Welcome to the Steven Madden Limited conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Any reproduction of this call in whole or in part is not permitted without prior express written authorization of the company. As a reminder, ladies and gentlemen this conference is being recorded. I would like to introduce your host for today’s conference Ms. Cara O’Brien of Financial Dynamics. Cara O’Brien: Thank you for joining this discussion of Steven Madden Limited’s third quarter results. Before we begin I'd like to remind you that statements in this conference call that are not statements of historical or current facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The statements contained herein are also subject generally to other risks and uncertainties that are described from time-to-time in the company's report and registration statements filed with the SEC. Also please refer to the earnings release for more information on risk factors that could cause actual results to differ. Finally, please note that any forward-looking statements used in this call should not be relied upon as current after today. I'd now like to turn the call over to Mr. Edward R. Rosenfeld, Interim CEO of Steven Madden Ltd.

On today’s call I will review the company’s results for the third quarter ended September 30, 2008 and provide an update on our outlook for the remainder of the year. We are encouraged by our performance in the third quarter as we continued to build on our momentum from the first half of the year despite a very difficult economic environment. In particular, we are pleased to have achieved strong gains in our core Steve Madden Women’s and Steven by Steve Madden wholesale segments and our retail division in Q3. In addition to continuing our strong performance in our Madden Girl and Daniel M. Friedman segments. Steven and his design team created exceptional products to capitalize on footwear trends during the quarter particularly in the boot category. We recognize the challenges facing the industry. However, we are very pleased with the strength of our current position in the market in comparison to our peers. Both our wholesale customers and consumers are responding positively to our assortment in women’s and girl’s footwear and accessories. We continue to have a strong product selection with our merchandise remaining trend right and relevant and we are confident that Steven Madden can continually to successfully produce merchandise to capitalize on industry trends. We believe that our business is healthy and well positioned for the long term. Now, let’s turn to our financial results for the quarter. Consolidated net sales increased 13% in the quarter to $128.1 million as strong trend right product drove double digit percentage gains in both wholesale and retail despite the challenging economic environment. Gross margin for the quarter was 41.4% versus 41.3% last year based on a 10 basis point increase in wholesale gross margin and a retail gross margin that was flat to last year. We were able to leverage…

Our first question comes from Scott Krasik - C.L. King & Associates, Inc. Scott Krasik - C.L. King & Associates, Inc.: Talk about the trends maybe beginning and the middle of September and if you can how they’ve continued through October with your wholesale partners as well as in your own retail stores?

Well, certainly we felt the impact of what’s been going on in the economy and certainly after the financial crisis worsened we did see an impact both in our own retail stores and in our wholesale partners. That being said, because of our exceptional merchandise right now and the great product that Steve and his team have created we’re still outperforming our competitors. We still are seeing sell throughs in the wholesale customers for instance that exceed what we were achieving last year and our wholesale partners tell us that we are leading the pack in terms of sell through. But, nobody’s immune to what’s happened and we certainly have seen an impact on the business. Scott Krasik - C.L. King & Associates, Inc.: Have your comps stayed positive through October in retail?

Quarter to date we’re flat. Scott Krasik - C.L. King & Associates, Inc.: Then, maybe talk about obviously you got a big boost from having boots early. Now that there’s a lot of boots on the floor and you figure department stores are going to get more aggressive with pricing, what do you have sort of in terms of the deliveries now that will continue to distinguish Madden and continue to perform?

Well, to date it’s really been the casual boots that have been driving the business, the flat boots, the western inspired looks have been very strong for us but really what we’re seeing just now is new deliveries of dress boots which are starting to really perform so I think that’s going to carry us through the end of the season as well as continuing with new casual styles. Scott Krasik - C.L. King & Associates, Inc.: Is that more unique or are you on that earlier than because it seems like most people are now on flats and casual?

We believe so. Scott Krasik - C.L. King & Associates, Inc.: Can you talk about where your inventory is? It’s up about 12% year-over-year?

Yes, it’s up about 12% but the sales for fourth quarter certainly support that. In fact, you’ll see that the guidance implies 12% to 16% sales growth in Q4. Scott Krasik - C.L. King & Associates, Inc.: Then just I missed the numbers for Steve Madden Men’s, what was the sales numbers there?

Men’s $10.8 million this quarter versus $15.3 million year ago. Scott Krasik - C.L. King & Associates, Inc.: Then it seemed like you started to get a little bit of momentum, you sold some shoes to a customer that hadn’t before or hadn’t been taken in a while, any progress there?

