Steven Madden, Ltd. (NASDAQ:SHOO) Q2 2020 Earnings Conference Call July 29, 2020 8:30 AM ET Company Participants Danielle McCoy - Investor Relations Ed Rosenfeld - Chief Executive Officer Conference Call Participants Paul Lejuez - Citi Jay Sole - UBS Matthew Degulis - KeyBanc Capital Markets Erinn Murphy - Piper Sandler Sam Poser - Susquehanna Camilo Lyon - BTIG Laura Champine - Loop Capital Susan Anderson - B. Riley FBR Janine Stichter - Jefferies Steve Marotta - CL King & Associates Tom Nikic - Wells Farg ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q1 2020 Results Conference Call May 29, 2020 8:30 AM ET Company Participants Danielle McCoy - Director of Corporate Development and Investor Relations Ed Rosenfeld - Chairman and CEO Conference Call Participants Camilo Lyon - BTIG Matthew Degulis - KeyBanc Capital Markets Erin Murphy - Piper Sandler Sam Poser - Susquehanna Susan Anderson - B. Riley FBR Tom Nikic - Wells Fargo Laura Champine - Loop Capital Ross Licero - Telsey Advisory Group Chris Svezia - Wedbush Securities ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2019 increased by 0.7% to $419.6 million compared to $416.8 million in Q4 2018 [26] - Full year 2019 total revenue increased by 6.5% to $1.8 billion from $1.7 billion in 2018 [33] - Diluted EPS for Q4 2019 was $0.39, down from $0.42 in Q4 2018, while full year diluted EPS increased to $1.95 from $1.83 [32][33] - Consolidated gross margin was 37.8%, slightly down from 38.1% in the prior year [30] Business Line Data and Key Metrics Changes - Wholesale segment revenue declined by 1.1% to $313.8 million, with wholesale footwear revenue approximately flat at $233.4 million [26][30] - Retail segment revenue increased by 8.7% to $101.4 million, with same-store sales up 6.7% [28] - The wholesale handbag business grew by 28%, marking the third consecutive year of double-digit growth [10] Market Data and Key Metrics Changes - International revenue for the Steve Madden brand increased by high-single digits in 2019, with strong performance in Europe [12] - The company ended Q4 with 227 Company-operated retail stores, including 68 outlets and eight e-commerce stores [28] Company Strategy and Development Direction - The company aims to enhance the Steve Madden brand, expand e-commerce, and grow international markets, particularly in Europe [20] - Focus on positioning new acquisitions, GREATS and BB Dakota, for profitable growth [20] - Plans to increase marketing investment significantly in 2020 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to headwinds from the coronavirus outbreak, tariffs, and the termination of the Kate Spade footwear license [21] - Estimated adverse impact on EPS in 2020 of approximately $0.35 compared to 2019 [22] - Management remains optimistic about the long-term growth opportunities despite short-term challenges [23] Other Important Information - The company repurchased approximately 3 million shares for $102 million in 2019 and raised the quarterly dividend by 7% [17] - The effective tax rate for Q4 was 6.3%, down from 9.2% in the prior year [32] Q&A Session Summary Question: Can you parse out the negative mid-single-digit impact in the first half? - Management indicated that the headwinds from coronavirus and tariffs account for about a $0.20 EPS headwind in the first half, with a total forecast of $0.22 for the year [45][46] Question: What is the current state of the North American wholesale climate? - Management noted a soft start to the year for many wholesale customers, particularly in the footwear category, but positive early selling for sandals and open dress shoes [48] Question: Can you elaborate on the coronavirus impact? - The primary impact is related to supply chain disruptions, with approximately 90% of Chinese factories open but operating at reduced productivity [53][54] Question: How did the Steve Madden Women's wholesale business perform in Q4? - The business was down in Q4 due to a shift in boot deliveries from Q4 to Q3, but overall for the year, it grew by 7% [58][60] Question: What percentage of total product is made in China? - Currently, about 73% of total products are made in China, down from 88% in 2019 [75][76] Question: How are you seeing price increases in wholesale and retail? - Price increases are expected to be in the low to mid-single digits, with some reduction in prices due to tariff adjustments [106]

