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Steve Madden shares jump after guidance raised

Tonya Garcia

Steven Madden Ltd. shares jumped 5.7% in Thursday trading after the shoe brand reported first-quarter earnings that beat expectations and raised its full-year guidance. Net income totaled $34.5 million, or 41 cents per share, up from $28.7 million, or 33 cents per share last year. Adjusted EPS of 42 cents beat the 37-cents FactSet consensus. Sales were $410.9 million, up from $389.0 million last year and ahead of the $404.0 million FactSet estimate. Wholesale sales increased "slightly" according to the earnings release, with the namesake brand and the addition of Anne Klein offsetting unrecognized sales to Payless ShoeSource, which filed for bankruptcy. Steve Madden has previously called the Payless bankruptcy a headwind. Thanks to the first-quarter performance, Chief Executive Edward Rosenfeld raised full-year guidance, with sales now expected to rise 5% to 7% compared to previous guidance for 4% to 6% growth. EPS is now expected to be in the range of $1.76 to $1.84 compared with $1.70 to $1.78 previously. The FactSet estimate is for sales of $1.74 billion, up 5.5% year-over-year, and EPS of $1.82. Steve Madden shares are up 19% for the year to date while the S&P 500 index is up 16.3% for the period.