SHOO
$38.45
Steven Maddens
($.05)
(.13%)
Earnings Details
Quarter December 2020
Thursday, February 25, 2021 6:59:00 AM
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Summary

Steven Maddens Misses

Steven Maddens (SHOO) reported Quarter December 2020 earnings of $0.27 per share on revenue of $353.0 million. The consensus earnings estimate was $0.21 per share on revenue of $342.8 million. The Earnings Whisper number was $0.29 per share. Revenue fell 14.9% compared to the same quarter a year ago.

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
$0.27
Earnings Whisper
$0.29
Consensus Estimate
$0.21
Reported Revenue
$353.0 Mil
Revenue Estimate
$342.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Steve Madden Announces Fourth Quarter and Full Year 2020 Results and Reinstates Quarterly Dividend

LONG ISLAND CITY, N.Y., Feb. 25, 2021 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year ended December 31, 2020, and the reinstatement of a quarterly cash dividend.

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.

For the Fourth Quarter 2020:

  • Revenue decreased 15.9% to $353.0 million compared to $419.6 million in the same period of 2019.
  • Gross margin was 38.3% compared to 37.7% in the same period of 2019. Adjusted gross margin increased 40 basis points to 38.2% compared to 37.8% in the same period of 2019.
  • Operating expenses as a percentage of revenue were 31.8% compared to 33.1% in the same period of 2019. Adjusted operating expenses as a percentage of revenue were 30.9% compared to 30.0% in the same period of 2019.
  • Income from operations totaled $21.3 million, or 6.0% of revenue, compared to $19.5 million, or 4.6% of revenue, in the same period of 2019. Adjusted income from operations was $25.6 million, or 7.3% of revenue, compared to Adjusted income from operations of $33.0 million, or 7.9% of revenue, in the same period of 2019.
  • Net income attributable to Steven Madden, Ltd. was $22.6 million, or $0.28 per diluted share, compared to $17.8 million, or $0.21 per diluted share, in the same period of 2019. Adjusted net income attributable to Steven Madden, Ltd. was $21.8 million, or $0.27 per diluted share, compared to $32.2 million, or $0.39 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 with our results in the fourth quarter, which exceeded our expectations and showed strong sequential improvement from the third quarter. We faced unprecedented challenges in 2020, but we relied on our strengths – an agile business model, a strong balance sheet, and our talented and resourceful employees – to successfully navigate the crisis. We continued investing in our brands and our digital capabilities while reducing expenses in other areas, and we utilized our test-and-react strategy and speed-to-market capability to quickly adjust our product mix to align with changing consumer preferences.

“As we look ahead, we remain focused on delivering trend-right product, deepening connections with our consumers, enhancing our digital commerce business, and efficiently managing our inventory and expenses. And while we are cautious on the near-term outlook due to continued headwinds from COVID-19, we are confident that the steps we have taken during the crisis – combined with the strength of our brands and our business model – leave us well-positioned to capitalize on market share opportunities and create value for our stakeholders over the long term.”

Fourth Quarter 2020 Segment Results

Revenue for the wholesale business decreased 16.2% to $263.0 million in the fourth quarter of 2020, including a 19.7% decline in wholesale footwear and a 5.9% decline in wholesale accessories/apparel. Gross margin in the wholesale business decreased to 28.3% in the fourth quarter of 2020 compared to 29.2% in the fourth quarter of 2019 due to the disposal of excess inventory resulting from COVID-19 disruption.

Retail revenue decreased 14.9% to $86.1 million in the fourth quarter of 2020 due to a significant decline in the brick-and-mortar business, partially offset by continued strength in the e-commerce business. Retail gross margin rose 400 basis points to 65.6% in the fourth quarter of 2020 compared to 61.6% in the fourth quarter of 2019 due primarily to less discounting.

The Company ended the quarter with 218 company-operated retail locations, including seven Internet stores, as well as 17 company-operated concessions in international markets.

