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Operating Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Operating Segment Information
Note 19 – Operating Segment Information
The Company has determined its reportable operating segments based on the internal management structure used by the Company’s Chief Operating Decision Maker (or “CODM”), who is its Chief Executive Officer, to evaluate performance and allocate resources. This structure organizes the business into distinct categories based on product types and sales channels. The Company’s reportable operating segments consist of the following:
•Wholesale Footwear. This segment designs, sources, and markets our brands and sells our products to department stores, mass merchants, off-price retailers, shoe chains, online retailers, national chains, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
•Wholesale Accessories/Apparel. This segment designs, sources, and markets our brands and sells our products, primarily consisting of handbags and apparel, to department stores, mass merchants, off-price retailers, online retailers, specialty retailers, independent stores, and clubs throughout the United States, Canada, Mexico, and Europe, and through our joint ventures and international distributor network.
•Direct-to-Consumer. This segment engages in the sale of footwear, handbags, apparel, and other accessories through Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores, directly-operated concessions in international markets, and directly-operated e-commerce websites. We operate retail locations in regional malls and shopping centers, as well as high streets in various cities across the United States, Canada, Mexico, and other international markets through our joint ventures.
•Licensing. This segment engages in the licensing of the Steve Madden and Betsey Johnson® trademarks for use in the sale of select apparel, accessories, and home categories as well as various other non-core products.
As of January 2023, the Company no longer serves as a buying agent for any of its customers, and as a result no longer reports under the First Cost segment. This change is not considered to have a material or meaningful impact on the Company's operations.
In addition, the Company has certain corporate-related costs (“Corporate costs” or “Corporate”) that are not directly attributable to its reportable operating segments. Accordingly, these corporate-related costs do not constitute a reportable segment. These costs are primarily associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services.
The Company’s CODM evaluates financial performance based primarily on gross profit and income from operations for each reportable operating segment. Gross profit is defined as revenue less cost of goods sold. Income from operations is defined as profit or loss from operations before interest and other income, net and income taxes. Gross profit is a key measure for assessing the efficiency of the segment in producing its products or services, focusing on the direct costs associated with production. Income from operations is a key measure for understanding the overall financial performance of each segment, taking into account both direct operational costs and indirect expenses. These measures are used together to evaluate segment performance and determine the appropriate allocation of resources to each segment.
The Company’s CODM does not evaluate the financial performance of each segment based on its respective assets or capital expenditures, and therefore, the Company does not report this information.
The following tables set forth information related to the Company's segments:
(in thousands)Wholesale FootwearWholesale Accessories/ApparelDirect-to- ConsumerFirst CostLicensing
Total(1)
For the Year Ended December 31, 2024
Total revenue$1,059,440 $662,673 $550,153 $— $10,661 $2,282,927 
Less: Cost of sales(2)
692,839 449,676 203,480 — — 1,345,995 
Gross profit366,601 212,997 346,673 — 10,661 936,932 
Less: Change in valuation of contingent consideration liability(2)
— 2,722 — — — 2,722 
Less: Impairment of intangibles(2)
— 8,635 1,700 — — 10,335 
Less: Salaries and related expense(2)
70,727 53,074 74,910 — 1,221 199,932 
Less: Other segment items(3)
104,662 58,132 239,093 — 379 402,266 
Income from operations$191,212 $90,434 $30,970 $— $9,061 $321,677 
(1) There were no inter-segment revenue transactions during any of the periods presented, and therefore, total segment revenue represents consolidated revenue.
(2) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(3) Other segment items in the Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer segments consist of the following: warehouse and shipping, advertising and promotion, occupancy, depreciation and amortization, and other miscellaneous costs. Other segment items in the Licensing segment consists of advertising and promotion and other miscellaneous costs.
