Steve Madden raises full year guidance

Monday, 10 November 2008
Shoe and accessories maker Steve Madden raised its full year profit and revenue guidance after posting a better-than-expected third quarter, in which sales rose 13 percent. The company reported that net income totaled $11.1 million, or 62 cents per diluted share, compared with $10.9 million, or 52 cents, a year earlier, which included a tax gain.

Total sales increased to $128.1 million, a 13 percent jump from last year's $113.4 million, while comps also rose 7.8 percent. The company said strong sales in women's and girls shoes helped boost quarterly revenue.

"We gained momentum despite an increasingly challenging environment." Edward Rosenfeld, chairman and chief executive officer, said of the quarter. "We recognize the challenges based on the industry; however, we are very pleased with the strength of our current position in the market in comparison to our peers".

"We are encouraged by our recent performance and believe that Steve Madden is well positioned to continue capitalizing on current and emerging footwear trends," Rosenfeld said.

Revenues from the wholesale business increased 13.2 percent to $97.3 million.

Madden Girl continues to be the fastest-growing part of the business, said Rosenfeld, with third-quarter sales up 90 percent to $15.1 million compared with $8 million last year.

Steve Madden Fix, the company's newest brand, brought in net sales of $700,000 for the quarter, while the men's division failed to excite consumers and dropped in sales by $4.5 million to $10.8 million.

Based on its year to date, the company is raising its guidance for the full fiscal year.

image: Steve Madden