Steve Madden (Nasdaq: SHOO), a leading designer and marketer of
fashion-forward footwear, accessories and apparel for women, men
and children, today announced financial results for the second
quarter ended June 30, 2020.
Amounts referred to as “Adjusted”
exclude the items that are described under the heading “Non-GAAP
Adjustments.”
The Company reclassified commission and
licensing fee income to Total Revenue and reclassified its
respective expenses into Operating Expenses from previously labeled
Commission and Licensing Fee Income - Net on the Company's
Consolidated Statement of Operations for each period
provided.
Second Quarter 2020 Review
- Revenue decreased 68.2% to $142.8 million compared to
$449.6 million in the same period of 2019.
- Gross margin was 39.1% compared to 37.8% in the same period
last year.
- Operating expenses as a percentage of revenue were 55.7%
compared to 27.0% of revenue in the same period of 2019.
Adjusted operating expenses as a percentage of revenue were 53.8%
compared to 26.9% of revenue in the same period of 2019.
- Loss from operations totaled ($23.7) million, or (16.6%) of
revenue, compared to income from operations of $44.6 million, or
9.9% of revenue, in the same period of 2019. Adjusted loss
from operations was ($21.0) million, or (14.7%) of revenue,
compared to Adjusted income from operations of $49.1 million, or
10.9% of revenue, in the same period of 2019.
- Net loss attributable to Steven Madden, Ltd. was ($16.6)
million, or ($0.21) per diluted share, compared to net income
attributable to Steven Madden, Ltd. of $36.6 million, or $0.44 per
diluted share, in the prior year’s second quarter. Adjusted
net loss attributable to Steven Madden, Ltd. was ($14.7) million,
or ($0.19) per diluted share, compared to Adjusted net income
attributable to Steven Madden, Ltd. of $39.5 million, or $0.47 per
diluted share, in the prior year’s second quarter.
Edward Rosenfeld, Chairman and Chief Executive
Officer, commented, "The past few months have been challenging for
all of us due to the COVID-19 pandemic. At Steve Madden, we
have prioritized the health and safety of our employees, customers
and communities while also moving quickly to adapt to the current
retail environment, mitigate the impact to our business, preserve
liquidity and enhance financial flexibility. We are
encouraged by the strong performance we are seeing in digital
commerce channels – including 88% revenue growth on stevemadden.com
in the second quarter – which underscores the strength of our
brands and the continued consumer demand for our products. We
know the path forward will continue to be bumpy in the near-term,
but we are confident that our strengths – powerful brands, a
fortress balance sheet, a proven business model and most of all,
our talented and dedicated employees – will enable us to
successfully navigate this crisis and return to profitable growth
once conditions normalize."
Second Quarter 2020
Segment Results
Revenue for the wholesale business decreased
72.5% to $100.0 million in the second quarter of 2020, including a
72.8% decline in wholesale footwear and a 71.5% decline in
wholesale accessories/apparel. The revenue decline was driven
by significant order cancellations resulting from the COVID-19
pandemic. Gross margin in the wholesale business decreased to
26.6% compared to 32.1% in last year’s second quarter due primarily
to a shift in sales mix to the lower-margin private label
business.
Retail revenue in the second quarter decreased
49.2% to $41.4 million due to the closure of the vast majority of
the Company's retail stores for most or all of the quarter as a
result of the COVID-19 pandemic, partially offset by strong
performance in the Company's e-commerce business. Retail
gross margin increased to 67.4% in the second quarter of 2020
compared to 59.7% in the second quarter of the prior year due
primarily to a shift in sales mix to the higher-margin e-commerce
business.
The Company ended the quarter with 225
company-operated retail stores, including eight Internet stores, as
well as 17 company-operated concessions in international
markets.
The Company’s effective tax rate for the second
quarter of 2020 was 26.6% compared to 21.3% in the second quarter
of 2019. On an Adjusted basis, the effective tax rate for the
second quarter of 2020 was 26.9% compared to 22.4% in the second
quarter of 2019.
Balance Sheet and Cash Flow
As of June 30, 2020, cash, cash equivalents
and marketable securities totaled $356.9 million. Advances
from factor totaled $42.7 million.
On July 22, 2020, the Company entered into a new
$150 million, five-year asset-based revolving credit facility,
which replaced the Company’s previous credit facility with its
factor.
