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 and full year ended December 31, 2012.
For the Fourth Quarter 2012:
- Net sales increased 12.8% to $315.5 million.
- Retail comparable store sales increased 5.9%.
- Gross margin improved to 39.3% compared to 35.5% in the fourth quarter of 2011.
- The effective tax rate was 35.0% compared to 38.6% in the prior year’s fourth quarter due to the reinvestment, indefinitely, of a portion of earnings from the Company’s foreign operations in such foreign operations.
- Net income was $33.0 million, or $0.74 per diluted share. Net income included a $1.0 million benefit related to a greater-than-anticipated recovery in the bankruptcy process of a note receivable from the Company’s former licensee for Betsey Johnson retail and apparel, a portion of which was charged to impairment expense in the second quarter of 2012. On an after-tax basis, the benefit positively impacted net income in the fourth quarter by $0.6 million, or $0.01 per diluted share. Net income in the fourth quarter of 2011 was $23.8 million, or $0.55 per diluted share.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, "We are pleased to have delivered strong results in the fourth quarter, capping off an outstanding year for the Company. Our flagship Steve Madden brand was the key driver in the quarter, with robust growth across categories, channels and geographies. The strength in our flagship brand, combined with the opportunities we have with our newer brands, gives us confidence that we can continue to drive sales and earnings growth as we move ahead.”
Fourth Quarter 2012 ResultsFourth quarter net sales increased 12.8% to $315.5 million compared to $279.8 million in the same period of 2011. Net sales from the wholesale business grew 9.4% to $247.2 million compared to $225.9 million in the fourth quarter of 2011, driven by strong growth in the Steve Madden footwear and handbag divisions, as well as the benefit from the acquisition of SM Canada. Retail net sales rose 27.0% to $68.3 million compared to $53.8 million in the fourth quarter of the prior year. Same store sales increased 5.9% following a 15.9% increase in the prior year’s fourth quarter.