The Company’s effective tax rate for the fourth quarter of 2020 was (10.9%) compared to 15.9% in the fourth quarter of 2019. On an Adjusted basis, the effective tax rate for the fourth quarter of 2020 was 13.3% compared to 6.3% in the fourth quarter of 2019.

Full Year Ended December 31, 2020

For the full year ended December 31, 2020, revenue decreased 32.8% to $1.2 billion from $1.8 billion in 2019.

Net loss attributable to Steven Madden, Ltd. was ($18.4) million, or ($0.23) per basic share, for the year ended December 31, 2020 compared to net income attributable to Steven Madden, Ltd. of $141.3 million, or $1.69 per diluted share, for the year ended December 31, 2019. On an Adjusted basis, net income attributable to Steven Madden, Ltd. was $51.8 million, or $0.64 per diluted share, for the year ended December 31, 2020 compared to $162.8 million, or $1.95 per diluted share, for the year ended December 31, 2019.

Balance Sheet

As of December 31, 2020, cash, cash equivalents and short-term investments totaled $287.2 million.

Reinstatement of Quarterly Cash Dividend

The Company's Board of Directors approved the reinstatement of a quarterly cash dividend. The quarterly dividend of $0.15 per share is payable on March 26, 2021 to stockholders of record as of the close of business on March 16, 2021.

Fiscal Year 2021 Outlook

Given the continued disruption and uncertainty related to the ongoing 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 fourth quarter 2020:

  • $5.1 million pre-tax ($3.9 million after-tax) expense in connection with payments and a provision for early lease termination charges, included in operating expenses.
  • $1.7 million pre-tax ($1.4 million after-tax) expense associated with the impairment of a trademark.
  • $1.2 million pre-tax ($0.9 million after-tax) benefit in connection with the change in valuation of contingent considerations, included in operating expenses.
  • $1.1 million pre-tax ($0.9 million after-tax) benefit associated with the recovery from the Payless ShoeSource bankruptcy, included in operating expenses.
  • $0.5 million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a joint venture, included in cost of goods sold.
  • $0.2 million pre-tax ($0.2 million after-tax) expense in connection with restructuring and related charges, included in operating expenses.
  • $4.2 million tax benefit in connection with the net operating loss carryback provision of the CARES Act.
  • $0.5 million tax benefit in connection with the tax treatment of a prior-year bad debt.
  • $0.7 million benefit in connection with adjustments attributable to noncontrolling interest.

For the fourth quarter 2019:

  • $8.9 million pre-tax ($8.9 million after-tax) expense in connection with vendor support associated with the Payless ShoeSource bankruptcy, included in operating expenses.
  • $4.0 million pre-tax ($3.0 million after-tax) expense in connection with a provision for a legal settlement and related fees, included in operating expenses.
  • $0.4 million pre-tax ($0.3 million after-tax) expense in connection with the termination of a joint venture, included in cost of goods sold.
  • $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses.
  • $0.2 million after-tax income in connection with the termination of a joint venture, included in net loss attributable to noncontrolling interest.
  • $2.2 million tax expense in connection with deferred tax and other tax adjustments.

For the fiscal year 2020:

  • $44.3 million pre-tax ($33.8 million after-tax) expense associated with the impairment of certain trademarks.
  • $36.9 million pre-tax ($27.9 million after-tax) expense in connection with the impairment of store fixed assets and lease right-of-use assets, included in operating expenses.
  • $13.5 million pre-tax ($10.3 million after-tax) expense in connection with payments and a provision for early lease termination charges, included in operating expenses.
  • $7.1 million pre-tax ($5.4 million after-tax) expense in connection with restructuring and related charges, included in operating expenses.
  • $6.2 million pre-tax ($4.8 million after-tax) benefit in connection with the change in valuation of contingent considerations, included in operating expenses.
  • $2.0 million pre-tax ($1.5 million after-tax) expense in connection with benefits provided to furloughed employees, included in operating expenses.
  • $1.1 million pre-tax ($0.9 million after-tax) benefit associated with the recovery from the Payless ShoeSource bankruptcy, included in operating expenses.
  • $0.7 million pre-tax ($0.5 million after-tax) expense in connection with a provision for a loan receivable, included in operating expenses.
  • $0.5 million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a joint venture, included in cost of goods sold.
  • $0.9 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.
  • $4.2 million tax benefit in connection with the net operating loss carryback provision of the CARES Act.
  • $1.9 million net tax expense in connection with deferred and foreign uncertain tax position adjustments.