Fiscal Year 2020 Outlook
Given the continued disruption and uncertainty
related to the COVID-19 pandemic, the Company is not providing
guidance at this time.
Non-GAAP Adjustments
Amounts referred to as “Adjusted” exclude the
items below.
For the second quarter 2020:
- $5.4 million pre-tax ($4.1 million after-tax) expense in
connection with restructuring and related charges, included in
operating expenses.
- $4.6 million pre-tax ($3.5 million after-tax) benefit in
connection with a change in valuation of contingent considerations,
included in operating expenses.
- $1.2 million pre-tax ($0.9 million after-tax) expense in
connection with the impairment of lease right-of-use assets,
included in operating expenses.
- $0.7 million pre-tax ($0.6 million after-tax) expense in
connection with benefits provided to furloughed employees, included
in operating expenses.
- $0.02 million pre-tax ($0.01 million after-tax) expense
associated with the impairment of store fixed assets, included in
operating expenses.
- $0.2 million loss in connection with the impairment of lease
right-of-use assets, trademark and other attributable to
noncontrolling interest.
For the second quarter 2019:
- $1.8 million pre-tax ($1.7 million after-tax) recovery
associated with the Payless ShoeSource bankruptcy, included in
operating expenses.
- $1.5 million pre-tax ($1.2 million after-tax) expense in
connection with a provision for early lease termination charges,
included in operating expenses.
- $0.7 million pre-tax ($0.5 million after-tax) expense in
connection with a divisional headquarters relocation, included in
operating expenses.
- $4.1 million pre-tax ($3.0 million after-tax) non-cash expense
associated with the impairment of the Brian Atwood trademark.
Reconciliations of amounts on a GAAP basis to
Adjusted amounts are presented in the Non-GAAP Reconciliation
tables at the end of this release and identify and quantify all
excluded items.
Conference Call Information
Interested stockholders are invited to listen to
the second quarter earnings conference call scheduled for today,
July 29, 2020, at 8:30 a.m. Eastern Time. The call will be
broadcast live over the Internet and can be accessed by logging
onto http://stevemadden.gcs-web.com. An online archive of the
broadcast will be available within two hours of the conclusion of
the call and will remain available for 12 months following the live
call.
About Steve Madden
Steve Madden designs, sources and markets
fashion-forward footwear, accessories and apparel for women, men
and children. In addition to marketing products under its own
brands including Steve Madden®, Dolce Vita®, Betsey Johnson®,
Blondo®, Report®, Brian Atwood®, Cejon®, GREATS®, BB Dakota®, Mad
Love® and Big Buddha®, Steve Madden is a licensee of various
brands, including Anne Klein®, Superga® and DKNY®.
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 225 retail stores (including eight Internet
stores). Steve Madden licenses certain of its brands to third
parties for the marketing and sale of certain products, including
ready-to-wear, outerwear, 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, fashion sneakers, dress shoes, sandals and more,
visit http://www.stevemadden.com.
Safe Harbor Statement Under the U.S.
Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking
statements” within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Examples of forward-looking statements include, among others,
statements regarding revenue and earnings guidance, plans,
strategies, objectives, expectations and intentions.
Forward-looking statements can be identified by words such as:
“may”, “will”, “expect”, “believe”, “should”, “anticipate”,
“project”, “predict”, “plan”, “intend”, or “estimate”, and similar
expressions or the negative of these expressions.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they represent the
Company’s current beliefs, expectations and assumptions regarding
anticipated events and trends affecting its business and industry
based on information available as of the time such statements are
made. Investors are cautioned that such forward-looking
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which may be
outside of the Company’s control. The Company’s actual
results and financial condition may differ materially from those
indicated in these forward-looking statements. As such,
investors should not rely upon them. Important risk factors
include:
- the Company's ability to maintain adequate liquidity when
negatively impacted by unforeseen events such as an epidemic or
pandemic (COVID-19), which may cause disruption to the Company's
business operations and temporary closure of Company-operated and
wholesale partner retail stores, resulting in a significant
reduction in revenue for an indeterminable period of time;
- the Company’s ability to accurately anticipate fashion trends
and promptly respond to consumer demand;
- the Company’s ability to compete effectively in a highly
competitive market;
- the Company’s ability to adapt its business model to rapid
changes in the retail industry;
- the Company’s dependence on the retention and hiring of key
personnel;
- the Company’s ability to successfully implement growth
strategies and integrate acquired businesses;
- the Company’s reliance on independent manufacturers to produce
and deliver products in a timely manner, especially when faced with
adversities such as work stoppages, transportation delays, public
health emergencies, social unrest, changes in local economic
conditions, and political upheavals as well as meet the Company’s
quality standards;
- changes in trade policies and tariffs imposed by the United
States government and the governments of other nations in which the
Company manufactures and sells products;
- disruptions to product delivery systems and the Company’s
ability to properly manage inventory;
- the Company’s ability to adequately protect its trademarks and
other intellectual property rights;
- legal, regulatory, political and economic risks that may affect
the Company’s sales in international markets;
- changes in U.S. and foreign tax laws that could have an adverse
effect on the Company’s financial results;
- additional tax liabilities resulting from audits by various
taxing authorities;
- the Company’s ability to achieve operating results that are
consistent with prior financial guidance; and
- other risks and uncertainties indicated from time to time in
the Company’s filings with the Securities and Exchange
Commission.
