Steve Madden Ltd. shares are down 7.6% in Tuesday trading after the company said it forecasts a headwind from its boot business in the fourth quarter and offered weak guidance. “We are therefore taking a prudent approach as we plan the business for the holiday season working closely with our wholesale partners and managing our inventory levels carefully,” said Edward Rosenfeld, Steve Madden’s chief executive, on the Tuesday morning earnings call, according to a FactSet transcript. Rosenfeld said the company’s strong handbag performance was offset by a decline in cold weather gear, as wholesale partners cut their orders and deliveries were pushed back. Steve Madden reported third-quarter results that were in line with the FactSet consensus. Net income of $44.2 million, or 77 cents per share, was up from $43.8 million, or 74 cents per share, for the same period last year. Revenue was $441.2 million, up from $408.4 million last year. The company expects full-year sales to increase 9% to 11% year-over-year, EPS in the range of $2.03 to $2.09, and adjusted EPS in the range of $2.18 to $2.24. The FactSet consensus is for earnings of $2.25. Steve Madden shares are up 18.5% for the past year while the S&P 500 index is up 21.1% for the period.
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