Steve Madden Earnings Cheat Sheet: Third Consecutive Quarter of Profitable Growth

Steven Madden, Ltd. (NASDAQ:SHOO) reported net income above Wall Street’s expectations for the first quarter. 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for the footwear and apparel company rose to $17.9 million (63 cents/share) vs. $15.4 million (55 cents/share) in the same quarter a year earlier. A rise of 16% from the year earlier quarter.

Revenue: Rose 26% to $165.8 million YoY.

Actual vs. Wall St. Expectations: SHOO beat the mean analyst estimate of 59 cents/share. Estimates ranged from 56 cents per share to 62 cents per share.

Quoting Management: Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased with the strong start to 2011, as the trend-right merchandise assortment created by Steve and his design team enabled us to deliver solid top and bottom line gains in both wholesale and retail. Our new brands also continued to gain traction and made meaningful contributions to growth in the quarter. Looking ahead, we believe we are well-positioned to drive sales and profitability growth through our increasingly diversified business model.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 26.8%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 32.3% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 30% and in the third quarter of the last fiscal year, the figure rose 28.5%.

Competitors to Watch: Brown Shoe Company, Inc. (NYSE:BWS), Skechers USA, Inc. (NYSE:SKX), Deckers Outdoor Corp. (NASDAQ:DECK), TOD’S SpA (NYSE:TOD), Kenneth Cole Productions (NYSE:KCP), Nordstrom (NYSE:JWN) and NIKE, Inc. (NYSE:NKE).

Stock Performance: Shares of SHOO are trading at $52.21 as of May 5, 2011 at 12:30 PM ET, up a half percent from the previous closing price of $51.70.


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