New York-based shoemaker and retailer Steve Madden Ltd has reported a 29 per cent drop in second-quarter earnings.

The company said it earned $4.1 million (28 cents a share), a decrease from 45.8m (41 cents a share) the same time year.

Net sales for the first half of this year were $165.0m, compared to $164.4m in 2003, with gross margin increasing from 38.5% to 38.8%.

Net income was $8.2m compared to $10.8 last year.

Steve Madden still plans to open between eight and 12 new stores this year.