STEVEN MADDEN LTD
For the period ended Mar 31, 2025. Filed May 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
SHOO$39.50+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0001628280-24-046673
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001628280-25-024142
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 124 current paragraphs.
46 unchanged; 25 reworded; 49 added; 33 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 3 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
Business Overview
Current report
The Company’s reportable operating segments consist of the following:
Current report
Corporate does not constitute a reportable segment and includes costs not directly attributable to the reportable operating segments. These expenses are primarily related to corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services.
Current report
Australia Joint Venture. In January 2025, we entered into a joint venture agreement with GFN Two Pty Ltd., a leading distributor of luxury and retail goods in Australia and New Zealand. We acquired a 50.1% controlling financial interest in the newly formed entity, SM Fashion Australia Pty Ltd., through a capital contribution of $1,899. The acquisition resulted in the recognition of goodwill of $1,393. This joint venture was formed to expand the distribution of our products across Australia and New Zealand through wholesale and direct-to-consumer channels. The results of this joint venture are included within the Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer segments.
Current report
Malaysia Joint Venture. In January 2025, we entered into an agreement with Envico Enterprise Sdn. Bhd., a leading distributor of luxury and retail goods in Southeast Asia, to acquire an additional 2.0% equity interest in SM Distribution Malaysia Sdn. Bhd. for cash consideration of $5. This joint venture was originally formed in July 2022, at which time we held a 49.0% non-controlling interest. With the acquisition of the additional 2.0% interest, we hold a 51.0% controlling financial interest and has consolidated the joint venture’s financial results beginning in the first quarter of 2025 in this Quarterly Report. The acquisition resulted in the recognition of goodwill of $1,829. This joint venture engages in the distribution of our products across Malaysia through the direct-to-consumer channel. The results of this joint venture are included within the Direct-to-Consumer segment.
Current report
Acquisition of Kurt Geiger. On May 6, 2025, we completed our previously-announced acquisition of UK-based Kurt Geiger from a group led by international private equity firm Cinven for an enterprise value of approximately £289,000 in cash. For the twelve months ended February 1, 2025, Kurt Geiger had revenue of approximately £400,000. In connection with the acquisition, we entered into a new credit agreement which provides for a $300,000 term loan facility and a $250,000 revolving credit facility. We funded the acquisition and acquisition-related costs with borrowings under the amended and restated credit agreement and cash on hand.
Current report
Macroeconomic Conditions and Industry Trends
Current report
The global economy and retail landscape continue to face significant challenges that affect business operations and consumer behavior. Recent tariff announcements across nearly all jurisdictions have introduced significant volatility and heightened uncertainty in global markets. The lack of clarity surrounding future trade policy developments has made global sourcing and supply chain planning increasingly complex, further complicating the operating environment for multinational businesses. Additionally, and although inflation has moderated in certain markets, it remains elevated relative to historical norms. Interest rates in the United States and key international markets remain high, contributing to tighter credit conditions and pressuring consumer discretionary spending. Furthermore, ongoing foreign currency volatility, lingering concerns about economic slowdown, and geopolitical tensions continue to impact consumer sentiment.
Current report
In response to the headwinds from the evolving global trade environment and implementation of tariffs across key sourcing regions, many companies, including ours, were prompted to re-evaluate sourcing strategies, assess supplier diversification, and consider selective pricing actions to mitigate cost pressures. These efforts are part of the broader focus on maintaining operational agility in an increasingly uncertain macroeconomic and regulatory landscape. These actions have also intensified competitive dynamics within the industry.
Current report
The department store sector continues to experience structural change, with continued consolidations, restructurings, bankruptcies, and store closures. Meanwhile, shifting consumer preferences toward digital and omnichannel experiences are reshaping traditional retail models. These trends present both opportunities and risks as we continue to evolve our go-to-market strategies.
Current report
The geopolitical environment remains unstable. New administrations, including in the United States and in key international markets, such as Canada and Mexico, ongoing military conflicts in Ukraine and the Middle East, and increased tensions with China have contributed to economic uncertainty, market volatility, inflationary pressures, unfavorable foreign currency impacts, disruptions in global supply chains, deteriorating trade relations, and declining consumer confidence. These factors could create headwinds for our global business performance.
Current report
•Win with product. Utilizing our proven model – which combines talented design teams, a test-and react strategy, and industry-leading speed-to-market capability – to create trend-right product assortments across footwear, accessories, and apparel categories that resonate with our consumers.
Current report
•Invest in marketing. Continue investing in full-funnel marketing to deepen our connection with consumers.
Current report
•Expand in international markets. Expanding our international businesses in the Americas (ex. U.S.), EMEA, and APAC regions remains our largest long-term growth initiative.
Current report
•Expand Direct-to-Consumer led by digital. Expanding our direct-to-consumer business with a focus on growing our digital business, including optimizing site functionality, personalization, and digital marketing, to enhance our consumers overall shopping experience.
Current report
•Sustainability Focus. Committing to our corporate social responsibility initiatives, as we work to minimize the negative impacts we have on the environment and maximize the positive impacts we have on our people and our communities.
Current report
Tariffs
Current report
Throughout the first quarter of 2025, continued developments in global trade policies have led to the implementation of new tariffs across key jurisdictions where we source our products, including China, Cambodia, Vietnam, Brazil, India, Bangladesh, and various other countries. These ever-evolving trade dynamics have increased uncertainty and introduced additional cost pressures to our global supply chain. In response, we are actively assessing our sourcing strategies, evaluating opportunities for supplier diversification, and considering pricing and other cost-mitigation measures. While we are diligently taking steps to manage the impact of tariffs and trade restrictions, the full effect of these changes remains uncertain and could materially and adversely affect our business, financial condition, and results of operations. For further discussion of related risks, see Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current report
Although inflation has eased in some regions, elevated input costs – particularly for labor, raw materials, and freight – as well as increased macroeconomic, geopolitical, and regulatory uncertainties continue to pressure margins. These inflationary trends have affected both our wholesale and direct-to-consumer businesses and may persist despite central bank efforts globally to stabilize prices. We have historically mitigated inflationary impacts through price increases, supplier negotiations, cost containment, and operational efficiencies. However, continued inflation could negatively impact demand for our products or impair our ability to sustain historical margin levels, adversely impacting our profitability and overall financial performance.
