Madden Momentum Continues

Madden Momentum Continues
Inside the Steve Madden store on 34th Street in New York
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Shares of Steven Madden Ltd. jumped 18 percent Thursday as its second-quarter profit gained 13 percent and revenue soared 38 percent.

For the period ended June 30, the Long Island City, N.Y.-based firm earned a net income of $26.9 million, or 61 cents a share, compared with $23.8 million, or 55 cents, a year ago.

Revenue grew to $288.7 million, from $209.2 million. Analysts were, however, looking for earnings per share of 63 cents on revenue of $281.7 million, as polled by Yahoo Finance.

Wholesale revenue surged to $248.1 million, from $175.2 million, driven by double-digit organic growth in wholesale footwear and accessories, as well as additional revenue from the recent acquisitions of Topline, Cejon and SM Canada.

Retail revenue grew 19.4 percent to $40.6 million, from $34 million. Same-store sales increased 6.8 percent, slower than the 11.6 percent recorded a year ago.

Gross margin slipped to 36.1 percent, from 40.2 percent. Retail gross margin suffered from markdowns in the sandal category.

“Despite a challenging retail environment, overall the momentum in our business remains strong, with double-digit organic sales growth in each of our wholesale footwear, wholesale accessories and retail segments supplemented by meaningful contributions from our recent acquisitions,” Chairman and CEO Edward Rosenfeld said in a statement.

Madden raised its guidance for fiscal 2012. Sales are expected to grow between 24 percent and 26 percent from 2011 levels, and EPS is now expected to come in between $2.67 and $2.77.

The firm ended the period with $80.7 million in cash and no debt.