UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 0-23702 STEVEN MADDEN, LTD. (Exact name of registrant as specified in its charter) Delaware 13-3588231 (State or other ...

Financial Data and Key Metrics Changes - For the full year 2022, the company achieved record financial performance with consolidated revenue of $2.1 billion, a 13.7% increase compared to 2021 [68] - The fourth quarter consolidated revenue was $470.6 million, an 18.6% decrease compared to the prior year [4] - Net income for the fourth quarter was $33.7 million or $0.44 per diluted share, down from $70.4 million or $0.87 per diluted share in 2021 [43] - Operating income for the fourth quarter totaled $42.2 million or 9% of revenue, down from $86.9 million or 15% of revenue last year [43] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue for 2022 was $521.7 million, a 6.9% increase compared to 2021, driven by growth in both brick-and-mortar and e-commerce [68] - Wholesale revenue was $1.6 billion, up 16.4% compared to the prior year, with wholesale footwear revenue increasing by 16.9% to $1.2 billion [68] - In the fourth quarter, wholesale revenue was $308.8 million, down 24.8% compared to the prior year [48] - DTC gross margin was 64% compared to 63.5% last year, driven by a reduction in rate expense [43] Market Data and Key Metrics Changes - International revenue grew 56% compared to 2021, representing 16% of total revenue, up approximately 500 basis points from pre-COVID 2019 [67] - The EMEA region is identified as the area with the most significant growth opportunities, despite macro headwinds [30] Company Strategy and Development Direction - The company aims to strengthen its U.S. wholesale footwear business, which remains the core of its operations [3] - A key strategic initiative is to expand the business outside of footwear, with accessories and apparel revenue exceeding $400 million in 2022, a 13% increase over 2021 [67] - The company is transitioning from a distributor model to an ownership model in key international markets, exemplified by the joint venture in the Middle East [67] Management's Comments on Operating Environment and Future Outlook - The management noted that the operating environment became increasingly challenging as consumers began to pull back on discretionary spending [3] - The outlook for overall consumer spending is uncertain, with expectations of continued challenges in the near term [47] - The company expects revenue for 2023 to decrease by 6.5% to 8% compared to 2022, with diluted EPS projected to be in the range of $2.40 to $2.50 [69] Other Important Information - The company ended the year with $289.8 million in cash and no debt, with inventory levels down to $228.8 million from $255.2 million the previous year [69] - The company returned $214.9 million to shareholders in 2022 through share repurchases and dividends [69] Q&A Session Summary Question: What is the revenue guidance for wholesale and DTC for 2023? - The company expects wholesale to be down roughly 12% to 13% and DTC to be up high single digits versus 2022 [49] Question: What are the trends in point-of-sale for wholesale partners year-to-date in 2023? - The management indicated that there has been a modest increase in e-commerce while brick-and-mortar has slowed down [31] Question: How does the company view the health of the consumer? - The management noted a modest slowdown in consumer demand, but the pullback from wholesale customers has been more dramatic [36] Question: What are the expectations for international growth in 2023? - The company believes international business can achieve double-digit growth in 2023, with the EMEA region being a significant focus [30] Question: How does the company plan to address inventory levels with wholesale customers? - The management expressed hope that improved sell-through rates would encourage wholesale customers to increase their inventory levels [50]

Steven Madden Ltd (NASDAQ:SHOO) Q3 2022 Earnings Conference Call November 2, 2022 8:30 AM ET Company Participants Danielle McCoy - Director, Corporate Development & IR Edward Rosenfeld - Chairman & CEO Zine Mazouzi - CFO Conference Call Participants Aubrey Tianello - BNP Paribas Paul Lejuez - Citigroup Marni Shapiro - The Retail Tracker Steven Marotta - CL King & Associates Tom Nikic - Wedbush Securities Samuel Poser - Williams Trading Dana Telsey - Telsey Advisory Group Jay Sole - UBS Laura Champine - Loop ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to _____________________ Commission File Number 0-23702 STEVEN MADDEN, LTD. (Exact name of registrant as specified in its charter) incorporation or o ...

Financial Data and Key Metrics Changes - Revenue increased by 35% year-over-year, reaching $535 million in Q2 2022 [8][14] - Diluted EPS rose by 31% compared to the prior year, amounting to $0.63 per share [19] - Consolidated gross margin decreased to 40.7% from 42.7% in the prior year, primarily due to a shift from direct-to-consumer to wholesale sales [17] - Operating income totaled $67 million, representing 12.5% of revenue, compared to $51 million or 12.8% of revenue last year [19] Business Segment Data and Key Metrics Changes - Wholesale footwear revenue increased by 47% year-over-year, totaling $291.4 million [14][9] - Wholesale accessories and apparel revenue grew by 65% compared to the prior year, driven by strong performance in handbags and private label accessories [10][15] - Direct-to-consumer revenue increased by 2% year-over-year, reaching $135.5 million, despite tough comparisons from the previous year [10][16] - International revenue surged by 82% compared to Q2 2021, now representing 15% of total revenue, up from 11% a year ago [11] Market Data and Key Metrics Changes - The company observed a moderation in consumer demand and sales trends beginning in June, which continued into July [12] - The pullback in demand was noted across various channels, with a more significant impact on low-income consumer-targeting partners [26] Company Strategy and Development Direction - The