Current report
Amid a dynamic operating environment, we remain focused on executing our strategic priorities: delivering trend-right product, deepening connections with our consumers, expanding our international businesses, growing our non-footwear categories, expanding our direct-to-consumer business led by digital, strengthening our core U.S. wholesale business, and efficiently managing our inventory and expenses. At the same time, we are advancing our corporate social responsibility initiatives to create long-term value for our stakeholders, minimize the negative impacts on the environment, and maximize the positive impacts on our people and our communities.
Current report
Total revenue for the three months ended March 31, 2025 increased 0.2% to $553,534, compared to $552,381 in the comparable period in the prior year, primarily driven by increases in the Wholesale Footwear, Wholesale Accessories/Apparel, and Licensing segments, partially offset by a decline in the Direct-to-Consumer segment.
Current report
Gross profit for the three months ended March 31, 2025 was $226,267, or 40.9% of total revenue, compared to $224,815, or 40.7% of total revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of total revenue was driven by gross margin expansion in both our Wholesale Footwear and Wholesale Accessories/Apparel segments. Gross profit in both periods included $280 and $208, respectively, related to the purchase accounting fair value adjustment of inventory from acquired businesses.
Current report
Operating expenses for the three months ended March 31, 2025 were $177,263, or 32.0% of total revenue, compared to $164,719, or 29.8% of total revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of total revenue was primarily attributable to our continued investment in marketing and advertising, and higher information technology related expenses. The current-year period also included $3,187 of acquisition costs related to acquisitions and the formation of new international joint ventures, $2,421 related to certain severances and termination benefits, and $1,188 related to legal costs as a result of litigation settlements. The current-year period also included a benefit of $4,495 related to the change in valuation of contingent payment liabilities. The comparable period in the prior year included a charge of $1,650 related to the change in valuation of a contingent payment liability and a charge of $1,700 related to the impairment of an intangible.
Current report
Income from operations for the three months ended March 31, 2025 increased to $53,499, or 9.7% of total revenue, compared to income from operations of $56,746, or 10.3% of total revenue, in the comparable period in the prior year. The effective tax rate for the three months ended March 31, 2025 was 24.1%, compared to 23.6% in the comparable period in the prior year.
Current report
Net income attributable to Steven Madden, Ltd. for the three months ended March 31, 2025 was $40,423, compared to $43,934 in the comparable prior-year period.
Current report
Revenue from the Wholesale Footwear segment for the three months ended March 31, 2025 was $296,145, or 53.5% of total revenue, compared to $295,660, or 53.5% of total revenue, in the comparable period in the prior year. The increase of 0.2% was primarily driven by growth in our branded business, partially offset by a decline in our private label business.
Current report
Gross profit for the three months ended March 31, 2025 was $108,691, or 36.7% of Wholesale Footwear revenue, compared to $108,297, or 36.6% of Wholesale Footwear revenue, in the comparable period in the prior year. The increase in gross profit as a percentage of revenue was primarily attributable to a favorable mix of our branded business.
Current report
Operating expenses for the three months ended March 31, 2025 were $45,603, or 15.4% of Wholesale Footwear revenue, compared to $45,182, or 15.3% of Wholesale Footwear revenue, in the comparable period in the prior year. The current-year period included $644 related to certain severances and termination benefits, and $72 of acquisition costs related to the formation of new international joint ventures.
Current report
Income from operations for the three months ended March 31, 2025 totaled $63,088, or 21.3% of Wholesale Footwear revenue, compared to $63,115, or 21.3% of Wholesale Footwear revenue, in the comparable period in the prior year.
Current report
Revenue from the Wholesale Accessories/Apparel segment for the three months ended March 31, 2025 was $143,173, or 25.9% of total revenue, compared to $142,576, or 25.8% of total revenue, in the comparable period in the prior year. The increase of 0.4% was primarily driven by growth in our branded business, partially offset by a decline in our private label business.
Current report
Gross profit for the three months ended March 31, 2025 was $48,049, or 33.6% of Wholesale Accessories/Apparel revenue, compared to $45,150, or 31.7% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Current report
The increase in gross profit as a percentage of revenue was primarily attributable to a favorable mix of our branded business. Gross profit in both periods included $280 and $208, respectively, related to the purchase accounting fair value adjustment of inventory from acquired businesses.
Current report
Operating expenses for the three months ended March 31, 2025 were $30,132, or 21.0% of Wholesale Accessories/Apparel revenue, compared to $25,329, or 17.8% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of Wholesale Accessories/Apparel revenue was primarily attributable to our continued investment in marketing and advertising, and higher payroll related expenses. The current-year period also included $743 related to certain severances and termination benefits, and $549 related to legal costs as a result of an earnout-related litigation. The current-year period also includes a benefit of $4,495 related to the change in valuation of contingent payment liabilities. The comparable period in the prior year included a charge of $1,650 related to the change in valuation of a contingent payment liability.
Current report
Income from operations for the Wholesale Accessories/Apparel segment for the three months ended March 31, 2025 was $22,412, or 15.7% of Wholesale Accessories/Apparel revenue, compared to $18,171, or 12.7% of Wholesale Accessories/Apparel revenue, in the comparable period in the prior year.
Current report
Revenue from the Direct-to-Consumer segment for the three months ended March 31, 2025 was $112,064, or 20.2% of total revenue, compared to $112,331, or 20.3% of total revenue, in the comparable period in the prior year. The decrease of 0.2% was driven by a decline in revenue in our brick-and-mortar stores, partially offset by an increase in our digital business. As of March 31, 2025, we operated 314 brick-and-mortar stores, five e-commerce websites, and 61 concessions in international markets, compared to 253 brick-and-mortar stores, five e-commerce websites, and 25 concessions in international markets as of March 31, 2024.
Current report
Gross profit for the three months ended March 31, 2025 was $67,375, or 60.1% of Direct-to-Consumer revenue, compared to $69,554, or 61.9% of Direct-to-Consumer revenue, in the comparable period in the prior year. The decrease in gross profit as a percentage of revenue was primarily due to an increase in promotional activity.
