SHOO - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Q4 and Full Year 2021 Steve Madden, Ltd. Earnings Conference. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today’s conference is being recorded. go now today, hand Corporate Danielle Investor and would to conference Development I Relations, speaker your McCoy, please Instructions] like the to over and [Operator ahead. Director of

Danielle McCoy

morning, Thanks, Stevie Fourth and Year Full Thank Webcast. for Earnings and joining Quarter Call everyone. XXXX [ph], our you good and

release on Act. Securities call, at be materially expressed remind of begin, your financial all. risks issued GAAP basis that statements. these statements questions, to to earnings results by to comparable The our directly Reform obligation with forward-looking updated within that meaning you Litigation These to others, the statements subject could that in until in to financial results forward-looking discussed we quarterly among are forward-looking Private and Before disclaim associated filings the statements our most may be today contained A differ today’s call otherwise are disclosures update We like SEC. noted. follow, unless earlier matters not remarks cause actual have the contain if that our we These we such or next to on that I’d the conference risks our and reconciliation other adjusted make measure include, those any forward-looking which statements, including press release. an are discussed to we believe from earnings implied answers

Executive and Officer. that, call With Joining Ed. over the the Ed Financial Chief call Zine I’ll Mazouzi, and are Chairman Officer; today Rosenfeld, turn Chief to

Edward Rosenfeld

diluted for increasing EPS pre-pandemic XXXX. increased quarter record XXX% reached saw compared a operating margin capping quarter year delivered quarter revenue results to XXXX joining We in company diluted the review and XX% everyone, and our compared morning, and XX% Thanks, EPS outstanding Danielle. Good for you increasing fourth the results. us Steve year XX% fourth and full and fourth XXXX, with Madden’s to thank to

success our initiatives, of on result disciplined creation growth extraordinary the of that our XXXX Our we us initiatives these strategic our strong focus in for and confident their efforts forward. and going of employees value and are was positions the execution continued

one number others, continuing all our connection is consumers. deepen to that one our the the underpins with initiative, Our and

We and by utilizing our and notably most to assortments model, that in with our us competition we Steve are test Dolce product. react design outperform winning strategy the brands. doing right combines trend and this speed-to-market are and teams, share, industry-leading first foremost enabling talented Vita an By and proven Madden market which delivering a capability, are take product

Looking ahead our to XXXX, consumers. with priority on-trend will that products to remain our innovative and continuing resonates top unchanged, deliver

We campaign great the of our product approach as that been are full with in fall this to instrumental have campaigns in also digital in This always-on like this brand in engagement enhanced larger well marketing e-commerce includes XXXX. we our continue funnel consumers. will invest with Maddenverse growth. and And as XXXX marketing supporting and activities our influencer

fueling it’s consumers our our business, strategic connections direct-to-consumer driving them, initiative, our strengthen digital. our focus we by sharpen core progress our our As with on on and next led

to Our and XXXX which XXXX DTC from continue versus in enhancements operating site the from digital margin marketing segment company’s ongoing as led business DTC talent, our way pay with revenue dividends. in E-commerce, our and XXXX XXX% of investments revenue in versus X.X% represents over with XX% increasing increasing XX% DTC the now to and drove XXXX, growth XXXX expanding in XX% XX.X% XXXX.

global full brick-and-mortar increasing comp brick-and-mortar quarter XXXX. X% was year strong to Our as each the compared sales with for well throughout the revenue business trends year accelerating store and

taken line the are bottom gains confident prior it and is in while fundamentally comparisons the to in in in we have X As than have that to last this the of are the mindful top was XXXX, we to stronger years pandemic DTC business difficult and we we channels. segment, a that we actions resulted look drive continue DTC that can

