GlobeNewswire Inc | Feb 25, 2021 06:59AM EST

February 25, 2021

LONG ISLAND CITY, N.Y., Feb. 25, 2021 (GLOBE NEWSWIRE) -- Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel for women, men and children, today announced financial results for the fourth quarter and full year ended December 31, 2020, and the reinstatement of a quarterly cash dividend.

Amounts referred to as Adjusted exclude the items that are described under the heading Non-GAAP Adjustments.

The Company reclassified commission and licensing fee income to Total Revenue and reclassified its respective expenses into Operating Expenses from previously labeled Commission and Licensing Fee Income - Net on the Company's Consolidated Statement of Operations for each period provided.

For theFourth Quarter 2020:

-- Revenue decreased 15.9% to $353.0 million compared to $419.6 million in the same period of 2019. -- Gross margin was 38.3% compared to 37.7% in the same period of 2019. Adjusted gross margin increased 40 basis points to 38.2% compared to 37.8% in the same period of 2019. -- Operating expenses as a percentage of revenue were 31.8% compared to 33.1% in the same period of 2019. Adjusted operating expenses as a percentage of revenue were 30.9% compared to 30.0% in the same period of 2019. -- Income from operations totaled $21.3 million, or 6.0% of revenue, compared to $19.5 million, or 4.6% of revenue, in the same period of 2019. Adjusted income from operations was $25.6 million, or 7.3% of revenue, compared to Adjusted income from operations of $33.0 million, or 7.9% of revenue, in the same period of 2019. -- Net income attributable to Steven Madden, Ltd. was $22.6 million, or $0.28 per diluted share, compared to $17.8 million, or $0.21 per diluted share, in the same period of 2019. Adjusted net income attributable to Steven Madden, Ltd. was $21.8 million, or $0.27 per diluted share, compared to $32.2 million, or $0.39 per diluted share, in the same period of 2019.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, While the COVID-19 pandemic continues to have a negative impact on our business, we were pleased with our results in the fourth quarter, which exceeded our expectations and showed strong sequential improvement from the third quarter. We faced unprecedented challenges in 2020, but we relied on our strengths an agile business model, a strong balance sheet, and our talented and resourceful employees to successfully navigate the crisis. We continued investing in our brands and our digital capabilities while reducing expenses in other areas, and we utilized our test-and-react strategy and speed-to-market capability to quickly adjust our product mix to align with changing consumer preferences.

As we look ahead, we remain focused on delivering trend-right product, deepening connections with our consumers, enhancing our digital commerce business, and efficiently managing our inventory and expenses. And while we are cautious on the near-term outlook due to continued headwinds from COVID-19, we are confident that the steps we have taken during the crisis combined with the strength of our brands and our business model leave us well-positioned to capitalize on market share opportunities and create value for our stakeholders over the long term.

Fourth Quarter 2020 Segment Results

Revenue for the wholesale business decreased 16.2% to $263.0 million in the fourth quarter of 2020, including a 19.7% decline in wholesale footwear and a 5.9% decline in wholesale accessories/apparel. Gross margin in the wholesale business decreased to 28.3% in the fourth quarter of 2020 compared to 29.2% in the fourth quarter of 2019 due to the disposal of excess inventory resulting from COVID-19 disruption.

Retail revenue decreased 14.9% to $86.1 million in the fourth quarter of 2020 due to a significant decline in the brick-and-mortar business, partially offset by continued strength in the e-commerce business. Retail gross margin rose 400 basis points to 65.6% in the fourth quarter of 2020 compared to 61.6% in the fourth quarter of 2019 due primarily to less discounting.

The Company ended the quarter with 218 company-operated retail locations, including seven Internet stores, as well as 17 company-operated concessions in international markets.

The Companys effective tax rate for the fourth quarter of 2020 was (10.9%) compared to 15.9% in the fourth quarter of 2019. On an Adjusted basis, the effective tax rate for the fourth quarter of 2020 was 13.3% compared to 6.3% in the fourth quarter of 2019.

Full Year Ended December 31, 2020

For the full year ended December 31, 2020, revenue decreased 32.8% to $1.2 billion from $1.8 billion in 2019.