Current report
Operating expenses for the three months ended March 31, 2025 were $73,603, or 65.7% of Direct-to-Consumer revenue, compared to $70,079, or 62.4% of Direct-to-Consumer revenue, in the comparable period in the prior year. The increase in operating expenses as a percentage of revenue was attributable to our continued investment in marketing and advertising, and higher occupancy-related costs. The current-year period also included $639 related to legal costs as a result of litigation settlements, $469 of acquisition costs related to the formation of new international joint ventures, and $301 related to certain severances and termination benefits. The comparable period in the prior year included a charge of $1,700 related to the impairment of an intangible.
Current report
Loss from operations for the three months ended March 31, 2025 was $6,228, or 5.6% of Direct-to-Consumer revenue, compared to a loss from operations of $2,225, or 2.0% of Direct-to-Consumer revenue, in the comparable period in the prior year.
Current report
Acquisition of Kurt Geiger and Amended and Restated Credit Agreement
Current report
On May 6, 2025, Steven Madden, Ltd. completed the previously-announced acquisition of the entire issued share capital of Mercury Acquisitions Topco Limited, a private limited company incorporated under the laws of Jersey and the holding company for the Kurt Geiger business (the “Target”), pursuant to the terms of that certain sale and purchase deed (the “Purchase Agreement”) by and among SML UK Holding Ltd., an English limited company and indirect, wholly-owned subsidiary of Steven Madden, Ltd. (the “Purchaser”), various entities comprising the Fifth Cinven Fund (the “Cinven Sellers”), Bain & Company, Inc. (“Bain”), Squam Lake Investors X LP (BGPI) (“Squam Lake”, and together with the Cinven Sellers and Bain, the “Institutional Sellers”), certain individuals (the “Individual Sellers” and together with the Institutional Sellers, the “Sellers”), and Steven Madden, Ltd., as guarantor.
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Removed paragraphs (33)
Previous report
Overview
Previous report
On August 13, 2024, the Company completed the sale of substantially all of the assets and liabilities related to one of its subsidiaries, Greats Brand Inc. ("GREATS®"), to an unrelated third party, Unified Commerce Group Ltd. ("UCG"), in exchange for a minority interest in UCG with an estimated fair value of approximately $4,020. The Company determined that GREATS® met the definition of a business under ASC 805, Business Combinations. The transaction resulted in the deconsolidation of GREATS® from the consolidated financial statements and the recognition of a loss on sale in the amount of $3,199, which was included within operating expenses in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024. Prior to the divestiture, GREATS® was part of our Direct-to-Consumer segment.
Previous report
During the third quarter of 2024, the Company decided to discontinue the use of its Almost Famous brand and transition its marketing and sales efforts under the Madden Girl brand. As a result of this decision, the Company reassessed the carrying amount of its Almost Famous trademark for impairment in accordance with ASC 350, Intangibles – Goodwill and Other. Based on this assessment, the Company determined that the estimated future cash flows related to the Almost Famous trademark was less than its carrying value, and therefore, the asset was impaired. As such, the Company recognized an impairment charge of $8,635, representing the remaining carrying amount of the asset, which was recorded within Impairment of intangibles in our Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024. Prior to writing off the Almost Famous trademark, it was recorded within our Wholesale Apparel/Accessories segment.
Previous report
Economic Conditions and Industry Trends
Previous report
The global economy and retail sector are influenced by a range of factors. Ongoing economic challenges, especially persistent inflation, high interest rates, substantial foreign currency fluctuations, bank failures, and recession fears continue to affect consumer discretionary income, spending habits, and overall sentiment in the U.S. and beyond. In response to these pressures, many retailers, particularly in the U.S., have adopted more promotional strategies to combat declines in foot traffic and boost conversion rates, while also addressing high inventory levels.
Previous report
The department store sector has seen significant changes, including consolidations, restructurings, bankruptcies, and an increase in store closures. The geopolitical landscape remains uncertain, with over 60 countries, including the U.S., set to hold national elections in 2024. These elections could lead to shifts in international trade relations, legislative changes (including tax and import regulations), and potential diplomatic tensions, all of which may negatively affect the global economy and our business performance.
Previous report
Ongoing military conflicts, notably the wars in Russia-Ukraine and Israel-Hamas, as well as recent violence in the Middle East and attacks on cargo vessels in the Red Sea, have also had a detrimental impact on the global economy. Although our voluntary suspension of operations in Russia and our limited presence in Israel have not materially affected our financial statements, the broader economic ramifications of these conflicts—such as inflation, unfavorable currency exchange rates, rising energy prices, food shortages, and financial market volatility—have influenced consumer confidence and sentiment. While the Red Sea crisis has led to some shipping delays, its long-term effects on inventory receipt and freight costs remain uncertain.
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•Digital Expansion: Enhancing our online presence remains a priority, with investments in e-commerce capabilities and digital marketing to increase direct-to-consumer sales.
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•Sustainability Focus: Committing to sustainability initiatives, incorporating eco-friendly materials and practices into our product lines to meet consumer demand for responsible fashion.
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•Global Market Penetration: Looking to strengthen our international footprint, exploring opportunities in key global markets to capture additional revenue streams.
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•Brand Building: Continued investment in marketing and brand positioning to elevate the Steven Madden brand and engage with consumers effectively.
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Executive Summary
Previous report
Total revenue for the three months ended September 30, 2024 increased 13.0% to $624,675 compared to $552,732 in the same period of the prior year, driven by increases in the Wholesale Accessories/Apparel and Direct-to-Consumer businesses. Gross profit was $259,544, or 41.5% of total revenue, as compared to $232,625, or 42.1% of total revenue, in the prior-year period. Gross profit in the 2024 period included $59 of expense related to the purchase accounting fair value adjustment of inventory from acquired businesses. The decrease in gross profit as a percentage of total revenue was driven by the impact of the Almost Famous acquisition. Operating expenses in the third quarter of 2024 were $178,915, or 28.6% of total revenue, as compared to $149,887, or 27.1% of total revenue, in the third quarter of the prior year. The increase in operating expenses as a percentage of total revenue was attributable to higher payroll-related expenses, our continued investment in marketing and a mix shift within our Direct-to-Consumer segment to e-commerce. In the third quarter of 2024, our operating expenses also included $3,199 due to a loss on the divestiture of a business and $1,480 due to acquisition costs and the formation of joint ventures. The 2023 operating expenses included $538 of expense related to dissolution of an entity in Asia and $84 of expense related to certain severances and termination benefits. During the third quarter 2024, we also recorded $8,635 related to the impairment of an intangible and a benefit of $2,584 due to the change in valuation of a contingent payment liability. Income from operations for the third quarter of 2024 decreased to $74,578, or 11.9% of total revenue, as compared to $82,738, or 15.0% of total revenue, in the prior-year period. The effective tax rate in the third quarter of 2024 was 25.5% compared to 23.1% in the third quarter of last year. Net income attributable to Steven Madden, Ltd. for the third quarter of 2024 was $55,278 compared to $64,413 in the third quarter of 2023.
