SHOO
$43.89
Steven Maddens
$.14
.32%
Earnings Details
2nd Quarter June 2021
Wednesday, July 28, 2021 6:59:00 AM
Tweet Share Watch
Summary

Steven Madden Guides Above Estimates

Steven Maddens (SHOO) reported 2nd Quarter June 2021 earnings of $0.48 per share on revenue of $397.9 million. The consensus earnings estimate was $0.30 per share on revenue of $371.7 million. Revenue grew 178.6% on a year-over-year basis.

The company said it expects 2021 earnings of $2.00 to $2.10 per share on revenue of $1.72 billion to $1.77 billion. The current consensus earnings estimate is $1.68 per share on revenue of $1.65 billion for the year ending December 31, 2021.

Steven Madden Ltd designs, markets and sells fashion-forward name brand and private label footwear for women, men and children and name brand and private label fashion handbags and accessories.

Results
Reported Earnings
$0.48
Earnings Whisper
-
Consensus Estimate
$0.30
Reported Revenue
$397.9 Mil
Revenue Estimate
$371.7 Mil
Growth
Earnings Growth
Revenue Growth
Guidance
Power Rating
Grade
Earnings Release

Steve Madden Announces Second Quarter 2021 Results

LONG ISLAND CITY, N.Y., July 28, 2021 (GLOBE NEWSWIRE) -- Steven Madden, Ltd. (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, 2021.

Amounts referred to as “Adjusted” exclude the items that are described under the heading “Non-GAAP Adjustments.”

Second Quarter 2021 Review

  • Revenue increased 178.6% to $397.9 million compared to $142.8 million in the same period of 2020.
  • Gross margin increased to 42.7% compared to 39.1% in the same period of 2020.
  • Operating expenses as a percentage of revenue were 30.6% compared to 54.9% in the same period of 2020.  Adjusted operating expenses as a percentage of revenue were 29.9% compared to 53.8% in the same period of 2020.
  • Income from operations totaled $47.7 million, or 12.0% of revenue, compared to loss from operations of ($23.7) million, or (16.6%) of revenue, in the same period of 2020.  Adjusted income from operations was $51.0 million, or 12.8% of revenue, compared to Adjusted loss from operations of ($21.0) million, or (14.7%) of revenue, in the same period of 2020.
  • Net income attributable to Steven Madden, Ltd. was $36.9 million, or $0.45 per diluted share, compared to net loss attributable to Steven Madden, Ltd. of ($16.6) million, or ($0.21) per diluted share, in the same period of 2020.  Adjusted net income attributable to Steven Madden, Ltd. was $39.7 million, or $0.48 per diluted share, compared to Adjusted net loss attributable to Steven Madden, Ltd. of ($14.7) million, or ($0.19) per diluted share, in the same period of 2020.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are excited about the strong and accelerated recovery we are seeing in our business.  Our second quarter results significantly exceeded our expectations, with earnings slightly ahead of pre-COVID-19 second quarter 2019.  Our retail segment was the standout, as the exceptional performance in our e-commerce business – fueled by the trend-right product assortments created by Steve and our design teams combined with effective digital marketing – drove an increase in retail revenue of 63% compared to pre-COVID-19 second quarter 2019.  Looking ahead, while the environment remains volatile, we are confident that the strength of our brands and momentum in our business position us to drive revenue and earnings growth in the back half of 2021 and beyond.”

Second Quarter 2021 Segment Results

Revenue for the wholesale business was $262.1 million, a 162.2% increase compared to the second quarter of 2020, with a 154.1% increase in wholesale footwear and a 190.7% increase in wholesale accessories/apparel.  Gross margin in the wholesale business rose to 30.6% compared to 26.6% in the second quarter of 2020.

Retail revenue was $132.7 million, a 220.6% increase compared to the second quarter of 2020.  Retail gross margin decreased to 65.4% compared to 67.4% in the second quarter of 2020.

The Company ended the quarter with 216 company-operated retail stores, including six internet stores, as well as 15 company-operated concessions in international markets.