company focuses on four key business drivers: enhancing direct-to-consumer business, expanding into non-footwear categories, growing in international markets, and strengthening the U.S. wholesale footwear business [8] - Management remains confident in leveraging core strengths to drive long-term growth despite current macroeconomic pressures [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a deterioration in macro conditions during the quarter, leading to a more cautious approach for the second half of the year [12] - Despite the challenges, management expressed confidence in the company's ability to create significant value for stakeholders over the long term [13] Other Important Information - The company ended the quarter with $180.5 million in cash and no debt, while inventory levels increased to $306.5 million due to supply chain disruptions [20][21] - A quarterly cash dividend of $0.21 per share was approved, payable on September 26, 2022 [21] Q&A Session Summary Question: Can you provide more details on the deceleration in business observed in June and July? - Management noted a slowdown across channels, with direct-to-consumer comp sales dropping from over 70% to 57% compared to 2019 [25] Question: What are the trends in demand as you head into the back half of the year? - Management indicated that boots and booties are performing well, and improvements in transit times will allow better inventory management [28][29] Question: How are freight costs expected to change moving forward? - Freight rates remain higher than pre-COVID levels, but some improvements are anticipated, potentially becoming a tailwind in 2023 [30][33] Question: How is the performance of private label versus branded sales? - Branded sales are growing faster than private label, with Steve Madden driving significant growth [44] Question: What is the outlook for promotional activity in the back half of the year? - Increased promotional activity is expected, although it was already factored into the company's plans [49][56] Question: How does the company view its inventory levels? - The company has approximately 40 days more supply than pre-COVID levels, but expects inventory levels to decrease starting in Q4 [20][35]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to _____________________ Commission File Number 0-23702 STEVEN MADDEN, LTD. (Exact name of registrant as specified in its charter) incorporation or ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q1 2022 Earnings Conference Call April 27, 2022 8:30 AM ET Company Participants Danielle McCoy - Director of Corporate Development and IR Ed Rosenfeld - Chairman and Chief Executive Officer Zine Mazouzi - Chief Financial Officer Conference Call Participants Brendon Shea - Citi Jay Sole - UBS Tom Nikic - Wedbush Laura Champine - Loop Capital Camilo Lyon - BTIG Marni Shapiro - The Retail Tracker Sam Poser - Williams Trading Dana Telsey - Telsey Advisory Group Susan Anderson - ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 0-23702 STEVEN MADDEN, LTD. (Exact name of registrant as specified in its charter) Delaware 13-3588231 (State or other ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q4 2021 Earnings Conference Call February 24, 2022 8:30 AM ET Company Participants Danielle McCoy - Director of Corporate Development and Investor Relations Edward Rosenfeld - Chief Executive Officer Zine Mazouzi - Chief Financial Officer Conference Call Participants Camilo Lyon - BTIG, LLC Kelly Crago - Citigroup Inc. Susan Anderson - B. Riley FBR, Inc. Erinn Murphy - Piper Sandler Laura Champine - Loop Capital Markets Tom Nikic - Wedbush Securities Inc. Sam Poser - Willia ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This part covers the company's unaudited financial statements, management's discussion and analysis, market risk disclosures, and internal controls [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income statements, statements of changes in stockholders' equity, and cash flow statements, along with detailed notes explaining the basis of reporting, significant accounting policies, and specific financial events [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' equity at specific reporting dates **Total Assets (in thousands):** | Date | Amount | | :--- | :--- | | Sep 30, 2021 | $1,300,060 | | Dec 31, 2020 | $1,137,761 | | Sep 30, 2020 | $1,104,410 | **Total Liabilities (in thousands):** | Date | Amount | | :--- | :--- | | Sep 30, 2021 | $492,880 | | Dec 31, 2020 | $347,392 | | Sep 30, 2020 | $336,670 | **Total Stockholders' Equity (in thousands):** | Date | Amount | | :--- | :--- | | Sep 30, 2021 | $807,180 | | Dec 31, 2020 | $790,369 | | Sep 30, 2020 | $767,740 | [Condensed Consolidated Statements of Income/(Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%2F(Loss)) This section provides a summary of the company's revenues, expenses, and net income or loss over specific reporting periods **Three Months Ended September 30 (in thousands, except per share data):** | Metric | 2021 | 2020 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total revenue | $528,742 | $346,867 | +52.4% | | Gross profit | $219,998 | $139,877 | +57.3% | | Income/(loss) from operations | $88,418 | $(2,998) | Turnaround to profit | | Net income/(loss) attributable to Steven Madden, Ltd. | $66,643 | $(6,951) | Turnaround to profit | | Diluted net income/(loss) per share | $0.82 | $(0.09) | Turnaround to profit | **Nine Months Ended September 30 (in thousands, except per share data):** | Metric | 2021 | 2020 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total revenue | $1,287,661 | $848,847 | +51.7% | | Gross profit | $529,157 | $329,229 | +60.7% | | Income/(loss) from operations | $164,180 | $(52,948) | Turnaround to profit | | Net income/(loss) attributable to Steven Madden, Ltd. | $124,692 | $(40,988) | Turnaround to profit | | Diluted net income/(loss) per share | $1.53 | $(0.52) | Turnaround to profit | [Condensed Consolidated Statements of Comprehensive Income/(Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%2F(Loss)) This