Steven Madden(SHOO) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for 2024 was $2,282,927, an increase of 15.2$169,390 in 2024, down from $171,554 in 2023[146] - Diluted earnings per share in 2024 was$2.35 on 71,963 diluted weighted average shares outstanding, compared to $2.30 on 74,565 shares in 2023[146] - Gross profit in 2024 was$936,932, or 41.0% of total revenue, down from $832,414, or 42.0$698,936, or 30.6% of total revenue, compared to $612,672, or 30.9$224,939, or 9.9% of total revenue, compared to $213,222, or 10.8$2,282,927 compared to $1,981,582 in 2023, driven by growth in the Wholesale Accessories/Apparel, Direct-to-Consumer, and Wholesale Footwear segments[154] - Revenue from the Wholesale Footwear segment for 2024 was$1,059,440, or 46.4% of total revenue, a slight increase of 1.0% from $1,048,448 in 2023[158] - Revenue from the Wholesale Accessories/Apparel segment increased by 59.1$662,673, or 29.0% of total revenue, primarily due to the acquisition of Almost Famous[162] - Revenue from the Direct-to-Consumer segment for 2024 was $550,153, or 24.1$506,494 in 2023[166] Store Operations - As of December 31, 2024, the company had 291 brick-and-mortar retail stores, an increase from 255 stores in 2023[147] - The company opened 54 new brick-and-mortar stores in 2024, primarily in international markets[147] - The company opened 54 brick-and-mortar stores and closed 18 in 2024, resulting in a total of 291 stores compared to 255 at the end of 2023[166] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $203,408 as of December 31, 2024, with no debt[148] - Cash provided by operating activities was$198,096 in 2024, down from $229,237 in the prior year, primarily due to unfavorable changes in inventories and receivables[178] - Cash used in investing activities totaled$39,493 in 2024, mainly for capital expenditures of $25,911 and acquisitions of$13,976[179] - Cash used in financing activities was $167,906 in 2024, primarily for share repurchases and dividends paid totaling$61,039[180] - As of December 31, 2024, working capital was $480,974, with cash and cash equivalents of$189,924 and no cash borrowing[174] Dividends and Shareholder Returns - A quarterly cash dividend of $0.21 per share was approved, with total cash dividends paid for the twelve months ended December 31, 2024, amounting to$61,039[145] - The company declared a quarterly cash dividend of $0.21 per share in February, May, July, and November 2024, totaling$15,416, $15,292,$15,172, and $15,159 respectively[185][186][187][188] Acquisitions and Joint Ventures - The company formed a joint venture with Luxury Ventures Pte. Ltd., acquiring a 51.0$1,020[134] - The company acquired the ATM Collection for approximately $9,783, enhancing its presence in the high-end fashion market[133] - The GREATS business was sold during the third quarter of 2024, leading to the write-off of remaining intangible assets[205] - The acquisition of Kurt Geiger is subject to closing conditions, and any delays could adversely affect the company's business and stock price[97] Impairments and Fair Value - The estimated fair value of the GREATS trademark was written down from$6,150 to $4,450, resulting in a pre-tax non-cash impairment charge of$1,700[204] - The Almost Famous trademark was impaired with an impairment charge of $8,635, representing the remaining carrying amount of the asset[206] - A hypothetical 5$500[198] - The annual impairment tests concluded that the fair values of reporting units exceeded their carrying values, with no impairment charges recorded during the years presented[203] - The company reassessed the carrying amount of its Almost Famous trademark for impairment, resulting in an impairment charge due to lower estimated future cash flows[206] Risks and Challenges - The company is exposed to foreign exchange rate fluctuations, which may materially affect business and financial condition[89] - Economic conditions may negatively impact consumer confidence and discretionary spending, which could affect the company's financial condition and liquidity[98] - Ongoing litigation and legal proceedings could divert management resources and adversely impact operating results[99] - The company is subject to complex tax laws and audits, which could result in additional tax liabilities and affect operating results[100] - Changes in tax laws could increase tax liabilities and adversely affect after-tax profitability[101] - Foreign tax authorities may introduce new tax laws or adjust existing regulations, impacting tax liabilities and after-tax income[102] - Failure to maintain effective internal control over financial reporting could undermine investor confidence and negatively impact stock price[103] Corporate Expenses - Corporate operating expenses increased to $96,738 in 2024 from$91,743 in 2023, reflecting higher costs related to corporate functions[171] - Operating expenses in 2024 were $314,003, or 57.1$279,827, or 55.2% in 2023, due to higher marketing and occupancy costs[168] - Royalty income from the Licensing segment for 2024 was $10,661, maintaining 0.5$1,600[170]