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Steve Madden Tops Expectations in Q3 Report

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Following a murky second quarter which saw Steve Madden lower its guidance, the footwear maker is back in investor’s good graces after a solid Q3.

The New York-based company reported net income of $43.8 million for the quarter, up 2 percent over last year. On EPS terms, that came out to 74 cents per share, topping Wall Street’s forecast for EPS of 70 cents.

While net sales were down, decreasing 1.2% to $408.4 million from $413.5 million last year, this was still a better-than-expected result for analysts, who were predicting sales of about $404 million.

The brand performed well at retail, with same-store sales up 1.3% year-over-year, but continued to struggle with wholesale, where sales fell 2.9% to $346.6 million.

Edward Rosenfeld, Steve Madden chairman and CEO, said in a statement that he was pleased with the results for the quarter, citing the company’s women’s category for leading growth.

“Our core Steve Madden Women’s footwear business achieved outstanding growth during the quarter, as did our Dolce Vita line. In addition, we delivered strong gross margin expansion, as our on-trend merchandise assortment and disciplined inventory management resulted in higher initial markups and reduced close-outs and markdown allowances,” he said.

Madden updated its guidance for the remainder of the year, saying it now expects EPS in the range of $1.98-$2.03, representing a narrower range of the company’s previous $1.93-$2.03 guidance.

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