section details the company's net income or loss and other comprehensive income or loss components for the reporting periods - For the three months ended September 30, 2021, the company reported net income of **$66,665K** and a total other comprehensive loss of **$(3,984)K**, resulting in comprehensive income attributable to Steven Madden, Ltd. of **$62,518K**[12](index=12&type=chunk) - For the nine months ended September 30, 2021, the company reported net income of **$126,337K** and total other comprehensive income of **$207K**, resulting in comprehensive income attributable to Steven Madden, Ltd. of **$124,650K**[12](index=12&type=chunk) - In contrast, for the three months ended September 30, 2020, the company reported a net loss of **$(7,146)K** and total other comprehensive income of **$2,152K**, leading to a comprehensive loss attributable to Steven Madden, Ltd. of **$(4,578)K**[12](index=12&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines the changes in the company's equity, including share repurchases, dividends, and net income, over a specific period **Changes in Stockholders' Equity (Nine Months Ended Sep 30, 2021, in thousands):** | Item | Amount | | :--- | :--- | | Balance at January 1, 2021 | $790,369 | | Share repurchases and net settlement of awards | $(74,685) | | Stock-based compensation | $16,696 | | Dividends on common stock | $(36,990) | | Net income | $126,337 | | Balance at September 30, 2021 | $807,180 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the reporting periods **Cash Flows (Nine Months Ended September 30, in thousands):** | Activity | 2021 | 2020 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $96,184 | $607 | +$95,577 | | Net cash provided by investing activities | $2,408 | $524 | +$1,884 | | Net cash used in financing activities | $(126,429) | $(40,936) | $(85,493) | | Net decrease in cash and cash equivalents | $(28,341) | $(40,281) | +$11,940 | | Cash and cash equivalents – end of period | $219,523 | $223,820 | $(4,297) | [Notes to Condensed Consolidated Financial Statements – Unaudited](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%E2%80%93%20Unaudited) This section provides detailed explanations and additional information supporting the unaudited condensed consolidated financial statements [Note A – Basis of Reporting](index=9&type=section&id=Note%20A%20%E2%80%93%20Basis%20of%20Reporting) This note describes the accounting principles and rules used for preparing the interim financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC rules, including normal recurring adjustments[20](index=20&type=chunk) [Note B - COVID-19 and Restructuring Charges](index=9&type=section&id=Note%20B%20-%20COVID-19%20and%20Restructuring%20Charges) This note details the company's responses to the COVID-19 pandemic and associated restructuring charges - In March 2020, the Company temporarily closed brick-and-mortar stores and corporate offices and furloughed a significant number of employees due to the COVID-19 pandemic[21](index=21&type=chunk) - Precautionary measures included temporarily suspending share repurchases and quarterly cash dividends (reinstated in Q1 2021), and salary reductions for executives and employees (reinstated by August/October 2020)[21](index=21&type=chunk) - The Company recorded a pre-tax charge of **$1,239K** for additional severance related to its restructuring plan during the nine months ended September 30, 2021[22](index=22&type=chunk) [Note C – Reclassification](index=10&type=section&id=Note%20C%20%E2%80%93%20Reclassification) This note explains adjustments made to prior year financial amounts for consistent presentation - Certain prior year amounts were reclassified to conform to the 2021 presentation, primarily regarding the breakout of impairment of fixed assets and lease right-of-use assets from operating expenses and segment reporting of corporate expenses and assets[23](index=23&type=chunk) [Note D – Acquisitions](index=10&type=section&id=Note%20D%20%E2%80%93%20Acquisitions) This note provides details on the company's recent acquisitions of non-controlling interests in joint ventures - On April 14, 2021, the Company acquired the remaining **49.9%** non-controlling interest in its European joint venture for **$16,626K**[24](index=24&type=chunk) - On June 28, 2021, the Company completed the acquisition of the remaining **49.9%** non-controlling interest in its South African joint venture for **$2,501K**[25](index=25&type=chunk) [Note E – Use of Estimates](index=10&type=section&id=Note%20E%20%E2%80%93%20Use%20of%20Estimates) This note highlights management's reliance on estimates and assumptions in preparing the financial statements - The preparation of financial statements requires management to make estimates and assumptions, including variable consideration in revenue, bad debt allowances, inventory valuation, intangible asset valuation, impairment of long-lived assets, litigation reserves, and contingent payment liabilities[26](index=26&type=chunk)[27](index=27&type=chunk) [Note F– Factoring Agreement](index=10&type=section&id=Note%20F%E2%80%93%20Factoring%20Agreement) This note describes the company's factoring agreement for managing certain receivables and credit risk - On July 22, 2020, the Company entered into an Amended and Restated Deferred Purchase Factoring Agreement with Rosenthal & Rosenthal, Inc., where Rosenthal serves as the collection agent for certain receivables and assumes credit risk for credit-approved receivables[28](index=28&type=chunk) [Note G – Short-Term Investments](index=11&type=section&id=Note%20G%20%E2%80%93%20Short-Term%20Investments) This note details the composition and amounts of the company's short-term investments **Short-Term Investments (in thousands):** | Date | Amount | | :--- | :--- | | Sep 30, 2021 | $40,390 | | Dec 31, 2020 | $39,302 | - Short-term investments consist of certificates of deposit with maturities of one year or less[29](index=29&type=chunk) [Note H – Fair Value Measurement](index=11&type=section&id=Note%20H%20%E2%80%93%20Fair%20Value%20Measurement) This