Fashion footwear maker Steven Madden Ltd has announced financial results for the first quarter ended March 31st 2006.
In line with recently updated expectations, net sales increased 30.0 percent to $108.3 million from $83.3 million last year. Net sales included an $8.3 million contribution from Daniel Friedman & Associates, which was acquired on February 7th 2006.
Gross margin increased significantly to 42.7 percent from 32.8 percent in the comparable period last year and improved across all divisions. Net income improved to $10.9 million, or $0.74 per diluted share, compared to net income of $1.0 million, or $0.07 per diluted share, last year.
Revenues from the wholesale business, comprised of the company's eight divisions, Steve Madden Women's, Steve Madden Men's, Steven by Steve Madden, SM New York, Stevie's, Candie's, l.e.i., and Daniel Friedman, were up 46 percent to $83.1 million.
The increase was primarily driven by strong performance from the company's existing brands and better than planned results from the Company's recently launched wholesale division, SM New York, and the recently acquired Daniel M. Friedman & Associates.
Retail revenues were $25.3 million compared to $26.5 million in the first quarter of last year. Same store sales declined 8.4 percent versus a 5.5 percent increase last year.
The year-over-year decline in the retail business is primarily due to planned reductions in the accessories and men's categories as well as a reduced level of promotional sales. During the first quarter, the company opened one new Steve Madden retail store and ended the quarter with 99 stores in operation, including the company's Internet store.
marketing@alchempro.com