(in thousands)Wholesale FootwearWholesale Accessories/ApparelDirect-to- ConsumerFirst CostLicensing
Total(1)
For the Year Ended December 31, 2023
Total revenue$1,048,448 $416,532 $506,494 $— $10,108 $1,981,582 
Less: Cost of sales(2)
677,817 281,364 189,987 — — 1,149,168 
Gross profit370,631 135,168 316,507 — 10,108 832,414 
Less: Impairment of intangibles(2)
— — 6,502 — — 6,502 
Less: Salaries and related expense(2)
65,135 33,312 69,324 — 1,193 168,964 
Less: Other segment items(3)
100,546 40,428 210,521 — 488 351,983 
Income from operations$204,950 $61,428 $30,160 $— $8,427 $304,965 
(1) There were no inter-segment revenue transactions during any of the periods presented, and therefore, total segment revenue represents consolidated revenue.
(2) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(3) Other segment items in the Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer segments consist of the following: warehouse and shipping, advertising and promotion, occupancy, depreciation and amortization, and other miscellaneous costs. Other segment items in the Licensing segment consists of advertising and promotion and other miscellaneous costs.
(in thousands)Wholesale FootwearWholesale Accessories/ApparelDirect-to- ConsumerFirst CostLicensing
Total(1)
For the Year Ended December 31, 2022
Total revenue$1,194,890 $394,676 $521,729 $916 $9,798 $2,122,009 
Less: Cost of sales(2)
763,809 294,591 189,773 — — 1,248,173 
Gross profit431,081 100,085 331,956 916 9,798 873,836 
Less: Change in valuation of contingent consideration liability(2)
— 5,807 — — — 5,807 
Less: Salaries and related expense(2)
64,295 28,464 67,342 151 1,177 161,429 
Less: Other segment items(3)
101,828 36,039 196,965 (1)767 335,598 
Income from operations$264,958 $29,775 $67,649 $766 $7,854 $371,002 
(1) There were no inter-segment revenue transactions during any of the periods presented, and therefore, total segment revenue represents consolidated revenue.
(2) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM.
(3) Other segment items in the Wholesale Footwear, Wholesale Accessories/Apparel, and Direct-to-Consumer segments consist of the following: warehouse and shipping, advertising and promotion, occupancy, depreciation and amortization, and other miscellaneous costs. Other segment items in the Licensing segment consists of advertising and promotion and other miscellaneous costs.
The following table reconciles total segment income from operations to income before provision for income taxes:
Year Ended December 31,
(in thousands)202420232022
Total segment income from operations$321,677 $304,965 $371,002 
Corporate costs(96,738)(91,743)(89,358)
Interest and other income - net5,538 7,392 676 
Income before provision for income taxes$230,477 $220,614 $282,320 
The following table presents capital expenditures by segment:
Year Ended December 31,
(in thousands)202420232022
Wholesale Footwear$3,146 $2,790 $802 
Wholesale Accessories/Apparel212 141 277 
Direct-to-Consumer19,188 12,061 6,380 
First Cost— — 4 
Corporate(1)
3,365 4,478 8,888 
Total$25,911 $19,470 $16,351 
(1) Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These costs are primarily related to expenses associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services.
The following table presents depreciation and amortization by segment:
Year Ended December 31,
(in thousands)202420232022
Wholesale Footwear$2,934 $2,452 $2,433 
Wholesale Accessories/Apparel4,465 2,569 9,439 
Direct-to-Consumer6,953 4,590 3,740 
Corporate(1)
5,658 5,890 4,964 
Total$20,010 $15,501 $20,576 
(1) Corporate does not constitute a reportable segment and includes costs not directly attributable to the segments. These costs are primarily related to expenses associated with corporate executives, corporate finance, corporate social responsibility, legal, human resources, information technology, cybersecurity, and other shared services.
The following table presents revenues by geographic area:
Year Ended December 31,
(in thousands)202420232022
Domestic(1)
$1,858,725 $1,601,098 $1,772,711 
International424,202 380,484 349,298 
Total$2,282,927 $1,981,582 $2,122,009 
(1) Includes revenues of $331,939, $272,794, and $305,437, respectively, for the years ended 2024, 2023, and 2022, respectively, related to sales to U.S. customers where the title is transferred outside the U.S. and the sale is recorded by the Company's international entities.