The Company does not undertake any obligation to
publicly update any forward-looking statement, including, without
limitation, any guidance regarding revenue or earnings, whether as
a result of new information, future developments or otherwise.
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS DATA
(In thousands, except per share amounts)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
141,363 |
|
|
$ |
444,974 |
|
|
$ |
497,047 |
|
|
$ |
855,914 |
|
Commission and licensing fee
income |
|
1,449 |
|
|
4,655 |
|
|
4,933 |
|
|
9,503 |
|
Total revenue |
|
142,812 |
|
|
449,629 |
|
|
501,980 |
|
|
865,417 |
|
Cost of sales |
|
86,924 |
|
|
279,629 |
|
|
312,628 |
|
|
533,572 |
|
Gross profit |
|
55,888 |
|
|
170,000 |
|
|
189,352 |
|
|
331,845 |
|
Operating expenses |
|
79,590 |
|
|
121,317 |
|
|
229,784 |
|
|
238,502 |
|
Trademark impairment
charges |
|
— |
|
|
4,050 |
|
|
9,518 |
|
|
4,050 |
|
(Loss) / income from
operations |
|
(23,702 |
) |
|
44,633 |
|
|
(49,950 |
) |
|
89,293 |
|
Interest and other income,
net |
|
357 |
|
|
1,262 |
|
|
1,403 |
|
|
2,454 |
|
(Loss) / income before
provision for income taxes |
|
(23,345 |
) |
|
45,895 |
|
|
(48,547 |
) |
|
91,747 |
|
(Benefit) / provision for
income taxes |
|
(6,201 |
) |
|
9,784 |
|
|
(13,602 |
) |
|
20,371 |
|
Net (loss) / income |
|
(17,144 |
) |
|
36,111 |
|
|
(34,945 |
) |
|
71,376 |
|
Less: net (loss) /
income attributable to noncontrolling interest |
|
(558 |
) |
|
(461 |
) |
|
(908 |
) |
|
279 |
|
Net (loss) / income
attributable to Steven Madden, Ltd. |
|
$ |
(16,586 |
) |
|
$ |
36,572 |
|
|
$ |
(34,037 |
) |
|
$ |
71,097 |
|
|
|
|
|
|
|
|
|
|
Basic net (loss) / income per
share |
|
$ |
(0.21 |
) |
|
$ |
0.46 |
|
|
$ |
(0.43 |
) |
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
|
Diluted net (loss) / income
per share |
|
$ |
(0.21 |
) |
|
$ |
0.44 |
|
|
$ |
(0.43 |
) |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
|
78,517 |
|
|
79,951 |
|
|
78,696 |
|
|
80,241 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares outstanding |
|
78,517 |
|
|
83,869 |
|
|
78,696 |
|
|
84,064 |
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share |
|
$ |
— |
|
|
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.28 |
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
DATA
(In thousands)
|
|
|
As of |
|
|
|
June 30, 2020 |
|
December 31, 2019 |
|
June 30, 2019 |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
318,101 |
|
|
$ |
264,101 |
|
|
$ |
212,664 |
|
Marketable securities |
38,837 |
|
|
40,521 |
|
|
36,096 |
|
Accounts receivable, net |
143,679 |
|
|
254,637 |
|
|
306,636 |
|
Inventories |
103,282 |
|
|
136,896 |
|
|
146,120 |
|
Other current assets |
32,022 |
|
|
22,724 |
|
|
39,287 |
|
Property and equipment,
net |
49,594 |
|
|
65,504 |
|
|
61,654 |
|
Operating lease right-of-use
assets |
120,489 |
|
|
155,700 |
|
|
179,320 |
|
Goodwill and intangibles,
net |
315,742 |
|
|
334,058 |
|
|
286,129 |
|
Other assets |
10,646 |
|
|
4,506 |
|
|
13,654 |
|
Total assets |
$ |
1,132,392 |
|
|
$ |
1,278,647 |
|
|
$ |
1,281,560 |
|
|
|
|
|
|
|
Accounts payable |
$ |
42,474 |
|
|
$ |
61,706 |
|
|
$ |
107,436 |
|
Operating leases (current
& non-current) |
151,520 |
|
|
171,796 |
|
|
193,295 |
|
Advances from factor |
42,662 |
|
|
— |
|
|
— |
|
Other current liabilities |
115,866 |
|
|
180,941 |
|
|
136,131 |
|
Contingent payment
liability |
1,829 |
|
|
9,124 |
|
|
— |
|
Other long-term
liabilities |
10,921 |
|
|
13,856 |
|
|
17,142 |
|
Total Steven Madden, Ltd.
