Operating Segment Information

9 Months Ended

Sep. 30, 2019

The Company operates the following business segments: Wholesale Footwear, Wholesale Accessories/Apparel, 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/Apparel segment, which includes branded and private label handbags, apparel, 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/Apparel 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/Apparel		Total Wholesale		Retail			First Cost		Licensing		Consolidated
September 30, 2019
Net sales to external customers	$	315,899	$	105,661	$	421,560	$	75,748		$	—	$	—	$	497,308
Gross profit	111,655		31,459		143,114		47,917			—		—		191,031
Commissions and licensing fees – net	—		—		—		—			635		1,522		2,157
Income/(loss) from operations	58,065		10,869		68,934		(3,050		)	635		1,522		68,041
Segment assets	$	869,117	$	122,995	992,112		271,288			11,364		7,701		1,282,465
Capital expenditures					$	2,251	$	746		$	—	$	—	$	2,997
September 30, 2018
Net sales to external customers	$	297,266	$	91,278	$	388,544	$	69,938		$	—	$	—	$	458,482
Gross profit	103,380		29,806		133,186		42,031			—		—		175,217
Commissions and licensing fees – net	—		—		—		—			2,390		2,604		4,994
Income/(loss) from operations	53,286		14,001		67,287		(2,077		)	2,390		2,604		70,204
Segment assets	$	777,027	$	204,165	981,192		122,635			21,232		—		1,125,059
Capital expenditures					$	1,899	$	1,014		$	—	$	—	$	2,913

As of and for the nine months ended,	Wholesale Footwear		Wholesale Accessories/Apparel		Total Wholesale		Retail			First Cost		Licensing		Consolidated
September 30, 2019
Net sales to external customers	$	878,725	$	254,432	$	1,133,157	$	220,065		$	—	$	—	$	1,353,222
Gross profit	304,635		75,386		380,021		133,352			—		—		513,373
Commissions and licensing fees – net	—		—		—		—			1,170		5,361		6,531
Income/(loss) from operations	144,766		20,487		165,253		(14,450		)	1,170		5,361		157,334
Segment assets	$	869,117	$	122,995	992,112		271,288			11,364		7,701		1,282,465
Capital expenditures					$	5,216	$	3,995		$	—	$	—	$	9,211
September 30, 2018
Net sales to external customers	$	824,456	$	216,648	$	1,041,104	$	202,145		$	—	$	—	$	1,243,249
Gross profit	272,624		69,466		342,090		121,634			—		—		463,724
Commissions and licensing fees – net	—		—		—		—			3,881		7,016		10,897
Income/(loss) from operations	120,579		22,927		143,506		(6,058		)	3,881		7,016		148,345
Segment assets	$	777,027	$	204,165	981,192		122,635			21,232		—		1,125,059
Capital expenditures					$	4,671	$	3,493		$	—	$	—	$	8,164

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Domestic (a)	$	428,554	$	393,316	$	1,192,178	$	1,091,182
International	68,754		65,166		161,044		152,067
Total	$	497,308	$	458,482	$	1,353,222	$	1,243,249
(a) Includes revenues of $85,298 and $259,404 for the three and nine months ended September 30, 2019, respectively, and $69,079 and $259,762 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.