Current Report Filing (8-k)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: October 29, 2015
(Date of earliest event reported)

STEVEN MADDEN, LTD.
(Exact Name of Registrant as Specified in Charter)


Delaware	000-23702	13-3588231
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

52-16 Barnett Avenue, Long Island City, New York 11104

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (718) 446-1800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.

Results of Operations and Financial Condition.

On October 29, 2015, Steven Madden, Ltd. (the "Company") issued a press release, furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference, announcing the Company's financial results for the quarter ended September 30, 2015.

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished, and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this Report is not intended to, and does not, constitute a determination or admission by the Company that the information in this Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.

Item 9.01.

Financial Statements and Exhibits.

(d)

Exhibits:

Exhibit		Description

99.1		Press Release, dated October 29, 2015, issued by Steven Madden, Ltd.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 29, 2015


	STEVEN MADDEN, LTD.

	By:	/s/ Edward R. Rosenfeld
		Edward R. Rosenfeld
		Chief Executive Officer

Exhibit 99.1

Steve Madden Announces Third Quarter 2015 Results

LONG ISLAND CITY, N.Y., October 29, 2015 – Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion footwear and accessories for women, men and children, today announced financial results for the third quarter ended September 30, 2015.

For the Third Quarter 2015:

Net sales increased 5.5% to $413.5 million compared to $392.0 million in the same period of 2014.

Gross margin expanded 130 basis points to 36.0% as compared to 34.7% in the same period last year.

Operating expenses as a percentage of sales were 21.6% compared to 20.9% of sales in the same period of 2014.

Operating income totaled $66.3 million, or 16.0% of net sales, compared with operating income of $59.3 million, or 15.1% of net sales, in the same period of 2014.

	·	Net income was $42.9 million, or $0.70 per diluted share, compared to $39.2 million, or $0.62 per diluted share, in the prior year’s third quarter.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased with our third quarter results, which included an increase in diluted EPS of 13% compared to the prior year period. Our retail segment was once again the standout, with a third consecutive quarter of double-digit comparable store sales growth. We also benefited from earnings contributions from the recently acquired Dolce Vita, Blondo and SM Mexico. While the overall retail environment is choppy, we are pleased with the momentum in our business and remain on track to meet our earnings targets for the year.”

Third Quarter 2015 Segment Results

Net sales for the wholesale business were $357.0 million in the third quarter compared to $343.3 million in the third quarter of 2014. Gross margin in the wholesale business increased to 32.1% compared to 31.3% in last year’s third quarter due to improvement in the wholesale footwear segment.

Retail net sales in the third quarter were $56.4 million compared to $48.7 million in the third quarter of the prior year. Same store sales increased 11.2% for the third quarter. Retail gross margin increased to 60.4% in the third quarter of 2015 compared to 58.9% in the third quarter of 2014 as a result of decreased promotional activity.

During the third quarter, the Company opened two full price stores in Canada, one full price store in Mexico and one U.S. outlet location. The Company ended the quarter with 165 company-operated retail locations, including 120 full price stores, 37 outlets, four Internet stores and four joint venture locations in South Africa.

The effective tax rate for the third quarter of 34.1% compares to 35.0% in the third quarter of the prior year.

Balance Sheet and Cash Flow

During the third quarter of 2015, the Company repurchased approximately 763,000 shares of the Company’s common stock for $29.7 million.

As of September 30, 2015, cash, cash equivalents, and current and non-current marketable securities totaled $151.2 million.

Company Outlook

Based on lower-than-anticipated back half sales in its private label footwear business, the Company has adjusted its sales outlook for fiscal year 2015. The Company now expects that net sales will increase 6% to 7% over net sales in 2014. The Company continues to expect diluted EPS for fiscal year 2015 to be in the range of $1.85 to $1.95.

Conference Call Information

Interested stockholders are invited to listen to the first quarter earnings conference call scheduled for today, Thursday, October 29, 2015, at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto http://www.stevemadden.com. An online archive of the broadcast will be available within one hour of the conclusion of the call and will be accessible for a period of 30 days following the call. Additionally, a replay of the call can be accessed by dialing 1-877-870-5176 (U.S.) and 1-858-384-5517 (international), passcode 1949549, and will be available until November 29, 2015.

