Steve Madden’s net sales for the year 2006 rose by 26.4 percent to $475.2 million and net income soared by 141.1% to $46.3 million. During the 4th quarter, ended on Dec. 31, net sales went up by 24.8 percent to $114.1 million, while gross margins fell to 40.8 percent from 42.6 percent. Operating income grew to 14.6 percent from 13.9 percent in the same period of 2005. And net income grew by 35.1 percent to $10.0 million.
Revenues from the wholesale business improved by 31.8 percent in the quarter to $76.6 million, mostly thanks to continued strength in the Steve Madden women’s and Steven by Steve Madden divisions, but gross margins dipped to 31.5 percent from 36.0 percent due to the poor performance of Betsey Johnson handbags, Steve Madden men’s and Candie’s. However, retail revenues rose by 12.3 percent to $37.5 million with same-store sales up by 11.8 percent.
The company is forecasting net sales for the full year of 2007 to rise by 3-5 percent from 2006 and believes it is on track to becoming a global branded lifestyle company. It counted 96 retail locations, including its internet store, by the end of 2006, after four store openings and six store closures in the course of the year.