stockholders’ equity |
755,084 |
|
|
828,501 |
|
|
818,354 |
|
Noncontrolling interest |
12,036 |
|
|
12,723 |
|
|
9,202 |
|
Total liabilities and
stockholders’ equity |
$ |
1,132,392 |
|
|
$ |
1,278,647 |
|
|
$ |
1,281,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW
DATA
(In thousands)
(Unaudited)
|
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
57,867 |
|
|
$ |
59,761 |
|
|
|
|
|
|
Investing Activities |
|
|
|
|
Capital expenditures |
|
(4,320 |
) |
|
(6,214 |
) |
(Purchases) / sales of
marketable securities, net |
|
(162 |
) |
|
32,062 |
|
Net cash (used in) / provided
by investing activities |
|
(4,482 |
) |
|
25,848 |
|
|
|
|
|
|
Financing Activities |
|
|
|
|
Common stock purchased for
treasury |
|
(29,678 |
) |
|
(51,156 |
) |
Investment of noncontrolling
interest |
|
359 |
|
|
1,283 |
|
Distribution of noncontrolling
interest earnings |
|
— |
|
|
(1,113 |
) |
Proceeds from exercise of
stock options |
|
960 |
|
|
1,799 |
|
Cash dividends paid |
|
(12,459 |
) |
|
(23,987 |
) |
Advances from factor, net |
|
42,662 |
|
|
— |
|
Net cash provided by / (used
in) financing activities |
|
1,844 |
|
|
(73,174 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(1,229 |
) |
|
198 |
|
|
|
|
|
|
Net increase in cash and cash
equivalents |
|
54,000 |
|
|
12,633 |
|
|
|
|
|
|
Cash and cash equivalents -
beginning of period |
|
264,101 |
|
|
200,031 |
|
|
|
|
|
|
Cash and cash equivalents -
end of period |
|
$ |
318,101 |
|
|
$ |
212,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
The Company uses non-GAAP financial information
to evaluate its operating performance and in order to represent the
manner in which the Company conducts and views its business.
Additionally, the Company believes the information assists
investors in comparing the Company’s performance across reporting
periods on a consistent basis by excluding items that are not
indicative of its core business. The non-GAAP financial
information is provided in addition to, and not as an alternative
to, the Company’s reported results prepared in accordance with
GAAP.
