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 ...

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 September 30, 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) incorporation ...

Steven Madden, Ltd. (NASDAQ:SHOO) Q3 2021 Earnings Conference Call November 3, 2021 8:30 AM ET Company Participants Danielle McCoy - Director of Corporate Development & Investor Relations Edward Rosenfeld - Chairman and Chief Executive Officer Zine Mazouzi - Chief Financial Officer Conference Call Participants Camilo Lyon - BTIG Erinn Murphy - Piper Sandler Kelly Crago - Citigroup Tom Nikic - Wedbush Securities Janine Stichter - Jefferies Marni Shapiro - Retail Tracker Jay Sole - UBS Laura Champine - Loop C ...

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, 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) incorporation or o ...

Steve Madden, Ltd. (NASDAQ:SHOO) Q2 2021 Earnings Conference Call July 28, 2021 8:30 AM ET Company Participants Danielle McCoy - IR Ed Rosenfeld - CEO Zine Mazouzi - CFO Conference Call Participants Paul Lejuez - Citi Camilo Lyon - BTIG Susan Anderson - B. Riley Jay Sole - UBS Janine Stichter - Jefferies Erinn Murphy - Piper Sandler Sam Poser - Williams Trading Roni Shapiro - Retail Tracker Dana Telsey - Telsey Advisory Group Operator Good day, and thank you for standing by. Welcome to the quarter two 2021 ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2021 show a return to profitability compared to a net loss in Q1 2020 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 31, 2021, shows total assets of **$1.17 billion** and stockholders' equity of **$800.8 million** Key Balance Sheet Items (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $233,202 | $247,864 | | Inventories | $106,561 | $101,420 | | Total current assets | $734,531 | $698,241 | | Total Assets | $1,168,943 | $1,137,761 | | Total current liabilities | $256,493 | $235,916 | | Total Liabilities | $368,175 | $347,392 | | Total stockholders' equity | $800,768 | $790,369 | [Condensed Consolidated Statements of Income/(Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%2F(Loss)) Q1 2021 saw a significant turnaround with **$21.2 million** net income, up from a **$17.5 million** net loss in Q1 2020 Q1 2021 vs Q1 2020 Income Statement (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total revenue | $361,025 | $359,168 | | Gross profit | $139,104 | $133,464 | | Income/(loss) from operations | $28,044 | $(26,248) | | Net income/(loss) attributable to Steven Madden, Ltd. | $21,197 | $(17,451) | | Diluted net income/(loss) per share | $0.26 | $(0.22) | - The company recorded **no impairment of intangibles** in Q1 2021, compared to a **$9.5 million charge** in Q1 2020. Impairment of store fixed assets and lease right-of-use assets was also significantly lower at **$612 thousand** compared to **$28.8 million** in the prior year[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities improved to **$5.0 million** in Q1 2021 from **$39.6 million** used in Q1 2020 Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by/(used in) operating activities | $5,042 | $(39,609) | | Net cash (used in) investing activities | $(1,616) | $(227) | | Net cash (used in) financing activities | $(17,792) | $(11,624) | | Net (decrease) in cash and cash equivalents | $(14,662) | $(52,963) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20-%20Unaudited) Notes detail accounting policies, COVID-19 impact, segment performance with strong retail growth, and a post-quarter European JV acquisition - In response to COVID-19, the company took measures including temporary furloughs, salary reductions, well as suspension of share repurchases and dividends. The quarterly cash dividend and stock repurchase plan were **reinstated** during the first quarter of 2021[16](index=16&type=chunk) Segment Revenue and Operating Income (in thousands) | Segment | Revenue Q1 2021 | Revenue Q1 2020 | Operating Income/(Loss) Q1 2021 | Operating Income/(Loss) Q1 2020 | | :--- | :--- | :--- | :--- | :--- | | Wholesale Footwear | $216,779 | $235,069 | $44,376 | $41,053 | | Wholesale Accessories/Apparel | $74,621 | $67,672 | $7,515 | $(6,479) | | Retail | $67,501 | $52,943 | $(4,707) | $(43,002) | - On April 14, 2021, the company acquired the remaining 49.9% interest in its European joint venture for **$16.5 million**[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights Q1 2021 revenue growth to **$361.0 million**, **$21.2 million** net income, and strong liquidity with no debt - Despite the continued impact of the pandemic and supply chain disruption, the business saw **improvements** in the retail segment and in sell-through performance at wholesale partners in Q1 2021[81](index=81&type=chunk) Q1 2021 Financial Highlights (in thousands) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total Revenue | $361,025 | $359,168 | | Gross Profit | $139,104 | $133,464 | | Gross Margin | 38.5% | 37.2% | | Operating Income/(Loss) | $28,044 | $(26,248) | | Net Income/(Loss) | $21,197 | $(17,451) | [Results of Operations by Segment](index=28&type=section&id=Results%20of%20Operations%20by%20Segment) Segment performance varied, with Retail revenue up **27.5%** and Wholesale Accessories/Apparel up **10.3%**, offsetting Wholesale Footwear decline - **Wholesale Footwear:** Revenue decreased **7.8%** to **$216.8 million**, but operating income increased to **$44.4 million** due to expense control initiatives[90](index=90&type=chunk) - **Wholesale Accessories/Apparel:** Revenue increased **10.3%** to **$74.6 million**. The segment swung to an operating income of **$7.5 million** from a loss of **$6.5 million** in the prior year[91](index=91&type=chunk) - **Retail:** Revenue increased **27.5%** to **$67.5 million**, driven by e-commerce. The operating loss narrowed significantly to **$(4.7) million** from **$(43.0) million** in Q1 2020, which included large impairment charges[92](index=92&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity in Q1 2021 with **$273.0 million** in cash and no debt, supported by a new **$150 million** credit facility - As of March 31, 2021, the company had **$273.0 million** in cash, cash equivalents, and short-term investments, and **no debt**[96](index=96&type=chunk)[97](index=97&type=chunk) - Cash provided by operations was **$5.0 million** for Q1 2021, a significant improvement from **$39.6 million** of cash used in Q1 2020[99](index=99&type=chunk) - The Board of Directors approved a quarterly cash dividend of **$0.15 per share**, payable in June 2021[106](index=106&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and interest rates, managing them with forward contracts and maintaining no outstanding debt - The company uses forward foreign exchange contracts to mitigate the impact of exchange rate fluctuations on forecasted inventory purchases. As of March 31, 2021, the notional amount of these contracts was **$37.0 million**[59](index=59&type=chunk)[114](index=114&type=chunk) - A sensitivity analysis showed that a **10%** increase or decrease of the U.S. dollar against foreign currencies would result in a net change of approximately **$3.7 million** in the fair value of the derivatives portfolio[114](index=114&type=chunk) - The company is also exposed to translation risk from its foreign operations in Canada, Mexico, Europe, South Africa, China, Taiwan, and Israel, as their financial results are translated into U.S. dollars[115](index=115&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were **effective** as of March 31, 2021, with **no material changes** to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the fiscal quarter[118](index=118&type=chunk) - **No material changes** to the company's internal control over financial reporting occurred during the quarter[119](index=119&type=chunk) [PART II – OTHER INFORMATION](index=33&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=33&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management **expects no material impact** on financial position or results - Management does **not expect ongoing legal proceedings to have a material effect** on the company's financial position or results of operations[61](index=61&type=chunk)[121](index=121&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **154,040** common shares in Q1 2021, with **$109.7 million** remaining for future repurchases Share Repurchases in Q1 2021 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2021 | 13,507 | $35.24 | | Feb 2021 | 8,173 | $33.60 | | Mar 2021 | 132,360 | $36.31 | | **Total Q1** | **154,040** | **$36.07** | - As of March 31, 2021, approximately **$109.7 million** remained available for future repurchases under the company's Share Repurchase Program[42](index=42&type=chunk)[123](index=123&type=chunk) [Item 6. Exhibits](index=35&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and iXBRL formatted financial statements - Exhibits filed include certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[125](index=125&type=chunk)

