Steven Madden, Ltd. (NASDAQ:SHOO)

CAPS Rating: 4 out of 5

The Company designs, sources, markets and retails fashion-forward footwear for women, men and children; name brand and private label fashion handbags and accessories through its Daniel M. Friedman Division.


Player Avatar gtfann (99.18) Submitted: 9/26/2011 5:39:50 PM : Outperform Start Price: $5.61 SHOO Score: +325.21

Ladies love shoes so Steve Madden keeps on running...

1. Strong brand portfolio that consists of everything from private labeling for mass merchants to luxury retailers.

2. Leading footwear / accessories capability

3. Excellent recent financial performance with CAGR of 19.9% increase in revenue and 39.3% increase in EBITDA.

4. Pristine balance sheet with zero debt, 9x inventory turn, and strong cash flow generation

5. Significant growth opportunities
a. 8 New brands since 2009
b. International expansion with new partners in Saudia Arabia, Australia, Central America, Benelux, UAE, and India
c. Category extensions
d. E-commerce growing at a 32% annual rate

6. Ahead of schedule on path to achieving goal outlined last year of doubling EPS in 5 years.

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