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, 2013.
For the Fourth Quarter 2013:
- Net sales increased 8.7% to $342.9 million compared to $315.5 million in the same period of 2012.
- Retail comparable store sales decreased 6.7%.
- Gross margin declined to 37.8% as compared to 39.3% in the same period last year due primarily to a sales mix shift to the lower-margin private label business and increased promotional activity in the retail segment.
- Operating expenses as a percentage of sales were 23.2% compared to 24.8% of sales in the same period of 2012 due to strong cost control and operating expense leverage on growing sales.
- Operating income totaled $53.6 million, or 15.6% of net sales, compared with operating income of $49.8 million, or 15.8% of net sales, in the same period of 2012. Operating income in the fourth quarter of 2013 included a $1.0 million benefit related to recovery from the prior year’s text message litigation settlement. Operating income in the fourth quarter 2012 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. Excluding these items, operating income for the fourth quarter of 2013 was $52.6 million, or 15.4% of net sales, compared with operating income of $48.7 million, or 15.4% of net sales, in the same period of 2012.
- Net income increased 8.2% to $35.7 million, or $0.54 per diluted share, compared to $33.0 million, or $0.49 per diluted share in the prior year's fourth quarter, adjusted for the three-for-two stock split effective October 2, 2013. Net income for the fourth quarter of 2013 and the fourth quarter of 2012 included the aforementioned benefits. On an after-tax basis, the benefits positively impacted fourth quarter 2013 and 2012 by $0.6 million, or $0.01 per diluted share. Excluding these benefits, net income increased 8.4% to $35.1 million, or $0.53 per diluted share, compared to $32.3 million, or $0.48 per diluted share in the prior year’s fourth quarter.
Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased to have delivered solid sales and earnings growth in the fourth quarter despite a challenging retail environment. While our retail segment performance was below expectation, we recorded another strong quarter in our wholesale business. Most importantly, our flagship Steve Madden brand continues to be a leader in the fashion footwear space, and the long term growth prospects for our Company remain strong. While we are cautious on the near term outlook for our retail segment due to continued softness in traffic and sales trends, we are confident that we can maintain solid momentum in our wholesale business, and we expect to deliver another year of strong performance in 2014.”