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Steve Madden 3Q profit meets analysts' estimates

The Associated Press

NEWS: Steve Madden said Thursday that its net income rose 16 percent in the third quarter, led by strength at its wholesale footwear business. Its profit met Wall Street's view, and revenue beat analysts' estimates.

The stock climbed in morning trading.

DETAILS: Sales at stores open at least a year fell 3.5 percent. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Gross margin dropped to 35.4 percent from 36.8 percent mostly due to a shift to lower-margin private label footwear.

NUMBERS: For the period ended Sept. 30, the footwear and accessories company earned $44 million, or 66 cents per share. That's up from $37.9 million, or 57 cents per share, a year earlier.

The results were adjusted for a 3-for-2 stock split that went into effect earlier this month.

This met the expectations of analysts surveyed by FactSet.

Revenue climbed 11 percent to $394.8 million from $356.9 million. Wall Street called for revenue of $383.3 million.

Wholesale sales increased 11 percent on private label footwear growth and strong performances in Steve Madden Women's, Steve Madden Men's, Madden Girl and internationally. Sales of accessories dropped mostly due to weaker sales of cold weather items and belts. Retail climbed about 8 percent, helped by new store openings. The Long Island City, N.Y.-based company ended the quarter with 117 company-operated retail locations, including 16 outlets and three Internet stores

FUTURE: Steve Madden Ltd. still foresees fiscal 2013 earnings of $1.97 to $2.03 per share, adjusted for the stock split. It maintained its outlook for a revenue increase of 6 percent to 8 percent.

Analysts predict earnings of $2.01 per share and revenue of $1.31 billion.

STOCK: The stock added $1.29, or 3.7 percent, to $36.50.