Previous report
Revenue from the Wholesale Footwear segment in the third quarter of 2024 accounted for $299,315, or 47.9% of total revenue, as compared to $306,058, or 55.4% of total revenue, in the third quarter of 2023. Wholesale Footwear revenue decreased 2.2% compared to the same quarter of 2023 driven by a decrease in demand in the branded business. Gross profit was $110,778, or 37.0% of Wholesale Footwear revenue, in the third quarter of 2024 as compared to $112,288, or 36.7% of Wholesale Footwear revenue, in the third quarter of 2023. Operating expenses in the third quarter of 2024 were $46,523, or 15.5% of Wholesale Footwear revenue, as compared to $43,997, or 14.4% of Wholesale Footwear revenue, in the third quarter of the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue was attributable to increases in payroll-related expenses. In the third quarter of 2024, operating expenses included an expense of $109 related to acquisition costs and the formation of joint ventures. The 2023 operating expenses included $2,712 of expense related to dissolution of an entity in Asia and $41 of expense related to certain severances and termination benefits. Income from operations decreased to $64,255, or 21.5% of Wholesale Footwear revenue, in the third quarter of 2024 as compared to $68,291, or 22.3% of Wholesale Footwear revenue in the third quarter of the prior year.
Previous report
Revenue from the Wholesale Accessories/Apparel segment in the third quarter of 2024 accounted for $196,400, or 31.4% of total revenue, as compared to $127,395, or 23.0% of total revenue, in the third quarter of 2023. Wholesale Accessories/Apparel revenue increased 54.2% compared to the same quarter of 2023 driven by the incremental revenue from the acquisition of Almost Famous, as well as strength in the Steve Madden handbag business. Gross profit was $64,963, or 33.1% of Wholesale Accessories/Apparel revenue, in the third quarter of 2024 as compared to $43,366, or 34.0% of Wholesale Accessories/Apparel revenue, in the third quarter of the prior year. The decrease in gross profit as a percentage of revenue was due to the impact of the Almost Famous acquisition. Gross profit in the 2024 period included $59 of expense in connection with the purchase accounting fair value adjustment of inventory from acquired businesses. Operating expenses in the third quarter of 2024 were $28,251, or 14.4% of Wholesale Accessories/Apparel revenue, as compared to $19,202, or 15.1% of Wholesale Accessories/Apparel revenue, in the third quarter of the prior year. The decrease in operating expenses as a percentage of Wholesale Accessories/Apparel revenue was attributable to expense leverage on a higher revenue base. In the third quarter of 2024, operating expenses included an expense of $195 related to acquisition costs and the formation of joint ventures. The 2023 operating expenses included $43 of expense related to certain severances and termination benefits. During the third quarter 2024, we also recorded $8,635 related to an impairment of an intangible and a benefit of $2,584 due to the change in valuation of a contingent payment liability. Income from operations increased to $30,661, or 15.6% of Wholesale Accessories/Apparel revenue, in the third quarter of 2024, as compared to $24,164, or 19.0% of Wholesale Accessories/Apparel revenue in the third quarter of the prior year.
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In the third quarter of 2024, revenue from the Direct-to-Consumer segment accounted for $125,455, or 20.1% of total revenue, as compared to $116,393, or 21.1% of total revenue, in the third quarter of 2023. Revenue increased 7.8% compared to the prior year period, driven by increases in our e-commerce and brick-and-mortar stores. As of September 30, 2024, we operated 282 brick-and-mortar stores, five e-commerce websites, and 67 concessions in international markets compared to 251 brick-and-mortar stores, five e-commerce websites, and 22 concessions in international markets as of September 30, 2023. Gross profit in the third quarter of 2024 was $80,298, or 64.0% of Direct-to-Consumer revenue, compared to $74,085, or 63.7% of Direct-to-Consumer revenue, in the third quarter of 2023. The increase in gross profit as a percentage of revenue was primarily due to a reduction in promotional activity. Operating expenses in the third quarter of 2024 were $78,799, or 62.8% of Direct-to-Consumer revenue, as compared to $64,344, or 55.3% of Direct-to-Consumer revenue, in the third quarter of 2023. The increase in operating expenses as a percentage of revenue was mainly attributable to higher marketing expense and occupancy related costs. In the third quarter of 2024, operating expenses included $3,199 due to a loss on the divestiture of a business and an expense of $1,176 related to acquisition costs and the formation of joint ventures. In the same period of 2023, operating expenses included a benefit of $2,174 related to the dissolution of an entity in Asia. In the third quarter of 2024, income from operations for the Direct-to-Consumer segment was $1,499, or 1.2% of Direct-to-Consumer revenue, as compared to $9,741, or 8.4% of Direct-to-Consumer revenue, in the third quarter of the prior year.
Previous report
Royalty income generated by the Licensing segment accounted for $3,505, or 0.6% of total revenue, in the third quarter of 2024 compared to $2,886, or 0.5% of total revenue, in the third quarter of 2023. Operating expenses were $277 in the current period compared to $729 in the same period of the prior year. In the third quarter of 2024, income from operations for the Licensing segment was $3,228 as compared to $2,157 in the same period last year.
Previous report
Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These costs are primarily related to expenses associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cyber security, and other shared services. Corporate operating expenses were, $25,065, or 4.0% of total revenue, in the third quarter of 2024 as compared to $21,615, or 3.9% of total revenue, in the third quarter of 2023.