note explains the valuation methods and changes in fair value for certain financial instruments, particularly contingent consideration - The Company's Level 3 liabilities for contingent consideration increased from **$207K** at January 1, 2021, to **$8,041K** at September 30, 2021, primarily due to adjustments related to the acquisitions of B.B. Dakota, Inc. and GREATS Brand, Inc[31](index=31&type=chunk) - Fair value of contingent payments for B.B. Dakota, Inc. was estimated using the Black-Scholes-Merton option pricing method with a **11.0%** discount rate[31](index=31&type=chunk) - Fair value of contingent payments for GREATS Brand, Inc. was estimated using a risk neutral simulation method with a **10.0%** discount rate[32](index=32&type=chunk) [Note I – Leases](index=13&type=section&id=Note%20I%20%E2%80%93%20Leases) This note provides information on the company's lease-related assets, liabilities, and associated costs **Lease-Related Assets and Liabilities (in thousands):** | Item | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Operating lease right-of-use asset | $90,832 | $101,379 | | Total operating lease liabilities | $117,421 | $132,849 | | Weighted-average remaining lease term | 4.7 years | 5.0 years | | Weighted-average discount rate | 4.2% | 4.3% | **Total Lease Cost (in thousands):** | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $10,975 | $16,996 | | Nine Months Ended Sep 30 | $42,961 | $37,129 | - The Company incurred **$9,505K** in expenses related to COVID-19 lease amendments during the nine months ended September 30, 2021, included in variable lease cost[40](index=40&type=chunk) [Note J – Impairment of Other Long-Lived Assets](index=15&type=section&id=Note%20J%20%E2%80%93%20Impairment%20of%20Other%20Long-Lived%20Assets) This note details the impairment charges recorded for the company's fixed assets and right-of-use assets **Total Impairment Charges for Fixed Assets and Right-of-Use Assets (in thousands):** | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $0 | $6,897 | | Nine Months Ended Sep 30 | $1,089 | $36,896 | - Impairment losses are recorded when the carrying amount of a long-lived asset group exceeds its fair value, estimated using an income approach based on management's forecast of future cash flows[43](index=43&type=chunk) [Note K – Share Repurchase Program](index=15&type=section&id=Note%20K%20%E2%80%93%20Share%20Repurchase%20Program) This note outlines the company's share repurchase activities and remaining authorization - During the nine months ended September 30, 2021, the Company repurchased **1,497,609** shares of common stock for approximately **$62,081K** at a weighted average price of **$41.45** per share[44](index=44&type=chunk) - As of September 30, 2021, approximately **$49,509K** remained available for future repurchases under the Share Repurchase Program[44](index=44&type=chunk) - On November 2, 2021, the Board of Directors approved an increase of approximately **$200,000K** to the share repurchase authorization, bringing the total authorization to **$250,000K**[44](index=44&type=chunk) [Note L – Net Income/(Loss) Per Share of Common Stock](index=16&type=section&id=Note%20L%20%E2%80%93%20Net%20Income%2F(Loss)%20Per%20Share%20of%20Common%20Stock) This note explains the calculation of basic and diluted earnings per share - Basic net income/(loss) per share is based on the weighted average number of common shares outstanding, excluding unvested restricted common stock[46](index=46&type=chunk) - Diluted net income per share reflects potential dilution from stock options and restricted stock awards, to the extent dilutive[46](index=46&type=chunk) - Contingently issuable performance awards (**17,000** shares in 2021, **300,000** in 2020) were excluded from diluted EPS calculation as performance conditions were not met[46](index=46&type=chunk) [Note M – Income Taxes](index=16&type=section&id=Note%20M%20%E2%80%93%20Income%20Taxes) This note discusses the company's effective tax rates and significant factors influencing them **Effective Tax Rates:** | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | 24.4% | (145.6%) | | Nine Months Ended Sep 30 | 22.6% | 18.2% | - The difference in effective tax rates is primarily due to the expected jurisdictional mix of profit and losses and a decrease in Global Intangible Low Taxed Income (GILTI) in 2021[47](index=47&type=chunk) - The Company expects to receive corporate income tax benefits from the CARES Act, including net operating loss carryback, employee retention credit, and employer payroll tax deferral[50](index=50&type=chunk) [Note N – Equity-Based Compensation](index=17&type=section&id=Note%20N%20%E2%80%93%20Equity-Based%20Compensation) This note provides details on the company's equity-based compensation plans and expenses **Total Equity-Based Compensation (in thousands):** | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months Ended Sep 30 | $5,677 | $5,732 | | Nine Months Ended Sep 30 | $16,696 | $16,939 | - As of September 30, 2021, **7,730,522** shares of common stock were available for grant under the 2019 Plan[51](index=51&type=chunk) - Steve Madden was granted an option to purchase **225,000** shares on August 2, 2021, vesting in four equal installments by June 30, 2022[53](index=53&type=chunk) [Note O – Goodwill and Intangible Assets](index=19&type=section&id=Note%20O%20%E2%80%93%20Goodwill%20and%20Intangible%20Assets) This note presents the carrying amounts of goodwill and intangible assets and any impairment assessments **Goodwill Net Carrying Amount (in thousands):** | Reporting Unit | Sep 30, 2021 | | :--- | :--- | | Wholesale Footwear | $90,906 | | Wholesale Accessories/Apparel | $62,688 | | Retail | $14,363 | | **Total** | **$167,957** | - No impairment charges were recorded for goodwill and intangibles in 2021, following a qualitative assessment as of July 1, 2021, which concluded fair values exceeded carrying values[58](index=58&type=chunk) - The Company sold an internally developed trademark for **$8,000K** during the nine months ended September 30, 2021, with the gain recorded in operating expenses[60](index=60&type=chunk) [Note P – Derivative Instruments](index=20&type=section&id=Note%20P%20%E2%80%93%20Derivative%20Instruments) This note describes the company's use of derivative instruments for hedging foreign currency risk - The Company uses forward foreign exchange contracts as cash flow hedging instruments to manage the risk of exchange rate fluctuations on forecasted inventory purchases[62](index=62&type=chunk) - As of September 30, 2021, the net forward contracts hedging portfolio had a notional amount of **$26,648K**[62](index=62&type=chunk) [Note Q – Commitments, Contingencies and Other](index=20&type=section&id=Note%20Q%20%E2%80%93%20Commitments,%20Contingencies%20and%20Other) This note outlines the company's future financial commitments and potential liabilities from legal proceedings - As of September 30, 2021, the Company had future minimum royalty and advertising payments totaling **$16,000K**[63](index=63&type=chunk) - Management believes that liabilities from legal proceedings will not have a material effect on the Company's financial position or results of operations[64](index=64&type=chunk) [Note R – Operating Segment Information](index=21&type=section&id=Note%20R%20%E2%80%93%20Operating%20Segment%20Information) This note provides financial data broken down by the company's various operating segments - The Company operates five reportable segments: Wholesale Footwear, Wholesale Accessories/Apparel, Retail, First Cost, and Licensing[65](index=65&type=chunk) - Corporate expenses are unallocated and include costs related to corporate executives, finance, social responsibility, legal, human resources, information technology, and other shared costs[66](index=66&type=chunk) **Nine Months Ended September 30, 2021 Segment Revenue (in thousands):** | Segment | Revenue | % of Total Revenue | | :--- | :--- | :--- | | Wholesale Footwear | $719,094 | 55.8% | | Wholesale Accessories/Apparel | $236,444 | 18.4% | | Retail | $323,227 | 25.1% | | First Cost | $1,909 | 0.1% | | Licensing | $6,987 | 0.5% | | **Total** | **$1,287,661** | **100.0%** | [Note S – Recent Accounting Pronouncements](index=23&type=section&id=Note%20S%20%E2%80%93%20Recent%20Accounting%20Pronouncements) This note discusses the company's evaluation of recently issued accounting standards - The Company is evaluating ASU 2020-04, "Reference Rate Reform," which provides practical expedients for contract modifications and hedging relationships related to the transition from LIBOR, but does not expect a material impact on its financial statements[69](index=69&type=chunk) [Note T – Credit Agreement](index=23&type=section&id=Note%20T%20%E2%80%93%20Credit%20Agreement) This note details the company's revolving credit agreement and its current utilization - On July 22, 2020, the Company entered into a **$150,000K** secured revolving credit agreement, maturing on July 22, 2025[70](index=70&type=chunk) - As of September 30, 2021, the Company had no cash borrowings and **$1,400K** in letters of credit outstanding under the Credit Facility[78](index=78&type=chunk) - The Credit Agreement contains various restrictions and covenants, including minimum availability requirements, but no other financial maintenance covenants[74](index=74&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting the significant recovery from the COVID-19 pandemic in 2021, with detailed analysis of revenue, gross profit, operating expenses, and net income across consolidated and segment-specific performance, alongside discussions on liquidity, capital resources, and contractual obligations [Overview](index=26&type=section&id=Overview) This section provides a general description of Steven Madden, Ltd.'s business operations and product distribution channels - Steven Madden, Ltd. designs, sources, markets, and sells fashion-forward branded and private label footwear, handbags, apparel, and accessories[85](index=85&type=chunk) - Products are distributed through various channels including department stores, specialty stores, luxury retailers, mass merchants, online retailers, company-owned retail stores, and e-commerce websites across North America, Europe, South Africa, and Asia[85](index=85&type=chunk) [Executive Summary](index=26&type=section&id=Executive%20Summary) This section summarizes the company's key financial performance and liquidity position for the reporting period - The Company experienced significant improvements in its retail segment and wholesale businesses in 2021, recovering from the unprecedented decline in revenue and earnings in 2020 due to the COVID-19 pandemic[86](index=86&type=chunk) **Key Financial Highlights (Three Months Ended Sep 30, 2021 vs. 2020):** | Metric | 2021 (in thousands) | 2020 (in thousands) | Change (YoY) | | :--- | :--- | :--- | :--- | | Total revenue | $528,742 | $346,867 | +52.4% | | Net income attributable to Steven Madden, Ltd. | $66,643 | $(6,951) | Turnaround to profit | | Diluted EPS | $0.82 | $(0.09) | Turnaround to profit | - As of September 30, 2021, the Company had **$259,913K** in cash, cash equivalents, and short-term investments, no debt, and working capital of **$492,527K**[88](index=88&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, gross profit, and operating income, across different periods and segments [Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020](index=28&type=section&id=Three%20Months%20Ended%20September%2030,%202021%20Compared%20to%20Three%20Months%20Ended%20September%2030,%202020) The company demonstrated a strong recovery in the third quarter of 2021, with significant revenue growth and a return to profitability across most segments compared to the pandemic-impacted prior year [Consolidated](index=28&type=section&id=Consolidated_3M) This subsection provides a consolidated view of the company's financial performance for the three months ended September 30 - Total revenue increased **52.4%** to **$528,742K**, driven by increases in Retail, Wholesale