Table 1 - Reconciliation of GAAP operating expenses to Adjusted
operating expenses |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
GAAP
operating expenses |
|
$ |
79,590 |
|
|
$ |
121,317 |
|
|
229,784 |
|
|
$ |
238,502 |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
|
(5,414 |
) |
|
— |
|
|
(5,414 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Benefit
in connection with a change in valuation of contingent
considerations |
|
4,611 |
|
|
— |
|
|
4,611 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of lease right-of-use assets |
|
(1,161 |
) |
|
— |
|
|
(17,987 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets |
|
(17 |
) |
|
— |
|
|
(12,012 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furloughed employees |
|
(733 |
) |
|
— |
|
|
(1,991 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with loan receivable |
|
— |
|
|
— |
|
|
(697 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Net
benefit in connection with the change in a contingent liability and
the acceleration of amortization related to the termination of the
Kate Spade license agreement |
|
— |
|
|
— |
|
|
— |
|
|
1,868 |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with provision for early lease termination
charges |
|
— |
|
|
(1,543 |
) |
|
(142 |
) |
|
(2,292 |
) |
|
|
|
|
|
|
|
|
|
Net
recovery in connection with the Payless ShoeSource bankruptcy |
|
— |
|
|
1,811 |
|
|
— |
|
|
259 |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with a divisional headquarters relocation |
|
— |
|
|
(669 |
) |
|
— |
|
|
(669 |
) |
|
|
|
|
|
|
|
|
|
Adjusted operating expenses |
|
$ |
76,876 |
|
|
$ |
120,916 |
|
|
$ |
196,152 |
|
|
$ |
237,668 |
|
Table 2 - Reconciliation of GAAP (loss) / income from operations to
Adjusted (loss) / income from operations |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
GAAP (loss) / income from operations |
|
$ |
(23,702 |
) |
|
$ |
44,633 |
|
|
$ |
(49,950 |
) |
|
$ |
89,293 |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
|
5,414 |
|
|
— |
|
|
5,414 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Benefit
in connection with a change in valuation of contingent
considerations |
|
(4,611 |
) |
|
— |
|
|
(4,611 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of lease right-of-use assets |
|
1,161 |
|
|
— |
|
|
17,987 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets |
|
17 |
|
|
— |
|
|
12,012 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furloughed employees |
|
733 |
|
|
— |
|
|
1,991 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Expense
in connection with provision for loan receivable |
|
— |
|
|
— |
|
|
697 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net
benefit in connection with the change in a contingent liability and
the acceleration of amortization related to the termination of the
Kate Spade license agreement |
|
— |
|
|
— |
|
|
— |
|
|
(1,868 |
) |
|
|
|
|
|
|
|
|
|
Expense
in connection with provision for early lease termination
charges |
|
— |
|
|
1,543 |
|
|
142 |
|
|
2,292 |
|
|
|
|
|
|
|
|
|
|
Impairment of certain trademarks |
|
— |
|
|
4,050 |
|
|
9,518 |
|
|
4,050 |
|
|
|
|
|
|
|
|
|
|
Net
recovery in connection with the Payless ShoeSource bankruptcy |
|
— |
|
|
(1,811 |
) |
|
— |
|
|
(259 |
) |
|
|
|
|
|
|
|
|
|
Expense
in connection with a divisional headquarters relocation |
|
— |
|
|
669 |
|
|
— |
|
|
669 |
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) / income from operations |
|
$ |
(20,988 |
) |
|
$ |
49,084 |
|
|
$ |
(6,800 |
) |
|
$ |
94,177 |
|
Table 3 - Reconciliation of GAAP (benefit) / provision for income
taxes to Adjusted (benefit) / provision for income taxes |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
GAAP (benefit) / provision for income taxes |
|
$ |
(6,201 |
) |
|
$ |
9,784 |
|
|
$ |
(13,602 |
) |
|
$ |
20,371 |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with restructuring and related
charges |
|
1,284 |
|
|
— |
|
|
1,284 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of benefit in connection with a change in valuation of
contingent considerations |
|
(1,092 |
) |
|
— |
|
|
(1,092 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of lease
right-of-use assets |
|
273 |
|
|
— |
|
|
4,333 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of store fixed
assets |
|
4 |
|
|
— |
|
|
2,910 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with benefits provided to
furloughed employees |
|
174 |
|
|
— |
|
|
472 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with provision for loan
receivable |
|
— |
|
|
— |
|
|
165 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Tax
effect of net benefit in connection with the change in a contingent