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Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
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Consolidated:
Previous report
Total revenue in the nine months ended September 30, 2024 increased 16.3% to $1,700,609 compared to $1,461,868 in the same period of the prior year with increases in the Wholesale Accessories/Apparel, Direct-to-Consumer, and Wholesale Footwear businesses. Gross profit was $701,488, or 41.2% of total revenue, as compared to $617,587, or 42.2% of total revenue, in the prior-year period. The decrease in gross profit as a percentage of total revenue was driven by the impact of the Almost Famous acquisition. Gross profit in the 2024 period included $393 of expense in connection with the purchase accounting fair value adjustment of inventory from acquired businesses. Operating expenses for the first nine months of 2024 were $507,343, or 29.8% of total revenue, as compared to $444,298, or 30.4% of total revenue, in the first nine months of the prior year. The decrease in operating expenses as a percentage of total revenue was primarily attributable to expense leverage on a higher revenue base. In the first nine months of 2024, operating expenses included an expense of $3,199 related to a loss on the divestiture of a business, $2,776 related to acquisition costs and the formation of joint ventures, and $326 working capital adjustment related to the Almost Famous acquisition. The 2023 same period operating expenses included $1,760 of expense related to certain severances, termination benefits, a corporate office relocation, and $538 of expense related to the dissolution of an entity in Asia. In the 2024 period, we also recorded a charge of $10,335 related to the impairment of intangibles and an expense of $5,616 due to the change in valuation of a contingent payment liability. Income from operations increased to $178,194, or 10.5% of total revenue, as compared to income from operations of $173,289, or 11.9% of total revenue, in the prior-year period. The effective tax rate in the first nine months of 2024 was 24.3% compared to 23.6% in the first nine months of the prior year. Net income attributable to Steven Madden, Ltd. in the first nine months of 2024 was $134,589 compared to $135,673 in the same period of 2023.
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Wholesale Footwear Segment:
Previous report
Revenue from the Wholesale Footwear segment in the first nine months of 2024 accounted for $832,000, or 48.9% of total revenue, as compared to $823,288, or 56.3% of total revenue, in the first nine months of 2023. Revenue increased 1.1% driven by growth in our private label business partially offset by decrease in demand in the branded business. Gross profit was $298,186, or 35.8% of Wholesale Footwear revenue, in the first nine months of 2024, as compared to $298,856, or 36.3% of Wholesale Footwear revenue, in the first nine months of 2023. The decrease in gross profit as a percentage of revenue was primarily due to higher penetration of our private label business. Operating expenses in the first nine months of 2024 were $131,877, or 15.9% of Wholesale Footwear revenue, as compared to $124,784, or 15.2% of Wholesale Footwear revenue, in the first nine months of the prior year. The increase in operating expenses as a percentage of Wholesale Footwear revenue was attributable to increases in payroll-related expenses and marketing investment. In the first nine months of 2024, operating expenses included an expense of $109 related to acquisition costs and the formation of joint ventures. The 2023 same period operating expenses included $356 of expense related to certain severances, termination benefits, a corporate office relocation, and $2,712 of expense related to the dissolution of an entity in Asia. Income from operations decreased to $166,309, or 20.0% of Wholesale Footwear revenue in the first nine months of 2024 as compared to $174,072, or 21.1% of Wholesale Footwear revenue, in the same period of the prior year.
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Wholesale Accessories/Apparel Segment:
Previous report
Revenue from the Wholesale Accessories/Apparel segment in the first nine months of 2024 accounted for $487,252, or 28.7% of total revenue, as compared to $286,935, or 19.6% of total revenue, in the first nine months of 2023. Revenue increased 69.8% driven by the incremental revenue from the acquisition of Almost Famous, as well as strength in the Steve Madden handbag and apparel businesses. Gross profit was $158,558, or 32.5% of Wholesale Accessories/Apparel revenue, in the first nine months of 2024 as compared to $96,590, or 33.7% of Wholesale Accessories/Apparel revenue, in the first nine months of the prior year. The decrease in gross profit as a percentage of revenue was due to the impact of the Almost Famous acquisition. Gross profit in the 2024 period included $393 of expense in connection with the purchase accounting fair value adjustment of inventory from acquired businesses. Operating expenses in the first nine months of 2024 were $80,129, or 16.4% of Wholesale Accessories/Apparel revenue, as compared to $51,607, or 18.0% of Wholesale Accessories/Apparel revenue, in the same period of the prior year. The decrease in operating expenses as a percentage of Wholesale Accessories/Apparel revenue was primarily attributable to expense leverage on a higher revenue base. The first nine months of 2024 operating expenses included an expense of $398 related to acquisition costs and the formation of joint ventures and $326 of working capital adjustment related to the Almost Famous acquisition. The 2023 same period operating expenses included $481 of expense related to certain severances, termination benefits, and a corporate office relocation. In the 2024 period, we also recorded a charge of $8,635 related to the impairment of an intangible and an expense of $5,616, due to the change in valuation of a contingent payment liability. Income from operations for the Wholesale Accessories/Apparel segment in the first nine months of 2024 was $64,178, or 13.2% of Wholesale Accessories/Apparel revenue, as compared to $44,983, or 15.7% of Wholesale Accessories/Apparel revenue, in the same period of the prior year.
Previous report
Direct-to-Consumer Segment:
Previous report
In the first nine months of 2024, revenue from the Direct-to-Consumer segment accounted for $374,194, or 22.0% of total revenue, as compared to $344,197, or 23.5% of total revenue, in the first nine months of 2023. Revenue increased 8.7% driven by increases in both our brick-and-mortar and e-commerce businesses. Gross profit in the first nine months of 2024 was $237,581, or 63.5% of Direct-to-Consumer revenue, compared to $214,693, or 62.4% of Direct-to-Consumer revenue, in the first nine months of 2023. The increase in gross profit as a percentage of revenue was primarily due to a reduction in promotional activity. Operating expenses in the first nine months of 2024 were $221,317, or 59.1% of Direct-to-Consumer revenue, as compared to $198,870, or 57.8% of Direct-to-Consumer revenue, in the first nine months of 2023. The increase in operating expenses as a percentage of revenue was attributable to higher marketing expense and occupancy related costs, partially offset by savings in logistics and fulfillment expenses. The first nine months of 2024 operating expenses also included an expense of $3,199 related to a loss on the divestiture of a business and $2,268 related to acquisition costs and the formation of joint ventures. In the same period of 2023, operating expenses included $259 of expense related to certain severances, termination benefits, a corporate office relocation, and a benefit of $2,174 related to the dissolution of an entity in Asia. In the 2024 period, we also recorded a charge of $1,700 related to the impairment of an intangible. In the first nine months of 2024, income from operations for the Direct-to-Consumer segment was $14,564, or 3.9% of Direct-to-Consumer revenue, as compared to $15,823, or 4.6% of Direct-to-Consumer revenue, in the same period last year.