Yes, I think we’re seeing some glimmers of hope there. It’s very tough now, there’s very few companies doing well right now in men’s. The men’s business overall in fashion is very tough. But, we’ve talked about the new designer that we brought on to revitalize our sport looks and we do feel that he’s making some progress. In fact, on the strength of the product that he developed, we’ve gotten back in to some accounts, what we call the middle of the mall accounts that we had not been in, in some time. So, as of February we’re going to be in 350 Journeys, 125 Underground Stations and in a test with Finish Line in 25 doors with Men’s. Those are all accounts that we were basically not in, in 2008, specialty retailers. We got back in there because they see something they like in our casual styles.

Our next question comes from Jeff Van Sinderen - B. Riley & Company, Inc. Jeff Van Sinderen - B. Riley & Company, Inc.: I wanted to see if you maybe can talk a little bit more about what’s driving the Madden Girl business?

I think we’re in a sweet spot there, we’ve got great styling at an opening price point. They’ve done a fantastic job with the product but it’s also the price value proposition that we’re offering there. This is really great fashion – the key price point here is really a $40 footwear and I think in these challenging economic times if you can get great styling at that price that’s something that’s very compelling to the consumer right now. Jeff Van Sinderen - B. Riley & Company, Inc.: Then I wonder if you can talk a little bit more about what you’re hearing from some of your department store accounts in terms of their open to buy. Then, maybe how that plays in with it seems like retailers are wanting to buy closer to season, not so much ahead of schedule and I know you guys typically sell close to season anyway so I’m wondering if that helps you? Then also, I guess just generally how you see what they’re doing with open to buy impacting your business and the outlook going forward?

Well certainly you’re right, they’re moving to buying less upfront and reserving more open to buy later in season and that really again plays in to our strength. That’s how we have always liked to operate our business so we think that is actually beneficial to Steve Madden. You’re right, they are trying to be conservative with inventory and in many cases cutting budgets. We’re not seeing our budgets cut, we’re maintaining our budgets because our sell throughs, quite frankly, we think are the best in our department stores in the junior area. But, it is challenging, it’s tougher to get reorders than it otherwise normally is and we’re very fortunate to have great product right now.

Our next question comes from Heather Boksen - Sidoti & Company. Heather Boksen - Sidoti & Company: I had a question, you talked about LEI and Fabulosity shipping end of December, do you know yet when you’re going to start shipping Elizabeth and James product and are any doors committed to that yet?

No, we have not shown the product to any potential retailers but the goal would be for the first shipments to be at the end of March. Heather Boksen - Sidoti & Company: Anybody expressing interest in it yet?

Everybody is expressing interest in it, yes. But, we don’t have product yet to show them and we’ll be showing that at the December shoe show.

Your next question comes from the line of Jeff Mintz - Wedbush Morgan Securities, Inc.

Can you talk a little bit about the metrics at retail? The plus 7.8% comp is really impressive. Can you just talk a little bit about what’s driving that?

Our average unit retail is up dramatically and that’s really contributed to the comp store increase. We were up 15% AUR in third so units obviously were down roughly 7% on a comp basis and the AUR is driven by two things: one, is the shift in mix, more boots this year; and then two, we have increased prices this year. It’s about half and half those two factors contributing to the 15% increase.

Now, as you move in to Q4 it’s great to here comps are flat quarter to date because you have a much more difficult comparison but, are the same kind of factors still contributing to pretty decent comps?

Yes. We’re again seeing the average unit retail increase and a decline in units.

Then I just want to make sure I understand on Candies, does that move totally to the Adesso-Madden line starting in Q4 or is that in 2009?

Virtually all of it will be in other income in Q4.

Your next question comes from the line of Scott Krasik - C.L. King & Associates, Inc. Scott Krasik - C.L. King & Associates, Inc.: Just quickly, the first cost business that tends to lag your wholesale business by a quarter or so but since we’re talking about such seasonal product to you expect a big uptick in your – excluding Kohl’s which would be new for Candies, the first cost business will that start to peak up fourth quarter, first quarter because of the better performance?

First quarter you’ll see a year-over-year improvement. Scott Krasik - C.L. King & Associates, Inc.: And sort of looking out is spring a different animal because of sandals we just don’t know how they’re going to -?

I expect we can grow in spring as well. Yes, both fourth and first.

There are no further questions. Are there any closing remarks?

No. Thanks very much for joining us and we look forward to talking to you on the next call.

This concludes today’s conference call. You may now disconnect.