Steve Madden raised his full-year profit target for the third quarter, raising his full-year earnings forecast

Steven Madden Ltd. (NASDAQ:SHOO), a U.S. footwear, accessories manufacturer and retailer, raised the lower limit of its full-year EPS target range after achieving better-than-expected sales and earnings in the third quarter, pushing the group's share price up by up to 10.9% to $37.0 in early trading on Tuesday.

Steven Madden Ltd. (NASDAQ:SHOO) now expects full-year EPS to be between $1.98 and $2.03. Previously, the lower limit of the expectation was $1.93, while Wall Street analysts expected EPS of $1.99. The full-year net sales forecast remains unchanged at a year-on-year growth of 0-1%, with Wall Street analysts predicting sales of $1.41 billion.

In the third quarter ending September 30, the group's net sales rose 1.2% year-on-year to $408.4 million, outperforming Wall Street analysts' expectations of $404.6 million. Among them, wholesale sales decreased by 2.9% to 346.6 million US dollars, retail sales rose by 9.6% to 62.8 million US dollars, and same-store sales increased by 1.3%, with the growth rate significantly slowing down from 5.4% in the second quarter.

Group Chairman and Chief Executive Officer Edward Rosenfeld pointed out in the financial report that during the period, both the women's footwear business of the core Steve Madden brand and the Dolce Vita brand achieved outstanding growth. Its trend-following product portfolio and strict inventory management have both contributed to a significant increase of 180 basis points in gross margin to 37.8%. He is satisfied that the group has recorded sales and profits that exceeded expectations despite the continuous challenges in the overall retail environment and the cautious attitude of wholesale partners.

During the period, the net profit attributable to Steven Madden Ltd. was 43.767 million US dollars, an increase of 2.1% compared with 42.885 million US dollars in the same period last year. The EPS rose from 0.70 US dollars to 0.74 US dollars, which was 5.7% higher than the market expectation of 0.70 US dollars.

Steven Madden Ltd. (NASDAQ:SHOO) closed at $35.45 at midday, narrowing its gains to 6.14%, but expanding its cumulative gains so far in 2016 to 15.9%.

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