Net loss attributable to Steven Madden, Ltd. was ($18.4) million, or ($0.23) per basic share, for the year ended December 31, 2020 compared to net income attributable to Steven Madden, Ltd. of $141.3 million, or $1.69 per diluted share, for the year ended December 31, 2019. On an Adjusted basis, net income attributable to Steven Madden, Ltd. was $51.8 million, or $0.64 per diluted share, for the year ended December 31, 2020 compared to $162.8 million, or $1.95 per diluted share, for the year ended December 31, 2019.

Balance Sheet

As of December 31, 2020, cash, cash equivalents and short-term investments totaled $287.2 million.

Reinstatement of Quarterly Cash Dividend

The Company's Board of Directors approved the reinstatement of a quarterly cash dividend. The quarterly dividend of $0.15 per share is payable on March 26, 2021 to stockholders of record as of the close of business on March 16, 2021.

Fiscal Year 2021 Outlook

Given the continued disruption and uncertainty related to the ongoing COVID-19 pandemic, the Company is not providing guidance at this time.

Non-GAAP Adjustments

Amounts referred to as Adjusted exclude the items below.

For the fourth quarter 2020:

-- $5.1 million pre-tax ($3.9 million after-tax) expense in connection with payments and a provision for early lease termination charges, included in operating expenses. -- $1.7 million pre-tax ($1.4 million after-tax) expense associated with the impairment of a trademark. -- $1.2 million pre-tax ($0.9 million after-tax) benefit in connection with the change in valuation of contingent considerations, included in operating expenses. -- $1.1 million pre-tax ($0.9 million after-tax) benefit associated with the recovery from the Payless ShoeSource bankruptcy, included in operating expenses. -- $0.5 million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a joint venture, included in cost of goods sold. -- $0.2 million pre-tax ($0.2 million after-tax) expense in connection with restructuring and related charges, included in operating expenses. -- $4.2 million tax benefit in connection with the net operating loss carryback provision of the CARES Act. -- $0.5 million tax benefit in connection with the tax treatment of a prior-year bad debt. -- $0.7 million benefit in connection with adjustments attributable to noncontrolling interest.

For the fourth quarter 2019:

-- $8.9 million pre-tax ($8.9 million after-tax) expense in connection with vendor support associated with the Payless ShoeSource bankruptcy, included in operating expenses. -- $4.0 million pre-tax ($3.0 million after-tax) expense in connection with a provision for a legal settlement and related fees, included in operating expenses. -- $0.4 million pre-tax ($0.3 million after-tax) expense in connection with the termination of a joint venture, included in cost of goods sold. -- $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses. -- $0.2 million after-tax income in connection with the termination of a joint venture, included in net loss attributable to noncontrolling interest. -- $2.2 million tax expense in connection with deferred tax and other tax adjustments.

For the fiscal year 2020:

-- $44.3 million pre-tax ($33.8 million after-tax) expense associated with the impairment of certain trademarks. -- $36.9 million pre-tax ($27.9 million after-tax) expense in connection with the impairment of store fixed assets and lease right-of-use assets, included in operating expenses. -- $13.5 million pre-tax ($10.3 million after-tax) expense in connection with payments and a provision for early lease termination charges, included in operating expenses. -- $7.1 million pre-tax ($5.4 million after-tax) expense in connection with restructuring and related charges, included in operating expenses. -- $6.2 million pre-tax ($4.8 million after-tax) benefit in connection with the change in valuation of contingent considerations, included in operating expenses. -- $2.0 million pre-tax ($1.5 million after-tax) expense in connection with benefits provided to furloughed employees, included in operating expenses. -- $1.1 million pre-tax ($0.9 million after-tax) benefit associated with the recovery from the Payless ShoeSource bankruptcy, included in operating expenses. -- $0.7 million pre-tax ($0.5 million after-tax) expense in connection with a provision for a loan receivable, included in operating expenses. -- $0.5 million pre-tax ($0.4 million after-tax) benefit in connection with the termination of a joint venture, included in cost of goods sold. -- $0.9 million loss in connection with the impairment of store fixed assets, impairment of lease right-of-use assets, restructuring and related charges attributable to noncontrolling interest. -- $4.2 million tax benefit in connection with the net operating loss carryback provision of the CARES Act. -- $1.9 million net tax expense in connection with deferred and foreign uncertain tax position adjustments.

