Exhibit 99.1
Company Contact: Richard Olicker
President, Chief Operating Officer
Arvind Dharia
Chief Financial Officer
Steven Madden, Ltd.
(718) 446-1800
Investor Relations: Cara O'Brien/Lila Sharifian
Press: Stephanie Sampiere
Financial Dynamics
(212) 850-5600
FOR IMMEDIATE RELEASE
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STEVEN MADDEN, LTD. ANNOUNCES FIRST QUARTER RESULTS
~ Comparable Store Sales Increase 8% ~
~ Company Reaffirms 2004 Outlook ~
LONG ISLAND CITY, N.Y. - April 27, 2004 - Steven Madden, Ltd. (NASDAQ: SHOO), a
leading designer, wholesaler and marketer of fashion footwear for women, men and
children, today announced financial results for the first quarter ended March
31, 2004.
Net sales were $78.8 million compared with $78.7 million in the first quarter
last year. Net income was $4.1 million, or $0.29 per diluted share on 14,374,000
diluted weighted average shares outstanding, which is in line with the current
analyst estimate. In the prior year period, net income was $5.0 million, or
$0.36 per diluted share on 13,872,000 diluted weighted average shares
outstanding.
Retail revenues increased 12% to $23.7 million from $21.1 million in the same
period last year. Same-store sales increased 8% over the comparable period last
year primarily due to an improved product mix and higher unit sales. The Company
ended the first quarter with 83 Company-owned retail locations, including the
Internet store, and remains on schedule to open approximately 8 to 12 new stores
this year.
Revenues from the wholesale division, comprising the Company's seven brands,
Steve Madden Womens, Steve Madden Mens, Stevies, l.e.i., Steven, Candie's, and
UNIONBAY, were $55.1 million versus $57.6 million in the year-ago period. As
previously announced, in response to changing footwear industry trends and
consumer preferences, the Company is implementing a shift in product focus from
its traditional casual base into broader categories. Although the benefits of
this shift have not yet been fully realized in all of the Company's wholesale
businesses, the trends are positive. Furthermore, the strategy towards brand
diversification is reaping positive results, as evidenced by strong performance
in the Steven and Candie's lines.
Arvind Dharia, Chief Financial Officer, said, "We are proud of our ability to
grow and diversify the Company while managing the business effectively. In
addition, our financial position remains strong with $72.6 million in cash, cash
equivalents, and investment securities, no short- or long-term debt, and $164.0
million in total stockholder equity."
"Our first quarter results were in line with our expectations," commented
Richard Olicker, President and Chief Operating Officer. "We achieved solid
retail results, demonstrating the fact that our shift in product focus is
proceeding as planned and that the popularity of our brands remains sound
despite a sustained promotional and competitive market. Of note, during the
quarter we fully rolled out our Candie's brand and made investments across the
business, including additional personnel, to support our various divisions. We
also incurred higher expenses related to efforts to swiftly deliver the most
current trends to our customers as well as increased advertising to promote
awareness of all of our brands."
Company Outlook
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Although the transition into new categories and the integration of new divisions
will require continued investments in the business, the Company is encouraged by
the progress made during the first quarter and believes it is well positioned to
execute the strategies outlined at the outset of the year. That said, the
Company is comfortable with the outlook provided previously and reaffirms its
expectations for 2004. The Company anticipates net sales will increase in the
low-single digits over 2003 and expects diluted earnings per share to be in the
range of $1.35 to $1.40.
Jamieson Karson, Chief Executive Officer, concluded, "Overall, we are cautiously
optimistic as we look to the remainder of the year and believe we are on track
to achieving our growth and profitability objectives for 2004. We are confident
that the core elements of our business - significant brand equity, a flexible
business model, a healthy balance sheet - will help us continue to generate
industry-leading performance as we move forward. By leveraging the brand through
entering new licensing opportunities and expanding the retail division of our
business as well as considering strategic acquisitions, we aim to deliver
enhanced shareholder value over the long-term."
Interested shareholders are invited to listen to the first quarter earnings
conference call scheduled for today, Tuesday, April 27, 2004, at 10 a.m. Eastern
Time. The call will be broadcast live over the Internet and can be accessed by
logging onto http://www.firstcallevents.com/service/ajwz405058436gf12.html. An
online archive will be available shortly after the call and will be accessible
until May 10, 2004. Additionally, a replay of the call can be accessed by
dialing (800) 839-8389 and will be available through April 30, 2004.
Steven Madden, Ltd. designs and markets fashion-forward footwear for women, men
and children. The shoes are sold through Steve Madden Retail Stores, Department
Stores, Apparel and Footwear Specialty Stores, and on-line at
www.stevemadden.com. The Company has several licenses for the Steve Madden and
Stevies brands - including eyewear, hosiery, and belts -- owns and operates one
retail store under its Steven brand, and is the licensee for l.e.i Footwear,
Candie's Footwear and UNIONBAY Men's Footwear.
Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause the actual results of the Company to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties readers are urged to consider
statements labeled with the terms "believes", "belief", "expects", "intends",
"anticipates" or "plans" to be uncertain and forward-looking. The forward
looking statements contained herein are also subject generally to other risks
and uncertainties that are described from time to time in the Company's reports
and registration statements filed with the Securities and Exchange Commission.
(tables to follow)
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CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three months ended
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March 31, 2004 March 31, 2003
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Net Sales $78,768 $78,698
Cost of Sales 47,496 47,733
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Gross Profit 31,272 30,965
Commission and licensing fee income 1,416 1,690
Operating Expenses 26,108 24,392
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Income from Operations 6,580 8,263
Interest and Other Income Net 534 442
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Income Before provision for Income Taxes 7,114 8,705
Provision for Income Tax 2,988 3,656
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Net Income $ 4,126 $ 5,049
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Basic income per share $ 0.31 $ 0.39
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Diluted income per share $ 0.29 $ 0.36
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Weighted average common shares
outstanding - Basic 13,254 12,789
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Weighted average common shares
outstanding - Diluted 14,374 13,872
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CONSOLIDATED BALANCE SHEET HIGHLIGHTS
(in thousands)
March 31, 2004 December 31, 2003 March 31, 2003
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(Unaudited) (Unaudited)
Cash and cash equivalents $ 22,302 $ 53,073 $ 44,614
Investment Securities 50,296 32,659 26,789
Total Current Assets 111,339 121,995 114,939
Total Assets 181,013 177,870 159,061
Total Current Liabilities 15,143 16,855 20,885
Total Stockholder Equity 163,953 159,187 136,541
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