Steve Madden: Baby steps

There's no business like the shoe business, but can a designer shoe company
prosper even in recessionary times?

Investors could be asking that about Steve Madden Ltd. (Nasdaq:SHOO), which was up double digits for the year before Monday's market meltdown. After getting scuffed up, Steve Madden stock remains in positive territory for the year - it began 2008 trading around $20 - and is faring better than many small caps.

With a new CEO, some unsolicited offers apparently off the table and a 2.6-million-share buyback via Dutch auction completed, Long Island-based Steve Madden is moving headfirst toward the crucial holiday season.

According to a Thomson Reuters survey of six analysts who cover Steve Madden, five have the stock a "strong buy," with the other at "buy." Shares hit a 52-week high of $29 on Sept. 19, rebounding from a post-holiday low of $14.61 on Jan. 15. Steve Madden closed Thursday at $20.01.

Steve Madden stock was up nearly 14% this year before the recent market turbulence. The economy is a big question mark for the retail sector this upcoming holiday shopping season. Even the well-heeled who frequent Steve Madden's 100 or so stores are feeling the pinch.

Steve Madden standalone stores are mainly in metro areas, but its products are found at many retailers as well as online. Nearly three-quarters of 2007 sales came from its wholesale operations.

The Steve Madden lineup has expanded to include women's apparel and accessories, plus men's shoes. Higher-end products are sold through the company's . . .

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