Balance Sheet and Cash Flow

During the second quarter of 2021, the Company repurchased 876,241 shares of the Company’s common stock for approximately $37.2 million, which includes shares acquired through the net settlement of employees’ stock awards.

As of June 30, 2021, cash, cash equivalents and short-term investments totaled $302.7 million.

Quarterly Cash Dividend

The Company’s Board of Directors approved a quarterly cash dividend of $0.15 per share.  The dividend is payable on September 27, 2021 to stockholders of record as of the close of business on September 17, 2021.

Fiscal 2021 Outlook

For fiscal 2021, the Company expects revenue will increase 43% to 47% over fiscal 2020.  The Company expects diluted EPS will be in the range of $1.90 to $2.00 and Adjusted diluted EPS will be in the range of $2.00 to $2.10

Non-GAAP Adjustments

Amounts referred to as “Adjusted” exclude the items below.

For the second quarter of 2021:

  • $8.0 million pre-tax ($6.1 million after-tax) benefit associated with the sale of a trademark, included in operating expenses.
  • $7.4 million pre-tax ($5.6 million after-tax) expense in connection with the change in valuation of contingent considerations, included in operating expenses.
  • $2.9 million pre-tax ($2.2 million after-tax) expense in connection with payments related to rent restructuring of various leases, included in operating expenses.
  • $0.5 million pre-tax ($0.4 million after-tax) expense in connection with restructuring and related charges, included in operating expenses.
  • $0.5 million pre-tax ($0.4 million after-tax) expense in connection with the impairment of fixed assets and lease right-of-use assets.
  • $0.5 million pre-tax ($0.4 million after-tax) expense in connection with the write-off of an investment, included in interest and other (expense) / income, net.

For the second quarter of 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 fixed assets and lease right-of-use assets.
  • $0.7 million pre-tax ($0.6 million after-tax) expense in connection with benefits provided to furloughed employees, 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.

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 first quarter 2021 earnings conference call scheduled for today, July 28, 2021, 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®, GREATS®, BB Dakota® and Mad Love®, Steve Madden is a licensee of various brands, including Anne Klein® and Superga®. 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 retail stores and e-commerce websites.  Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including outerwear, eyewear, hosiery, sunglasses, jewelry, fragrance, luggage and bedding and bath products.  For local store information and the latest Steve Madden booties, pumps, men’s and women’s fashion sneakers, sandals, dress shoes, boots, slippers 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 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, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
Net sales $394,797  $141,363  $753,698  $497,047 
Commission and licensing fee income 3,097  1,449  5,221  4,933 
Total revenue 397,894  142,812  758,919  501,980 
Cost of sales 227,839  86,924  449,760  312,628 
Gross profit 170,055  55,888  309,159  189,352 
Operating expenses 121,860  78,412  232,308  199,785 
Impairment of fixed assets and lease right-of-use assets 477  1,178  1,089  29,999 
Impairment of intangibles       9,518 
Income / (loss) from operations 47,718  (23,702) 75,762  (49,950)
Interest and other (expense) / income, net (777) 357  (814) 1,403 
Income / (loss) before provision for income taxes 46,941  (23,345) 74,948  (48,547)
Provision / (benefit) for income taxes 9,600  (6,201) 15,276  (13,602)
Net income / (loss) 37,341  (17,144) 59,672  (34,945)
Less: net income / (loss) attributable to noncontrolling interest 489  (558) 1,623  (908)
Net income / (loss) attributable to Steven Madden, Ltd. $36,852  $(16,586) $58,049  $(34,037)
         
Basic net income / (loss) per share $0.47  $(0.21) $0.74  $(0.43)
         
Diluted net income / (loss) per share $0.45  $(0.21) $0.71  $(0.43)
         
Basic weighted average common shares outstanding 78,899  78,517  78,968  78,696 
         
Diluted weighted average common shares outstanding 82,061  78,517  81,981  78,696 
         
