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 third
quarter ended September 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.
Third Quarter 2020 Review
- Revenue decreased 30.9% to $346.9 million compared to
$502.1 million in the same period of 2019.
- Gross margin increased 130 basis points to 40.3% compared to
39.0% in the same period of 2019.
- Operating expenses as a percentage of revenue were 31.7%
compared to 25.5% in the same period of 2019. Adjusted
operating expenses as a percentage of revenue were 27.0% compared
to 24.6% in the same period of 2019.
- Loss from operations totaled ($3.0) million, or (0.9%) of
revenue, compared to income from operations of $68.0 million, or
13.6% of revenue, in the same period of 2019. Adjusted income
from operations was $46.2 million, or 13.3% of revenue, compared to
Adjusted income from operations of $72.3 million, or 14.4% of
revenue, in the same period of 2019.
- Net loss attributable to Steven Madden, Ltd. was ($6.9)
million, or ($0.09) per diluted share, compared to net income
attributable to Steven Madden, Ltd. of $52.5 million, or $0.63 per
diluted share, in the same period of 2019. Adjusted net
income attributable to Steven Madden, Ltd. was $31.8 million, or
$0.39 per diluted share, compared to Adjusted net income
attributable to Steven Madden, Ltd. of $56.0 million, or $0.67 per
diluted share, in the same period of 2019.
Edward Rosenfeld, Chairman and Chief Executive
Officer, commented, "While the COVID-19 pandemic continues to have
a negative impact on our business, we were pleased to deliver third
quarter revenue and earnings that significantly exceeded our
expectations. The swift actions we took to address the
rapidly changing marketplace – adjusting our merchandise mix,
accelerating our digital commerce initiatives and right-sizing our
expense structure – have positioned us to continue to navigate the
crisis and also to capitalize on market share opportunities going
forward. We remain confident that our strong brands, pristine
balance sheet and proven business model will enable us to drive
sustainable revenue and earnings growth as conditions
normalize."
Third Quarter 2020
Segment Results
Revenue for the wholesale business decreased
32.7% to $283.8 million in the third quarter of 2020, including a
32.5% decline in wholesale footwear and a 33.3% decline in
wholesale accessories/apparel. Gross margin in the wholesale
business increased 70 basis points to 34.6% compared to 33.9% in
the third quarter of 2019.
Retail revenue decreased 22.1% to $59.0 million
in the third quarter of 2020 due to a significant decline in the
brick-and-mortar business, partially offset by strong growth in the
e-commerce business. Retail gross margin rose 50 basis points
to 63.8% compared to 63.3% in the third quarter of 2019.
The Company ended the quarter with 221
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 third
quarter of 2020 was (145.6%) compared to 23.0% in the third quarter
of 2019. On an Adjusted basis, the effective tax rate for the
third quarter of 2020 was 29.3% compared to 22.6% in the third
quarter of 2019.
Balance Sheet
As of September 30, 2020, cash, cash
equivalents and short-term investments totaled $257.2 million, and
the Company had no outstanding borrowings.
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 third quarter 2020:
- $8.7 million pre-tax ($6.7 million after-tax) expense in
connection with payments and a provision for early lease
termination charges, included in operating expenses.
- $4.6 million pre-tax ($3.5 million after-tax) expense
associated with the impairment of store fixed assets, included in
operating expenses.
- $2.3 million pre-tax ($1.7 million after-tax) expense in
connection with the impairment of lease right-of-use assets,
included in operating expenses.
- $1.0 million pre-tax ($0.7 million after-tax) expense in
connection with restructuring and related charges, included in
operating expenses.
- $0.4 million pre-tax ($0.3 million after-tax) benefit in
connection with the change in valuation of contingent
considerations, included in operating expenses.
- $33.0 million pre-tax ($25.2 million after-tax) expense
associated with the impairment of certain trademarks.
- $1.2 million loss in connection with the impairment of store
fixed assets, impairment of lease right-of-use assets,
restructuring and related charges attributable to noncontrolling
interest.
- $2.4 million tax expense in connection with deferred and
foreign uncertain tax position adjustments.
