UPDATE 2-Steven Madden backs FY view, actively pursuing deals

* Says interested in deals ranging up to $100 mln

* Sees one acquisition completed by end of 2009

* Sees improvement in Q4 same-store sales

* Backs FY outlook, sees strong boot sales in Q1

* Wholesale gross margins up; retail down (Recasts; adds conference call details, analyst comments, share movement)

By Shradhha Sharma BANGALORE, Nov 3 (Reuters) - Shoemaker Steven Madden Ltd (SHOO.O) reported pre-announced results including a 61 percent jump in third-quarter profit, driven by strong sales growth and improved gross margins at its wholesale business, and said it was actively pursuing acquisitions.

"In terms of (acquisition) size, we'll look at anything from very small to $100 million. There's nothing that we're looking at right now that's bigger than, say, $30 or $40 million," Chief Executive Edward Rosenfeld said on a conference call with analysts.

Rosenfeld said he had already sent a letter of intent relating to one prospective acquisition and expects a deal to be completed by the end of the year.

However, the growth prospects and the reiterated positive outlook, failed to cheer investors, who pushed the stock down as much as 9 percent in intra-day trade.

"I have no idea what people are looking for here.This is a real deal story. They have got top line growth... cost and inventory control... growth opportunities that are both organic and non-organic," Sterne, Agee & Leach analyst Sam Poser said.

The stock -- which was dragged down in part by a 2 percent fall in the wider Standard & Poor's Retail Index .RLX Tuesday -- has surged 87 percent in the last 12 months.

And although gross margins in the wholesale segment rose, they declined on the retail side.

Steven Madden, whose lines include flagship brand Steve Madden, Stevies and Candies, is also still interested in buying a fashion athletic brand, CEO Rosenfeld said on the call.

"We see significant growth opportunities for many of the brands in our diversified portfolio as well as the opportunity to add to that portfolio through acquisitions and a new licensing agreement," Rosenfeld said. [ID:nWNAB9080]

A MERRY FOURTH QUARTER

Even though it has seen a drop in same-store sales during the last two quarters, Steven Madden expects the tide to turn during the fourth quarter. "So far we have managed to achieve improved comparable store sales with reduced promotional activity and are targeting a year-over-year improvement," Rosenfeld said.