Footwear, and Wholesale Accessories/Apparel segments[91](index=91&type=chunk) - Gross profit margin improved to **41.6%** from **40.3%**, primarily due to a shift towards the higher-margin retail segment, partially offset by inbound freight costs and the non-renewal of GSP[91](index=91&type=chunk) - Income from operations was **$88,418K**, a significant turnaround from a loss of **$(2,998)K** in the prior-year period[91](index=91&type=chunk) [Wholesale Footwear Segment](index=28&type=section&id=Wholesale%20Footwear%20Segment_3M) This subsection details the financial performance of the Wholesale Footwear segment for the three months ended September 30 - Revenue increased **42.6%** to **$304,203K**, accounting for **57.5%** of total revenue[92](index=92&type=chunk) - Gross profit margin improved to **35.5%** from **34.3%**[92](index=92&type=chunk) - Income from operations increased to **$70,515K** from **$31,707K** in the prior year[92](index=92&type=chunk) [Wholesale Accessories/Apparel Segment](index=28&type=section&id=Wholesale%20Accessories%2FApparel%20Segment_3M) This subsection details the financial performance of the Wholesale Accessories/Apparel segment for the three months ended September 30 - Revenue increased **38.7%** to **$97,811K**, representing **18.5%** of total revenue[93](index=93&type=chunk) - Gross profit margin decreased to **27.8%** from **35.5%**, primarily due to the non-renewal of the GSP impacting imports from Cambodia in the handbag business[93](index=93&type=chunk) - Income from operations was **$13,310K**, a turnaround from a loss of **$(4,658)K** in the prior year[93](index=93&type=chunk) [Retail Segment](index=29&type=section&id=Retail%20Segment_3M) This subsection details the financial performance of the Retail segment for the three months ended September 30 - Revenue surged **108.6%** to **$123,054K**, driven by strong performance in e-commerce and brick-and-mortar stores[94](index=94&type=chunk) - Gross profit margin improved to **65.9%** from **63.8%**, primarily due to lower promotional activity[94](index=94&type=chunk) - Income from operations was **$22,539K**, a significant turnaround from a loss of **$(17,292)K** in the prior year[94](index=94&type=chunk) - The Company ended the quarter with **216** retail stores, compared to **220** stores as of September 30, 2020[94](index=94&type=chunk) [First Cost Segment](index=29&type=section&id=First%20Cost%20Segment_3M) This subsection details the financial performance of the First Cost segment for the three months ended September 30 - Commission income decreased to **$991K** from **$1,479K**[95](index=95&type=chunk) - Income from operations was **$695K**, down from **$882K** in the prior year[95](index=95&type=chunk) [Licensing Segment](index=29&type=section&id=Licensing%20Segment_3M) This subsection details the financial performance of the Licensing segment for the three months ended September 30 - Royalty income slightly increased to **$2,683K** from **$2,558K**[96](index=96&type=chunk) - Income from operations was **$1,991K**, up from **$1,948K** in the prior year[96](index=96&type=chunk) [Corporate](index=29&type=section&id=Corporate_3M) This subsection details the corporate operating expenses for the three months ended September 30 - Corporate operating expenses increased **32.4%** to **$20,632K**, primarily due to the impact of the COVID-19 pandemic in the prior year[97](index=97&type=chunk) [Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020](index=31&type=section&id=Nine%20Months%20Ended%20September%2030,%202021%20Compared%20to%20Nine%20Months%20Ended%20September%2030,%202020) For the first nine months of 2021, the company achieved substantial revenue growth and a strong return to profitability, driven by recovery across all segments, effective expense control, and a gain from trademark sale, significantly reversing the losses incurred during the peak of the pandemic in 2020 [Consolidated](index=31&type=section&id=Consolidated_9M) This subsection provides a consolidated view of the company's financial performance for the nine months ended September 30 - Total revenue increased **51.7%** to **$1,287,661K**, with growth across Retail, Wholesale Footwear, and Wholesale Accessories/Apparel segments[100](index=100&type=chunk) - Gross profit margin improved to **41.1%** from **38.8%**, driven by a shift to the higher-margin retail segment, partially offset by inbound freight costs and GSP non-renewal[100](index=100&type=chunk) - Income from operations was **$164,180K**, a significant turnaround from a loss of **$(52,948)K** in the prior-year period, benefiting from higher revenue, an **$8,000K** gain on trademark sale, and expense control initiatives[100](index=100&type=chunk) [Wholesale Footwear Segment](index=31&type=section&id=Wholesale%20Footwear%20Segment_9M) This subsection details the financial performance of the Wholesale Footwear segment for the nine months ended September 30 - Revenue increased **36.6%** to **$719,094K**, representing **55.8%** of total revenue[101](index=101&type=chunk) - Gross profit margin improved to **34.4%** from **33.2%**[101](index=101&type=chunk) - Income from operations increased to **$159,049K** from **$71,534K** in the prior year[101](index=101&type=chunk) [Wholesale Accessories/Apparel Segment](index=31&type=section&id=Wholesale%20Accessories%2FApparel%20Segment_9M) This subsection details the financial performance of the Wholesale Accessories/Apparel segment for the nine months ended September 30 - Revenue increased **47.6%** to **$236,444K**, accounting for **18.4%** of total revenue[102](index=102&type=chunk) - Gross profit margin decreased to **26.4%** from **30.2%**, primarily due to the non-renewal of the GSP impacting imports from Cambodia[102](index=102&type=chunk) - Income from operations was **$15,468K**, a turnaround from a loss of **$(12,465)K** in the prior year[102](index=102&type=chunk) [Retail Segment](index=32&type=section&id=Retail%20Segment_9M) This subsection details the financial performance of the Retail segment for