PART I [Item 1. Business](index=4&type=section&id=ITEM%201%20BUSINESS) The company designs, sources, and markets fashion-forward footwear, accessories, and apparel through a multi-channel global distribution network - The company's business is organized into five distinct segments: Wholesale Footwear, Wholesale Accessories/Apparel, Retail, First Cost, and Licensing[22](index=22&type=chunk) - Products are sourced from independent manufacturers, primarily in **China (78% of 2020 purchases)**, with other locations including Cambodia, Mexico, Brazil, India, and Vietnam[53](index=53&type=chunk)[102](index=102&type=chunk) - **Walmart Inc. was a significant customer**, representing approximately **13.9% of total revenue** for the year ended December 31, 2020[57](index=57&type=chunk) - As of December 31, 2020, the company operated **218 retail stores**, including 143 full-price stores, 66 outlet stores, and seven e-commerce websites[47](index=47&type=chunk) - The Board of Directors reinstated a quarterly cash dividend of **$0.15 per share** in February 2021, following a temporary suspension due to the COVID-19 pandemic[21](index=21&type=chunk)[135](index=135&type=chunk) [Product Distribution Segments](index=5&type=section&id=Product%20Distribution%20Segments) The company's operations are divided into five segments, each featuring a portfolio of owned and licensed brands Key Brands by Segment | Segment | Key Brands | | :--- | :--- | | **Wholesale Footwear** | Steve Madden®, Madden Girl®, Dolce Vita®, Blondo®, GREATS®, Superga® (license), Anne Klein® (license) | | **Wholesale Accessories/Apparel** | Steve Madden®, Betsey Johnson®, Big Buddha®, BB Dakota®, Anne Klein® (license) | | **Retail** | Steve Madden, Steven, Superga stores and e-commerce sites for major brands | | **First Cost** | Serves as a buying agent for private label footwear | | **Licensing** | Steve Madden®, Betsey Johnson®, Dolce Vita® trademarks for various products like apparel, jewelry, luggage | [Product Sourcing and Distribution](index=9&type=section&id=Product%20Sourcing%20and%20Distribution) The company sources products from independent manufacturers, primarily in Asia, and distributes them through third-party centers in the U.S - The company relies on independent manufacturers and does not have long-term manufacturing contracts, believing sufficient alternative sources exist[53](index=53&type=chunk) - U.S. distribution is handled mainly from **six third-party distribution centers** located in California, Texas, and New Jersey[56](index=56&type=chunk) [Human Capital Resources](index=13&type=section&id=Human%20Capital%20Resources) The company employed approximately 2,800 people globally as of early 2021 and implemented various diversity and COVID-19 response initiatives - As of February 1, 2021, the company employed approximately **2,800 people**, with 2,100 full-time and 700 part-time[76](index=76&type=chunk) - In 2020, the company established a **Diversity and Inclusion Council**, formed employee resource groups (Black Sole, SM Pride), and partnered with Historically Black Colleges and Universities to expand recruiting[80](index=80&type=chunk)[84](index=84&type=chunk) - The company's COVID-19 response included temporarily closing all stores, enabling remote work for corporate positions, and implementing enhanced safety protocols[82](index=82&type=chunk) [Item 1A. Risk Factors](index=15&type=section&id=ITEM%201A%20RISK%20FACTORS) The company faces significant risks from the COVID-19 pandemic, changing fashion trends, supply chain dependencies, and cybersecurity threats - The **COVID-19 pandemic** poses a significant risk, potentially causing store closures and a material reduction in revenue for an indeterminable period[86](index=86&type=chunk)[87](index=87&type=chunk) - The business is highly dependent on its ability to anticipate and respond to **rapid changes in fashion trends** and consumer preferences[88](index=88&type=chunk)[89](index=89&type=chunk) - The company relies on independent foreign manufacturers, with **78% of total purchases in 2020 coming from China**, creating exposure to geopolitical risks, trade policies, and tariffs[102](index=102&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - The loss of founder and Creative and Design Chief, **Steven Madden**, or other members of the executive team could have a material adverse effect on the business[92](index=92&type=chunk) - The company faces risks from **information technology disruptions and data security breaches**, which could lead to loss of confidential information, operational disruption, and legal liability[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Item 2. Properties](index=24&type=section&id=ITEM%202%20PROPERTIES) The company leases most of its properties, including its headquarters, retail stores, and showrooms, with lease expirations staggered over the next decade - The company leases the majority of its facilities, including executive offices in Long Island City, NY (111,000 sq ft) and offices/sample production in Dongguan, China (154,900 sq ft)[127](index=127&type=chunk) Retail Store Lease Expiration Schedule | Year | Number of Stores | | :--- | :--- | | 2021 | 31 | | 2022 | 56 | | 2023 | 36 | | 2024 | 21 | | 2025 | 26 | | Thereafter | 45 | [Item 3. Legal Proceedings](index=25&type=section&id=ITEM%203%20LEGAL%20PROCEEDINGS) The company is involved in various legal cases from the ordinary course of business which are not expected to have a material financial impact - The company has various pending legal matters but believes they will not have a material impact on its financial condition or