Confirming a previous profit warning, Steven Madden reported a 10.8 percent drop in net income to $39.2 million for the third quarter ended Sept. 30. The operating margin fell to 15.1 percent of sales from 17.2 percent in the year-ago period. Total sales declined very slightly to $392.0 million from $394.8 million a year ago. Both wholesale and retail revenues were essentially flat at $343.3 million and $48.7 million, respectively. The wholesale segment would have actually declined by 4.9 percent without the acquisition of Dolce Vita, which contributed to reduce the wholesale gross margin to 31.3 percent. Retail sales were down by 7.4 percent on a same-store basis, but benefited from the addition of 11 stores. The management forecasts growth of 1 to 2 percent for the full year, down from a previous projection of 2 to 4 percent.