SHOO 10-Q

Steven Madden, Ltd. (SHOO)

10-Q 2025-05-09 For: 2025-03-31

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Delaware						13-3588231
(State or other jurisdiction of						(I.R.S. Employer Identification No.)
incorporation or organization)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	SHOO	The NASDAQ Stock Market LLC


PART I – FINANCIAL INFORMATION

ITEM 1.	Condensed Consolidated Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets	1

	Condensed Consolidated Statements of Income	2

	Condensed Consolidated Statements of Comprehensive Income	3

	Condensed Consolidated Statements of Changes in Stockholder' Equity	4

	Condensed Consolidated Statements of Cash Flows	5

	Notes to Condensed Consolidated Financial Statements - Unaudited	6

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	33

ITEM 4.	Controls and Procedures	35

PART II – OTHER INFORMATION

ITEM 1.	Legal Proceedings	36

ITEM 1A.	Risk Factors	36

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37

ITEM 5.	Other Information	37

ITEM 6.	Exhibits	38

	Signatures	39


	March 31, 2025		December 31, 2024		March 31, 2024
(in thousands, except par value)	(unaudited)				(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	144,762	$	189,924	$	131,501
Short-term investments	2,480		13,484		11,556
Accounts receivable, net of allowances of $4,131, $4,670 and $4,874	70,830		45,653		44,457
Factor accounts receivable	387,706		348,659		380,613
Inventories	238,641		257,625		201,960
Prepaid expenses and other current assets	34,908		34,463		28,324
Income tax receivable and prepaid income taxes	6,686		4,887		8,883

Total current assets	886,013		894,695		807,294


Property and equipment, net	65,853		57,388		47,490
Operating lease right-of-use asset	152,689		139,695		127,464
Deposits and other	22,040		22,214		15,991

Deferred tax assets	610		610		609
Goodwill	187,441		183,737		180,869
Intangibles, net	112,555		113,432		124,436
Total Assets	$	1,427,201	$	1,411,771	$	1,304,153
LIABILITIES
Current liabilities:
Accounts payable	$	217,192	$	206,889	$	170,154
Accrued expenses	110,327		142,452		109,173

Operating leases – current portion	45,526		43,172		40,020
Income taxes payable	18,855		6,147		4,474
Contingent payment liability – current portion	—		—		3,738
Accrued incentive compensation	2,654		15,061		4,953
Total current liabilities	394,554		413,721		332,512
Contingent payment liability – long-term portion	3,070		7,565		11,212

Operating leases – long-term portion	120,730		109,816		102,637
Deferred tax liabilities	5,067		4,628		9,016
Other liabilities	104		44		5,169
Total Liabilities	523,525		535,774		460,546
Commitments, contingencies, and other (Note 13)
STOCKHOLDERS’ EQUITY
Preferred stock – $0.0001 par value, 5,000 shares authorized; none issued; Series A Junior Participating preferred stock – $0.0001 par value, 60 shares authorized; none issued	—		—		—
Common stock – $0.0001 par value, 245,000 shares authorized,137,867, 137,248 and 136,996 shares issued, 72,575, 72,157 and 73,324 shares outstanding	7		7		7
Additional paid-in capital	621,536		614,381		592,115
Retained earnings	1,813,088		1,787,851		1,708,018
Accumulated other comprehensive loss	(45,288)		(48,291)		(30,549)
Treasury stock – 65,292, 65,091 and 63,672 shares at cost	(1,513,999)		(1,506,229)		(1,444,355)
Total Steven Madden, Ltd. stockholders’ equity	875,344		847,719		825,236
Noncontrolling interest	28,332		28,278		18,371
Total stockholders’ equity	903,676		875,997		843,607
Total Liabilities and Stockholders’ Equity	$	1,427,201	$	1,411,771	$	1,304,153


	Three Months Ended March 31,
(in thousands, except per share data)		2025		2024
Net sales		$	551,382	$	550,567
Licensing fee income		2,152		1,814
Total revenue		553,534		552,381
Cost of sales (exclusive of depreciation and amortization)		327,267		327,566
Gross profit		226,267		224,815
Operating expenses		177,263		164,719

Change in valuation of contingent payment liability		(4,495)		1,650
Impairment of intangibles		—		1,700
Income from operations		53,499		56,746
Interest and other income – net		829		1,555
Income before provision for income taxes		54,328		58,301
Provision for income taxes		13,068		13,739
Net income		41,260		44,562
Less: net income attributable to noncontrolling interest		837		628
Net income attributable to Steven Madden, Ltd.		$	40,423	$	43,934