Previous report
Licensing Segment:
Previous report
Corporate:
Previous report
Cash provided by operations was $94,245 for the nine months ended September 30, 2024, compared to $77,756 in the same period of the prior year. The increase in cash provided by operations, as presented in the statement of cash flow, was primarily driven by favorable changes in accounts payable, impairment of intangibles, and net income, partially offset by unfavorable changes in inventories and receivables.
Previous report
Contractual Obligations
Previous report
Transition tax of $4,884 was the result of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). Excluded from the contractual obligations table above are long-term taxes payable of $238 as of September 30, 2024 primarily related to an uncertain tax position, for which we are unable to make a reasonably reliable estimate of the timing of payments in individual years beyond one year due to uncertainties in the timing and outcome of tax audits.
Previous report
Actual results could be negatively and materially impacted due to risks and uncertainties, including the impacts of inflationary pressures globally and the war in Ukraine, the war in the Middle East, and the related broader macroeconomic implications. Consumer spending has been and may continue to be negatively impacted by inflationary pressures, and other macroeconomic and geopolitical factors. All these factors have negatively impacted, and might continue to negatively impact, our direct sales to end consumers and our sales to our wholesale customers. Historically, we have minimized the impact of product, wages, and logistic cost increases by raising prices, renegotiating costs, changing suppliers, and improving operating efficiencies. However, no assurance can be given that we will be able to offset such inflationary cost increases in the future.
Reworded paragraphs (25)
Previous wording
The following discussion of our financial condition and results of operations for the three and nine months ended September 30, 2024 should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following discussion of our financial condition and results of operations for the three months ended March 31, 2025 should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
This Quarterly Report 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,” or "confident," and similar expressions, or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent our current beliefs, expectations, and assumptions regarding anticipated events and trends affecting our 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 our control. Our 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:
Current wording
This Quarterly Report 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. You can identify forward-looking statements 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 our current beliefs, expectations, and assumptions regarding anticipated events and trends affecting our business, and industry based on information available as of the time such statements are made. We caution investors 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 our control. Our 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:
Previous wording
•changes in trade policies and tariffs imposed by the United States government and the governments of other nations in which we manufacture and sell products;
Current wording
•our ability to navigate changes in global trade policies and tariffs imposed by the United States government and the governments of other nations in which we manufacture and sell products;
Previous wording
These risks and uncertainties, along with the risk factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and, in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023, should be considered in evaluating any forward-looking statements contained in this report. We do not undertake, and disclaim, 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.
Current wording
These risks and uncertainties, along with the risk factors discussed under Part II, Item 1A “Risk Factors” in this Quarterly Report on Form 10-Q and, in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2024, should be considered in evaluating any forward-looking statements contained in this report. We do 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.
Previous wording
($ in thousands, except for retail store count, earnings per share, and per share data)
Current wording
($ in thousands, except for store count and per share data)
Previous wording
Steven Madden, Ltd. and its subsidiaries design, source, and market fashion-forward branded and private label footwear, accessories, and apparel. We distribute our products in the wholesale channel through department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and other international markets through our joint ventures in Israel, South Africa, China, Taiwan, Malaysia, Latin America, South Eastern Europe, and the Middle East along with special distribution arrangements in certain European countries, North Africa, South and Central America, Australia, and various countries in Asia. In addition, our products are distributed through our direct-to-consumer channel within the United States, Canada, Mexico, and Europe, and our joint ventures in Israel, South Africa, China, Taiwan, Latin America, Southeastern Europe, and the Middle East.
Current wording
Steven Madden, Ltd. and its subsidiaries designs, sources, and markets fashion-forward branded and private label footwear, accessories, and apparel. We distribute our products through the wholesale channel to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe. Additionally, we operate in other international markets through its joint ventures in South Africa, the Middle East, Israel, various countries in Europe, Latin America, and certain countries in Asia, and through special distribution arrangements in various European countries, North Africa, South and Central America, and various countries within the Asia-Pacific region. We also distribute our products through our direct-to-consumer channel, which includes company-operated retail stores and e-commerce websites, in the United States, Canada, Mexico, South Africa, the Middle East, Israel, various countries in Europe, Latin America, and the Asia-Pacific region.
Previous wording
Our product lines include a broad range of contemporary styles designed to establish or capitalize on market trends, complemented by core product offerings. We have established a reputation for design creativity and our ability to offer quality, trend-right products at accessible price points, delivered in an efficient manner and time frame.
Current wording
Our product offerings include a diverse range of contemporary styles, designed to establish or capitalize on market trends, complemented by core product offerings. We are recognized for our design creativity and ability to deliver trend-right products with high quality at accessible price points, efficiently and within short lead times.
Previous wording
We manage our operations through our operating divisions, which are presented as the following reportable segments: Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to-Consumer, and Licensing. Our Wholesale Footwear segment designs, sources, and markets our brands, and sells our products to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures, and international distributor network. Our Wholesale Accessories/Apparel segment designs, sources, and markets our brands, and sells our products to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures, and international distributor network. Our Direct-to-Consumer segment consists of Steve Madden® and Dolce Vita® full-price retail stores, Steve Madden® outlet stores, Steve Madden® concessions in international markets, and our directly-operated digital e-commerce websites. We operate retail locations in regional malls and shopping centers, as well as high streets in major cities across the United States, Canada, Mexico, Latin America, Europe, Israel, South Africa, Taiwan, China, and the Middle East. Our Licensing segment is engaged in the licensing of the Steve Madden® and Betsey Johnson® trademarks for use in the sale of select apparel, accessory, and home categories as well as various other non-core products. Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These costs are primarily related to expenses associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cyber security, and other shared services.
