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Steven Madden shares jump 5% premarket after earnings beat estimates

Ciara Linnane

Steven Madden Ltd. shares rose 5% in premarket trade Wednesday, after the company beat earnings estimates for the fourth quarter. The Long Island City, New York-based shoe designer said it had net income of $12.5 million, or 15 cents a share, in the quarter, down from $24.6 million, or 28 cents a share, in the year-earlier period. Adjusted per-share earnings came to 42 cents, ahead of the 38 cents FactSet consensus. Sales rose 12.6% to $410.4 million, also ahead of the FactSet consensus of $402 million. "The trend-right product assortments created by Steve and his design team drove robust gains in our flagship Steve Madden brand in both footwear and handbags," Chief Executive Edward Rosenfeld said in a statement. The company said it is now expecting sales to grow 4% to 6% in 2019 over 2018. But it expects the bankruptcy of Payless ShoeSource to shave about 16 cents off adjusted EPS, however, reducing guidance to $1.75 to $1.83. The current FactSet consensus is for 2019 EPS of $1.92. Shares have gained 11.6% in the last 12 months, while the S&P 500 has gained 1.8%.