Basic net income per share		$	0.57	$	0.61

Diluted net income per share		$	0.57	$	0.60

Basic weighted average common shares outstanding		70,773		72,292
Effect of dilutive securities – options/restricted stock		282		573
Diluted weighted average common shares outstanding		71,055		72,865

Cash dividends declared per common share		$	0.21	$	0.21


	Three Months Ended March 31, 2025
(in thousands)	Pre-tax amounts		Tax expense		After-tax amounts
Net income					$	41,260
Other comprehensive income/(loss):
Foreign currency translation adjustment	$	488	$	—	488
Income on cash flow hedging derivatives	3,475		(810)		2,665

Total other comprehensive income	$	3,963	$	(810)	3,153

Comprehensive income					44,413
Less: comprehensive income attributable to noncontrolling interests					987
Comprehensive income attributable to Steven Madden, Ltd.					$	43,426

	Three Months Ended March 31, 2024
(in thousands)	Pre-tax amounts		Tax expense		After-tax amounts
Net income					$	44,562
Other comprehensive income/(loss):
Foreign currency translation adjustment	$	(3,426)	$	—	(3,426)
Income on cash flow hedging derivatives	1,687		(455)		1,232

Total other comprehensive loss	$	(1,739)	$	(455)	(2,194)

Comprehensive income					42,368
Less: comprehensive loss attributable to noncontrolling interests					(63)
Comprehensive income attributable to Steven Madden, Ltd.					$	42,431


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive (Loss)		Treasury Stock			Non-Controlling Interest		Total Stockholders' Equity
	Shares	Amount								Shares	Amount
Balance - December 31, 2024	72,157	$	7	$	614,381	$	1,787,851	$	(48,291)	65,091	$	(1,506,229)	$	28,278	$	875,997
Common stock repurchased and net settlements of restricted stock awards	(201)	—		—		—		—		201	(7,770)		—		(7,770)

Issuance of restricted stock, net of forfeitures	619	—		—		—		—		—	—		—		—

Stock-based compensation	—	—		7,155		—		—		—	—		—		7,155
Foreign currency translation adjustment	—	—		—		—		338		—	—		150		488
Cash flow hedge (net of tax expense of $810)	—	—		—		—		2,665		—	—		—		2,665
Dividends on common stock ($0.21 per share)	—	—		—		(15,186)		—		—	—		—		(15,186)
Distributions to noncontrolling interests, net	—	—		—		—		—		—	—		(2,946)		(2,946)
Investment of noncontrolling interest	—	—		—		—		—		—	—		2,013		2,013

Net income	—	—		—		40,423		—		—	—		837		41,260
Balance - March 31, 2025	72,575	$	7	$	621,536	$	1,813,088	$	(45,288)	65,292	$	(1,513,999)	$	28,332	$	903,676


	March 31, 2025								December 31, 2024
	Fair value		Level 1		Level 2		Level 3		Fair value		Level 1		Level 2		Level 3
Assets:



Forward contracts	$	4,972	—		$	4,972	—		$	2,175	—		$	2,175	—
Total assets	$	4,972	$	—	$	4,972	$	—	$	2,175	$	—	$	2,175	$	—
Liabilities:
Contingent payment liability(1)(2)	$	3,070	$	—	$	—	$	3,070	$	7,565	$	—	$	—	$	7,565
Forward contracts	192		—		192		—		816		—		816		—
Total liabilities	$	3,262	$	—	$	192	$	3,070	$	8,381	$	—	$	816	$	7,565


	March 31, 2025		December 31, 2024
Balance at beginning of year	$	7,565	$	13,300
Adjustments(1)	(4,495)		2,722
Acquisitions	—		90
Payments(2)	—		(8,547)
Balance at end of period	$	3,070	$	7,565


	Balance Sheet Classification	March 31, 2025			December 31, 2024
Assets:
Noncurrent	Operating lease right-of-use asset	$	152,689		$	139,695

Liabilities:
Current	Operating leases – current portion	$	45,526		$	43,172
Noncurrent	Operating leases – long-term portion	120,730			109,816
Total operating lease liabilities		$	166,256		$	152,988

Weighted-average remaining lease term		4.7 years			4.5 years
Weighted-average discount rate		5.2		%	5.3		%


2025 (remaining nine months)	$	40,472
2026	45,808
2027	34,018
2028	25,196
2029	14,749
Thereafter	27,841
Total minimum lease payments	188,084
Less: imputed interest	21,828
Total lease liabilities	$	166,256


