Sector Snap: Footwear Makers Mostly Rise

Steven Madden is scheduled to report earnings next week, and Jeff Mintz of Wedbush Morgan Securities said that while he sees the company's profit slightly above the average analyst estimate, he's trimming his 2008 and price target estimates.

"With the continuing lack of a strong trend in footwear, we expect the company to struggle to grow revenues," the analyst wrote in a report.

Mintz trimmed his price target by $1 to $18 and his 2008 profit estimate by 9 cents to $1.46 per share. He still sees the Long Island City, N.Y., company posting fourth-quarter earnings per share of 19 cents, a penny ahead of the Thomson Financial estimate.

The analyst added he believes Steven Madden could perform well in a weak consumer environment should a strong fashion trend emerge and drive consumers to spend their shrinking discretionary income. He has a "Hold" rating on the stock.

Shares of Steven Madden lost 11 cents to $16.26 in midday trading. The stock has lost more than half its value since peaking at $33.86 in June.

Mintz was slightly more optimistic on Crocs, as he left his fourth-quarter 2007 and full-year 2008 estimates unchanged. However, he slashed his price target on the stock to $45 from $70 due to an adjusted model for long-term growth.

Although the Niwot, Colo., company is poised for strong international growth, the analyst estimates, Crocs could see slower domestic growth in the second half of 2008 as it introduces new styles.

"We remain concerned about the company's ability to sell closed-toe product due to their greater requirements for retailers (shelf space on the floor, storage space in the back), as well as the need to educate consumers," Mintz wrote.

Crocs, which makes shoes out of its proprietary Croslite resin, also is scheduled to report earnings next week.