For the third quarter 2019:
- $3.1 million pre-tax ($2.3 million after-tax) expense in
connection with a provision for early lease termination charges,
included in operating expenses.
- $1.1 million pre-tax ($0.8 million after-tax) expense in
connection with the acquisitions of GREATS and BB Dakota, included
in operating expenses.
- $0.4 million tax expense in connection with deferred
adjustments.
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 third quarter earnings conference call scheduled for today,
October 27, 2020, at 8:30 a.m. Eastern Time. The call will be
broadcast live over the Internet and can be accessed by logging
onto https://investor.stevemadden.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, mass merchants and online
retailers. Steve Madden also operates 221 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,
slippers, 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 |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
Net sales |
$ |
342,830 |
|
|
$ |
497,308 |
|
|
$ |
839,877 |
|
|
$ |
1,353,222 |
|
Commission and licensing fee
income |
4,037 |
|
|
4,806 |
|
|
8,970 |
|
|
14,309 |
|
Total revenue |
346,867 |
|
|
502,114 |
|
|
848,847 |
|
|
1,367,531 |
|
Cost of sales |
206,990 |
|
|
306,277 |
|
|
519,618 |
|
|
839,849 |
|
Gross profit |
139,877 |
|
|
195,837 |
|
|
329,229 |
|
|
527,682 |
|
Operating expenses |
109,865 |
|
|
127,796 |
|
|
339,649 |
|
|
366,298 |
|
Impairment of intangibles |
33,010 |
|
|
— |
|
|
42,528 |
|
|
4,050 |
|
(Loss) / income from
operations |
(2,998 |
) |
|
68,041 |
|
|
(52,948 |
) |
|
157,334 |
|
Interest and other income,
net |
88 |
|
|
961 |
|
|
1,491 |
|
|
3,415 |
|
(Loss) / income before
provision for income taxes |
(2,910 |
) |
|
69,002 |
|
|
(51,457 |
) |
|
160,749 |
|
Provision / (benefit) for
income taxes |
4,236 |
|
|
15,886 |
|
|
(9,366 |
) |
|
36,257 |
|
Net (loss) / income |
(7,146 |
) |
|
53,116 |
|
|
(42,091 |
) |
|
124,492 |
|
Less: net (loss) / income
attributable to noncontrolling interest |
(195 |
) |
|
653 |
|
|
(1,103 |
) |
|
932 |
|
Net (loss) / income
attributable to Steven Madden, Ltd. |
$ |
(6,951 |
) |
|
$ |
52,463 |
|
|
$ |
(40,988 |
) |
|
$ |
123,560 |
|
|
|
|
|
|
|
|
|
Basic net (loss) / income per
share |
$ |
(0.09 |
) |
|
$ |
0.66 |
|
|
$ |
(0.52 |
) |
|
$ |
1.55 |
|
|
|
|
|
|
|
|
|
Diluted net (loss) / income
per share |
$ |
(0.09 |
) |
|
$ |
0.63 |
|
|
$ |
(0.52 |
) |
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
78,560 |
|
|
79,092 |
|
|
78,650 |
|
|
79,854 |
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares outstanding |
78,560 |
|
|
83,106 |
|
|
78,650 |
|
|
83,740 |
|
|
|
|
|
|
|
|
|
Cash dividends declared per
common share |
$ |
— |
|
|
$ |
0.14 |
|
|
$ |
0.15 |
|
|
$ |
0.42 |
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
DATA
(In thousands)
|
|
|
As of |
|
|
|
September 30, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
223,820 |
|
|
$ |
264,101 |
|
|
$ |
167,492 |
|
Short-term investments |
33,332 |
|
|
40,521 |
|
|
27,452 |
|
Accounts receivable, net |
266,402 |
|
|
254,637 |
|
|
335,503 |
|
Inventories |
109,683 |
|
|
136,896 |
|
|
148,053 |
|
Other current assets |
14,597 |
|
|
22,724 |
|
|
28,586 |
|
Property and equipment,
net |
43,130 |
|
|
65,504 |
|
|
60,662 |
|
Operating lease right-of-use
assets |
111,732 |
|
|
155,700 |
|
|
162,385 |
|
Goodwill and intangibles,
net |
283,094 |
|
|
334,058 |
|
|
334,341 |
|
Other assets |
18,620 |
|
|
4,506 |
|
|
17,991 |
|
Total assets |
$ |
1,104,410 |
|
|
$ |
1,278,647 |
|
|
$ |
1,282,465 |
|
|
|
|
|
|
|
Accounts payable |
$ |
65,666 |
|
|
$ |
61,706 |
|
|
$ |
90,278 |
|
Operating leases (current
& non-current) |
144,185 |
|
|
171,796 |
|
|
177,772 |
|
Other current liabilities |
116,194 |
|
|
180,941 |
|
|
124,356 |
|
Contingent payment
liability |
1,420 |
|
|
9,124 |
|
|
9,770 |
|
Other long-term
liabilities |
9,205 |
|
|
13,856 |
|
|
30,053 |
|
Total Steven Madden, Ltd.
