REPORT_ For the third quarter of 2013 Steve Madden net sales increased 10.6 percent. Retail comparable store sales decreased 3.5 percent. Net income increased 16.1 percent. Gross margin declined to 35.4 percent as compared to 36.8 percent in the same period last year. Consolidated operating expenses as a percentage of sales were 19.4 percent compared to 20.6 percent of sales in the same period of 2012. Operating income was 17.2 percent of net sales compared with 15.8 percent of net sales in the same period of 2012.
Net sales from the wholesale business grew 11 percent in the third quarter. Gross margin in the wholesale business was 31.9 percent compared to 33.3 percent in last year’s third quarter. Retail net sales rose 7.8 percent compared to the third quarter of the prior year. Same store sales for the third quarter of 2013 decreased 3.5 percent. Increased promotional activity resulted in retail gross margin of 60.2 percent in the third quarter of 2013 compared to 60.7 percent in the third quarter of 2012.
Steve Madden is based in New York. It designs, sources and markets fashion-forward footwear and accessories for women, men and children. The company also designs and sources products under private label brand names for various retailers. It operates 117 retail stores. Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We delivered a solid quarter in a difficult retail environment. Our wholesale footwear business exhibited broad-based strength. Our accessories business was more challenging. Our retail business was also softer than expected. Despite these challenges, we believe that this quarter demonstrated that our flagship Steve Madden brand is stronger than ever. We are confident we can continue to advance our growth objectives.”