Steven Madden Ltd. Earnings: Company Enjoys Fifth Straight Quarter of Double-Digit Growth

Wall St. Cheat Sheet

Steven Madden Ltd. reported higher profit for the first 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 Earnings Cheat Sheet for the First Quarter

Results: Net income for Steven Madden Ltd. rose to $21.9 million (50 cents per share) vs. $17.9 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 22.7% from the year-earlier quarter.

Revenue: Rose 56.2% to $266 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steven Madden Ltd. fell in line with the mean analyst estimate of 50 cents per share. It beat the average revenue estimate of $249.9 million.

Quoting Management: “Our first quarter results reflect continued momentum throughout our business. We were particularly pleased with our core Steve Madden brand, which recorded strong growth across categories, channels and geographies. The ongoing momentum in our flagship brand, combined with the growth we are seeing from our newer brands and businesses, gives us confidence that we can continue to drive sales and earnings gains in 2012 and beyond.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 51.4%, 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 was the fifth in a row that the company saw shrinking gross margins, as they fell 7.1 percentage points from the year-earlier quarter to 36.1%. In that span, margins have contracted an average of 5.9 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 fourth quarter of the last fiscal year, net income rose 34.9% and in the third quarter of the last fiscal year, the figure rose 39.3%.

The company met estimates last quarter after toppling them in the two previous quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 4 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 66 cents per share, up from 65 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.68 a share to $2.67 over the last ninety days.

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

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