Reference is made to the Collection Agency Agreement entered into between Rosenthal & Rosenthal, Inc. and Steven Madden Ltd., dated July 10, 2009, and joined by each of the other undersigned affiliates of Steven Madden Ltd., as amended and/or supplemented (the “Agreement”). This will confirm that, effective the date hereof, Section 8.1 of the Agreement is hereby amended and restated as follows:

“8.1. Advances. In our sole discretion, in accordance with the terms of this Agreement, we will, from time to time, at your request, subject to the terms of the Combined Charges Agreement, (i) advance to you sums (“Advances”); and/or (ii) cause to be opened for your account letters of credit issued by an L/C Bank (“Letters of Credit”), provided that the aggregate amount of (x) the Advances outstanding will not, after giving effect to such requested Advances, exceed the lesser of (a) 85% of the aggregate Net Amount of Eligible Receivables outstanding at the time of such request, less Reserves, if any (the “Receivables Availability”); and (b) $50,000,000 less the outstanding amount of undrawn Letters of Credit; and (y) the outstanding amount of undrawn Letters of Credit will not, after giving effect to such requested Letters of Credit, exceed the lesser of (a) the Receivables Availability; and (b) $15,000,000.”

Except as hereinabove specifically set forth, all of the terms and conditions of the Agreement shall remain in full force and effect, and shall continue unmodified.

LONG ISLAND CITY, N.Y., May 28, 2020 – 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 first quarter ended March 31, 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.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “After a strong 2019, we got off to a good start to 2020, with revenue and earnings trending above plan through the first two months of the year and very positive consumer reaction to the Spring product in our flagship Steve Madden brand. Beginning in March, however, our business weakened materially due to the effects of the COVID-19 pandemic. Since then, our top priority has been protecting the safety and well-being of our employees and the broader community, followed by ensuring the long-term viability and strength of our business. We entered this crisis with an exceptionally strong balance sheet, but we have nonetheless taken a number of precautionary but significant measures to preserve liquidity and enhance financial flexibility. As we look ahead, we are confident that our strengths – including our brands, business model and balance sheet – will enable us to navigate this crisis and to thrive once conditions normalize.”

In response to the COVID-19 pandemic, the Company has taken the following precautionary measures to maintain ample liquidity and financial flexibility:

Revenue for the wholesale business decreased 13.0% to $302.7 million in the first quarter of 2020, including a 15.0% decline in wholesale footwear and a 5.4% decline in wholesale accessories/apparel. The revenue decline was driven by significant order cancellations in March resulting from the COVID-19 pandemic. Gross margin in the wholesale business decreased to 32.5% compared to 34.5% in last year’s first quarter due to inventory reserves taken as a result of the COVID-19 pandemic.

Retail revenue in the first quarter decreased 15.8% to $52.9 million compared to $62.8 million in the first quarter of the prior year due to the closure in March of all the Company’s retail stores outside of China as a result of the COVID-19 pandemic. Retail gross margin increased to 59.8% in the first quarter of 2020 compared to 58.5% in the first quarter of the prior year due to a benefit recognized in connection with the modification of the Company’s loyalty program, partially offset by inventory reserves taken as a result of the COVID-19 pandemic.

The Company ended the quarter with 224 company-operated retail stores, including eight Internet stores, as well as 30 company-operated concessions in international markets.

The Company’s effective tax rate for the first quarter of 2020 was 29.4% compared to 23.1% in the first quarter of 2019. On an Adjusted basis, the effective tax rate for the first quarter of 2020 was 15.2% compared to 22.6% in the first quarter of 2019.

Prior to the suspension of share repurchases, the Company repurchased 878,817 shares of the Company’s common stock during the first quarter of 2020 for approximately $29.1 million, which includes shares acquired through the net settlement of employee stock awards.

As of March 31, 2020, cash, cash equivalents and marketable securities totaled $245.4 million. Advances from factor totaled $29.1 million.

Given the continued disruption and uncertainty related to the COVID-19 pandemic, the Company previously withdrew its 2020 revenue and earnings guidance and is not providing guidance at this time.

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.

Interested stockholders are invited to listen to the first quarter earnings conference call scheduled for today, May 28, 2020, at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto http://stevemadden.gcs-web.com. An online archive of the broadcast will be available within two hours of the conclusion of the call and will remain available for 12 months following the live call.

Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo®, Report®, Brian Atwood®, Cejon®, GREATS®, BB Dakota®, Mad Love® and Big Buddha®, Steve Madden is a licensee of various brands, including Anne Klein®, Superga® and DKNY®. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, specialty stores, luxury retailers, national chains and mass merchants. Steve Madden also operates 224 retail stores (including eight Internet stores). Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including ready-to-wear, outerwear, eyewear, hosiery, jewelry, fragrance, luggage and bedding and bath products. For local store information and the latest Steve Madden booties, pumps, men’s and women’s boots, fashion sneakers, dress shoes, sandals and more, visit http://www.stevemadden.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, or “estimate”, and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the Company’s current beliefs, expectations and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. As such, investors should not rely upon them. Important risk factors include:

The Company 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.

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.


Delaware	000-23702	13-3588231

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Exhibit		Description

10.1		Amendment to Collection Agency Agreement, dated May 6, 2020, between Rosenthal & Rosenthal, Inc. and the Company.

99.1		Press Release, dated May 28, 2020, issued by Steven Madden, Ltd.

104		Cover Page Interactive Data File (formatted as Inline XBRL).


	STEVEN MADDEN, LTD.

	By:	/s/ Edward R. Rosenfeld
		Edward R. Rosenfeld
		Chief Executive Officer


	Very truly yours,

	ROSENTHAL & ROSENTHAL, INC.

	By:	/s/ Gary Norman
	Name: Gary Norman
	Title: Executive Vice President

	Three Months Ended
	March 31, 2020			March 31, 2019

Net sales	$	355,684		$	410,940
Commission and licensing fee income		3,484			4,848
Total revenue		359,168			415,788
Cost of sales		225,704			253,943
Gross profit		133,464			161,845
Operating expenses		150,194			117,185
Trademark impairment charges		9,518			—
(Loss) / income from operations		(26,248	)		44,660
Interest and other income, net		1,046			1,192
(Loss) / income before provision for income taxes		(25,202	)		45,852
(Benefit) / provision for income taxes		(7,401	)		10,587
Net (loss) / income		(17,801	)		35,265
Less: net (loss) / income attributable to noncontrolling interest		(350	)		740
Net (loss) / income attributable to Steven Madden, Ltd.	$	(17,451	)	$	34,525

Basic net (loss) / income per share	$	(0.22	)	$	0.43

Diluted net (loss) / income per share	$	(0.22	)	$	0.41

Basic weighted average common shares outstanding		78,875			80,534

Diluted weighted average common shares outstanding		78,875			84,255

Cash dividends declared per common share	$	0.15		$	0.14

			As of
	March 31, 2020		December 31, 2019		March 31, 2019
	(Unaudited)				(Unaudited)

Cash and cash equivalents	$	211,138	$	264,101	$	160,256
Marketable securities		34,271		40,521		61,383
Accounts receivable, net		261,551		254,637		295,880
Inventories		102,265		136,896		115,260
Other current assets		31,567		22,724		28,285
Property and equipment, net		52,206		65,504		63,657
Operating lease right-of-use assets		127,187		155,700		181,896
Goodwill and intangibles, net		314,852		334,058		289,965
Other assets		10,867		4,506		13,172
Total assets	$	1,145,904	$	1,278,647	$	1,209,754

Accounts payable	$	76,284	$	61,706	$	62,564
Operating leases (current & non-current)		158,704		171,796		195,798
Advances from factor		29,100		—		—
Other current liabilities		89,811		180,941		103,584
Contingent payment liability		6,440		9,124		—
Other long-term liabilities		11,941		13,856		17,262
Total Steven Madden, Ltd. stockholders’ equity		761,207		828,501		819,695
Noncontrolling interest		12,417		12,723		10,851
Total liabilities and stockholders’ equity	$	1,145,904	$	1,278,647	$	1,209,754

Table 1 - Reconciliation of GAAP operating expenses to Adjusted operating expenses
	Three Months Ended
	March 31, 2020			March 31, 2019

GAAP operating expenses	$	150,194		$	117,185

Expense in connection with impairment of lease right-of-use assets		(16,826	)		—

Expense in connection with impairment of store fixed assets		(11,995	)		—

Expense in connection with benefits provided to furloughed employees		(1,258	)		—