About Steve Madden

Steve Madden designs, sources and markets fashion-forward footwear and accessories for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Report®, Big Buddha®, Brian Atwood®, Cejon®, Blondo® and Mad Love®, Steve Madden is the licensee of various brands, including Superga® for footwear in North America. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, specialty stores, luxury retailers, national chains and mass merchants. Steve Madden also operates 165 retail stores (including Steve Madden’s four Internet stores). Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including for ready-to-wear, outerwear, intimate apparel, eyewear, hosiery, jewelry, fragrance, luggage and bedding and bath products. For local store information and the latest Steve Madden booties, pumps, men’s and women’s boots, dress shoes, sandals and more, visit http://www.stevemadden.com/

Safe Harbor

This press release and oral statements made from time to time by representatives of the Company contain certain “forward looking statements” as that term is defined in the federal securities laws. The events described in forward looking statements may not occur. Generally these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of the Company’s plans or strategies, projected or anticipated benefits from acquisitions to be made by the Company, or projections involving anticipated revenues, earnings or other aspects of the Company’s operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward looking statements. The Company cautions you that these statements concern current expectations about the Company’s future results and condition and are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projections upon which the statements are based. Factors which may affect the Company’s results include, but are not limited to, the risks and uncertainties discussed in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any one or more of these uncertainties, risks and other influences could materially affect the Company’s results of operations and financial condition and whether forward looking statements made by the Company ultimately prove to be accurate and, as such, the Company’s actual results, performance and achievements could differ materially from those expressed or implied in these forward looking statements. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS DATA

(In thousands, except per share amounts)

Unaudited

	Three Months Ended					Nine Months Ended
	September 30, 2015			September 30, 2014		September 30, 2015		September 30, 2014

Net sales	$	413,462		$	391,992	$	1,060,989	$	992,331
Cost of sales		264,691			255,895		684,694		640,826
Gross profit		148,771			136,097		376,295		351,505
Commission and licensing fee income, net		6,643			5,103		13,689		11,461
Operating expenses		89,130			81,867		253,991		227,328
Impairment charge		—			—		3,045		—
Income from operations		66,284			59,333		132,948		135,638
Interest and other (loss)/income, net		(895	)		1,132		273		3,218
Income before provision for income taxes		65,389			60,465		133,221		138,856
Provision for income taxes		22,298			21,163		45,428		47,385
Net income		43,091			39,302		87,793		91,471
Net income (loss) attributable to noncontrolling interest		206			54		578		584
Net income attributable to Steven Madden, Ltd.	$	42,885		$	39,248	$	87,215	$	90,887

Basic income per share	$	0.73		$	0.64	$	1.47	$	1.47
Diluted income per share	$	0.70		$	0.62	$	1.42	$	1.42

Basic weighted average common shares outstanding		58,911			61,019		59,271		61,936

Diluted weighted average common shares outstanding		61,060			63,215		61,516		64,184

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(In thousands)

	As of
	September 30, 2015		December 31, 2014		September 30, 2014
	(Unaudited)				(Unaudited)
Cash and cash equivalents	$	38,654	$	81,450	$	169,911
Marketable securities (current & non current)		112,539		121,644		19,562
Accounts receivables, net		284,835		194,594		260,433
Inventories		123,768		92,677		103,151
Other current assets		37,965		42,307		31,051
Property and equipment, net		71,162		68,905		63,092
Goodwill and intangibles, net		291,269		294,416		274,848
Other assets		9,693		15,242		12,484
Total assets	$	969,885	$	911,235	$	934,532

Accounts payable	$	130,556	$	92,635	$	118,817
Contingent payment liability (current & non current)		33,179		38,633		29,558
Other current liabilities		90,480		73,501		73,724
Other long term liabilities		30,408		36,937		26,754
Total Steven Madden, Ltd. stockholders’ equity		684,887		669,255		685,390
Noncontrolling interest		375		274		289
Total liabilities and stockholders’ equity	$	969,885	$	911,235	$	934,532

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW DATA

(In thousands)

Unaudited

	Nine Months Ended
	September 30, 2015			September 30, 2014

Net cash provided by operating activities	$	50,148		$	74,437

Investing Activities
Purchases of property and equipment		(13,524	)		(12,605	)
Purchases / sales of marketable securities, net		4,627			94,873
Repayment of notes receivable		342			—
Acquisitions, net of cash acquired		(9,129	)		(61,414	)
Net cash (used in)/provided by investing activities		(17,684	)		20,854

Financing Activities
Common stock share repurchases for treasury		(103,892	)		(101,751	)
Payment of contingent liability		(2,950	)		(8,475	)
Proceeds from exercise of stock options		21,154			2,940
Tax benefit from the exercise of stock options		10,428			1,631
Net cash used in financing activities		(75,260	)		(105,655	)

Net decrease in cash and cash equivalents		(42,796	)		(10,364	)

Cash and cash equivalents - beginning of period		81,450			180,275

Cash and cash equivalents - end of period	$	38,654		$	169,911