Steven Madden's third quarter profit has slipped 13% to $10.9m, from $12.6m in the prior year quarter.

The designer, wholesaler and marketer of fashion footwear and accessories, said that third quarter net sales fell 8% to $113.4m, from $123.2m a year earlier.

Revenues from the wholesale business were down to $86.0m from $91.8m. The company blamed this on a "challenging selling environment with a lack of strong direction in footwear fashion trends as well as generally softer retail trends compared to the prior year".

Retail revenues were also down, falling to $27.4m from $31.5m. Same-store sales decreased 15.0% compared with an increase of 10.5% in the third quarter of 2006.

"We generated results in the third quarter in line with our revised guidance," said Jamieson Karson, chairman and CEO.

"As previously reported, we experienced challenges in both our wholesale and retail divisions due to a soft consumer spending environment and a lack of big fashion footwear trends.

"With that said, we are pleased with the consistently positive results from Madden Girl. Further, in our Daniel M Friedman division we were able to sustain solid sales results while improving profitability compared to last year's third quarter.

"Importantly, we effectively controlled our inventory which enabled us to maintain our overall gross margin on top of the significant increase we achieved in the same period last year."

In its outlook the company said it expects net sales for 2007 to decline between 9% and 11% compared to 2006.