the nine months ended September 30 - Revenue increased **110.8%** to **$323,227K**, driven by continued strength in e-commerce and recovery in brick-and-mortar stores[103](index=103&type=chunk) - Gross profit margin improved to **65.2%** from **63.4%**, primarily due to lower promotional activity[103](index=103&type=chunk) - Income from operations was **$43,632K**, a significant turnaround from a loss of **$(66,944)K** in the prior year[103](index=103&type=chunk) [First Cost Segment](index=32&type=section&id=First%20Cost%20Segment_9M) This subsection details the financial performance of the First Cost segment for the nine months ended September 30 - Commission income decreased to **$1,909K** from **$2,981K**[104](index=104&type=chunk) - Income from operations increased to **$1,577K** from **$1,251K** in the prior year, despite lower revenue, due to decreased operating expenses[104](index=104&type=chunk) [Licensing Segment](index=32&type=section&id=Licensing%20Segment_9M) This subsection details the financial performance of the Licensing segment for the nine months ended September 30 - Royalty income increased to **$6,987K** from **$5,989K**[105](index=105&type=chunk) - Income from operations increased to **$5,826K** from **$3,416K** in the prior year, also benefiting from decreased operating expenses[105](index=105&type=chunk) [Corporate](index=32&type=section&id=Corporate_9M) This subsection details the corporate operating expenses for the nine months ended September 30 - Corporate operating expenses increased **23.4%** to **$61,372K**, primarily due to the impact of the COVID-19 pandemic in the prior year[106](index=106&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flow, capital structure, and ability to meet its financial obligations - As of September 30, 2021, the Company had **$259,913K** in cash, cash equivalents, and short-term investments, with no cash borrowings and **$1,400K** in letters of credit outstanding under its **$150,000K** revolving credit facility[108](index=108&type=chunk)[109](index=109&type=chunk) - Working capital was **$492,527K** as of September 30, 2021[109](index=109&type=chunk) - The Company believes its current financial position and available liquidity will meet all financial commitments and operating needs for at least the next twelve months[110](index=110&type=chunk) [Operating Activities](index=33&type=section&id=Operating%20Activities) This subsection details the cash generated or used by the company's primary business operations - Cash provided by operations was **$96,184K** for the nine months ended September 30, 2021, a significant increase from **$607K** in the prior year, driven by higher net income and favorable changes in accounts payable and accrued expenses[111](index=111&type=chunk) [Investing Activities](index=33&type=section&id=Investing%20Activities) This subsection details the cash flows related to the acquisition and disposal of long-term assets and investments - Net cash provided by investing activities was **$2,408K**, including **$8,000K** from the sale of a trademark and **$4,599K** in capital expenditures[112](index=112&type=chunk) [Financing Activities](index=33&type=section&id=Financing%20Activities) This subsection details the cash flows related to debt, equity, and dividend transactions - Net cash used in financing activities was **$126,429K**, primarily due to **$74,685K** in share repurchases, **$36,990K** in cash dividends, and **$19,127K** for the acquisition of incremental ownership of joint ventures[113](index=113&type=chunk) [Contractual Obligations](index=33&type=section&id=Contractual%20Obligations) This subsection outlines the company's future financial commitments under various agreements **Contractual Obligations as of September 30, 2021 (in thousands):** | Obligation | Total | Remainder of 2021 | 2022-2023 | 2024-2025 | 2026 and after | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease obligations | $129,469 | $9,997 | $59,984 | $36,039 | $23,449 | | Purchase obligations | $128,646 | $128,646 | — | — | — | | Future minimum royalty and advertising payments | $16,000 | $2,312 | $13,688 | — | — | | Transition tax | $14,847 | $1,563 | $4,493 | $8,791 | — | | **Total** | **$288,962** | **$142,518** | **$78,165** | **$44,830** | **$23,449** | - The majority of products are produced by independent manufacturers overseas, primarily in China, with growing percentages in Cambodia, Mexico, Brazil, and some European nations[115](index=115&type=chunk) [Dividends](index=34&type=section&id=Dividends) This subsection provides information on the company's dividend policy and recent declarations - The Board of Directors approved a quarterly cash dividend of **$0.15** per share, payable on December 27, 2021, to stockholders of record as of December 17, 2021[118](index=118&type=chunk) - Future dividend payments are subject to Board discretion and contingent upon future earnings, financial condition, capital requirements, and general business conditions[119](index=119&type=chunk) [Inflation](index=34&type=section&id=Inflation) This subsection discusses the impact of inflation on the company's sales and profitability - Management does not believe inflation and price changes significantly affected sales or profitability for the three months ended September 30, 2021[120](index=120&type=chunk) - Historically, the Company has mitigated product cost increases by raising prices, renegotiating costs, changing suppliers, and improving operating efficiencies[120](index=120&type=chunk) [Off-Balance Sheet Arrangements](index=34&type=section&id=Off-Balance%20Sheet%20Arrangements) This subsection confirms the absence of any off-balance sheet financial arrangements - The Company has no off-balance sheet arrangements[121](index=121&type=chunk) [Critical Accounting Policies and the Use of Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20the%20Use%20of%20Estimates) This subsection refers to the company's key accounting policies and the significant judgments involved - There have been no material changes to the