“We are pleased to have achieved Adjusted diluted EPS at the high end of our guidance range for the fourth quarter and full year 2019.  Fiscal year 2019 was a strong year for the Company, with revenue and Adjusted diluted EPS increasing mid-single digits on a percentage basis compared to the prior year despite significant headwinds from the bankruptcy of Payless ShoeSource and the tariffs implemented on accessories, footwear and apparel from China. Looking ahead, while we are cautious on the near-term outlook due to additional headwinds from the coronavirus outbreak, China tariffs and the termination of the Kate Spade footwear license, we are confident that the strength of our brands and our business model will enable us to drive earnings growth and shareholder value creation over the long term.”, commented Edward Rosenfeld, Chairman and Chief Executive Officer.

Revenue for Steve Madden increased by 0.7% to 419.6 million US dollars compared to 416.8 million US dollars in the same period of 2018. Net income attributable to Steven Madden, Ltd. reached 17.8 million US dollar, or 0.21 US dollars per diluted share, compared to 12.5 million US dollars, or 0.15 US dollars per diluted share, in the prior year’s fourth quarter. Adjusted net income attributable to Steven Madden, Ltd. was 32.2 million US dollars, or 0.39 US dollarsper diluted share, compared to 35.7 million US dollars, or 0.42 US dollars per diluted share, in the prior year’s fourth quarter.

Revenue for the wholesale business decreased by 1.1% to 313.8 million  US dollars in the fourth quarter of 2019 due primarily to a decrease in wholesale accessories/apparel revenue. Wholesale footwear revenue declined by 0.2% with a decline in the branded business offset by a gain in private label. Wholesale accessories/apparel revenue decreased by 3.6% driven by declines in private label handbags and cold weather accessories, partially offset by the addition of the BB Dakota apparel business. Gross margin in the wholesale business decreased to 29.2% compared to 30.1% in last year’s fourth quarter driven by tariffs on goods imported from China.

Retail revenue in the fourth quarter rose by 8.7% to 101.1 million US dollars compared to 93.0 million US dollars in the fourth quarter of the prior year. Same store sales increased by 6.7% in the quarter driven by strong performance in the company’s e-commerce business. Retail gross margin was 61.2% in the fourth quarter of 2019 compared to 61.0% in last year's fourth quarter. Adjusted gross margin in the retail segment increased to 61.6% in the fourth quarter of 2019 compared to 61.0% in the fourth quarter of the prior year due to a reduction in promotional activity.

Steve Madden ended the quarter with 227 company-operated retail locations, including eight Internet stores, as well as 31 company-operated concessions in international markets.

For the complete year ended on the 31^st of December 2019, revenue increased by 6.5% to 1.8 billion US dollars from 1.7 billion US dollars in the prior year. Net income attributable to Steven Madden, Ltd. was 141.3 million  US dollars, or 1.69   US dollars per diluted share, for the year ended on the 31^st December 2019 compared to net income of 129.1 million US dollars, or 1.50  US dollars per diluted share, for the previous year.  On an Adjusted basis, net income attributable to Steven Madden, Ltd. was 162.8 million US dollars, or 1.95 US dollars per diluted share, for 2019 compared to net income of 157.7 million  US dollars, or 1.83  US dollars per diluted share, for 2018.

Quarterly Dividend

The company’s Board of Directors approved a quarterly cash dividend of 0.15 US dollars per share. The dividend will be paid on the 27^th of March 2020, to stockholders of record at the close of business on the 17^th of March 2020.

For fiscal year 2020, Steve Madden expects revenue to increase 0% to 1% over revenue in 2019.  The company expects diluted EPS for fiscal year 2020 will be in the range of 1.70 US dollars to 1.80 US dollars. Compared to the prior year, the diluted EPS range reflects an adverse impact of approximately 0.35 US dollars from the combined impact of the coronavirus, tariffs on goods from China, the termination of the Kate Spade footwear license and a higher anticipated tax rate.