key of footwear. outside initiative strategic is expanding our next Our business

significant category BB year performance in continues see Madden the business for Based the from we double-digit compared and wholesale another label the Madden and the from rewards been In Madden Over transition we in Madden Initial channels, long-term targeting of apparel, in we several key has exceptional opportunity in those for the XX% are at change investments this by Madden have in we business and open-to-buy increased fall just very Steve of customers. poised are driven Steve sell-throughs to increased efforts. customers time to on the decided label apparel, of brand last apparel revenue XX% is XXXX, have growth and revenue Steve handbag XXXX. building Madden reaping for strong nearly our are response to Dakota years, wholesale in XXXX. Dakota we growth co-branded XXXX. made we and commitments the Steve the significant BB from handbag momentum XXXX its right the to to DTC see Steve Steve we positive,

momentum marked long-term the XXXX is we business. international our Another international in market growth important our key and April acquired European already only accelerated in of took of fastest-growing did we recent ownership joint full that growing the priorities our opportunities in and interest our since in one we venture. an has milestone Europe own there when largest our remaining development has region. our years, our not been

XX% business Europe to leading reach For way revenue region XXXX, XX% time. EMEA grew our $XXX annual acquired and in the for million first the the for the year, versus versus we XXXX

markets also and international down on And to strengthening international expansion even key to we remain markets gains we a due in continue DTC, double-digit as significant other across for driver years XXXX can COVID our be U.S. category product wholesale our for come. XXXX we of some growth focus of core international for revenue year for the to growth, our footwear and business. positioned are earnings drive While company the to and believe impacts, business lingering all

this business was in While was eventually, in acceleration pressure And our year. significant sell-through half first in the our the with of XXXX, customers wholesale strong a back half. revenue under significant throughout the performance orders in reacted still

Our XXXX, second half U.S. revenue wholesale revenue footwear up or Spade the excluding Kate XX% XX% in was discontinued XXXX. to from license

in performance. the faced in XXXX. in a in the to Vita brand comparisons Our performance XX% that confident largest core XX% half we our brands revenue delivered we as Steven first wholesale wholesale drove relatively and compared easy U.S. as Madden X XX% on XXXX, back Dolce half, up including this increase increase we was a Women’s, footwear the Madden Based growth can XXXX. continued footwear double-digit and momentum in our sell-through U.S. business in well are drive Steve

Steve life out minimize progress Dolce of Madden maximize the corporate Planet work impacts of launches Madden we social communities. people as initial Highlights and resale and the year most the our to on included important with and impacts to our and Re:Vita, for meaningful and adaptive our initiatives the Kids Finally, continue keep that Foundation products marking and them charitable negative Fund, the will last positive marketplaces step of from towards Steve recently, Madden our our and and launch of establishment the Steve Steve by on responsibility landfills, we giving Cool University Madden the Howard our environmental Vita average partnerships circularity. make collections, an of we for Fearless in Re-Booted have our the extend journey our

will fourth Going to remain forward, for and and company strategic it for Steve and provide outlook continuing Zine made earnings and our meaningful initial to initiatives to sustainable that on embedded advance growth our XXXX. And key strategy. critical our I’ll in we a years of revenue record part the full for XXXX we progress and is CSR more Madden. the come. to detail delivered was Overall, review results incredible XXXX everything turn now, that for year and our CSR position strong goals financial quarter over do We an ensuring in results, year

Zine Mazouzi

good morning, Thanks, Ed, and everyone.

in revenue fourth to XX.X% the a compared versus XX.X% quarter increase a was million, XXXX and XXXX. consolidated Our $XXX.X increase

