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 territories within Asia, 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 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 and Taiwan 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, 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, swimwear, outerwear, sleepwear, activewear, Note O – Operating Segment Information (continued) jewelry, watches, bedding, luggage, stationery, umbrellas, and household goods. The Licensing segment also licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of women's and children’s outerwear and swimwear. As of and for the three months ended, Wholesale Footwear Wholesale Accessories Total Wholesale Retail First Cost Licensing Consolidated 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 September 30, 2017 Net sales to external customers $ 300,565 $ 76,365 $ 376,930 $ 64,263 $ — $ — $ 441,193 Gross profit 102,891 24,877 127,768 38,123 — — 165,891 Commissions and licensing fees – net — — — — 2,028 2,718 4,746 Income/(loss) from operations 52,366 10,301 62,667 (1,970 ) 2,028 2,718 65,443 Segment assets $ 790,405 $ 139,852 930,257 128,198 12,948 — 1,071,403 Capital expenditures $ 1,348 $ 2,690 $ — $ — $ 4,038 As of and for the nine months ended, Wholesale Footwear Wholesale Accessories Total Wholesale Retail First Cost Licensing Consolidated 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 September 30, 2017 Net sales to external customers $ 799,837 $ 195,804 $ 995,641 $ 186,087 $ — $ — $ 1,181,728 Gross profit 263,368 62,349 325,717 112,288 — — 438,005 Commissions and licensing fees – net — — — — 4,864 5,974 10,838 Income/(loss) from operations 110,791 19,603 130,394 (3,114 ) 4,864 5,974 138,118 Segment assets $ 790,405 $ 139,852 930,257 128,198 12,948 — 1,071,403 Capital expenditures $ 3,800 $ 7,910 $ — $ — $ 11,710 Note O – Operating Segment Information (continued) Revenues by geographic area for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Domestic (a) $ 393,068 $ 388,350 $ 1,090,561 $ 1,061,867 International 65,414 52,843 152,688 119,861 Total $ 458,482 $ 441,193 $ 1,243,249 $ 1,181,728 (a) Includes revenues of $69,078 and $259,766 for the three and nine months ended September 30, 2018, respectively, and $87,662 and $258,603 for the comparable periods in 2017 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. |