Steven Madden Q2 profit a pleasant surprise

Steven Madden posted a better-than-expected quarterly profit, helped by strong performance in its core wholesale divisions and higher operating margins, and raised its full-year outlook, sending its shares to their highest levels in more than two years.

The company, whose lines include flagship brand Steve Madden, Stevies, and Candies, earned $12.1 million, or 66 cents a share, compared with $7.6 million, or 43 cents a share, in the second quarter last year.

"We are encouraged by the results in our new licensed businesses -- L.e.i, Fabulosity, and Elizabeth & James," said CEO Rosenfeld.

For the quarter, operating margin rose to 16.6% compared with 11.1% a year ago.

Sales for the quarter increased 6.5% to $116.5 million.

Analysts on average were looking for profit of 49 cents, before items, on revenue of $111.60 million, according to Reuters Estimates.

The company said it did not open any stores and closed two stores during the second quarter.