Current wording
•Wholesale Footwear. This segment designs, sources, and markets our brands and sells our products to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
Previous wording
In light of these challenges, we are executing the following key strategic initiatives, which are aimed at driving growth and improving operational efficiency:
Current wording
While navigating the challenging macroeconomic environment, we remain highly focused on executing the following key strategic initiatives which are aimed at driving long-term growth and creating shareholder value:
Previous wording
•Product Diversification: Expanding our product offerings across various categories, including footwear, accessories, and apparel, to attract a broader customer base.
Current wording
•Grow non-footwear categories. Expanding our product offerings across various categories outside of footwear, including handbags, accessories, and apparel.
Previous wording
•Operational Efficiency: Efforts to streamline operations, reduce costs, and improve supply chain management are ongoing, aimed at enhancing overall profitability.
Current wording
•Operational Efficiency. Streamlining operations, tightly managing costs, and maintaining a disciplined inventory management approach are ongoing and aimed at enhancing overall profitability.
Previous wording
Total revenue for the quarter ended September 30, 2024 increased 13.0% to $624,675 compared to $552,732 in the same period of last year. Net income attributable to Steven Madden, Ltd. was $55,278 in the third quarter of 2024 compared to $64,413 in the same period of last year. Our effective tax rate for the third quarter of 2024 was 25.5% compared to 23.1% in the third quarter of last year. Diluted earnings per share were $0.77 per share on 71,569 diluted weighted average shares outstanding compared to diluted earnings per share of $0.87 per share on 74,071 diluted weighted average shares outstanding in the third quarter of last year.
Current wording
Total revenue for the quarter ended March 31, 2025 increased 0.2% to $553,534, compared to $552,381 in the same period of last year. Net income attributable to Steven Madden, Ltd. was $40,423 in the first quarter of 2025, compared to $43,934 in the same period of last year. Our effective tax rate for the first quarter of 2025 was 24.1%, compared to 23.6% in the first quarter of last year. Diluted earnings per share were $0.57 per share on 71,055 diluted weighted average shares outstanding, compared to diluted earnings per share of $0.60 per share on 72,865 diluted weighted average shares outstanding in the first quarter of last year.
Previous wording
Our inventory turnover (calculated on a trailing four quarter average) for the quarter ended September 30, 2024 was 5.5 compared to 5.4 times at September 30, 2023. Our total Company accounts receivable average collection days increased to 66 days in the third quarter of 2024 compared to 61 days in the third quarter of 2023. As of September 30, 2024, we had $150,478 in cash, cash equivalents, and short-term investments, no debt, and total stockholders’ equity of $860,066. Working capital was $491,880 as of September 30, 2024, compared to $521,823 as of September 30, 2023.
Current wording
Our inventory turnover (calculated on a trailing four quarter average) for the quarter ended March 31, 2025 was 5.3 times, compared to 5.7 times at March 31, 2024. Our total Company accounts receivable average collection days increased to 73 days in the first quarter of 2025, compared to 68 days in the first quarter of 2024. As of March 31, 2025, we had $147,242 in cash, cash equivalents, and short-term investments, no debt, and total stockholders’ equity of $903,676. Working capital was $491,459 as of March 31, 2025, compared to $474,782 as of March 31, 2024.
Previous wording
Royalty income generated by the Licensing segment accounted for $7,163, or 0.4% of total revenue, in thefirst nine months of 2024 compared to $7,448, or 0.5% of total revenue, in thefirst nine months of 2023. Operating expenses decreased to $1,239 in the current period compared to $2,201 in the same period of the prior year. Income from the Licensing segment was $5,924 in the first nine months of 2024, as compared to $5,247 in the same period last year.
Current wording
Royalty income from the Licensing segment for the three months ended March 31, 2025 was $2,152, or 0.4% of total revenue, compared to $1,814, or 0.3% of total revenue, in the comparable period in the prior year. Operating expenses for the three months ended March 31, 2025 were $327, compared to $500 in the comparable period in the prior year. Income from operations for the three months ended March 31, 2025 was $1,825, compared to $1,314 in the comparable period in the prior year.
Previous wording
Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These costs are primarily related to expenses associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cyber security, and other shared services. Corporate operating expenses amounted to $72,781 or 4.3% of total revenue in the first nine months of 2024 as compared to $66,836 or 4.6% of total revenue in the same period last year.
Current wording
Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These expenses primarily related to corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cyber security, and other shared services. Corporate operating expenses for the three months ended March 31, 2025 were $27,598 or 5.0% of total revenue, compared to $23,629 or 4.3% of total revenue, in the comparable period in the prior year.
Previous wording
Our primary sources of liquidity are cash flows from operations, cash, cash equivalents, and short-term investments. Cash, cash equivalents, and short-term investments totaled $150,478 and $219,813 at September 30, 2024 and December 31, 2023, respectively. Of the total cash, cash equivalents, and short-term investments as of September 30, 2024, $104,674, or approximately 70%, was held in our foreign subsidiaries, and of the total cash, cash equivalents, and short-term investments on December 31, 2023, $134,745, or approximately 61%, was held in our foreign subsidiaries.
Current wording
Our primary sources of liquidity are cash flows from operations, cash, cash equivalents, and short-term investments. Cash, cash equivalents, and short-term investments totaled $147,242 and $203,408 at March 31, 2025 and December 31, 2024, respectively, and of the total cash, cash equivalents, and short-term investments as of March 31, 2025, $83,171, or approximately 56%, was held in our foreign subsidiaries, and of the total cash, cash equivalents, and short-term investments as of December 31, 2024, $119,569, or approximately 59%, was held in our foreign subsidiaries.
Previous wording
On July 22, 2020, we entered into a $150,000, five-year, asset-based revolving credit facility with various lenders and Citizens Bank, N.A (the “Credit Agreement”). On March 25, 2022, we entered into an amendment to the Credit Agreement, which replaced the London Interbank Offering Rate (“LIBOR”) with the Bloomberg Short-Term Bank Yield Index (“BSBY”) as the interest rate benchmark, among other changes. On April 3, 2023, we entered into a second amendment to the Credit Agreement, which reflects CIT Group/Commercial Services, Inc. (“CIT”) as an additional receivables collection agent for us and certain guarantors. Further, on October 23, 2023, we entered into a third amendment to the Credit Agreement in order to accommodate certain changes made to our existing factoring arrangement with CIT.