For the fiscal year 2019:

-- $8.7 million pre-tax ($8.6 million after-tax) expense in connection with vendor support, net of recovery of bad debt expense associated with the Payless ShoeSource bankruptcy, included in operating expenses. -- $5.4 million pre-tax ($4.1 million after-tax) expense in connection with early lease termination charges, included in operating expenses. -- $4.1 million pre-tax ($3.0 million after-tax) expense associated with the impairment of a trademark. -- $4.0 million pre-tax ($3.0 million after-tax) expense in connection with provision for a legal settlement and related fees, included in operating expenses. -- $1.9 million pre-tax ($1.4 million after-tax) net benefit associated with the change in a contingent liability and the acceleration of amortization related to the termination of the Kate Spade license agreement as of December 31, 2019. -- $1.1 million pre-tax ($0.8 million after-tax) expense in connection with the acquisitions of GREATS and BB Dakota, included in operating expenses. -- $0.7 million pre-tax ($0.5 million after-tax) expense in connection with restructuring and related charges, included in operating expenses. -- $0.4 million pre-tax ($0.3 million after-tax) expense in connection with the termination of a joint venture, included in cost of goods sold. -- $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses. -- $0.2 million after-tax income in connection with the termination of a joint venture, included in net income attributable to noncontrolling interest. -- $2.6 million tax expense in connection with deferred tax and other tax adjustments.

Reconciliations of amounts on a GAAP basis to Adjusted amounts are presented in the Non-GAAP Reconciliation tables at the end of this release and identify and quantify all excluded items.

Conference Call Information

Interested stockholders are invited to listen to the fourth quarter and fiscal year 2020 earnings conference call scheduled for today, February 25, 2021 at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto https://investor.stevemadden.com.An online archive of the broadcast will be available within two hours of the conclusion of the call and will remain available for 12 months following the live call.

About Steve Madden

Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel for women, men and children. In addition to marketing products under its own brands including Steve Madden, Dolce Vita, Betsey Johnson, Blondo, GREATS, BB Dakota and Mad Love, Steve Madden is a licensee of various brands, including Anne Klein and Superga. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Maddens wholesale distribution includes department stores, specialty stores, luxury retailers, national chains, mass merchants and online retailers. Steve Madden also operates retail stores and e-commerce websites. Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including ready-to-wear, outerwear, eyewear, hosiery, jewelry, fragrance, luggage and bedding and bath products. For local store information and the latest Steve Madden booties, pumps, mens and womens boots, fashion sneakers, slippers, dress shoes, sandals and more, visit http://www.stevemadden.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: may, will, expect, believe, should, anticipate, project, predict, plan, intend, or estimate, and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the Companys current beliefs, expectations and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the Companys control. The Companys actual results and financial condition may differ materially from those indicated in these forward-looking statements. As such, investors should not rely upon them. Important risk factors include:

-- the Company's ability to maintain adequate liquidity when negatively impacted by unforeseen events such as an epidemic or pandemic (COVID-19), which may cause disruption to the Company's business operations and temporary closure of Company-operated and wholesale partner retail stores, resulting in a significant reduction in revenue for an indeterminable period of time; -- the Companys ability to accurately anticipate fashion trends and promptly respond to consumer demand; -- the Companys ability to compete effectively in a highly competitive market; -- the Companys ability to adapt its business model to rapid changes in the retail industry; -- the Companys dependence on the retention and hiring of key personnel; -- the Companys ability to successfully implement growth strategies and integrate acquired businesses; -- the Companys reliance on independent manufacturers to produce and deliver products in a timely manner, especially when faced with adversities such as work stoppages, transportation delays, public health emergencies, social unrest, changes in local economic conditions, and political upheavals as well as meet the Companys quality standards; -- changes in trade policies and tariffs imposed by the United States government and the governments of other nations in which the Company manufactures and sells products; -- disruptions to product delivery systems and the Companys ability to properly manage inventory; -- the Companys ability to adequately protect its trademarks and other intellectual property rights; -- legal, regulatory, political and economic risks that may affect the Companys sales in international markets; -- changes in U.S. and foreign tax laws that could have an adverse effect on the Companys financial results; -- additional tax liabilities resulting from audits by various taxing authorities; -- the Companys ability to achieve operating results that are consistent with prior financial guidance; and -- other risks and uncertainties indicated from time to time in the Companys filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments or otherwise.