results[129](index=129&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=ITEM%205%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's stock (SHOO) experienced significant volatility in 2020, and both dividend and share repurchase programs were temporarily suspended - The company's common stock (SHOO) experienced significant volatility in 2020, with a high of **$43.47** and a low of **$16.38**[133](index=133&type=chunk) - The quarterly dividend and share repurchase program were **temporarily suspended in March 2020** due to the COVID-19 pandemic and reinstated in February 2021[135](index=135&type=chunk)[136](index=136&type=chunk) 2020 Share Repurchase Summary | Metric | Value | | :--- | :--- | | Shares Repurchased | 769,526 | | Weighted Average Price | $32.97 | | Aggregate Purchase Price | ~$25.4 million | | Remaining Authorization (as of 12/31/20) | ~$111.6 million | [Item 6. Selected Financial Data](index=28&type=section&id=ITEM%206%20SELECTED%20FINANCIAL%20DATA) Financial performance declined significantly in 2020 due to the pandemic, resulting in a net loss and decreased revenue and total assets Selected Financial Data (in thousands, except per share data) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total revenue | $1,201,814 | $1,787,157 | $1,677,734 | | Gross profit | $464,541 | $686,017 | $640,163 | | (Loss)/income from operations | $(31,605) | $176,814 | $173,382 | | Net (loss)/income attributable to Steven Madden, Ltd. | $(18,397) | $141,311 | $129,136 | | Diluted net (loss)/income per share | $(0.23) | $1.69 | $1.50 | | Total assets (at year end) | $1,137,761 | $1,278,647 | $1,072,570 | | Stockholders' equity (at year end) | $790,369 | $841,224 | $814,682 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%207%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) The COVID-19 pandemic caused a 32.8% revenue decline to $1.2 billion and a net loss of $18.4 million in 2020 - Total revenue for 2020 **decreased by 32.8% to $1.20 billion** from $1.79 billion in 2019, with decreases in all segments due to the COVID-19 pandemic[152](index=152&type=chunk)[159](index=159&type=chunk) - The company reported a **net loss of $18.4 million**, or ($0.23) per diluted share, in 2020, compared to net income of $141.3 million, or $1.69 per diluted share, in 2019[153](index=153&type=chunk) - In response to the pandemic, the company took measures to preserve liquidity, including **temporary salary reductions, suspension of dividends and share repurchases**, and scaling back on capital expenditures and inventory[150](index=150&type=chunk)[175](index=175&type=chunk) - As of December 31, 2020, the company had **$287.2 million in cash**, cash equivalents, and short-term investments, with **no debt**[155](index=155&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) All segments saw revenue declines in 2020 due to COVID-19, and the company recorded significant impairment charges Segment Revenue Performance (2020 vs. 2019) | Segment | 2020 Revenue ($M) | 2019 Revenue ($M) | % Change | | :--- | :--- | :--- | :--- | | Wholesale Footwear | $713.7 | $1,112.1 | (35.8)% | | Wholesale Accessories/Apparel | $235.9 | $334.9 | (29.6)% | | Retail | $239.4 | $321.2 | (25.5)% | | First Cost | $3.9 | $7.4 | (47.6)% | | Licensing | $9.0 | $11.6 | (22.6)% | - In 2020, the company recorded significant impairment charges, including **$44.3 million for intangibles** and **$36.9 million for lease right-of-use assets** and store fixed assets[159](index=159&type=chunk) - Retail segment gross margin as a percentage of revenue **increased from 60.8% in 2019 to 64.4% in 2020**, primarily due to a sales shift to the higher-margin e-commerce business[163](index=163&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, ending 2020 with $287.2 million in cash and securing a new credit facility - On July 22, 2020, the company entered into a new **$150 million, five-year, asset-based revolving credit facility**, replacing its previous credit line[178](index=178&type=chunk) - **Cash provided by operations was $44.2 million** in 2020, a significant decrease from $233.8 million in 2019, primarily due to reduced income and unfavorable changes in working capital[180](index=180&type=chunk) - Net cash used in financing activities was **$57.1 million** in 2020, mainly for share repurchases ($46.6 million) and dividend payments ($12.5 million)[183](index=183&type=chunk) [Critical Accounting Policies and the Use of Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20the%20Use%20of%20Estimates) Key accounting policies requiring significant management estimates include allowances for bad debts, inventory valuation, and impairment testing for goodwill - Key accounting estimates include allowances for bad debts, customer returns and chargebacks, inventory valuation, and valuation of intangible assets and goodwill[193](index=193&type=chunk) - Goodwill and indefinite-lived intangible assets are **tested for impairment at least annually**, or more frequently if impairment indicators are present[197](index=197&type=chunk)[199](index=199&type=chunk) - Long-lived assets, such as those in retail stores, are reviewed for impairment when events suggest their carrying value may not be recoverable[200](index=200&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=ITEM%207A%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to market risks from foreign currency exchange rate fluctuations, which it manages using forward exchange contracts - The company faces market risk from foreign currency exchange rates, as inventory purchases are primarily from foreign jurisdictions[205](index=205&type=chunk) - To mitigate currency risk, the company uses forward foreign exchange