stockholders’ equity |
756,120 |
|
|
828,501 |
|
|
838,738 |
|
Noncontrolling interest |
11,620 |
|
|
12,723 |
|
|
11,498 |
|
Total liabilities and
stockholders’ equity |
$ |
1,104,410 |
|
|
$ |
1,278,647 |
|
|
$ |
1,282,465 |
|
STEVEN MADDEN, LTD. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED CASH FLOW
DATA
(In thousands)
(Unaudited)
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
Net cash provided by operating activities |
$ |
607 |
|
|
$ |
83,158 |
|
|
|
|
|
Investing Activities |
|
|
|
Capital expenditures |
(5,496 |
) |
|
(9,211 |
) |
Maturity / sale of marketable
securities and short-term investments, net |
6,020 |
|
|
40,331 |
|
Acquisitions, net of cash
acquired |
— |
|
|
(36,753 |
) |
Net cash provided by / (used
in) investing activities |
524 |
|
|
(5,633 |
) |
|
|
|
|
Financing Activities |
|
|
|
Common stock purchased for
treasury |
(29,796 |
) |
|
(76,505 |
) |
Investment of noncontrolling
interest |
359 |
|
|
1,283 |
|
Distribution of noncontrolling
interest earnings |
— |
|
|
(1,113 |
) |
Proceeds from exercise of
stock options |
960 |
|
|
2,606 |
|
Cash dividends paid |
(12,459 |
) |
|
(35,805 |
) |
Net cash (used in) financing
activities |
(40,936 |
) |
|
(109,534 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
(476 |
) |
|
(530 |
) |
|
|
|
|
Net (decrease) in cash and
cash equivalents |
(40,281 |
) |
|
(32,539 |
) |
|
|
|
|
Cash and cash equivalents -
beginning of period |
264,101 |
|
|
200,031 |
|
|
|
|
|
Cash and cash equivalents -
end of period |
$ |
223,820 |
|
|
$ |
167,492 |
|
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 |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
GAAP
operating expenses |
$ |
109,865 |
|
|
$ |
127,796 |
|
|
339,649 |
|
|
$ |
366,298 |
|
|
|
|
|
|
|
|
|
Expense
in connection with payments / provision for early lease termination
charges |
(8,746 |
) |
|
(3,131 |
) |
|
(8,888 |
) |
|
(5,424 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets |
(4,585 |
) |
|
— |
|
|
(16,597 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of lease right-of-use assets |
(2,312 |
) |
|
— |
|
|
(20,299 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
(978 |
) |
|
— |
|
|
(6,392 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Benefit
in connection with the change in valuation of contingent
considerations |
409 |
|
|
— |
|
|
5,020 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furloughed employees |
— |
|
|
— |
|
|
(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 the acquisitions of GREATS and BB Dakota |
— |
|
|
(1,078 |
) |
|
— |
|
|
(1,078 |
) |
|
|
|
|
|
|
|
|
Net
recovery in connection with the Payless ShoeSource bankruptcy |
— |
|
|
— |
|
|
— |
|
|
259 |
|
|
|
|
|
|
|
|
|
Expense
in connection with a divisional headquarters relocation |
— |
|
|
— |
|
|
— |
|
|
(669 |
) |
|
|
|
|
|
|
|
|
Adjusted operating expenses |
$ |
93,653 |
|
|
$ |
123,587 |
|
|
$ |
289,805 |
|
|
$ |
361,254 |
|
Table 2 - Reconciliation of GAAP (loss) / income from operations to
Adjusted income from operations |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
GAAP (loss) / income from operations |
$ |
(2,998 |
) |
|
$ |
68,041 |
|
|
$ |
(52,948 |
) |
|
$ |
157,334 |
|
|
|
|
|
|
|
|
|
Expense
in connection with payments / provision for early lease termination
charges |
8,746 |
|
|