year last we with due XX.X% a international to revenue compared including e-commerce revenue global performance. XX.X% Wholesale XXXX. as Anne Betsey XX increased was compared up the to recording revenue U.S., was XXXX brick-and-mortar called comp direct-to-consumer brick-and-mortar XX.X% were up able from from Wholesale was Our strong, XX.X% XX% to a Outside $XXX.X with apparel stores, also accessories a our versus increase increase retail grew XX.X% concessions In revenue a Strength increases million, XXXX. revenue as year of $XXX.X Private Madden and than Johnson was increase stores, prior versus wholesale forward stores XXXX. million, websites Dakota XX and than and revenue XX.X% footwear as brand XXXX. private well once from up Steve E-commerce that was from compared as company-operated XX.X% in the channels to apparel again up We pull than brick-and-mortar to comparable handbags Both a segment, delivering outstanding revenue in QX versus revenue was XXXX and to broad-based $XXX.X year more all the $XXX.X XX% the XX.X% tripling XX% outlets comp Steve and sales million, more XXXX e-commerce ended the with Vita well label compared Retail gain. than In period million, to compared and was highlight increase XXXX. Klein, Madden, compared U.S., Dolce XXX.X% orders XX.X% Steve saw XXXX. was up Europe Madden more to and BB previously to our XXXX. segment, compared to increased the domestic In to XX% XXXX XXXX, with XX% markets. and revenue store XXX XXXX. XXXX. X and label partially and more

to Turning First Licensing our segments. and Cost

million million compared in and Our was income last million $X.X Licensing $X XXXX. the in year $X.X quarter royalty to

last and and in million million in points result points income to and quarter, the in prices XXXX. the First XX.X% improvement year expanding from XXXX. was activity, margin quarter million $XXX.X was was nonrenewal year GSP. a Direct-to-consumer partially margin the XXXX. higher XX.X% markdowns, Cost Wholesale and offset XX.X% $X.X XXXX by rates average and Consolidated by was XXXX compared compared in from increased expenses increased of were commission up XX.X% reduction than XX.X% more XXX prior in in $X.X Operating increase in last million XXX last to to million The last driven lower XX.X% XXXX. was to compared to compared margin which compared freight basis the selling $XXX.X the was basis year XX.X% to expense. million to compared gross year $X.X and freight promotional offset the XXXX. headwinds $XXX.X of year and gross gross The

revenue, in from $XX.X for $XX or of reflecting operating revenue. on $XX.X XXXX. XXXX, XX.X% million XX% to of percentage revenue, Operating last compared X.X% was quarter in a revenue in up quarter of the XX% the were year As and of or income expense revenue million increased expenses leverage million X.X% or the

to effective compared in tax XX.X% Our XXXX. rate in and was XXXX X.X% for quarter the XX.X%

net Finally, $X.XX diluted XXXX or was in up Steve $XX.X share share million $X.XX or or diluted share, the per XXXX. $XX.X Madden, Ltd. to attributable in quarter $X.XX per from income per million million and $XX.X for diluted

December XX.X% Total billion was results. increased Net Now XXXX, prior million $XX.X billion million from ended XX, $XXX.X on year like from XX, XXXX. diluted diluted year to Madden, share XXXX full or briefly for diluted I’d increased $X.X compared per revenue year and per X.X% the year $XXX.X or for share the or $X.X and to $X.X year $X.XX share Steve income December for XX, XXXX the to XXXX. million in ended touch for attributable $X.XX in ended to Ltd. $X.XX per our December billion the

Moving to the balance sheet.

Our financial strong. foundation very remains

year last short-term in-transit XXXX. XX% in approximately of totaled $XXX.X XXX% and of investments compared to XX% no up $XXX.X of our $XXX.X disruption, XX% XXXX. compared chain of million to the On-hand and supply December we XX, approximately had cash global inventory million compared end debt. to was equivalents fourth the up inventory cash, As was Inventory and to to and at due quarter XXXX million Note that quarter $XXX.X at represented compared million inventory XXXX. end XXXX,

million. Our CapEx in the $X was quarter

repurchased acquired we million, for quarter, the through shares $XX.X During stock awards. million net shares approximately includes the of settlement X employee which

