Steve Madden's fourth quarter net sales totaled 342.6 million US dollars compared to 342.9 million US dollars in similar period of 2013. Gross margin was 34.3% as compared to 37.8% in the same period last year, and net income reached 21.0 million US dollars (0.34 US dollars per diluted share) compared to 35.7 million US dollars (0.54 US dollars per diluted share) in the prior year's fourth quarter.

Net sales for the wholesale business totaled 270.9 million US dollars in the fourth quarter compared to 273.4 million US dollars in the fourth quarter of 2013. Excluding the results of Dolce Vita, wholesale net sales decreased 6.3% compared to the prior year period. Gross margin in the wholesale business decreased to 27.0% compared to 31.8% in last year’s fourth quarter, due primarily to increased markdown allowances, the impact from Dolce Vita and higher air freight costs incurred due to the West Coast port slowdown. Retail net sales in the fourth quarter totaled 71.7 million US dollars compared to 69.5 million US dollars in the fourth quarter of the prior year.

During the fourth quarter, Steve Madden opened two full price stores and four outlet stores, and acquired 21 retail stores with the acquisition of the Company’s Mexican licensee. The company ended the year with 160 company-operated retail locations, including 32 outlets, four internet stores and four joint venture locations in South Africa.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented: “Fourth quarter 2014 was a tough quarter capping a difficult year for the company. Throughout 2014, we were impacted by a lack of significant fashion footwear trends on which to capitalize. In the fourth quarter, we faced additional challenges including production delays on goods from Mexico and slowdowns at the West Coast ports. While 2014 was a difficult year, we are excited about the steps we took during 2014 and early in 2015 to position the company for future growth. In 2014, we implemented a new e-commerce platform, acquired two powerful footwear brands in Dolce Vita and Brian Atwood, and moved to an ownership model in two important international markets with the acquisition of our Mexican licensee and the formation of a joint venture in South Africa. In January 2015, we announced our acquisition of Blondo, which adds an authentic waterproof boot brand to our portfolio. We believe that these initiatives will significantly enhance the Company’s long-term growth prospects.”

For the full year, ended on the 31st of December 2014, net sales increased 1.6%, from 1.31 billion US dollars to reach 1.33 billion US dollars. Net income for the year totaled 111.9 million US dollars, or 1.76 US dollars per diluted share, which compares to 132.0 million US dollars, or 1.98 US dollars per diluted share last year.

For fiscal year 2015, the company expects that net sales will increase 7% to 9% over net sales in 2014, and diluted EPS for fiscal year 2015 is expected to be in the range of 1.85 US dollars to 1.95 US dollars.