Cash dividends declared per common share $0.15  $  $0.30  $0.15 


STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(In thousands)

    As of  
  June 30, 2021 December 31, 2020 June 30, 2020
  (Unaudited)   (Unaudited)
       
Cash and cash equivalents $262,144  $247,864  $318,101 
Short-term investments and marketable securities 40,513  39,302  38,837 
Accounts receivable, net 279,143  277,715  143,679 
Inventories 125,525  101,420  103,282 
Other current assets 36,455  31,940  32,022 
Property and equipment, net 38,213  43,268  49,594 
Operating lease right-of-use assets 97,222  101,379  120,489 
Goodwill and intangibles, net 282,952  283,456  315,742 
Other assets 10,976  11,417  10,646 
Total assets $1,173,143  $1,137,761  $1,132,392 
       
Accounts payable $91,822  $73,904  $42,474 
Operating leases (current & non-current) 125,740  132,849  151,520 
Other current liabilities 150,115  127,755  115,866 
Advances from factor —     42,662 
Contingent payment liability (current & non-current) 8,041  207  1,829 
Other long-term liabilities 14,903  12,677  10,921 
Total Steven Madden, Ltd. stockholders’ equity 774,335  776,586  755,084 
Noncontrolling interest 8,187  13,783  12,036 
Total liabilities and stockholders’ equity $1,173,143  $1,137,761  $1,132,392 


STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW DATA

(In thousands)

(Unaudited)

  Six Months Ended
  June 30, 2021 June 30, 2020
     
Net cash provided by operating activities $91,924  $57,867 
     
Investing Activities    
Capital expenditures (2,782) (4,320)
Proceeds from sale of a trademark 8,000   
Purchases of marketable securities and short-term investments, net (114) (162)
Net cash provided by / (used in) investing activities 5,104  (4,482)
     
Financing Activities    
Common stock purchased for treasury (42,794) (29,678)
Acquisition of incremental ownership of joint ventures (19,127)  
Investment of noncontrolling interest   359 
Distribution of noncontrolling interest earnings (2,859)  
Proceeds from exercise of stock options 6,823  960 
Cash dividends paid (24,773) (12,459)
Advances from factor, net   42,662 
Net cash (used in) / provided by financing activities (82,730) 1,844 
     
Effect of exchange rate changes on cash and cash equivalents (18) (1,229)
     
Net increase in cash and cash equivalents 14,280  54,000 
     
Cash and cash equivalents - beginning of period 247,864  264,101 
     
Cash and cash equivalents - end of period $262,144  $318,101 


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, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP operating expenses $121,860  $78,412  $232,308  $199,785 
         
Expense in connection with payments related to rent restructuring of various leases and lease terminations (2,912)   (9,505) (142)
         
Recovery in connection with the Payless ShoeSource bankruptcy     917   
         
Expense in connection with restructuring and related charges (488) (5,414) (1,294) (5,414)
         
(Expense) / benefit in connection with the change in valuation of contingent considerations (7,364) 4,611  (7,834) 4,611 
         
Expense in connection with benefits provided to furloughed employees   (733)   (1,991)
         
Expense in connection with loan receivable       (697)
         
Sale of trademark 8,000    8,000   
         
Adjusted operating expenses $119,096  $76,876  $222,592  $196,152 


Table 2 - Reconciliation of GAAP income / (loss) from operations to Adjusted income / (loss) from operations
  Three Months Ended Six Months Ended
  June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP income / (loss) from operations $47,718  $(23,702) $75,762  $(49,950)
         
Expense in connection with payments related to rent restructuring of various leases and lease terminations 2,912    9,505  142 
         
Recovery in connection with the Payless ShoeSource bankruptcy     (917)  
         
Expense in connection with restructuring and related charges 488  5,414  1,294  5,414 
         
Impairment of fixed assets and lease right-of-use assets 477  1,178  1,089  29,999 
         
Expense / (benefit) in connection with the change in valuation of contingent considerations 7,364  (4,611) 7,834  (4,611)
         