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS DATA

(In thousands, except per share amounts)

Three Months Ended Twelve Months Ended December December December 31, December 31, 2020 31, 2019 2020 31, 2019 (Unaudited) (Unaudited) (Unaudited) Net sales $ 349,066 $ 414,912 $ 1,188,943 $ 1,768,135Commission and 3,901 4,713 12,871 19,022licensing fee incomeTotal revenue 352,967 419,625 1,201,814 1,787,157Cost of sales 217,655 261,291 737,273 1,101,140Gross profit 135,312 158,334 464,541 686,017Operating expenses 112,224 138,855 451,873 505,153Impairment charges 1,745 ? 44,273 4,050Income / (loss) from 21,343 19,479 (31,605 ) 176,814operationsInterest and other 129 998 1,620 4,412income, netIncome / (loss) beforeprovision for income 21,472 20,477 (29,985 ) 181,226taxes(Benefit) / provision (2,338 ) 3,247 (11,704 ) 39,504for income taxesNet income / (loss) 23,810 17,230 (18,281 ) 141,722Less: net income /(loss) attributable to 1,219 (521 ) 116 411noncontrolling interestNet income / (loss)attributable to Steven $ 22,591 $ 17,751 $ (18,397 ) $ 141,311Madden, Ltd. Basic income / (loss) $ 0.29 $ 0.23 $ (0.23 ) $ 1.78per share Diluted income / (loss) $ 0.28 $ 0.21 $ (0.23 ) $ 1.69per share Basic weighted averagecommon shares 78,588 78,754 78,635 79,577outstanding Diluted weightedaverage common shares 81,414 83,381 78,635 83,646outstanding Cash dividends declared $ ? $ 0.15 $ 0.15 $ 0.57per common share

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(In thousands)

As of December 31, December 31, 2020 2019 (Unaudited) Cash and cash equivalents $ 247,864 $ 264,101Short-term investments 39,302 40,521Accounts receivable, net 277,715 254,637Inventories 101,420 136,896Other current assets 31,940 22,724Property and equipment, net 43,268 65,504Operating lease right-of-use assets 101,379 155,700Goodwill and intangibles, net 283,456 334,058Other assets 11,417 4,506Total assets $ 1,137,761 $ 1,278,647 Accounts payable $ 73,904 $ 61,706Operating leases (current & non-current) 132,849 171,796Other current liabilities 127,755 180,941Contingent payment liability 207 9,124Other long-term liabilities 12,677 13,856Total Steven Madden, Ltd. stockholders? 776,586 828,501equityNoncontrolling interest 13,783 12,723Total liabilities and stockholders? equity $ 1,137,761 $ 1,278,647

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW DATA

(In thousands)

Twelve Months Ended December 31, December 31, 2020 2019 (Unaudited) Net cash provided by operating activities $ 44,206 $ 233,780 Investing Activities Purchases of property and equipment (6,562 ) (18,311 )Maturity / sale of marketable securities and 1,678 27,736 short-term investments, netAcquisitions, net of cash acquired ? (37,173 )Net cash used in investing activities (4,884 ) (27,748 ) Financing Activities Common stock share repurchases for treasury (46,583 ) (101,768 )Investment of noncontrolling interest 359 3,248 Distribution of noncontrolling interest earnings ? (1,444 )Proceeds from exercise of stock options 1,609 6,212 Cash dividends paid (12,459 ) (48,426 )Net cash used in financing activities (57,074 ) (142,178 ) Effect of exchange rate changes on cash and cash 1,515 216 equivalents Net (decrease) / increase in cash and cash (16,237 ) 64,070 equivalents Cash and cash equivalents - beginning of year 264,101 200,031 Cash and cash equivalents - end of year $ 247,864 $ 264,101

STEVEN MADDEN, LTD. AND SUBSIDIARIES

NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

The Company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. Additionally, the Company believes the information assists investors in comparing the Companys performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business. The non-GAAP financial information is provided in addition to, and not as an alternative to, the Companys reported results prepared in accordance with GAAP.

