Lack of direction leads to lower sales
While footwear companies such as Crocs appear continue to step up the pace in terms of sales, America’s mid-range fashion footwear groups are beginning to feel the effects of a consumer slowdown as well as a lack of any real new trends.
Designer of women’s, men’s and children’s fashion footwear and accessories Steven Madden, Ltd. posted fourth quarter net sales of $102.7 million, down from $114.1 million in the comparable period of 2006, reflecting “the weak economic environment as well as the absence of any major footwear trends”. Although revenues from the company’s wholesale business fell to $63.5 million compared with $76.6 million in the fourth quarter of 2006, retail revenues did increase by 4.6% to reach $39.3 million, compared with $37.5 million, although same store sales decreased 0.1%.
The picture was no more optimistic for the full year either as net sales slipped to $431.1 million from $475.2 million.
"Our performance for the fourth quarter and full year reflects soft consumer spending, which worsened during the holiday season, as well as the continued absence of major fashion footwear trends," commented Jamieson Karson, chairman and chief executive. "While results for the year were not where we wanted them to be, we were able to manage through a difficult environment and were pleased to have generated growth in Madden Girl and our Daniel M. Friedman accessories division.”