Steven Madden, Ltd. (NASDAQ:SHOO) Q3 2019 Earnings Conference Call October 29, 2019 8:30 AM ET Company Participants Danielle McCoy - IR Ed Rosenfeld - Chairman and CEO Conference Call Participants Sam Poser - Susquehanna Matt Degulis - KeyBanc Capital Markets Janine Stichter - Jefferies Paul Lejuez - Citigroup Susan Anderson - B. Riley FBR Erinn Murphy - Piper Jaffray Chris Svezia - Wedbush Steve Marotta - CL King & Associates Laura Champine - Loop Capital Operator Ladies and gentlemen, thank you for standi ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q2 2019 Results Conference Call July 30, 2019 8:30 AM ET Operator Company Participants | --- | |---------------------------------------------------------------------| | | | Danielle McCoy - Investor Relations Ed Rosenfeld - Chairman and CEO | | Conference Call Participants | | Erinn Murphy - Piper Jaffray | | Matt Degulis - KeyBanc Capital Markets | | Luke Hatton - B. Riley FBR | | Janine Stichter - Jefferies | | Sam Poser - Susquehanna | | Laura Champine - Loop Capital | | ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 5.6% to $410.9 million compared to $389 million in the prior year [16] - Diluted EPS increased by 15% to $0.42 per share from $0.36 per share in the first quarter of 2018 [22] - Consolidated gross margin improved by 200 basis points to 38.2% from 36.2% in the prior year [20] Business Line Data and Key Metrics Changes - Wholesale footwear net sales increased by 0.6% to $276.6 million, driven by strong growth in the core Steve Madden brand and the addition of Anne Klein [16] - Wholesale accessories saw a significant net sales growth of 27.5% to $71.5 million, with standout performances from Steve Madden handbags and private label handbags [17] - Retail segment net sales increased by 8.6% to $62.8 million, with comparable store sales rising by 6.3% [18] Market Data and Key Metrics Changes - The company experienced strong performance in e-commerce, marking the fourth consecutive quarter of sequential acceleration in sales and profitability [12] - International markets are expected to see double-digit percentage sales growth, driven by gains in SM Europe, SM Mexico, and a new joint venture in Israel [13] Company Strategy and Development Direction - The company is focused on leveraging its flagship brand's momentum and expanding newer brands like Anne Klein and Blondo [12] - There is an ongoing evaluation of opportunities to add to the brand portfolio through acquisition or licensing, particularly in the accessible luxury tier of the footwear market [15] - The company plans to continue enhancing its e-commerce capabilities and digital marketing strategies to drive further growth [35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a choppy retail environment but expressed confidence in the company's positioning due to strong product performance and market share gains [12] - The company raised its 2019 net sales and EPS guidance, expecting net sales growth of 5% to 7% and diluted EPS in the range of $1.78 to $1.86 [26] - Management noted that while the loss of the Kate Spade footwear license is not expected to significantly impact profitability, they are optimistic about the potential for new brand additions [14][80] Other Important Information - The company ended the quarter with $221.6 million in cash and marketable securities and no debt [23] - Inventory increased by 22.1% to $115.3 million, with a significant portion attributed to replenishment programs [23] - The Board of Directors approved a quarterly cash dividend of $0.14 per share, payable on June 28, 2019 [25] Q&A Session Summary Question: Strength of the Steve Madden business at wholesale level - Management confirmed strong performance in the U.S. wholesale footwear business, with double-digit growth driven by effective product assortments [30][31] Question: E-commerce initiatives and their impact - Management highlighted the importance of the transition to Shopify, free 2-day shipping, and Afterpay in driving e-commerce growth [35] Question: Gross margin progression and Payless impact - Management expects modest gross margin improvement for the full year, with some benefits from not recognizing sales to Payless [37] Question: Private label business and margin comparison - Management indicated that the private label business is expected to grow, with better margins than the lost Payless business [41] Question: Performance of full-priced vs outlet stores - Full-priced stores were reported to be weaker than outlet stores [91] Question: Update on the China business - The joint venture in China has not met expectations and is currently not profitable, with management evaluating alternatives [92] Question: Sustainability of sneaker category growth - Management does not see signs of slowdown in the sneaker category and remains optimistic about its importance for the brand [94] Question: E-commerce sustainability and future initiatives - Management believes they are in the early stages of benefiting from digital initiatives, with more growth expected in e-commerce [96]

Steven Madden, Ltd. (NASDAQ:SHOO) Q4 2018 Earnings Conference Call February 27, 2019 8:30 AM ET Company Participants Danielle McCoy - Investor Relations Ed Rosenfeld - Chairman and Chief Executive Officer Conference Call Participants Camilo Lyon - Canaccord Genuity Erinn Murphy - Piper Jaffray Chris Svezia - Wedbush Tom Nikic - Wells Fargo Steven Marotta - CL King & Associates Richard Magnusen - B. Riley FBR Sam Poser - Susquehanna Laurent Vasilescu - Macquarie Laura Champine - Loop Capital Matt DeGulis - K ...