Operating Segment Information

6 Months Ended

Jun. 30, 2020

Operating Segment InformationThe 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, 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, derives 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, apparel 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-merchants, 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 and fragrance. 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
June 30, 2020
Total revenue	$	77,966	$	22,018	$	99,984	$	41,379	$	252	$	1,197	$	142,812
Gross profit	21,744		4,806		26,550		27,889		252		1,197		55,888
(Loss)/income from operations	(10,699)		(4,404)		(15,103)		(8,933)		(172)		506		(23,702)
Segment assets	$	822,087	$	112,917	935,004		183,657		7,290		6,441		1,132,392
Capital expenditures					$	767	$	252	$	—	$	—	$	1,019
June 30, 2019
Total revenue	$	286,237	$	77,265	$	363,502	$	81,472	$	1,576	$	3,079	$	449,629
Gross profit	94,657		22,012		116,669		48,676		1,576		3,079		170,000
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

As of and for the six months ended,	Wholesale Footwear		Wholesale Accessories/Apparel		Total Wholesale		Retail		First Cost		Licensing		Consolidated
June 30, 2020
Total revenue	$	313,035	$	89,690	$	402,725	$	94,322	$	1,502	$	3,431	$	501,980
Gross profit	101,528		23,318		124,846		59,573		1,502		3,431		189,352
Income/(loss) from operations	18,392		(15,025)		3,367		(54,736)		(24)		1,443		(49,950)
Segment assets	$	822,087	$	112,917	935,004		183,657		7,290		6,441		1,132,392
Capital expenditures					$	3,417	$	903	$	—	$	—	$	4,320
June 30, 2019
Total revenue	$	562,825	$	148,772	$	711,597	$	144,317	$	3,934	$	5,569	$	865,417
Gross profit	192,978		43,928		236,906		85,436		3,934		5,569		331,845
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

Revenues by geographic area are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Domestic (a)	$	126,130	$	403,977	$	444,067	$	772,410
International	16,682		45,652		57,913		93,007
Total	$	142,812	$	449,629	$	501,980	$	865,417
(a) Includes revenues of $49,659 and $117,984 for the three and six months ended June 30, 2020, respectively, and $101,855 and $178,972 for the comparable periods in 2019 related to sales to U.S. customers where the title is transferred outside the U.S. and the sale is recorded by our international entities.