CORRECTED - CORRECTED-UPDATE 1-Steven Madden Q1 profit beats market, raises

Tue May 4, 2010 10:51am EDT

(Corrects throughout headline and text to show that Steven Madden's stock-split adjusted earnings were well ahead of Wall Street estimates on the same basis. Prior story had consensus EPS estimate that was unadjusted for the stock split)

* Q1 EPS $0.55 vs est $0.38

* Revenue up 23 pct at $131.6 mln vs est $125.1 mln

* Raises FY10 outlook

* Shares dip 7 pct

May 4 (Reuters) - Steven Madden Ltd's (SHOO.O) first-quarter earnings blew past Wall Street estimates, as the shoemaker saw strong sales at its wholesale division and significant margin gains at its retail segment.

Retail gross margins expanded about 9 percentage points to 56.7 percent due to reduced discounting, the maker of Candies, Stevies and Steve Madden shoes and accessories said.

The company also said it is raising its fiscal 2010 earnings forecast to $2.30 to $2.40 a share from its prior view of $2.07 to $2.20 a share, after adjusting both forecasts for a 3-for-2 stock split.

For the full-year period, Steven Madden now sees revenue growth of 17 percent to 19 percent, up from its prior view of an 11 percent to 13 percent increase.

Based on 2009 revenue of $503.6 million, this implies full-year revenue of $589.2 million to $599.3 million.

Analysts on average were expecting the company to earn $2.19 on an adjusted basis in the period, on revenue of $567.4 million, according to Thomson Reuters I/B/E/S.

For the first quarter ended March 31, the Long Island City, New York-based company said net income was $15.4 million, or 55 cents a share, compared with $6.6 million, or 24 cents a share, a year ago.

Revenue rose 23 percent to $131.6 million.

Analysts on average expected earnings of 38 cents per share, on revenue of $125.1 million.

Steven Madden shares, which had risen 50 percent over the past three months, were down 7 percent at $37.10 in morning trade on Nasdaq. (Reporting by Shobhana Chadha in Bangalore; Editing by Anne Pallivathuckal)

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