XML 35 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
Operating Segment Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Operating Segment Information
Operating Segment Information
 
The Company operates the following business segments: Wholesale Footwear, Wholesale Accessories, Retail, First Cost and Licensing. The Wholesale Footwear segment, through sales to department stores, mid-tier retailers, mass market merchants, online retailers and specialty stores, derives revenue, both domestically and internationally (via our International business), from sales of branded and private label women’s, men’s, girls’ and children’s footwear. The Wholesale Accessories segment, which includes branded and private label handbags, belts and small leather goods as well as cold weather and selected other fashion accessories, derives revenue, both domestically and worldwide (via our International business), from sales to department stores, mid-tier retailers, mass market merchants, online retailers and specialty stores. Our Wholesale Footwear and Wholesale Accessories segments, through our International business, derive revenue from Albania, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Kosovo, Lithuania, Latvia, Luxembourg, Mexico, the Netherlands, Norway, Poland, Romania, Russia, Slovakia, Slovenia, Sweden, Switzerland, and Tunisia and, under special distribution arrangements in various other territories within Asia, Australia, Europe, the Middle East, India, South and Central America and New Zealand. The Retail segment, through the operation of Company-owned retail stores in the United States, Canada, Mexico and South Africa and the Company’s websites, derives revenue from sales of branded women’s, men’s and children’s footwear, accessories and licensed products to consumers. The First Cost segment represents activities of a subsidiary that earns commissions and design fees for serving as a buying agent of footwear products to mass-market merchandisers, mid-tier department stores and other retailers with respect to their purchase of footwear. In the Licensing segment, the Company generates revenue by licensing its Steve Madden®, Steven by Steve Madden® and Madden Girl® trademarks and other trademark rights for use in connection with the manufacture, marketing and sale of outerwear, hosiery, activewear, sleepwear, jewelry, watches, hair accessories, umbrellas, bedding, luggage, and men’s leather accessories. The Company licenses its Stevies® trademark for use in connection with the manufacture, marketing and sale of outerwear exclusively to Target. In addition, this segment licenses the Betsey Johnson® trademark for use in connection with the manufacture, marketing and sale of women's and children's apparel, hosiery, swimwear, outerwear, sleepwear, activewear, jewelry, watches, bedding, luggage, stationery, umbrellas, and household

Note O – Operating Segment Information (continued)

goods; and furthermore, licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of women's and children’s apparel.

As of and for the three months ended,
 
Wholesale Footwear
 
Wholesale Accessories
 
Total Wholesale
 
Retail
 
First Cost
 
Licensing
 
Consolidated
March 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Net sales to external customers
 
$
261,364

 
$
51,952

 
$
313,316

 
$
53,071

 
$
—

 
$
—

 
$
366,387

Gross profit
 
85,448

 
16,113

 
101,561

 
31,157

 
—

 
—

 
132,718

Commissions and licensing fees – net
 
—

 
—

 
—

 
—

 
1,533

 
2,394

 
3,927

Income (loss) from operations
 
30,695

 
2,370

 
33,065

 
(6,212
)
 
1,533

 
2,394

 
30,780

Segment assets
 
$
764,386

 
$
59,019

 
823,405

 
109,955

 
10,610

 
—

 
943,970

Capital expenditures
 
 

 
 

 
$
1,391

 
$
1,902

 
$
—

 
$
—

 
$
3,293

March 31, 2016
 
 

 
 

 


 
 

 
 

 
 

 


Net sales to external customers
 
$
228,920

 
$
46,879

 
$
275,799

 
$
53,558

 
$
—

 
$
—

 
$
329,357

Gross profit
 
70,922

 
15,205

 
86,127

 
30,075

 
—

 
—

 
116,202

Commissions and licensing fees – net
 
—

 
—

 
—

 
—

 
585

 
1,586

 
2,171

Income (loss) from operations
 
28,930

 
1,914

 
30,844

 
(3,135
)
 
585

 
1,586

 
29,880

Segment assets
 
$
744,007

 
$
49,223

 
793,230

 
104,526

 
3,996

 
—

 
901,752

Capital expenditures
 
 

 
 

 
$
1,417

 
$
2,967

 
$
—

 
$
—

 
$
4,384

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Revenues by geographic area for the three months ended March 31, 2017 and 2016 are as follows:
 
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Domestic (a)
 
$
332,592

 
$
299,296

International
 
33,795

 
30,061

Total
 
$
366,387

 
$
329,357

(a) Includes revenues of $77,840 and $87,922 for the three months ended March 31, 2017 and 2016, respectively, related to sales to U.S. customers where the title is transferred outside the U.S. and the sale is recorded by our international business.