Steve Madden expects net sales for the first quarter 2009 to be between $106 million and $107 million. This compares to net sales of $100.5 million for the first quarter of 2008. EPS for the first quarter of 2009 is expected to be in the range of 35 cents to 37 cents. This compares to EPS of 10 cents for the first quarter of 2008 which included a 15 cents charge related to the resignation of the company's former chief executive officer.

Net sales for the first quarter of 2009 will reflect shifts related to the company’s Candies and International businesses. Candies has been transitioned to a “first cost” model from a wholesale model, and therefore revenue will now be recorded in other income. As a result of this change, net sales for the first quarter of 2009 will not reflect Candies revenue while net sales in the first quarter of 2008 reflected revenue of $4.9 million for the Candies business. In its International business, the Company shifted to a wholesale model from a “first-cost” model, and therefore revenue will now be recorded in net sales versus other income in last year’s first quarter. As a result of this change, net sales will reflect $5.2 million in International revenue in the first quarter of 2009 as compared to no revenue recorded in net sales for the International business in the first quarter of 2008.

Updated Full Year 2009 Guidance

For fiscal 2009, the company now expects net sales to range from flat to a decline of 2% compared to 2008, again incorporating shifts in the Candies and International businesses. Excluding the impact of these shifts, sales are expected to decline 2% to 4% for the year. Diluted EPS for 2009 is now expected to be in the range of $1.85 to $1.95. This compares to previous guidance of $1.40 to $1.55.

Edward Rosenfeld, Chairman and Chief Executive Officer commented, “We had a strong start to the year, with better than expected results driven by the performance of the Steve Madden Womens and Madden Girl brands within our wholesale division. Our updated full-year guidance reflects increased expectations for these two brands as well as for our Adesso Madden “first-cost” business, particularly our recently launched l.e.i. brand at Wal-Mart. While we are very pleased with our performance thus far, we will remain diligent in our inventory management and expense controls.”