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 certain territories within Asia, Europe, North America (excluding the United States) and Africa and, under special distribution arrangements, in various other territories within Australia, the Middle East, India, South and Central America and New Zealand and pursuant to a partnership agreement in Singapore. The Retail segment, through the operation of Company-owned retail stores in the United States, Canada and Mexico, our joint ventures in South Africa, China, Taiwan and Israel 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 eyewear, outerwear, hosiery, activewear, sleepwear, jewelry, watches, hair accessories, umbrellas, bedding, luggage, fragrance and men’s leather accessories. 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, outerwear, sleepwear, activewear, jewelry, watches, bedding, luggage, umbrellas and household goods. The Licensing segment also licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of swimwear.



Year ended	Wholesale Footwear		Wholesale Accessories		Total Wholesale		Retail			First Cost			Licensing		Consolidated
December 31, 2018
Net sales to external customers	$	1,058,366	$	300,091	$	1,358,457	$	295,152		$	—		$	—	$	1,653,609
Gross profit	345,909		91,739		437,648		178,390			—			—		616,038
Commissions and licensing fees – net	—		—		—		—			(4,549		)	9,966		5,417
Income/(loss) from operations	140,138		27,092		167,230		735			(4,549		)	9,966		173,382
Depreciation and amortization					10,810		10,593			944			135		22,482
Segment assets	$	774,837	$	149,790	924,627		113,292			28,210			6,441		1,072,570
Capital expenditures					$	6,790	$	5,660		$	—		$	—	$	12,450
December 31, 2017
Net sales to external customers	$	1,017,557	$	256,295	$	1,273,852	$	272,246		$	—		$	—	$	1,546,098
Gross profit	332,367		80,729		413,096		164,645			—			—		577,741
Commissions and licensing fees – net	—		—		—		—			5,159			9,100		14,259
Income/(loss) from operations	133,014		23,637		156,651		(1,126		)	5,159			9,100		169,784
Depreciation and amortization					11,287		9,645			457			—		21,389
Segment assets	$	784,334	$	138,720	923,054		122,111			11,996			—		1,057,161
Capital expenditures					$	5,590	$	9,185		$	—		$	—	$	14,775
December 31, 2016
Net sales to external customers	$	881,864	$	254,931	$	1,136,795	$	262,756		$	—		$	—	$	1,399,551
Gross profit	279,835		84,422		364,257		157,726			—			—		521,983
Commissions and licensing fees – net	—		—		—		—			3,728			8,060		11,788
Income from operations	110,039		31,562		141,601		15,787			3,728			8,060		169,176
Depreciation and amortization					11,734		9,087			281			—		21,102
Segment assets	$	648,738	$	186,075	834,813		118,168			7,894			—		960,875
Capital expenditures					$	5,990	$	9,907		$	—		$	—	$	15,897

Revenues by geographic area are as follows:



	Year Ended December 31,
	2018		2017		2016
Domestic (a)	$	1,455,177	$	1,383,841	$	1,258,973
International	198,432		162,257		140,578
Total	$	1,653,609	$	1,546,098	$	1,399,551
(a) Includes revenues of $323,036, $329,107 and $312,491 for the years ended 2018, 2017 and 2016 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.