UPDATE 3-Steven Madden Q1 profit triples; eyes acquisitions

* Q1 profit up three-fold

* Q1 EPS 37 cents, beats est of 36 cents

* Sees '09 gross margins roughly flat vs yr-ago

* Backs '09 EPS view

* Says looking at acquisitions (Adds analysts' comments in paragraphs 7-9, updates share movement)

By Nivedita Bhattacharjee

BANGALORE, May 5 (Reuters) - Steven Madden Ltd (SHOO.O) posted a three-fold rise in quarterly profit, which edged past market estimates by a cent, as its trendy footwear and accessories resonated with its young customers, and stood by its 2009 earnings outlook.

The company, which expects 2009 gross margins to be "roughly flat" compared with a year ago, said it was looking more seriously at acquisitions. [ID:nWNAB3399]

"We think that there are some very interesting opportunities that have arisen -- very good brands, good companies that probably would not have become available if not for the challenging economic climate," Chief Executive Edward Rosenfeld said on a conference call.

However, Wall Street Strategies Inc (wstreet.com) analyst Brian Sozzi said acquisitions are tough to make in the shoe sector, given its fragmented nature.

"I would say privately held Aldo may get a look, as would Journeys -- a part of Genesco (GCO.N)," the analyst wrote in an e-mail to Reuters.

Steven Madden shares, which have more than doubled since they touched a year low in November last year, were down 4 percent at $29.04 Tuesday afternoon on Nasdaq.

Analyst Sam Poser with Sterne, Agee & Leach said the stock was down mostly due to profit taking.

Analyst Sozzi agreed.

"Conventional thinking is that chain-store sales will be solid for April when they are reported this Thursday. It's setting the stage for further profit taking," he said.

TRENDY FASHIONS BOOST Q1