NEW YORK (AP) -- Shoe and bag seller Steven Madden Ltd. on Tuesday declared a three-for-two stock split. That will increase its outstanding stock to about 68.8 million shares, from about 45.9 million shares, and reduce the price of the shares.
Companies sometimes declare a stock split after a big increase in the share price, making the stock price lower in hopes of attracting more investors. They may also want to increase the amount of stock outstanding to try to make shares easier to buy and sell.
The shares added $1.66, or 3.2 percent, to $54.07 in afternoon trading. The stock is up 28 percent this year.
The company said Tuesday that the stock split will give all shareholders on Sept. 20 the right to receive another share for every two shares they own. The additional shares are expected to be distributed on Sept. 30.
Steve Madden sells shoes, clothing and other accessories in its own stores and through department stores and other chains. Its second-quarter net income rose 8 percent as it opened new stores, discounted less and sold more accessories through other retailers.