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Steve Madden Ltd.
Company Overview
Steve Madden Ltd. is a small American public company that specializes in textiles, apparel and luxury goods. It offers wholesale footwear under the Steve Madden Women’s, Steve Madden Men’s, Steven, Report, Betsey Johnson shoes and Superga just to name a few. Steve Madden shoes are sold in the US and Canada through its own shops and such stores as Nordstrom and Dillard’s. As of December 31, 2014, the Company owned and operated 160 retail stores, including 122 Steve Madden price stores, 32 Steve Madden outlets stores, one Steven store, one Superga store and four e-commerce Websites (Steve Madden, Superga, Betsey Johnson and Dolce Vita) (“Reuters,” n.d).
Financial Summary Steven Madden’s sock gained 4.23% ($32.3) in its last trading sessions, on February 12, 2016, as opposed to 1.95% ($1864.8) gain in the S&P 500 (Standard & Poor’s). Compared to the 2nd quarter of 2015, Steve Madden’s Revenue grew by 5.5% ($413.5) in the 3rd quarter. Over the past 3 years the company has grown at a compounding 5.6% in revenue.
The company has an EPS (Earnings per Share) of 1.76 with no dividends. The 3rd quarter Operating Margin came in at 16% which puts the company in line with the average in the past three years. The total current assets is $508.05M and the total current liabilities is $240.92M. To compute the current ratio, divide the current assets divided by current liabilities. Using this calculation to compute the current ratio gives Steve Madden a 2.10 as the current ratio. Steve Madden ended the 3rd quarter with a net profit of 10.4%. The company is debit free even with an operating cash flow of -3.6 and Net Income of $42.9M. Steve Madden’s price to earnings ratio is 18% compared to the industry, shoes and related apparel, which is 27.5%. Currently, the return on equity is 16%, free cash flow margin is -2.1%, and return on

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