Steve Madden has resumed his position of creative director at the company that carries his name, after a long period in jail. Observers feel that this may give a new impetus to the company, which has reported a 5.8 percent sales increase to $83.3 million for the 1st quarter ended March 31. Net income declined to $962,000 from $4,126,000 a year ago as the gross margin plummeted to 34.0 percent from 39.7 percent, reflecting inventory liquidation and strong mark-downs at wholesale and retail, particularly for Candie’s and l.e.i. licensed footwear. Wholesale revenues rose by 3.3 percent to $56.9 million. Retail revenues increased by 11.7 percent to $26.5 million, with a same-store increase of 5.5 percent.