I think it's a broad-based, favorable response to pretty much all (the company's) brands. Right now footwear is in a great cycle, and Steve Madden is addressing all the classifications and doing well. |
If you look at their sales guidance, it implies not a lot of growth in most of their categories. It looks like there will be less than an average 1 percent sales growth in most of their brands and there are too many unanswered questions about their ability to execute. |
It is pretty consistent with the ramp-up of the new initiatives. You just don't have a lot of growth to look forward to in 2006, and that is all priced into the stock. Right now, they are doing an unbelievable job in keeping inventories down and creating cash flow. Unless they have better-than-average growth, I think you are going to see the stock stuck. |