For the fiscal year 2019:

  • $8.7 million pre-tax ($8.6 million after-tax) expense in connection with vendor support, net of recovery of bad debt expense associated with the Payless ShoeSource bankruptcy, included in operating expenses.
  • $5.4 million pre-tax ($4.1 million after-tax) expense in connection with early lease termination charges, included in operating expenses.
  • $4.1 million pre-tax ($3.0 million after-tax) expense associated with the impairment of a trademark.
  • $4.0 million pre-tax ($3.0 million after-tax) expense in connection with provision for a legal settlement and related fees, included in operating expenses.
  • $1.9 million pre-tax ($1.4 million after-tax) net benefit associated with the change in a contingent liability and the acceleration of amortization related to the termination of the Kate Spade license agreement as of December 31, 2019.
  • $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.
  • $0.7 million pre-tax ($0.5 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) expense in connection with the termination of a joint venture, included in cost of goods sold.
  • $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses.
  • $0.2 million after-tax income in connection with the termination of a joint venture, included in net income attributable to noncontrolling interest.
  • $2.6 million tax expense in connection with deferred tax and other tax 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 fourth quarter and fiscal year 2020 earnings conference call scheduled for today, February 25, 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 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)

 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
 (Unaudited) (Unaudited) (Unaudited)  
Net sales$349,066  $414,912  $1,188,943  $1,768,135
Commission and licensing fee income3,901  4,713  12,871  19,022
Total revenue352,967  419,625  1,201,814  1,787,157
Cost of sales217,655  261,291  737,273  1,101,140
Gross profit135,312  158,334  464,541  686,017
Operating expenses112,224  138,855  451,873  505,153
Impairment charges1,745    44,273  4,050
Income / (loss) from operations21,343  19,479  (31,605) 176,814
Interest and other income, net129  998  1,620  4,412
Income / (loss) before provision for income taxes21,472  20,477  (29,985) 181,226
(Benefit) / provision for income taxes(2,338) 3,247  (11,704) 39,504
Net income / (loss)23,810  17,230  (18,281) 141,722
Less: net income / (loss) attributable to noncontrolling interest1,219  (521) 116  411
Net income / (loss) attributable to Steven Madden, Ltd.$22,591  $17,751  $(18,397) $141,311
        
Basic income / (loss) per share$0.29  $0.23  $(0.23) $1.78
        
Diluted income / (loss) per share$0.28  $0.21  $(0.23) $1.69
        
Basic weighted average common shares outstanding78,588  78,754  78,635  79,577
        
Diluted weighted average common shares outstanding81,414  83,381  78,635  83,646
        
Cash dividends declared per common share$  $0.15  $0.15  $0.57
               

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(In thousands)

 As of  
 December 31, 2020 December 31, 2019
 (Unaudited)  
    
Cash and cash equivalents$247,864 $264,101
Short-term investments39,302 40,521
Accounts receivable, net277,715 254,637
Inventories101,420 136,896
Other current assets31,940 22,724
Property and equipment, net43,268 65,504
Operating lease right-of-use assets101,379 155,700
Goodwill and intangibles, net283,456 334,058
Other assets11,417 4,506
Total assets$1,137,761 $1,278,647
    
