BOSTON — Steven Madden Inc. continued to build on its successes in the first quarter.
The firm, which reported a better-than-expected doubling of net income last week, said its existing brands, as well as new lines and collaborations, all contributed to growing revenues.
In fact, the firm now expects sales to rise 17 percent to 19 percent in fiscal 2010, while annual earnings per share are seen at $2.30 to $2.40, up from a prior guidance for $2.07 to $2.20. The new EPS projection reflects the firm’s three-for-two stock split.
Chairman and CEO Edward Rosenfeld said on a quarterly conference call that the new men’s line, Madden, has seen a favorable response from consumers. He added that Olsenboye, the firm’s most recent collaboration with Mary-Kate and Ashley Olsen, “is off to an excellent start in approximately 600 doors with JCPenney. Additional sell-throughs have been strong for both footwear and accessories in Olsenboye.”
Lastly, Rosenfeld noted a positive response to the company’s new apparel collection, which is available in 180 doors, including Nordstrom, Dillard’s and Macy’s.
Analysts were upbeat on the firm’s results. “One key ongoing trend is that retailers continue to focus more on in-season buys, which falls right into Steven Madden’s strengths,” Jeff Van Sinderen, an analyst at B. Riley & Co., wrote in a report last week. “We do not see that trend reversing anytime soon. In fact, retailers are starting to chase more product in season as the environment improves.”
Madden reported last Tuesday a profit of $15.4 million, or 55 cents a diluted share — easily beating Wall Street estimates for 38 cents — up from $6.6 million, or 24 cents, the prior year. Net revenues rose 23 percent to $131.6 million.