3,131 |
|
|
8,888 |
|
|
5,424 |
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of store fixed assets |
4,585 |
|
|
— |
|
|
16,597 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with impairment of lease right-of-use assets |
2,312 |
|
|
— |
|
|
20,298 |
|
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with restructuring and related charges |
978 |
|
|
— |
|
|
6,391 |
|
|
— |
|
|
|
|
|
|
|
|
|
Benefit
in connection with the change in valuation of contingent
considerations |
(409 |
) |
|
— |
|
|
(5,020 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Expense
in connection with benefits provided to furloughed employees |
— |
|
|
— |
|
|
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 the acquisitions of GREATS and BB Dakota |
— |
|
|
1,078 |
|
|
— |
|
|
1,078 |
|
|
|
|
|
|
|
|
|
Net
recovery in connection with the Payless ShoeSource bankruptcy |
— |
|
|
— |
|
|
— |
|
|
(259 |
) |
|
|
|
|
|
|
|
|
Expense
in connection with a divisional headquarters relocation |
— |
|
|
— |
|
|
— |
|
|
669 |
|
|
|
|
|
|
|
|
|
Impairment of certain trademarks |
33,010 |
|
|
— |
|
|
42,528 |
|
|
4,050 |
|
|
|
|
|
|
|
|
|
Adjusted income from operations |
$ |
46,224 |
|
|
$ |
72,250 |
|
|
$ |
39,422 |
|
|
$ |
166,428 |
|
Table 3 - Reconciliation of GAAP provision / (benefit) for income
taxes to Adjusted provision for income taxes |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
GAAP provision / (benefit) for income taxes |
$ |
4,236 |
|
|
$ |
15,886 |
|
|
$ |
(9,366 |
) |
|
$ |
36,257 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with payments / provision for early
lease termination charges |
2,071 |
|
|
786 |
|
|
2,105 |
|
|
1,361 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of store fixed
assets |
1,128 |
|
|
— |
|
|
4,038 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with impairment of lease
right-of-use assets |
574 |
|
|
— |
|
|
4,907 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with restructuring and related
charges |
232 |
|
|
— |
|
|
1,284 |
|
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of benefit in connection with the change in valuation of
contingent considerations |
(97 |
) |
|
— |
|
|
(1,189 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with benefits provided to
furloughed employees |
— |
|
|
— |
|
|
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 the acquisitions of GREATS and
BB Dakota |
— |
|
|
271 |
|
|
— |
|
|
271 |
|
|
|
|
|
|
|
|
|
Tax
effect of net recovery in connection with the Payless ShoeSource
bankruptcy |
— |
|
|
— |
|
|
— |
|
|
85 |
|
|
|
|
|
|
|
|
|
Tax
effect of expense in connection with a divisional headquarters
relocation |
— |
|
|
— |
|
|
— |
|
|
168 |
|
|
|
|
|
|
|
|
|
Tax
effect of impairment of certain trademarks |
7,817 |
|
|
— |
|
|
10,071 |
|
|
1,017 |
|
|
|
|
|
|
|
|
|
Tax
expense in connection with deferred and foreign uncertain tax
position adjustments |
(2,393 |
) |
|
(383 |
) |
|
(2,393 |
) |
|
(383 |
) |
|
|
|
|
|
|
|
|
Adjusted provision for income taxes |
$ |
13,568 |
|
|
$ |
16,560 |
|
|
$ |
10,094 |
|
|
$ |
38,307 |
|
Table 4 - Reconciliation of GAAP net (loss) / income
attributable to noncontrolling interest to Adjusted net income
attributable to noncontrolling interest |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
