Steven Madden Profit Rises - Update

(RTTNews) - Footwear and accessories company Steven Madden Ltd. (SHOO), Tuesday reported an eight percent increase in fourth-quarter profit on growth in wholesale segment, partly offset by lackluster sales in retail business and weak margins. Nonetheless, sales for the quarter topped Wall Street estimates.

Moving forward, Steven Madden provided a somewhat soft outlook for 2014. The company warned of weakness in near-term retail sales but sees growth in the wholesale segment.

Long Island City, New York-based Steven Madden posted fourth-quarter net earnings of $35.7 million or $0.54 per share, compared with $33 million or $0.49 per share last year.

Excluding one-time benefits, earnings for the quarter were $0.53 per share, compared with $0.48 per share a year ago.

On average, 13 analysts polled by Thomson Reuters expected earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter grew 8.7 percent to $342.9 million from $315.5 million in the prior year. Analysts projected sales of $342.6 million for the quarter.

Sales at wholesale business grew 10.6 percent from last year, with strength in the private label business in addition to solid gains in Steve Madden Women's and Madden Girl footwear as well as handbags.

Retail sales were up a modest 1.7 percent.

Gross margin for the quarter declined to 37.8 percent from 39.3 percent last year due to a shift in sales mix to the lower-margin private label business and increased promotional activity.

Operating margin was lower by 20 basis points at 15.6 percent.

Steven Madden ended the year with 121 company-operated retail locations.

For fiscal year 2014, Steven Madden projects earnings of $2.05 to $2.15 per share and sales growth of 5 percent to 7 percent. Analysts currently expect earnings of $2.15 per share on sales growth of 6.8 percent.

The company's stock is trading at $35.30, up $0.20 or 0.57%, on a volume of 450 thousand shares on the Nasdaq.