Common stock authorized(1)			19,000
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled awards			(10,455)
Common stock available for grant of stock-based awards as of March 31, 2025			8,545


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2025	1,268	$	36.82
Granted	9	42.52



Outstanding at March 31, 2025	1,277	$	36.86	2.5 years	$	—
Exercisable at March 31, 2025	1,178	$	36.50	2.3 years	$	—


	Wholesale Footwear		Wholesale Accessories/ Apparel		Direct-to-Consumer		Net Carrying Amount
Balance at January 1, 2025	$	90,001	$	75,583	$	18,153	$	183,737
Acquisitions(1)(2)	279		175		3,060		3,514

Translation	92		—		98		190
Balance at March 31, 2025	$	90,372	$	75,758	$	21,311	$	187,441



	Estimated Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks	10-20 years	$	16,075	$	(16,075)	$	—
Customer relationships	10-20 years	61,626		(30,993)		30,633
Re-acquired rights	2 years	1,450		(857)		593
Total finite-lived other intangible assets		79,151		(47,925)		31,226
Re-acquired right	indefinite	24,323		—		24,323
Trademarks	indefinite	57,006		—		57,006
Total indefinite-lived other intangible assets		81,329		—		81,329
Total other intangible assets		$	160,480	$	(47,925)	$	112,555


	Three Months Ended March 31,
	2025	2024
Volatility	33.6%	47.4%
Risk free interest rate	4.3%	4.0%
Expected life in years	4.0	4.0
Dividend yield	2.0%	2.0%
Weighted average fair value	$11.65	$15.69


	2025			2024
	Number of Shares	Weighted Average Fair Value at Grant Date		Number of Shares	Weighted Average Fair Value at Grant Date
Outstanding at January 1,	1,543	$	38.89	1,278	$	35.44
Granted	622	34.69		534	42.14
Vested	(419)	39.28		(237)	34.90
Forfeited	(3)	42.30		(18)	36.76
Outstanding at March 31,	1,743	$	37.29	1,557	$	37.78


For the three months ended March 31, 2025	Wholesale Footwear		Wholesale Accessories/Apparel		Direct-to-Consumer		Licensing		Total(1)
Total revenue	$	296,145	$	143,173	$	112,064	$	2,152	$	553,534
Less: Cost of sales(2)	187,454		95,124		44,689		—		327,267
Gross profit	108,691		48,049		67,375		2,152		226,267
Less: Change in valuation of contingent payment liabilities(2)	—		(4,495)		—		—		(4,495)

Less: Salaries and related expense(2)	16,917		13,118		17,857		272		48,164
Less: Other segment items(3)	28,686		17,014		55,746		55		101,501
Income/(loss) from operations	$	63,088	$	22,412	$	(6,228)	$	1,825	$	81,097


	Three Months Ended March 31,
	2025		2024
Wholesale Footwear	$	656	$	649
Wholesale Accessories/Apparel	931		1,065
Direct-to-Consumer	2,355		1,412

Corporate(1)	1,311		1,505
Total	$	5,253	$	4,631


2025 (remaining nine months)	$	2,810
2026	2,987
2027	2,740
2028	2,705
2029	2,612
Thereafter	17,372
Total	$	31,226


	March 31, 2025		December 31, 2024
Derivative instruments designated as accounting hedges:
Foreign exchange contracts	$	282,122	$	90,031


	March 31, 2025		March 31, 2024
Cash flow hedges:
Foreign exchange contracts	$	3,475	$	1,687


	Three Months Ended March 31,
(in thousands, except for number of stores)	2025				2024
CONSOLIDATED:
Net sales	$	551,382	99.6	%	$	550,567	99.7	%
Licensing income	2,152		0.4	%	1,814		0.3	%
Total revenue	553,534		100.0	%	552,381		100.0	%
Cost of sales (exclusive of depreciation and amortization)	327,267		59.1	%	327,566		59.3	%
Gross profit	226,267		40.9	%	224,815		40.7	%
Operating expenses	177,263		32.0	%	164,719		29.8	%
Change in valuation of contingent payment liability	(4,495)		(0.8	%)	1,650		0.3	%
Impairment of intangibles	—		—	%	1,700		0.3	%
Income from operations	53,499		9.7	%	56,746		10.3	%
Interest and other income – net	829		0.1	%	1,555		0.3	%
Income before provision for income taxes	$	54,328	9.8	%	$	58,301	10.6	%
Net income attributable to Steven Madden, Ltd.	$	40,423	7.3	%	$	43,934	8.0	%

