Steve Madden shares hit all-time high on results
NEW YORK (AP) — Steve Madden shares jumped to an all-time high after the footwear maker's third-quarter results beat Wall Street expectations on higher sales of its shoes and accessories. It also expects strong sales and earnings growth for the year.
Steve Madden reported net income of $37.9 million, or 86 cents per share, for the quarter ended Sept. 30. That compares with $31.9 million, or 74 cents per share, during the same quarter a year ago.
Excluding charges related to the bankruptcy of Bakers Footwear Group, the company earned 94 cents per share in the latest period. Revenue rose 14 percent to $356.9 million from $313.9 million, helped by strong wholesale sales of Steve Madden Women's shoes and the acquisition of SM Canada.
That topped the profit of 89 cents per share and sales of $353.9 million expected by analysts, according to FactSet. Profit margins were helped by the higher-margin SM Canada retail business and reduced discounting.
The New York company said that sales at stores open at least a year rose 8.6 percent in the third quarter. That's an important retail metric as it excludes results from recently opened or closed stores.
The company opened three new stores in the latest quarter, bringing its total stores to 99, including eight outlets and two Internet stores.
For the year, the company expects sales will increase 25 to 26 percent from a year ago. It now expects to earn $2.72 per share to $2.77 per share, not including the impairment charge. Analysts expect earnings of $2.72 per share for the year. Previously Steve Madden forecast adjusted profit of $2.67 to $2.77 per share.
Shares of Steven Madden Ltd. jumped to an all-time high of $46.56 during Thursday trading, before giving back some gains in the afternoon. They recently traded up $1.97, or about 5 percent, at $44.89.