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Steve Madden Increases Guidance

Strong sales in its core brands and tight expense and margin management helped Steven Madden Ltd. to a 59 percent earnings increase in the second quarter.
 
“In the current economic climate, the consumer is so careful about [her] purchases,” Edward Rosenfeld, Steven Madden’s chairman and CEO, said on a conference call. “It is more important than ever to be fashion right and to provide great value. We feel we are delivering on both accounts.”
 
The Long Island City, N.Y.-based company on Thursday reported a profit of $12.1 million, or 66 cents a diluted share, compared with $7.6 million, or 43 cents, during the same period last year. Analyst estimates on Yahoo Finance pegged the company’s second-quarter earnings-per-share at 49 cents.
 
Revenues rose by 7 percent to $116.5 million, thanks to 11 percent growth in Steven Madden’s wholesale business. Its retail sales, though, decreased by 5 percent, and same-store sales dipped by 5.4 percent.
 
For the first half of 2009, net income rose to $18.7 million, or $1.03 cents a share, from $9.7 million, or 51 cents, in the year-ago period. Sales rose 7 percent to $223.9 million.
 
Steven Madden also increased its full-year guidance. The company now expects net sales to jump by 2 percent to 4 percent for 2009, versus former expectations of flat to 2 percent sales declines. Diluted EPS is forecasted to range from $2.05 to $2.15, up from former guidance of $1.85 to $1.95.

The stock closed at $31.79 on Thursday, up 11.2 percent for the day.

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