(RTTNews) - Footwear retailer Steven Madden Ltd. (SHOO: News ), Tuesday reported a higher profit for the third quarter on increased sales. Earnings per share for the period came in line with Wall Street expectations. The company also reaffirmed its guidance for the full year 2009, citing business from new licenses.

Long Island City, New York-based Steven Madden said its third-quarter net income rose to $17.83 million or $0.97 per share from $11.09 million or $0.62 per share last year. On average, five analysts polled by Thomson Reuters expected earnings per share of $0.97 for the quarter. Analysts' estimate typically excludes one-time items.

Net sales for the third quarter grew to $140.14 million from $128.09 million in the comparable period.

Net sales from the wholesale business grew 15.0% to $112.0 million from $97.3 million last year on strong revenues from the company's Women's and Men's wholesale footwear divisions. Retail segment, however, showed a lackluster performance, with net sales declining to $28.2 million from $30.7 million in the prior-year. Same store sales decreased 7.6% compared with a 7.8% same store sales increase in the same period of 2008.

Third quarter gross margin improved to 44% as compared with prior-year's 41.4%, reflecting a 4.9 point appreciation in wholesale gross margins to 41.2% on reduced markdown allowances, and a 2.2 point decline in retail gross margins to 55.2% on increased promotional activity, compared with the same period last year.

Operating expenses declined on shrinking retail pay-rolls to $39.08 million from $39.77 million, favorably impacting the increase in operating income to $28.31 million from $17.71 million in the year-ago period.
For the nine months, net income rose to $36.55 million or $2.00 per share from $20.77 million or $1.11 per share in the last year period. Revenues improved to $364.04 million from $337.95 million for the same period last year.

For fiscal 2009, the company reaffirmed its earnings per share outlook in the range of $2.55 - $2.65 and a projected increase in net sales between 7% and 8%. Analysts anticipate earnings per share of $2.64 for fiscal 2009.

Edward Rosenfeld, Chairman and chief executive officer said, "Looking ahead, we are very enthusiastic about our recently announced business ventures including the launch of our newly licensed Steve Madden apparel line as well as our new license agreement for Olsenboye footwear and accessories".

SHOO finished Tuesday's regular trading sessions down $1.79 or 4.40%, at $38.92 on the Nasdaq.

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by RTT Staff Writer

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