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Steven Madden Ltd. Earnings: Fifth Consecutive Quarter of Double-Digit Growth

Steven Madden Ltd. reported higher profit for the fourth 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 Fourth Quarter

Results: Net income for Steven Madden Ltd. rose to $23.8 million (55 cents per share) vs. $17.6 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 34.9% from the year-earlier quarter.

Revenue: Rose 73.7% to $279.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steven Madden Ltd. beat the mean analyst estimate of 54 cents per share. It beat the average revenue estimate of $266.2 million.

Quoting Management: Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased to have ended 2011 with record fourth quarter results. We delivered high-teen organic sales growth in each of our wholesale footwear, wholesale accessories and retail businesses. Our flagship Steve Madden brand led the way, as we recorded strong gains in Steve Madden women’s footwear and handbags in both wholesale and retail and in both the United States and international markets. We also continued to integrate and capitalize on our new acquisitions, Topline and Cejon, which are proving to be excellent additions to the business. We believe we are well-positioned as we head into 2012, with a strong portfolio of brands, a proven business model, and a number of substantial growth opportunities which we anticipate will enable us to continue to drive top and bottom line gains.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 45.8%, with the biggest boost coming in the most recent quarter when revenue rose 73.7% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the third quarter, net income rose 39.3% and in the second quarter, the figure rose 20.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the third quarter, by 2 cents in the second quarter, and by 3 cents in the first quarter.

Gross margin shrank 7.7 percentage points to 35.5%. The contraction appeared to be driven by increased costs, which rose 97.3% from the year earlier quarter while revenue rose 73.7%.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for first quarter of the next fiscal year is 52 cents per share, an increase from 51 cents sixty days ago. The average estimate for the fiscal year is $2.24 per share, a rise from $2.23 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com