Company's critical accounting policies and use of estimates from those reported in the Annual Report on Form 10-K for the fiscal year ended December 31, 2020[122](index=122&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to market risks, primarily from variable interest rates on financing and foreign currency exchange rate fluctuations, and describes the strategies employed to manage these risks, including the use of forward foreign exchange contracts - The Company is exposed to market risk from variable interest rates on its financing arrangements, primarily based on the prime rate and LIBOR[123](index=123&type=chunk) - Foreign currency exchange risk, particularly from inventory purchases in foreign jurisdictions, is managed by denominating purchases in U.S. dollars and using forward foreign exchange contracts for terms up to two years[126](index=126&type=chunk) - A hypothetical **10%** increase or decrease in the U.S. dollar against foreign currencies would result in a net change of approximately **$2,267K** in the fair value of the derivatives portfolio as of September 30, 2021[127](index=127&type=chunk) - The Company also faces translation risk from its foreign operations in Canada, Mexico, Europe, South Africa, China, Taiwan, and Israel, where local currencies are functional[128](index=128&type=chunk) [ITEM 4. Controls and Procedures](index=36&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, assessed the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of September 30, 2021. No material changes to internal control over financial reporting were identified, and the COVID-19 pandemic did not materially impact these controls [Disclosure Controls and Procedures](index=36&type=section&id=Disclosure%20Controls%20and%20Procedures) The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of September 30, 2021, concluding they were effective - The Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of disclosure controls and procedures as of September 30, 2021, concluding they were effective[129](index=129&type=chunk) [Changes in Internal Control Over Financial Reporting](index=36&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended September 30, 2021, and the COVID-19 pandemic did not materially impact these controls - No material changes in internal control over financial reporting occurred during the quarter ended September 30, 2021[130](index=130&type=chunk) - The COVID-19 pandemic has not had a material impact on the Company's internal controls over financial reporting[130](index=130&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part includes legal proceedings, risk factors, equity security sales, and required exhibits and signatures [ITEM 1. Legal Proceedings](index=37&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, but management anticipates that any resulting liabilities will not materially affect its financial position, results of operations, or cash flows - The Company is a defendant in certain lawsuits in the normal course of business[132](index=132&type=chunk) - Management believes that any liabilities resulting from these matters should not have a material impact on the Company's financial position, results of operations, or cash flows[132](index=132&type=chunk) [ITEM 1A. Risk Factors](index=37&type=section&id=ITEM%201A.%20Risk%20Factors) This section directs readers to previously disclosed risk factors in the company's annual and prior quarterly reports, while specifically restating the risk associated with disruptions in product delivery systems and the challenges of effective inventory management, exacerbated by recent supply chain issues - The risk factor regarding disruptions to product delivery systems and failure to effectively manage inventory is restated, emphasizing its potential material adverse effect on business, financial condition, results of operations, and liquidity[134](index=134&type=chunk) - In the three months ended September 30, 2021, the supply chain was disrupted by increased consumer demand, pandemic-related outbreaks in Asia, domestic port and warehouse delays, container shortages, and global inflation, leading to higher freight costs[135](index=135&type=chunk) - Reliance on ocean freight transportation exposes the Company to risks such as port congestion, severe weather, natural disasters, and terrorism, which can cause delivery delays, increase costs, and disrupt business[134](index=134&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchase activities during the third quarter of 2021 under its Share Repurchase Program, including the number of shares bought back and the average price paid **Common Stock Repurchases (Three Months Ended September 30, 2021, in thousands, except per share data):** | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 7/1/2021 - 7/31/2021 | 251,740 | $42.16 | | 8/1/2021 - 8/31/2021 | 323,968 | $41.62 | | 9/1/2021 - 9/30/2021 | 197,355 | $39.49 | | **Total** | **773,063** | **$41.25** | - As of September 30, 2021, approximately **$49,509K** remained available for future repurchases under the Share Repurchase Program[138](index=138&type=chunk) [ITEM 6. Exhibits](index=39&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits accompanying the Form 10-Q, including required certifications from the CEO and CFO, and the financial statements formatted in iXBRL - The report includes certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[140](index=140&type=chunk) - The Condensed Consolidated Financial Statements and Notes are provided in iXBRL (Inline Extensible Business Reporting Language) format[140](index=140&type=chunk) [Signatures](index=40&type=section&id=Signatures) This section contains the official signatures of the company's Chairman and Chief Executive Officer, Edward R. Rosenfeld, and Chief Financial Officer, Zine Mazouzi, certifying the Form 10-Q report - The report was duly signed on November 4, 2021, by Edward R. Rosenfeld, Chairman and Chief Executive Officer, and Zine Mazouzi, Chief Financial Officer[142](index=142&type=chunk)[143](index=143&type=chunk)