LONG ISLAND CITY, N.Y., Feb. 24 /PRNewswire-FirstCall/ -- Steve
Madden (NASDAQ:SHOO), a leading designer and marketer of fashion
footwear and accessories for women, men and children, today
announced financial results for the fourth quarter ended December
31, 2008. -- Fourth quarter net sales increased 15.9% to $119.1
million. -- Operating margin rose to 10.3% in the fourth quarter
2008, compared with operating margin of 6.8% in the same period of
2007. -- Net income increased 53% to $7.2 million, or $0.40 per
diluted share, compared to $4.7 million, or $0.23 per diluted
share, in the prior year's fourth quarter. Edward Rosenfeld,
Chairman and Chief Executive Officer commented, "We were pleased to
have met our fourth quarter expectations despite a challenging
economic environment. Steve and our talented design team continue
to create excellent products capturing the most recent trends at
price points that our consumers appreciate. Looking ahead, we
continue to move forward with our strategic initiatives while
carefully controlling expenses and inventory levels in response to
the current retail environment." Fourth Quarter 2008 Results:
Fourth quarter net sales were $119.1 million compared to $102.8
million reported in the comparable period of 2007. Net sales from
the wholesale business were $79.1 million compared to $63.5 million
in the fourth quarter of 2007 driven by strength in the Steve
Madden Womens, Madden Girl and Steven wholesale footwear divisions
as well as by the Daniel M. Friedman accessories division. Retail
net sales totaled $40.0 million compared to $39.3 million in the
fourth quarter of the prior year. Same store sales decreased 0.5%
compared to a 0.1% decrease in the fourth quarter of 2007. Gross
margin improved to 40.4% from 37.9%, reflecting margin improvement
in both the wholesale and retail divisions. Gross margin in the
wholesale business increased to 31.9% from 26.8% in the prior
year's fourth quarter as strong sell-through of product at retail
led to significantly lower markdown allowances. Retail gross margin
increased to 57.1% from 55.9% in the comparable period of the prior
year as stronger merchandise and better inventory management
resulted in fewer close-outs than in Q4 2007. Operating expenses as
a percent of sales were 32.8% versus 34.0% in the same period of
the prior year, due to leverage on increased sales. Operating
income for fourth quarter increased to $12.2 million, or 10.3% of
sales, compared with operating income of $7.0 million, or 6.8% of
sales, in the same period of 2007. Net income increased 53% to $7.2
million, or $0.40 per diluted share, compared to $4.7 million, or
$0.23 per diluted share, in the prior year's fourth quarter. During
the fourth quarter of 2008, the Company closed 2 stores. Full Year
2008 Results: For the full year fiscal 2008, net sales were $457.0
million compared to $431.1 million in fiscal 2007. Net income
totaled $28.0 million, or $1.51 per diluted share, for the year,
compared to $35.7 million, or $1.68 per diluted share, in fiscal
2007. Fiscal 2008 results include a one-time charge of $4.9 million
pre-tax, or $0.16 per diluted share, resulting from the resignation
of the Company's former Chief Executive Officer. Fiscal 2007
results include a one-time benefit of $2.9 million, or $0.13 per
diluted share, resulting from tax savings related to prior periods,
partially offset by a one-time charge for prior-year customs duties
of $1.2 million pre-tax, or $0.03 per diluted share. Excluding
these one-time items, fiscal 2008 net income totaled $31.0 million,
or $1.67 per diluted share, compared to fiscal 2007 net income of
$33.6 million, or $1.58 per diluted share. The Company opened 3
stores and closed 7 stores during 2008, ending the year with 97
retail locations, including the Internet store. At the end of the
fourth fiscal quarter, cash, cash equivalents and marketable
securities totaled $124.8 million. As of December 31, 2008 advances
payable-factor totaled $30.2 million. Arvind Dharia, Chief
Financial Officer, commented, "We ended the year in a strong
financial position with a healthy cash balance. While we are
pleased with our performance in the fourth quarter and the year,
given that we are operating in a challenging economic environment,
we will continue to focus on generating cash flow and maintaining
the strength of our balance sheet in 2009." Company Outlook For
fiscal 2009, the Company expects sales to decline 6%-8%, which is
partially due to the shift of the Candies business to the
"first-cost" model where revenue will be recorded in the other
income line. Excluding the impact of this shift, sales are expected
to decline 3%-5% for the year. Diluted EPS is expected to be in the
range of $1.40 to $1.55. Capital expenditures are planned to be
under $5 million in 2009 as compared to $8.3 million in 2008. The
Company plans to open two to three stores and to close between 8
and 13 locations in 2009. Conference Call Information Interested
stockholders are invited to listen to the fourth quarter earnings
conference call scheduled for today, Tuesday, February 24, 2009, at
8:30 a.m. Eastern Time. The call will be broadcast live over the
Internet and can be accessed by logging onto
http://www.stevemadden.com/. An online archive of the broadcast
will be available within one hour of the conclusion of the call and
will be accessible for a period of 30 days following the call.