Table 1 - Reconciliation of GAAP gross profit to Adjusted gross profit Three Months Ended Twelve Months Ended December 31, December December 31, December 2020 31, 2019 2020 31, 2019 GAAP gross profit $ 135,312 $ 158,334 $ 464,541 $ 686,017 (Gain) / loss inconnection with the (532 ) 386 (532 ) 386termination of a jointventure Adjusted gross profit $ 134,780 $ 158,720 $ 464,009 $ 686,403

Table 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses Three Months Ended Twelve Months Ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 GAAP operating expenses $ 112,224 $ 138,855 $ 451,873 $ 505,153 Expense in connectionwith payments / provision (5,083 ) ? (13,473 ) (5,424 )for early leasetermination charges Benefit in connectionwith the change in 1,213 ? 6,233 ? valuation of contingentconsiderations Recovery / (bad debtexpense) in connection 1,081 (8,946 ) 1,081 (8,687 )with the PaylessShoeSource bankruptcy Expense in connectionwith restructuring and (249 ) ? (7,138 ) (669 )related charges Expense in connectionwith impairment of store ? ? (36,895 ) ? fixed assets and leaseright-of-use assets Expense in connectionwith benefits provided to ? ? (1,991 ) ? furlough employees Expense in connectionwith a provision for ? (3,977 ) ? (3,977 )legal settlement andrelated fees Expense in connectionwith the termination of a ? (158 ) ? (158 )joint venture Expense in connectionwith provision for loan ? ? (697 ) ? receivable Expense in connectionwith the acquisitions of ? (42 ) ? (1,120 )GREATS and BB Dakota Net benefit in connectionwith the change in acontingent liability andthe acceleration of ? ? ? 1,868 amortization related tothe termination of theKate Spade licenseagreement Adjusted operating $ 109,186 $ 125,732 $ 398,993 $ 486,986 expenses

Table 3 - Reconciliation of GAAP income / (loss) from operations to Adjustedincome from operations Three Months Ended Twelve Months Ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 GAAP income / (loss) from $ 21,343 $ 19,479 $ (31,605 ) $ 176,814 operations Expense in connection withpayments / provision for 5,083 ? 13,473 5,424 early lease terminationcharges Expense in connection withimpairment of certain 1,745 ? 44,273 4,050 trademarks Benefit in connection withthe change in valuation of (1,213 ) ? (6,233 ) ? contingent considerations Recovery / (bad debt expense)in connection with the (1,081 ) 8,946 (1,081 ) 8,687 Payless ShoeSource bankruptcy Expense in connection withrestructuring and related 249 ? 7,138 669 charges Expense in connection withimpairment of store fixed ? ? 36,895 ? assets and lease right-of-useassets Expense in connection withbenefits provided to furlough ? ? 1,991 ? employees Expense in connection with aprovision for legal ? 3,977 ? 3,977 settlement and related fees (Gain) / loss in connectionwith the termination of a (532 ) 544 (532 ) 544 joint venture Expense in connection with ? ? 697 ? provision for loan receivable Expense in connection withthe acquisitions of GREATS ? 42 ? 1,120 and BB Dakota Net benefit in connectionwith the change in acontingent liability and theacceleration of amortization ? ? ? (1,868 )related to the termination ofthe Kate Spade licenseagreement Adjusted income from $ 25,594 $ 32,988 $ 65,016 $ 199,417 operations

