Steven Madden Ltd. Earnings Cheat Sheet: Profits Climb By Double Figures Again

Steven Madden, Ltd. (NASDAQ:SHOO) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for Steven Madden, Ltd. rose to $31.9 million (74 cents per share) vs. $22.9 million (54 cents per share) in the same quarter a year earlier. This marks a rise of 39.3% from the year earlier quarter.

Revenue: Rose 70.5% to $313.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SHOO beat the mean analyst estimate of 70 cents per share. Analysts were expecting revenue of $307.9 million.

Quoting Management: Edward Rosenfeld, Chairman and Chief Executive Officer, commented,”Our third quarter results reflect broad-based strength across our business. In addition to the significant sales contributions in the quarter from Topline and Cejon, which we acquired in May 2011, we delivered double-digit organic sales growth in each of our wholesale footwear, wholesale accessories and retail segments. Our flagship Steve Madden brand was particularly strong, as the on-trend merchandise assortment created by Steve and his design team drove robust gains with Steve Madden women’s footwear and handbags in both wholesale and retail. The ongoing momentum in our core business, combined with the opportunities for growth in our new brands, categories and geographies, gives us confidence that we are well-positioned to continue to deliver strong sales and earnings growth as we move ahead.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 35.7%, with the biggest boost coming in the most recent quarter when revenue rose 70.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 20.1% and in the first quarter, the figure rose 16%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 3 cents in the first quarter, and by 4 cents in the fourth quarter of the last fiscal year.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 57.8 percentage points to 99.9% from the quarter earlier quarter. In the first quarter, the figure rose five percentage points to 40.2% from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 52 cents a share to 53 cents over the last seven days. Over the past three months, the average estimate for the fiscal year has climbed from $2.15 per to share to $2.19.

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), Pacific Bepure Industry Inc. (PBEP), NIKE, Inc. (NYSE:NKE), and SaiGon Shoes JSC (SSF).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)