Expense in connection with benefits provided to furloughed employees   733    1,991 
         
Expense in connection with loan receivable       697 
         
Sale of trademark (8,000)   (8,000)  
         
Impairment of certain trademarks       9,518 
         
Adjusted income / (loss) from operations $50,959  $(20,988) $86,567  $(6,800)


Table 3 - Reconciliation of GAAP interest and other (expense) / income, net to Adjusted interest and other (expense) / income, net
  Three Months Ended Six Months Ended
  June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP interest and other (expense) / income, net $(777) $357  $(814) $1,403 
         
Write-off of investment 500    500   
         
                 
Adjusted interest and other (expense) / income, net $(277) $357  $(314) $1,403 


Table 4 - Reconciliation of GAAP provision / (benefit) for income taxes to Adjusted provision / (benefit) for income taxes
  Three Months Ended Six Months Ended
  June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP provision / (benefit) for income taxes $9,600  $(6,201) $15,276  $(13,602)
         
Tax effect of expense in connection with payments related to rent restructuring of various leases and lease terminations 694    2,251  34 
         
Tax effect of recovery in connection with the Payless ShoeSource bankruptcy     (201)  
         
Tax effect of expense in connection with restructuring and related charges 115  1,284  305  1,284 
         
Tax effect of impairment of fixed assets and lease right-of-use assets 113  277  275  7,243 
         
Tax effect of expense / (benefit) in connection with the change in valuation of contingent considerations 1,742  (1,092) 1,853  (1,092)
         
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 write-off of investment 118    118   
         
Tax effect of sale of trademark (1,893)   (1,893)  
         
Tax effect of impairment of certain trademarks       2,254 
         
Adjusted provision / (benefit) for income taxes $10,489  $(5,558) $17,984  $(3,242)


Table 5 - Reconciliation of GAAP net income / (loss) attributable to noncontrolling interest to Adjusted net income / (loss) attributable to noncontrolling interest
  Three Months Ended Six Months Ended
  June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP net income / (loss) attributable to noncontrolling interest $489  $(558) $1,623  $(908)
         
Adjustments attributable to noncontrolling interest   163  24  470 
         
Adjusted net income / (loss) attributable to noncontrolling interest $489  $(395) $1,647  $(438)


Table 6 - Reconciliation of GAAP income / (loss) attributable to Steven Madden, Ltd. to Adjusted net income / (loss) attributable to Steven Madden, Ltd.
  Three Months Ended Six Months Ended
  June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
         
GAAP net income / (loss) attributable to Steven Madden, Ltd. $36,852  $(16,586) $58,049  $(34,037)
         
After-tax impact of expense in connection with payments related to rent restructuring of various leases and lease terminations 2,218    7,254  109 
         
After-tax impact of recovery in connection with the Payless ShoeSource bankruptcy     (716)  
         
After-tax impact of expense in connection with restructuring and related charges 372  4,130  988  4,130 
         
After-tax impact of impairment of store assets and lease right-of-use assets 364  900  814  22,755 
         
After-tax impact of expense / (benefit) in connection with the change in valuation of contingent considerations 5,621  (3,519) 5,980  (3,519)
         
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 write-off of investment 382    382   
         
After-tax impact of sale of trademark (6,107)   (6,107)  
         
After-tax impact of impairment of certain trademarks       7,265 
         
Less: Adjustments attributable to noncontrolling interest   (163) (24) (470)
         
Adjusted net income / (loss) attributable to Steven Madden, Ltd. $39,702  $(14,678) $66,620  $(1,715)
         
GAAP diluted income / (loss) per share $0.45  $(0.21) $0.71  $(0.43)
         
Adjusted diluted income / (loss) per share $0.48  $(0.19) $0.81  $(0.02)

Contact

Steven Madden, Ltd.
Director of Corporate Development & Investor Relations
Danielle McCoy
718-308-2611
InvestorRelations@stevemadden.com

 


Primary Logo

Source: Steve Madden