Earnings Preview: Steven Madden, Deckers, Crocs

Steven Madden Ltd.
When it reports its earnings on Wednesday, Steven Madden Ltd. is expected to beat the street.
 
Analysts, as polled by Yahoo Finance, are looking for EPS of 55 cents a share for the period ended Dec. 31, 2010, on revenue of $157.9 million for the quarter, driven by strong boot sales, among other factors.
 
“The Madden business has momentum, and our channel checks indicate strong sell-throughs. Madden is likely to have another good year at wholesale, driven by not only the core brands, but newer brands like Betsy Johnson as well,” said Jeff Van Sinderen, analyst at B. Riley & Co, in a research note.
 
“We believe that actual EPS will beat our estimate and perhaps even consensus,” he added.
 
The firm’s stock was trading at a year-to-date high of $44.55 last Friday.

Deckers Outdoor Corp.
Deckers Outdoor Corp. is trading at year-to-date highs of around $90 a share as analysts expect another strong boot-selling season for the Goleta, Calif.-based firm.
 
Analysts are looking for EPS of $1.97 on revenue of $390.5 million for the quarter, as polled by Yahoo Finance, when the company reports its fourth-quarter results on Thursday.
 
A research note by Susquehanna Financial Group said better-than-expected sell-through rates for Ugg are expected, “driven by widespread demand of its cold-weather line, in addition to classics and an unexpected surge in demand for Ugg men’s during the holidays [as they were a] best-seller at Lord and Taylor.”
 
Susquehanna is “conservatively assuming flat gross margins for fiscal year 2011” and also expects Teva sales to enjoy continued momentum in the fourth quarter following a successful reboot of the brand last spring.

Crocs Inc.
Also expected to continue its path to recovery is Crocs Inc., on the back of a 60 percent surge in futures orders as reported at the end of the last quarter, when it topped estimates by earning 28 cents a share.
 
The Niwot, Colo.-based firm, which reports its results Thursday, should also see top line growth driven by the dramatically expanded product line it executed in late 2010.

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