liability and the acceleration of amortization related to the
termination of the Kate Spade license agreement |
|
— |
|
|
— |
|
|
— |
|
|
(469 |
) |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with provision for early lease
termination charges |
|
— |
|
|
387 |
|
|
34 |
|
|
575 |
|
|
|
|
|
|
|
|
|
|
Tax
effect of impairment of certain trademarks |
|
— |
|
|
1,017 |
|
|
2,254 |
|
|
1,017 |
|
|
|
|
|
|
|
|
|
|
Tax
effect of net recovery in connection with the Payless ShoeSource
bankruptcy |
|
— |
|
|
(85 |
) |
|
— |
|
|
85 |
|
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with a divisional headquarters
relocation |
|
— |
|
|
168 |
|
|
— |
|
|
168 |
|
|
|
|
|
|
|
|
|
|
Adjusted (benefit) / provision for income taxes |
|
$ |
(5,558 |
) |
|
$ |
11,271 |
|
|
$ |
(3,242 |
) |
|
$ |
21,747 |
|
Table 4 - Reconciliation of GAAP net (loss) / income
attributable to noncontrolling interest to Adjusted net (loss) /
income attributable to noncontrolling interest |
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
GAAP net (loss) / income attributable to noncontrolling
interest |
|
$ |
(558 |
) |
|
$ |
(461 |
) |
|
$ |
(908 |
) |
|
$ |
279 |
|
|
|
|
|
|
|
|
|
|
Net loss
in connection with impairment of lease right-of-use assets,
trademark and other attributable to noncontrolling interest |
|
163 |
|
|
— |
|
|
470 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss) / income attributable to noncontrolling
interest |
|
$ |
(395 |
) |
|
$ |
(461 |
) |
|
$ |
(438 |
) |
|
$ |
279 |
|
Table 5 - Reconciliation of GAAP net (loss) / income attributable
to Steven Madden, Ltd. to Adjusted net (loss) / income attributable
to Steven Madden, Ltd. |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2020 |
|
June 30, 2019 |
|
June 30, 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
GAAP net (loss) / income attributable to Steven Madden, Ltd. |
|
$ |
(16,586 |
) |
|
$ |
36,572 |
|
|
$ |
(34,037 |
) |
|
$ |
71,097 |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with restructuring and related
charges |
|
4,130 |
|
|
— |
|
|
4,130 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of benefit in connection with a change in valuation of
contingent considerations |
|
(3,519 |
) |
|
— |
|
|
(3,519 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of lease
right-of-use assets |
|
887 |
|
|
— |
|
|
13,653 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of store fixed
assets |
|
13 |
|
|
— |
|
|
9,102 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with benefits provided to
furloughed employees |
|
560 |
|
|
— |
|
|
1,520 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with provision for loan
receivable |
|
— |
|
|
— |
|
|
532 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of net benefit in connection with the change in a contingent
liability and the acceleration of amortization related to the
termination of the Kate Spade license agreement |
|
— |
|
|
— |
|
|
— |
|
|
(1,399 |
) |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with provision for early lease
termination charges |
|
— |
|
|
1,156 |
|
|
109 |
|
|
1,717 |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of impairment of certain trademarks |
|
— |
|
|
3,033 |
|
|
7,265 |
|
|
3,033 |
|
|
|
|
|
|
|
|
|
|
Less: Net
loss in connection with impairment of lease right-of-use assets,
trademark and other attributable to noncontrolling interest |
|
(163 |
) |
|
— |
|
|
(470 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
After-tax
impact of net recovery in connection with the Payless
ShoeSource bankruptcy |
|
— |
|
|
(1,727 |
) |
|
— |
|
|
(344 |
) |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with a divisional headquarters
relocation |
|
— |
|
|
501 |
|
|
— |
|
|
501 |
|
|
|
|
|
|
|
|
|
|
Adjusted
net (loss) / income attributable to Steven Madden, Ltd. |
|
$ |
(14,678 |
) |
|
$ |
39,535 |
|
|
$ |
(1,715 |
) |
|
$ |
74,605 |
|
|
|
|
|
|
|
|
|
|
GAAP
diluted (loss) / income per share |
|
$ |
(0.21 |
) |
|
$ |
0.44 |
|
|
$ |
(0.43 |
) |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
GAAP
diluted weighted average shares outstanding |
|
78,517 |
|
|
83,869 |
|
|
78,696 |
|
|
84,064 |
|
|
|
|
|
|
|
|
|
|
Adjusted
diluted (loss) / income per share |
|
$ |
(0.19 |
) |
|
$ |
0.47 |
|
|
$ |
(0.02 |
) |
|
$ |
0.89 |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted weighted average shares outstanding |
|
78,517 |
|
|
83,869 |
|
|
78,696 |
|
|
84,064 |
|
Contact
Steven Madden, Ltd.Director of Corporate Development &
Investor RelationsDanielle
McCoy718-308-2611InvestorRelations@stevemadden.com
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