Steven Madden Earnings: Profit Climbs, Revenue Surges By Double Digits

Steven Madden Ltd. (NASDAQ:SHOO) reported higher profit for the second quarter as revenue showed growth. Steven Madden designs, sources, markets and retails women’s, men’s and children’s shoes for sale through its wholesale and retail channels.

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Steven Madden Ltd. Earnings Cheat Sheet

Results: Net income for Steven Madden Ltd. rose to $26.9 million (61 cents per share) vs. $23.8 million (55 cents per share) in the same quarter a year earlier. This marks a rise of 13.1% from the year-earlier quarter.

Revenue: Rose 38% to $288.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steven Madden Ltd. fell short of the mean analyst estimate of 63 cents per share. It beat the average revenue estimate of $281.7 million.

Quoting Management: Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We delivered solid sales and earnings results in the second quarter 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. With our diversified platform spanning multiple brands, product categories, distribution channels and geographies, we believe we are well-positioned to drive top and bottom line growth in the second half of 2012 and beyond.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 54.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 76.3% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 4.1 percentage points to 36.1% from the year-earlier quarter. Over that time, margins have contracted on average 5.8 percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 22.5% and in the fourth quarter of the last fiscal year, the figure rose 34.9%.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 50 cents.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 87 cents per share from 85 cents. Over the past sixty days, the average estimate for the fiscal year has reached $2.67 per share, a decline from $2.68.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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