BY SEGMENT:
WHOLESALE FOOTWEAR SEGMENT:
Total revenue	$	296,145	100.0	%	$	295,660	100.0	%
Cost of sales (exclusive of depreciation and amortization)	187,454		63.3	%	187,363		63.4	%
Gross profit	108,691		36.7	%	108,297		36.6	%
Operating expenses	45,603		15.4	%	45,182		15.3	%

Income from operations	$	63,088	21.3	%	$	63,115	21.3	%

WHOLESALE ACCESSORIES/APPAREL SEGMENT:
Total revenue	$	143,173	100.0	%	$	142,576	100.0	%
Cost of sales (exclusive of depreciation and amortization)	95,124		66.4	%	97,426		68.3	%
Gross profit	48,049		33.6	%	45,150		31.7	%
Operating expenses	30,132		21.0	%	25,329		17.8	%

Change in valuation of contingent payment liability	(4,495)		(3.1	%)	1,650		1.2	%

Income from operations	$	22,412	15.7	%	$	18,171	12.7	%

DIRECT-TO-CONSUMER SEGMENT:
Total revenue	$	112,064	100.0	%	$	112,331	100.0	%
Cost of sales (exclusive of depreciation and amortization)	44,689		39.9	%	42,777		38.1	%
Gross profit	67,375		60.1	%	69,554		61.9	%
Operating expenses	73,603		65.7	%	70,079		62.4	%
Impairment of intangible	—		—	%	1,700		1.5	%

(Loss) from operations	$	(6,228)	(5.6	%)	$	(2,225)	(2.0	%)
Number of stores	319				258

LICENSING SEGMENT:
Licensing income	$	2,152	100.0	%	$	1,814	100.0	%
Gross profit	2,152		100.0	%	1,814		100.0	%
Operating expenses	327		15.2	%	500		27.6	%
Income from operations	$	1,825	84.8	%	$	1,314	72.4	%

CORPORATE:
Operating expenses	27,598		—	%	$	23,629	—	%
Loss from operations	$	(27,598)	—	%	$	(23,629)	—	%


	Payment due by period
Contractual Obligations	Total		Remainder of 2025		2026-2027		2028-2029		2030 and after
Operating lease obligations(1)	$	188,084	$	40,472	$	79,826	$	39,945	$	27,841
Purchase obligations(2)	295,976		295,976		—		—		—

Future minimum royalty and advertising payments(3)	10,500		4,500		6,000		—		—
Employment Agreements(4)	57,647		7,679		17,985		16,491		15,492
Total	$	552,207	$	348,627	$	103,811	$	56,436	$	43,333


(in thousands, except per share data)	Total Number of Shares Purchased (1)	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
1/1/2025 - 1/31/2025	121	$	41.95	—	$	85,310
2/1/2025 - 2/28/2025	16	$	37.57	—	$	85,310
3/1/2025 - 3/31/2025	64	$	32.49	—	$	85,310
Total	201	$	38.58	—


2.1			Sale and Purchase Deed, dated February 12, 2025 (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 19, 2025)**
2.2			Management Warranty Deed, dated February 12, 2025 (incorporated by reference to Exhibit 2.2 to the Company’s Current Report on Form 8-K filed with the SEC on February 19, 2025)**
31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 †
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 †
32.1			Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 †*
32.2			Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 †*
101			The following materials from Steven Madden, Ltd.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Changes in Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows, (vi) the Notes to Condensed Consolidated Financial Statements, and (vii) information set forth under Part II, Item 5, tagged as blocks of text*
104			Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL) with applicable taxonomy extension information contained in Exhibit 101*



†			Filed herewith
*			This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filing, except to the extent the Company specifically incorporates it by reference.
**			Certain portions of this exhibit have been redacted pursuant to Regulation S-K, Item 601(a)(6) and Item 601(b)(2)(ii). This exhibit excludes certain immaterial schedules and exhibits pursuant to the provisions of Regulation S-K, Item 601(a)(5). A copy of any of the omitted information, schedules and exhibits pursuant to Regulation S-K, Item 601(a)(5), Item 601(a)(6) and Item 601(b)(2)(ii), as applicable, will be furnished to the Securities and Exchange Commission upon request.


STEVEN MADDEN, LTD.

/s/ EDWARD R. ROSENFELD
Edward R. Rosenfeld
Chairman and Chief Executive Officer

/s/ ZINE MAZOUZI
Zine Mazouzi
Chief Financial Officer and Executive Vice President of Operations