Accounts payable$73,904 $61,706
Operating leases (current & non-current)132,849 171,796
Other current liabilities127,755 180,941
Contingent payment liability207 9,124
Other long-term liabilities12,677 13,856
Total Steven Madden, Ltd. stockholders’ equity776,586 828,501
Noncontrolling interest13,783 12,723
Total liabilities and stockholders’ equity$1,137,761 $1,278,647
      

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW DATA

(In thousands)

 Twelve Months Ended
 December 31, 2020 December 31, 2019
 (Unaudited)  
Net cash provided by operating activities$44,206  $233,780 
    
Investing Activities   
Purchases of property and equipment(6,562) (18,311)
Maturity / sale of marketable securities and short-term investments, net1,678  27,736 
Acquisitions, net of cash acquired  (37,173)
Net cash used in investing activities(4,884) (27,748)
    
Financing Activities   
Common stock share repurchases for treasury(46,583) (101,768)
Investment of noncontrolling interest359  3,248 
Distribution of noncontrolling interest earnings  (1,444)
Proceeds from exercise of stock options1,609  6,212 
Cash dividends paid(12,459) (48,426)
Net cash used in financing activities(57,074) (142,178)
    
Effect of exchange rate changes on cash and cash equivalents1,515  216 
    
Net (decrease) / increase in cash and cash equivalents(16,237) 64,070 
    
Cash and cash equivalents - beginning of year264,101  200,031 
    
Cash and cash equivalents - end of year$247,864  $264,101 
        

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 gross profit to Adjusted gross profit
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP gross profit$135,312  $158,334 $464,541  $686,017
        
(Gain) / loss in connection with the termination of a joint venture(532) 386 (532) 386
        
Adjusted gross profit$134,780  $158,720 $464,009  $686,403


Table 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses    
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP operating expenses$112,224  $138,855  $451,873  $505,153 
        
Expense in connection with payments / provision for early lease termination charges(5,083)   (13,473) (5,424)
        
Benefit in connection with the change in valuation of contingent considerations1,213    6,233   
        
Recovery / (bad debt expense) in connection with the Payless ShoeSource bankruptcy1,081  (8,946) 1,081  (8,687)
        
Expense in connection with restructuring and related charges(249)   (7,138) (669)
        
Expense in connection with impairment of store fixed assets and lease right-of-use assets    (36,895)  
        
Expense in connection with benefits provided to furlough employees    (1,991)  
        
Expense in connection with a provision for legal settlement and related fees  (3,977)   (3,977)
        
Expense in connection with the termination of a joint venture  (158)   (158)
        
Expense in connection with provision for loan receivable    (697)  
        
Expense in connection with the acquisitions of GREATS and BB Dakota  (42)   (1,120)
        
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 
        
Adjusted operating expenses$109,186  $125,732  $398,993  $486,986 


Table 3 - Reconciliation of GAAP income / (loss) from operations to Adjusted income from operations
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP income / (loss) from operations$21,343  $19,479 $(31,605) $176,814 
        
Expense in connection with payments / provision for early lease termination charges5,083   13,473  5,424 
        
Expense in connection with impairment of certain trademarks1,745   44,273  4,050 
        
Benefit in connection with the change in valuation of contingent considerations(1,213)  (6,233)  
        
Recovery / (bad debt expense) in connection with the Payless ShoeSource bankruptcy(1,081) 8,946 (1,081) 8,687 
        
Expense in connection with restructuring and related charges249   7,138  669 
        
Expense in connection with impairment of store fixed assets and lease right-of-use assets   36,895   
        
Expense in connection with benefits provided to furlough employees   1,991   
        
Expense in connection with a provision for legal settlement and related fees  3,977   3,977 
        
(Gain) / loss in connection with the termination of a joint venture(532) 544 (532) 544 
        
Expense in connection with provision for loan receivable   697   
        
Expense in connection with the acquisitions of GREATS and BB Dakota  42   1,120 
        
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)
        
Adjusted income from operations$25,594  $32,988 $65,016  $199,417 


Table 4 - Reconciliation of GAAP (benefit) / provision for income taxes to Adjusted provision for income taxes
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP (benefit) / provision for income taxes$(2,338) $3,247  $(11,704) $39,504 
        