Expense in connection with provision for loan receivable		(697	)		—

Expense in connection with provision for early lease termination charges		(142	)		(749	)

Bad debt expense in connection with the Payless ShoeSource bankruptcy		—			(1,552	)

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	$	119,276		$	116,752

Table 2 - Reconciliation of GAAP (loss) / income from operations to Adjusted income from operations
	Three Months Ended
	March 31, 2020			March 31, 2019

GAAP (loss) / income from operations	$	(26,248	)	$	44,660

Expense in connection with impairment of lease right-of-use assets		16,826			—

Expense in connection with impairment of store fixed assets		11,995			—

Expense in connection with benefits provided to furloughed employees		1,258			—

Expense in connection with provision for loan receivable		697			—

Expense in connection with provision for early lease termination charges		142			749

Impairment of certain trademarks		9,518			—

Bad debt expense in connection with the Payless ShoeSource bankruptcy		—			1,552

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	$	14,188		$	45,093

Table 3 - Reconciliation of GAAP (benefit) / provision for income taxes to Adjusted provision for income taxes
	Three Months Ended
	March 31, 2020			March 31, 2019

GAAP (benefit) / provision for income taxes	$	(7,401	)	$	10,587

Tax effect of expense in connection with impairment of lease right-of-use assets		4,060			—

Tax effect of expense in connection with impairment of store fixed assets		2,906			—

Tax effect of expense in connection with benefits provided to furloughed employees		298			—

Tax effect of expense in connection with provision for loan receivable		165			—

Tax effect of expense in connection with provision for early lease termination charges		34			188

Tax effect of impairment of certain trademarks		2,254			—

Tax effect of bad debt expense in connection with the Payless ShoeSource bankruptcy		—			170

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	)

Adjusted provision for income taxes	$	2,316		$	10,476

Table 4 - Reconciliation of GAAP net income / (loss) attributable to noncontrolling interest to Adjusted net income / (loss) attributable to noncontrolling interest
	Three Months Ended
	March 31, 2020			March 31, 2019

GAAP net income / (loss) attributable to noncontrolling interest	$	(350	)	$	740

Net loss in connection with impairment of lease right-of-use assets and trademark attributable to noncontrolling interest		307			—

Adjusted net income / (loss) attributable to noncontrolling interest	$	(43	)	$	740

Table 5 - Reconciliation of GAAP net (loss) / income attributable to Steven Madden, Ltd. to Adjusted net income attributable to Steven Madden, Ltd.
	Three Months Ended
	March 31, 2020			March 31, 2019

GAAP net (loss) / income attributable to Steven Madden, Ltd.	$	(17,451	)	$	34,525

After-tax impact of expense in connection with impairment of lease right-of-use assets		12,766			—

After-tax impact of expense in connection with impairment of store fixed assets		9,089			—

After-tax impact of expense in connection with benefits provided to furloughed employees		960			—

After-tax impact of expense in connection with provision for loan receivable		532			—

After-tax impact of expense in connection with provision for early lease termination charges		109			561

After-tax impact of impairment of certain trademarks		7,265			—

Less: Net loss in connection with impairment of lease right-of-use assets and trademark attributable to noncontrolling interest		(307	)		—

After-tax impact of bad debt expense in connection with the Payless ShoeSource bankruptcy		—			1,383

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	)

Adjusted net income attributable to Steven Madden, Ltd.	$	12,963		$	35,070

GAAP diluted (loss) / income per share	$	(0.22	)	$	0.41

GAAP diluted weighted average shares outstanding		78,875			84,255

Adjusted diluted income per share	$	0.16		$	0.42

Adjusted diluted weighted average shares outstanding		82,121			84,255

Cover	May 06, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 06, 2020
Entity File Number	000-23702
Entity Registrant Name	STEVEN MADDEN, LTD.
Entity Central Index Key	0000913241
Entity Tax Identification Number	13-3588231
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	52-16 Barnett Avenue
Entity Address, City or Town	Long Island City
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11104
City Area Code	(718)
Local Phone Number	446-1800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	SHOO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false


By:	/s/ Arvind Dharia
Name: Arvind Dharia
Title: CFO