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2021 was $361 million, up 1% from Q1 2020, with diluted EPS of $0.33, a 108% increase from the prior year [12][29] - Operating income for the quarter totaled $35.6 million, or 9.9% of revenue, compared to $14.2 million, or 4% of revenue in the prior year [28] - Consolidated gross margin increased by 130 basis points to 38.5% compared to 37.2% in the prior year [27] Business Line Data and Key Metrics Changes - Wholesale revenue declined 4% to $291.4 million, with wholesale footwear revenue down 8% to $216.8 million due to COVID-19 and supply chain disruptions [25][13] - Retail segment revenue increased 27% to $67.5 million, driven by a significant improvement in e-commerce, which grew 89% compared to Q1 2020 [18][20] - Wholesale accessories and apparel revenue increased 10% to $74.6 million, driven by strong gains in handbags [16] Market Data and Key Metrics Changes - Internationally, Europe showed strong revenue gains driven by digital channels, while Canada faced challenges due to COVID-19 lockdowns [15] - E-commerce represented 54% of total retail segment sales, with Steve Madden's e-commerce business growing 112% [26][20] Company Strategy and Development Direction - The company is focused on capturing growth in the European market through the acquisition of a 49.9% share in its European joint venture, expecting approximately $55 million in revenue [22][23] - Management emphasized the importance of digital channels and strong product assortments to drive future growth [23][106] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the near-term outlook for the wholesale channel due to ongoing supply chain disruptions and conservative ordering from wholesale customers [17][31] - The company anticipates continued challenges from COVID-19 but remains confident in its long-term growth potential based on brand strength and market positioning [23][32] Other Important Information - The company repurchased approximately 154,000 shares for $5.6 million during the quarter, with $135 million remaining on the share repurchase authorization [30] - A quarterly cash dividend of $0.15 per share was approved, payable on June 25, 2021 [31] Q&A Session Summary Question: Can you provide more details on the supply chain impact? - Management noted that supply chain disruptions had a significant impact in Q1, estimating a $15 million impact, with expectations of a similar or greater impact in Q2 [35][38] Question: How are retailers planning for the second half? - Retailers are re-evaluating their fall plans due to improved performance, but no firm updates have been received [47] Question: What is the outlook for gross margins? - Management expects significant headwinds from increased freight costs and the non-renewal of GSP, estimating a 210 basis point pressure on gross margins in Q2 [40][41] Question: How is the European joint venture performing? - The European joint venture has shown strong growth, with management confident in its potential as a significant growth driver [59] Question: What trends are being observed in the dress shoe category? - Management reported strong performance in dress shoes, capturing a disproportionate share of consumer interest [66] Question: What is the outlook for the accessories business? - The accessories business is performing well, but management cautioned that timing shifts may affect performance in Q2 [96] Question: How is the digital marketing strategy evolving? - The company is seeing strong returns on digital marketing investments, with a focus on enhancing product pages and improving conversion rates [106][120]

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 ...