GAAP net (loss) / income attributable to noncontrolling
interest |
$ |
(195 |
) |
|
$ |
653 |
|
|
$ |
(1,103 |
) |
|
$ |
932 |
|
|
|
|
|
|
|
|
|
Net loss
in connection with impairment of store fixed assets, impairment of
lease right-of-use assets, restructuring and related charges |
1,161 |
|
|
— |
|
|
1,631 |
|
|
— |
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to noncontrolling interest |
$ |
966 |
|
|
$ |
653 |
|
|
$ |
923 |
|
|
$ |
932 |
|
Table 5 - Reconciliation of GAAP (loss) / income attributable to
Steven Madden, Ltd. to Adjusted net income attributable to Steven
Madden, Ltd. |
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
GAAP net (loss) / income attributable to Steven Madden, Ltd. |
$ |
(6,951 |
) |
|
$ |
52,463 |
|
|
$ |
(40,988 |
) |
|
$ |
123,560 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with payments / provision for early
lease termination charges |
6,675 |
|
|
2,345 |
|
|
6,784 |
|
|
4,062 |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of store fixed
assets |
3,457 |
|
|
— |
|
|
12,559 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with impairment of lease
right-of-use assets |
1,737 |
|
|
— |
|
|
15,390 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with restructuring and related
charges |
746 |
|
|
— |
|
|
4,876 |
|
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of benefit in connection with the change in valuation of
contingent considerations |
(312 |
) |
|
— |
|
|
(3,831 |
) |
|
— |
|
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with benefits provided to
furloughed employees |
— |
|
|
— |
|
|
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 the acquisitions of GREATS and
BB Dakota |
— |
|
|
808 |
|
|
— |
|
|
808 |
|
|
|
|
|
|
|
|
|
After-tax
impact of net recovery in connection with the Payless ShoeSource
bankruptcy |
— |
|
|
— |
|
|
— |
|
|
(344 |
) |
|
|
|
|
|
|
|
|
After-tax
impact of expense in connection with a divisional headquarters
relocation |
— |
|
|
— |
|
|
— |
|
|
501 |
|
|
|
|
|
|
|
|
|
After-tax
impact of impairment of certain trademarks |
25,193 |
|
|
— |
|
|
32,458 |
|
|
3,033 |
|
|
|
|
|
|
|
|
|
Tax
expense in connection with deferred and foreign uncertain tax
position adjustments |
2,393 |
|
|
383 |
|
|
2,393 |
|
|
383 |
|
|
|
|
|
|
|
|
|
Less: Net
loss in connection with impairment of store fixed assets,
impairment of lease right-of-use assets, restructuring and related
charges attributable to noncontrolling interest |
(1,161 |
) |
|
— |
|
|
(1,631 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Adjusted
net income attributable to Steven Madden, Ltd. |
$ |
31,777 |
|
|
$ |
55,999 |
|
|
$ |
30,062 |
|
|
$ |
130,604 |
|
|
|
|
|
|
|
|
|
GAAP
diluted (loss) / income per share |
$ |
(0.09 |
) |
|
$ |
0.63 |
|
|
$ |
(0.52 |
) |
|
$ |
1.48 |
|
|
|
|
|
|
|
|
|
GAAP
diluted weighted average shares outstanding |
78,560 |
|
|
83,106 |
|
|
78,650 |
|
|
83,740 |
|
|
|
|
|
|
|
|
|
Adjusted
diluted income per share |
$ |
0.39 |
|
|
$ |
0.67 |
|
|
$ |
0.37 |
|
|
$ |
1.56 |
|
|
|
|
|
|
|
|
|
Adjusted diluted weighted average shares outstanding |
80,701 |
|
|
83,106 |
|
|
81,047 |
|
|
83,740 |
|
Contact
Steven Madden, Ltd.Director of Corporate Development &
Investor RelationsDanielle
McCoy718-308-2611InvestorRelations@stevemadden.com
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