Additionally, a replay of the call can be accessed by dialing
888-203-1112, passcode 6430612, and will be available until March
26, 2009. About Steve Madden Steve Madden designs and markets
fashion-forward footwear and accessories for women, men and
children. The shoes and accessories are sold through company-owned
retail stores, department stores, apparel, footwear, and
accessories specialty stores, and online at
http://www.stevemadden.com/. The Company has several licensees for
its brands, including for outerwear, cold weather accessories,
eyewear, hosiery, and bedding and bath products and owns and
operates 95 retail stores, including its online store. The Company
is the licensee for footwear, handbags and belts for Fabulosity,
for footwear for Elizabeth and James and l.e.i. and for handbags
and belts for Betsey Johnson and Daisy Fuentes. This press release
contains forward looking statements as that term is defined in the
federal securities laws. The events described in forward looking
statements contained in this press release may not occur. Generally
these statements relate to business plans or strategies, projected
or anticipated benefits or other consequences of the Company's
plans or strategies, projected or anticipated benefits from
acquisitions to be made by the Company, or projections involving
anticipated revenues, earnings or other aspects of the Company's
operating results. The words "may," "will," "expect," "believe,"
"anticipate," "project," "plan," "intend," "estimate," and
"continue," and their opposites and similar expressions are
intended to identify forward looking statements. The Company
cautions you that these statements are not guarantees of future
performance or events and are subject to a number of uncertainties,
risks and other influences, many of which are beyond the Company's
control, that may influence the accuracy of the statements and the
projections upon which the statements are based. Factors which may
affect the Company's results include, but are not limited to, the
risks and uncertainties discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2007. Any one or more of
these uncertainties, risks and other influences could materially
affect the Company's results of operations and whether forward
looking statements made by the Company ultimately prove to be
accurate. The Company's actual results, performance and
achievements could differ materially from those expressed or
implied in these forward looking statements. The Company undertakes
no obligation to publicly update or revise any forward looking
statements, whether from new information, future events or
otherwise. STEVEN MADDEN LTD CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) (In thousands, except per share data) Three Months
Ended Years Ended Dec 31, Dec 31, Dec 31, Dec 31, Consolidated:
2008 2007 2008 2007 Net Sales $119,097 $102,745 $457,046 $431,050
Cost of Sales 71,004 63,773 270,222 257,646 Gross Profit 48,093
38,972 186,824 173,404 Commission and licensing fee income 3,238
2,901 14,294 18,351 Operating Expenses 39,115 34,919 156,212
138,841 Income from Operations 12,216 6,954 44,906 52,914 Interest
and other Income, Net 258 838 1,400 3,222 Income Before provision
for Income Taxes 12,474 7,792 46,306 56,136 Provision for Income
Tax 5,273 3,092 18,330 20,446 Net Income $7,201 $4,700 $27,976
$35,690 Basic income per share $0.40 $0.23 $1.53 $1.73 Diluted
income per share $0.40 $0.23 $1.51 $1.68 Weighted average common
shares outstanding - Basic 17,868 20,101 18,325 20,647 Weighted
average common shares outstanding - Diluted 18,054 20,358 18,519
21,292 BALANCE SHEET HIGHLIGHTS Dec 31, 2008 Dec 31, 2007
Consolidated Consolidated Unaudited Unaudited Cash and Cash
Equivalents $89,588 $29,446 Marketable Securities (Current and
Non-current) 35,224 80,411 Total Current Assets 194,736 168,855
Total Assets 284,693 266,521 Advances Payable - Factor 30,168 -
Total Current Liabilities 72,650 47,717 Total Stockholder Equity
206,242 215,334 DATASOURCE: Steve Madden CONTACT: Investor
Relations, Jean Fontana or Joseph Teklits, +1-203-682-8200,
http://www.icrinc.com/, both of ICR, Inc. for Steve Madden Web
Site: http://www.stevemadden.com/
Copyright
Steven Madden (NASDAQ:SHOO)
Historical Stock Chart
From May 2024 to Jun 2024
Steven Madden (NASDAQ:SHOO)
Historical Stock Chart
From Jun 2023 to Jun 2024