Auriga Maintains a 'Buy' on Steven Madden (SHOO); Reports Inline Q1; Increases Full Year Guidance

May 3, 2012 11:40 AM EDT
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Price: $35.35 +0.57%

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Auriga maintains a 'Buy' on Steven Madden (NASDAQ: SHOO) price target of $50.00.

Analyst, Claire Gallacher, said, "SHOO reports Q1 EPS of $0.50, in line with consensus of $0.50 and up 23% versus the PY. Revenue increased 61%, to $266mm. This compares with consensus $250mm. Wholesale revenue rose 71%, to $229mm. This compares with our estimate of $212mm. SHOO reported double digit organic growth in wholesale footwear and accessories. Also contributing to results was results from new acquisitions. Retail sales increased 18%, to $37mm. Same store sales rose11.9% during Q1. Gross margin of 36.1% (better than expected) compares with 41.7% in the prior year. We expected gross margins of 35.7%, down 600 bpts versus the prior year as lower margin acquisitions (Topline and Cejon) were integrated. Wholesale gross margin was 32.3% versus 37.9% in the prior year. Excluding the impact from acquisitions and a mix shift toward private label, wholesale gross margin was moderately higher compared with last year. Retail gross margin was 60.1% versus 58.1% in the prior year. EBIT margin of 13.3% compares with 16.6% in the prior year. Expectations were for EBIT margin of 14.3%. SG&A expenses were slightly ahead of our estimate. Outlook raised for 2012; SHOO does not issue quarterly guidance."

For an analyst ratings summary and ratings history on Steven Madden click here. For more ratings news on Steven Madden click here.

Shares of Steven Madden closed at $44.27 yesterday.

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