Table 4 - Reconciliation of GAAP (benefit) / provision for income taxes toAdjusted provision for income taxes Three Months Ended Twelve Months Ended December 31, December December December 2020 31, 2019 31, 2020 31, 2019 GAAP (benefit) / provision $ (2,338 ) $ 3,247 $ (11,704 ) $ 39,504 for income taxes Tax effect of expense inconnection with payments / 1,209 ? 3,195 1,361 provision for early leasetermination charges Tax effect of expense inconnection with impairment of 385 ? 10,456 1,017 certain trademarks Tax effect of benefit inconnection with the change in (282 ) ? (1,472 ) ? valuation of contingentconsiderations Tax effect of recovery / (baddebt expense) in connection (149 ) ? (149 ) 85 with the Payless ShoeSourcebankruptcy Tax effect of expense inconnection with restructuring 70 ? 1,704 168 and related charges Tax effect of expense inconnection with impairment of ? ? 8,946 ? store fixed assets and leaseright-of-use assets Tax effect of expense inconnection with benefits ? ? 471 ? provided to furloughemployees Tax effect of expense inconnection with a provision ? 961 ? 961 for legal settlement andrelated fees Tax effect of (gain) / lossin connection with the (133 ) 136 (133 ) 136 termination of a jointventure Tax effect of expense inconnection with provision for ? ? 165 ? loan receivable Tax effect of expense inconnection with the ? 10 ? 281 acquisitions of GREATS and BBDakota Tax effect of net benefit inconnection with the change ina contingent liability andthe acceleration of ? ? ? (469 )amortization related to thetermination of the Kate Spadelicense agreement Tax benefit in connectionwith the net operating loss 4,191 ? 4,191 ? carryback provision of theCARES Act Tax benefit / (expense) inconnection with deferred and 472 (2,207 ) (1,921 ) (2,590 )foreign uncertain taxposition Adjusted provision for income 3,425 2,147 13,749 40,454 taxes

Table 5 - Reconciliation of GAAP net income / (loss) attributable tononcontrolling interest to Adjusted net income / (loss) attributable tononcontrolling interest Three Months Ended Twelve Months Ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 GAAP net income / (loss)attributable to $ 1,219 $ (521 ) $ 116 $ 411 noncontrolling interest Adjustments attributable to (698 ) 204 933 204 noncontrolling interest Adjusted net income / (loss)attributable to $ 521 $ (317 ) $ 1,049 $ 615 noncontrolling interest

Table 6 - Reconciliation of GAAP net income / (loss) attributable to SteveMadden, Ltd. to Adjusted net income attributable to Steve Madden, Ltd. Three Months Ended Twelve Months Ended December December December December 31, 2020 31, 2019 31, 2020 31, 2019 GAAP net income / (loss)attributable to Steven $ 22,591 $ 17,751 $ (18,397 ) $ 141,311 Madden, Ltd. After-tax impact of expensein connection with payments 3,874 ? 10,277 4,063 / provision for early leasetermination charges After-tax impact of expensein connection with 1,360 ? 33,817 3,033 impairment of certaintrademarks After-tax impact of benefitin connection with the (930 ) ? (4,761 ) ? change in valuation ofcontingent considerations After-tax impact of(recovery) / bad debtexpense in connection with (932 ) 8,946 (932 ) 8,602 the Payless ShoeSourcebankruptcy After-tax impact of expensein connection with 178 ? 5,434 501 restructuring and relatedcharges After-tax impact of expensein connection withimpairment of store fixed ? ? 27,949 ? assets and leaseright-of-use assets After-tax impact of expensein connection with benefits ? ? 1,519 ? provided to furloughemployees After-tax impact of expensein connection with a ? 3,016 ? 3,016 provision for legalsettlement and related fees After-tax impact of (gain)/ loss in connection with (399 ) 408 (399 ) 408 the termination of a jointventure After-tax impact of expensein connection with ? ? 532 ? provision for loanreceivable After-tax impact of expensein connection with the ? 32 ? 839 acquisitions of GREATS andBB Dakota After-tax impact of netbenefit in connection withthe change in a contingentliability and the ? ? ? (1,399 )acceleration ofamortization related to thetermination of the KateSpade license agreement Tax benefit in connectionwith the net operating loss (4,191 ) ? (4,191 ) ? carryback provision of theCARES Act Tax (benefit) / expense inconnection with deferred (472 ) 2,207 1,921 2,590 and foreign uncertain taxposition Less: Adjustmentsattributable to 698 (204 ) (933 ) (204 )noncontrolling interest Adjusted net incomeattributable to Steven $ 21,777 $ 32,156 $ 51,836 $ 162,760 Madden, Ltd. GAAP diluted income / $ 0.28 $ 0.21 $ (0.23 ) $ 1.69 (loss) per share Adjusted diluted income per $ 0.27 $ 0.39 $ 0.64 $ 1.95 share

Contact

Steven Madden, Ltd.Director of Corporate Development & Investor RelationsDanielle McCoy718-308-2611InvestorRelations@stevemadden.com