Tax effect of expense in connection with payments / provision for early lease termination charges1,209    3,195  1,361 
        
Tax effect of expense in connection with impairment of certain trademarks385    10,456  1,017 
        
Tax effect of benefit in connection with the change in valuation of contingent considerations(282)   (1,472)  
        
Tax effect of recovery / (bad debt expense) in connection with the Payless ShoeSource bankruptcy(149)   (149) 85 
        
Tax effect of expense in connection with restructuring and related charges70    1,704  168 
        
Tax effect of expense in connection with impairment of store fixed assets and lease right-of-use assets    8,946   
        
Tax effect of expense in connection with benefits provided to furlough employees    471   
        
Tax effect of expense in connection with a provision for legal settlement and related fees  961    961 
        
Tax effect of (gain) / loss in connection with the termination of a joint venture(133) 136  (133) 136 
        
Tax effect of expense in connection with provision for loan receivable    165   
        
Tax effect of expense in connection with the acquisitions of GREATS and BB Dakota  10    281 
        
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 benefit in connection with the net operating loss carryback provision of the CARES Act4,191    4,191   
        
Tax benefit / (expense) in connection with deferred and foreign uncertain tax position472  (2,207) (1,921) (2,590)
        
Adjusted provision for income taxes3,425  2,147  13,749  40,454 


Table 5 - Reconciliation of GAAP net income / (loss) attributable to noncontrolling interest to Adjusted net income / (loss) attributable to noncontrolling interest
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP net income / (loss) attributable to noncontrolling interest$1,219  $(521) $116  $411 
        
Adjustments attributable to noncontrolling interest(698) 204  933  204 
        
Adjusted net income / (loss) attributable to noncontrolling interest$521  $(317) $1,049  $615 


Table 6 - Reconciliation of GAAP net income / (loss) attributable to Steve Madden, Ltd. to Adjusted net income attributable to Steve Madden, Ltd.
 Three Months Ended Twelve Months Ended
 December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019
        
GAAP net income / (loss) attributable to Steven Madden, Ltd.$22,591  $17,751  $(18,397) $141,311 
        
After-tax impact of expense in connection with payments / provision for early lease termination charges3,874    10,277  4,063 
        
After-tax impact of expense in connection with impairment of certain trademarks1,360    33,817  3,033 
        
After-tax impact of benefit in connection with the change in valuation of contingent considerations(930)   (4,761)  
        
After-tax impact of (recovery) / bad debt expense in connection with the Payless ShoeSource bankruptcy(932) 8,946  (932) 8,602 
        
After-tax impact of expense in connection with restructuring and related charges178    5,434  501 
        
After-tax impact of expense in connection with impairment of store fixed assets and lease right-of-use assets    27,949   
        
After-tax impact of expense in connection with benefits provided to furlough employees    1,519   
        
After-tax impact of expense in connection with a provision for legal settlement and related fees  3,016    3,016 
        
After-tax impact of (gain) / loss in connection with the termination of a joint venture(399) 408  (399) 408 
        
After-tax impact of expense in connection with provision for loan receivable    532   
        
After-tax impact of expense in connection with the acquisitions of GREATS and BB Dakota  32    839 
        
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)
        
Tax benefit in connection with the net operating loss carryback provision of the CARES Act(4,191)   (4,191)  
        
Tax (benefit) / expense in connection with deferred and foreign uncertain tax position(472) 2,207  1,921  2,590 
        
Less: Adjustments attributable to noncontrolling interest698  (204) (933) (204)
        
Adjusted net income attributable to Steven Madden, Ltd.$21,777  $32,156  $51,836  $162,760 
        
GAAP diluted income / (loss) per share$0.28  $0.21  $(0.23) $1.69 
        
Adjusted diluted income per share$0.27  $0.39  $0.64  $1.95 


Contact

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


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Source: Steve Madde