footwear industry trends and consumer preferences, the Company is implementing a shift in product focus from its traditional casual base into broader categories. Although the benefits of this shift have not yet been fully realized in all of the Company's wholesale businesses, the trends are positive. Furthermore, the strategy towards brand diversification is reaping positive results, as evidenced by strong performance in the Steven and Candie's lines.
Arvind Dharia, Chief Financial Officer, said, ''We are proud of our ability to grow and diversify the Company while managing the business effectively. In addition, our financial position remains strong with $72.6 million in cash, cash equivalents, and investment securities, no short- or long-term debt, and $164.0 million in total stockholder equity.''
''Our first quarter results were in line with our expectations,'' commented Richard Olicker, President and Chief Operating Officer. ''We achieved solid retail results, demonstrating the fact that our shift in product focus is proceeding as planned and that the popularity of our brands remains sound despite a sustained promotional and competitive market. Of note, during the quarter we fully rolled out our Candie's brand and made investments across the business, including additional personnel, to support our various divisions. We also incurred higher expenses related to efforts to swiftly deliver the most current trends to our customers as well as increased advertising to promote awareness of all of our brands.''