Current wording
On July 22, 2020, we entered into a $150,000, five-year, asset-based revolving credit facility with various lenders and Citizens Bank (the “Credit Agreement”). On March 25, 2022, we entered into an amendment to the Credit Agreement, which replaced the London Interbank Offering Rate (“LIBOR”) with the Bloomberg Short-Term Bank Yield Index (“BSBY”) as the interest rate benchmark, among other changes. On April 3, 2023, we entered into a second amendment to the Credit Agreement, which reflects CIT Group/Commercial Services, Inc. (“CIT”) as an additional receivables collection agent for us and certain guarantors. Further, on October 23, 2023, we entered into a third amendment to the Credit Agreement in order to accommodate certain changes made to our existing factoring arrangement with CIT.
Previous wording
As of September 30, 2024, we had working capital of $491,880, cash and cash equivalents of $139,414, short-term investments of $11,064, no cash borrowing, and $504 in letters of credit outstanding unrelated to the Credit Agreement.
Current wording
As of March 31, 2025, we had working capital of $491,459, cash and cash equivalents of $144,762, short-term investments of $2,480, no cash borrowing, and $829 in letters of credits outstanding.
Previous wording
A summary of our cash provided by and used in operating, investing, and financing activities was as follows:
Current wording
A summary of our cash used in operating, investing, and financing activities was as follows:
Previous wording
Cash used in investing activities was $16,715 for the nine months ended September 30, 2024, which primarily consisted of purchases of $12,840 of short-term investments; capital expenditures of $16,642 for leasehold improvements, new stores, and systems enhancements; the acquisition of a hosiery business for $4,259 partially offset by $16,654 from the proceeds of sales of short-term investments.
Current wording
Cash used in investing activities was $1,005 for the three months ended March 31, 2025, which primarily consisted of capital expenditures of $9,847 for leasehold improvements, new stores, and systems enhancements and $2,196 related to the acquisitions of joint ventures. This was partially offset by $11,038 related to proceeds from the sales of short-term investments.
Previous wording
During the nine months ended September 30, 2024, net cash used in financing activities was $140,582, which primarily consisted of share repurchases and net settlements of stock awards of $95,788, as well as cash dividends paid of $45,880.
Current wording
Cash used in financing activities was $25,902 for the three months ended March 31, 2025, which primarily consisted of net settlements of stock awards of $7,770 and dividends paid of $15,186.
Previous wording
Substantially all our products are produced by independent manufacturers at overseas locations, the majority of which are located in China, with a growing percentage located in Cambodia, Mexico, Vietnam, India, Italy, Brazil, Tunisia, and various other European and Asian countries. We have not entered into any long-term manufacturing or supply contracts with any of these foreign manufacturers. We believe that a sufficient number of alternative sources exist outside of the United States for the manufacture of our products. Purchases are made primarily in United States dollars.
Current wording
(2) Substantially all our products are produced by independent manufacturers at overseas locations, the majority of which are located in China, with a growing percentage located in Cambodia, Vietnam, Mexico, Brazil, India, Bangladesh, and various other countries in Asia, Europe, and Africa. We have not entered into any long-term manufacturing or supply contracts with any of these foreign manufacturers. We believe that a sufficient number of alternative sources exist outside of the United States for the manufacture of our products. Purchases are made primarily in United States dollars.
Previous wording
(2)Refer to Note M – Commitments, Contingencies and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Current wording
(3)Future minimum royalty and advertising payments represent our obligation in connection with our licenses agreement. Refer to Note 13 – Commitments, Contingencies, and Other to the Condensed Consolidated Financial Statements included in this Quarterly Report for further information.
Previous wording
As of the date of this report, we have employment agreements with our Founder and Creative and Design Chief, Steven Madden, and certain executive officers, which provide for the payment of compensation aggregating to approximately $2,672 through the remainder of 2024, $10,368 in 2025, $9,396 in 2026, $8,589 in 2027, $8,549 in 2028, $7,942 in 2029, and $7,746 in each of the years 2030 and 2031. In addition, some of these employment agreements provide for incentive compensation based on various performance criteria and some provide for discretionary bonuses as well as other benefits, including stock-based compensation.
Current wording
(4) We have employment agreements with our Founder and Creative and Design Chief, Steven Madden, and certain executive officers, which provide for the payment of compensation. In addition, some of these employment agreements provide for incentive compensation based on various performance criteria and some provide for discretionary bonuses as well as other benefits, including stock-based compensation.
Previous wording
In addition to the commitments included in the Contractual Obligations table above, we have outstanding letters of credit of $504 outstanding as of September 30, 2024 related to the purchase of inventory. These letters of credit expire at various dates through 2030.
Current wording
In addition to the commitments included in the Contractual Obligations table above, we have outstanding letters of credit of $829 outstanding as of March 31, 2025 related to the purchase of inventory and lease obligations. These letters of credit expire at various dates through 2032.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•Wholesale Accessories/Apparel. This segment designs, sources, and markets our brands and sells our products, primarily consisting of handbags and apparel, to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
Current report — wording carried from elsewhere
•Direct-to-Consumer. This segment engages in the sale of footwear, handbags, apparel, and other accessories through Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores, directly-operated concessions in international markets, and directly-operated e-commerce websites. We operate retail locations in regional malls and shopping centers, as well as high streets in various cities across the United States, Canada, Mexico, and Europe, as well as through our joint ventures in international markets.
Current report — wording carried from elsewhere
•Licensing. This segment engages in the licensing of the Steve Madden® and Betsey Johnson® trademarks for use in the sale of select apparel, accessories, and home categories as well as various other non-core products.
Current report — wording carried from elsewhere
On May 6, 2025, our Board of Directors approved a quarterly dividend of $0.21 per share payable on June 20, 2025 to stockholders of record as of the close of business on June 9, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The following tables set forth information on operations for the periods indicated: