Operating Segment Information

6 Months Ended

Jun. 30, 2019

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 internationally, 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.



As of and for the three months ended,	Wholesale Footwear		Wholesale Accessories		Total Wholesale		Retail			First Cost		Licensing		Consolidated
June 30, 2019
Net sales to external customers	$	286,237	$	77,265	$	363,502	$	81,472		$	—	$	—	$	444,974
Gross profit	94,657		22,012		116,669		48,676			—		—		165,345
Commissions and licensing fees – net	—		—		—		—			951		2,196		3,147
Income/(loss) from operations	38,429		4,750		43,179		(1,693		)	951		2,196		44,633
Segment assets	$	911,077	$	101,041	1,012,118		253,025			8,721		7,696		1,281,560
Capital expenditures					$	1,273	$	1,542		$	—	$	—	$	2,815
June 30, 2018
Net sales to external customers	$	252,134	$	69,271	$	321,405	$	74,348		$	—	$	—	$	395,753
Gross profit	78,956		22,045		101,001		46,773			—		—		147,774
Commissions and licensing fees – net	—		—		—		—			623		1,621		2,244
Income from operations	28,916		6,517		35,433		3,907			623		1,621		41,584
Segment assets	$	769,028	$	179,716	948,744		120,352			18,546		—		1,087,642
Capital expenditures					$	1,247	$	1,058		$	—	$	—	$	2,305

As of and for the six months ended,	Wholesale Footwear		Wholesale Accessories		Total Wholesale		Retail			First Cost		Licensing		Consolidated
June 30, 2019
Net sales to external customers	$	562,825	$	148,772	$	711,597	$	144,317		$	—	$	—	$	855,914
Gross profit	192,978		43,928		236,906		85,436			—		—		322,342
Commissions and licensing fees – net	—		—		—		—			535		3,839		4,374
Income/(loss) from operations	86,701		9,617		96,318		(11,399		)	535		3,839		89,293
Segment assets	$	911,077	$	101,041	1,012,118		253,025			8,721		7,696		1,281,560
Capital expenditures					$	2,965	$	3,249		$	—	$	—	$	6,214
June 30, 2018
Net sales to external customers	$	527,190	$	125,370	$	652,560	$	132,207		$	—	$	—	$	784,767
Gross profit	169,244		39,660		208,904		79,603			—		—		288,507
Commissions and licensing fees – net	—		—		—		—			1,491		4,412		5,903
Income/(loss) from operations	67,293		8,926		76,219		(3,981		)	1,491		4,412		78,141
Segment assets	$	769,028	$	179,716	948,744		120,352			18,546		—		1,087,642
Capital expenditures					$	2,772	$	2,479		$	—	$	—	$	5,251

Revenues by geographic area for the three and six months ended June 30, 2019 and 2018 are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Domestic (a)	$	399,309	$	356,271	$	763,624	$	697,866
International	45,665		39,482		92,290		86,901
Total	$	444,974	$	395,753	$	855,914	$	784,767
(a) Includes revenues of $99,284 and $174,106 for the three and six months ended June 30, 2019, respectively, and $93,655 and $190,688 for the comparable periods in 2018 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.