Operating Segment Information | Operating Segment Information 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 worldwide (via our International business), 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 Albania, Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Kosovo, Lithuania, Latvia, Luxembourg, Mexico, the Netherlands, Norway, Poland, Romania, Russia, Slovakia, Slovenia, Sweden, Switzerland, and Tunisia and, under special distribution arrangements in various other territories within Asia, Australia, Europe, the Middle East, India, South and Central America and New Zealand. The Retail segment, through the operation of Company-owned retail stores in the United States, Canada, Mexico and South Africa 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 outerwear, hosiery, activewear, sleepwear, jewelry, watches, hair accessories, umbrellas, bedding, luggage, and men’s leather accessories. The Company licenses its Stevies® trademark for use in connection with the manufacture, marketing and sale of outerwear exclusively to Target. 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, swimwear, outerwear, sleepwear, activewear, jewelry, watches, bedding, luggage, stationery, umbrellas, and household Note O – Operating Segment Information (continued) goods; and furthermore, licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of women's and children’s apparel. As of and for the three months ended, Wholesale Footwear Wholesale Accessories Total Wholesale Retail First Cost Licensing Consolidated March 31, 2017 Net sales to external customers $ 261,364 $ 51,952 $ 313,316 $ 53,071 $ — $ — $ 366,387 Gross profit 85,448 16,113 101,561 31,157 — — 132,718 Commissions and licensing fees – net — — — — 1,533 2,394 3,927 Income (loss) from operations 30,695 2,370 33,065 (6,212 ) 1,533 2,394 30,780 Segment assets $ 764,386 $ 59,019 823,405 109,955 10,610 — 943,970 Capital expenditures $ 1,391 $ 1,902 $ — $ — $ 3,293 March 31, 2016 Net sales to external customers $ 228,920 $ 46,879 $ 275,799 $ 53,558 $ — $ — $ 329,357 Gross profit 70,922 15,205 86,127 30,075 — — 116,202 Commissions and licensing fees – net — — — — 585 1,586 2,171 Income (loss) from operations 28,930 1,914 30,844 (3,135 ) 585 1,586 29,880 Segment assets $ 744,007 $ 49,223 793,230 104,526 3,996 — 901,752 Capital expenditures $ 1,417 $ 2,967 $ — $ — $ 4,384 Revenues by geographic area for the three months ended March 31, 2017 and 2016 are as follows: Three Months Ended March 31, 2017 2016 Domestic (a) $ 332,592 $ 299,296 International 33,795 30,061 Total $ 366,387 $ 329,357 (a) Includes revenues of $77,840 and $87,922 for the three months ended March 31, 2017 and 2016, respectively, 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. |