contracts; a 10% change in the U.S. dollar would result in a net change of approximately **$4.1 million** in the fair value of its derivatives[206](index=206&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=43&type=section&id=ITEM%208%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section incorporates the company's consolidated financial statements and reports from its independent registered public accounting firms [Reports of Independent Registered Public Accounting Firms](index=51&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firms) Ernst & Young LLP issued an unqualified opinion for 2020, identifying impairment of long-lived assets and markdown allowances as critical audit matters - Ernst & Young LLP provided an **unqualified audit opinion** for the 2020 financial statements and internal controls[244](index=244&type=chunk)[245](index=245&type=chunk) - Critical audit matters for 2020 included the **impairment assessment of long-lived assets** at retail stores and the **estimation of markdown allowances**, both involving complex judgments[248](index=248&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - EisnerAmper LLP provided an unqualified audit opinion for the 2019 and 2018 financial statements[263](index=263&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=43&type=section&id=ITEM%209%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company changed its independent accounting firm in March 2020 and reported no disagreements with its former accountant - On March 6, 2020, the company changed its independent registered public accounting firm from **EisnerAmper LLP to Ernst & Young LLP**[210](index=210&type=chunk) - There were **no disagreements** with the former accountant, EisnerAmper LLP, on any accounting or auditing matters[211](index=211&type=chunk) [Item 9A. Controls and Procedures](index=43&type=section&id=ITEM%209A%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of year-end 2020 - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2020[212](index=212&type=chunk) - Management's assessment concluded that internal control over financial reporting was **effective** as of December 31, 2020, a conclusion supported by an unqualified opinion from the independent auditor, Ernst & Young LLP[217](index=217&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=44&type=section&id=ITEM%2010%20DIRECTORS,%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Required information for this item is incorporated by reference from the company's 2021 definitive proxy statement - The information for this item is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders[221](index=221&type=chunk) [Item 11. Executive Compensation](index=44&type=section&id=ITEM%2011%20EXECUTIVE%20COMPENSATION) Required information for this item is incorporated by reference from the company's 2021 definitive proxy statement - The information for this item is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders[222](index=222&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=44&type=section&id=ITEM%2012%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Required information for this item is incorporated by reference from the company's 2021 definitive proxy statement - The information for this item is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders[223](index=223&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=44&type=section&id=ITEM%2013%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE) Required information for this item is incorporated by reference from the company's 2021 definitive proxy statement - The information for this item is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders[224](index=224&type=chunk) [Item 14. Principal Accountant Fees and Services](index=44&type=section&id=ITEM%2014%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Required information for this item is incorporated by reference from the company's 2021 definitive proxy statement - The information for this item is incorporated by reference from the Registrant's Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders[225](index=225&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=44&type=section&id=ITEM%2015%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists the exhibits filed as part of the Form 10-K, including various agreements and certifications - This section contains the index of all exhibits filed with the Form 10-K, including credit agreements, employment agreements, and certifications by the CEO and CFO[227](index=227&type=chunk)[229](index=229&type=chunk)

Steven Madden Ltd (NASDAQ:SHOO) Q4 2020 Earnings Conference Call February 25, 2021 8:30 AM ET Company Participants Danielle McCoy - Director, Corporate Development & IR Edward Rosenfeld - Chairman & CEO Zine Mazouzi - CFO Conference Call Participants Erinn Murphy - Piper Sandler & Co. Camilo Lyon - BTIG Janine Stichter - Jefferies Laura Champine - Loop Capital Markets Samuel Poser - Williams Trading Tom Nikic - Wells Fargo Securities Susan Anderson - B. Riley Securities Kelly Crago - Citigroup Mauricio Sern ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q3 2020 Earnings Conference Call October 27, 2020 8:30 AM ET Company Participants Danielle McCoy - IR Ed Rosenfeld - Chairman & CEO Conference Call Participants Paul Lejuez - Citi Camilo Lyon - BTIG Janine Stichter - Jefferies Matthew Degulis - KeyBanc Capital Will Gaertner - Susquehanna Jay Sole - UBS Laura Champine - Loop Capital Dana Telsey - Telsey Advisory Susan Anderson - B. Riley Securities Tom Nikic - Wells Fargo Chris Svezia - Wedbush Erinn Murphy - Piper Sandler O ...

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 ...