be stock acquired cash million, includes As an The to through awards. the $X.XX the shares of Directors March shares XXXX. close on for dividend. repurchases XX, share, X.X approved $XXX.X increase previous of dividend the the per stockholders the XXXX. we in dividend returned XXXX, payable again net will quarterly full from settlement an to of combining the quarterly as share The repurchased XX% increase in year, dividend, employee approximately for XX, of business we of When company’s million shareholders of and record million on to $XXX.X March which Board

outlook. Turning to our

to EPS the expect and range diluted XX% increase to be XXXX, we expect revenue We to in XX% to of to $X.XX $X.XX. compared

terms seasonality, they between is and less earnings to and similar revenue revenue earnings expected In were be to and The split be of first than in expected XXXX. to XXXX. second are half back-half-weighted half

to questions. Now, the operator call for I would the like Operator? to over turn

Operator

of proceed. BTIG. you. Instructions] first [Operator question Thank Lyon from Camilo Please Our comes

Camilo Lyon

environment. hoping issued the that just a morning. you revenue a little Thanks, maybe and and bit in a on tough talk how color the results more little was should I about could just bit flow. more Really cadence good we great for guidance

markdown you half costs, on out first think and similarly, you should I gross you’re play how this how about to margin, ocean? the and more the Thank particularly mix And said just year? similar help both puts with understand And you. that. XXXX. air full freight for are us price to into also be inputs the envisioning Maybe takes half thinking second to

Edward Rosenfeld

morning, Camilo. performance. words for Great. about thanks Good the kind the And

really think of said terms guidance seasonality, and In the Zine I it. the that

best to the look seasonality The unusual the was accelerating and it’s last XXXX. revenue and we I are XXXX the First year think half, year. that earnings, obviously both impacted to comparisons to by split, half second had throughout business the fact

at you’ll growth XXXX, the look you decelerating revenue to quarter comparisons. it if on see compared just each So based

are to. the In alluded about to there, we’re a there of flat on terms puts gross But moving gross takes and overall, margin for as XXXX. margin, forecasting be parts of lot the to you XXXX

sort there. of lot a there’s and So takes of puts

normalization I asked in think We back do bit some than we built promo though. meaning we some about in XXXX, activity, in to promotional saw the not have pre-pandemic activity. you levels, of little – a more expectation

approximately little in the pressure into not forecast little increases a we’re there no then of There’s of bit a to neutral built incremental that, price of of The does there’s there’s Obviously, abate, these is was the in pressures amount So for pressure but a that. we’ve pressure impact assumed significant bit built year price XXXX. that big FOB increases a our that XXXX, and XXXX. from from full seeing. also pressure we’ve implemented. freight that of that some And we’ve through offset –

So I that’s helpful. hope

Camilo Lyon

outlook, of mean assumption that’s clarify, to in very just helpful. right? the I being GSP is No, no this initial there renewed

Edward Rosenfeld

correct. That’s

Camilo Lyon

points last And was basis XX it year about impact?

Edward Rosenfeld

I we consolidated, points. think the XX about had basis

Camilo Lyon

then And Perfect. it. Got just wrap-up… a

Zine Mazouzi

is This Zine.

now. to passed bill the along GSP, the been As for back has Senate pushed mainly the you and lines the party know in house

one straight X, was benefits. the we and down bit it a party version right may reconciling So that long. ago on months that that longer Senate has and take the retroactive it And they’re passed. doesn’t I several we the retroactive that bill the hopefully, the that if were version Both lines, have February take now, hoping benefits think passed House very currently X passed House one bills, for. Senate than as The little But the of believe. given the

Camilo Lyon

And final Yeah. just which on get question COMPETES That’s a should on America the bill, international. through. then

the and the progression European sits help versus margin, where the understand should the business, you unfold? can and U.S., now ownership notwithstanding, international seeing how strength Given that today you’re worse of us that

Edward Rosenfeld

Yeah.

still points overall, the a business hundred – is gap margin that still it’s international we as not the to the at basis we U.S. look But over and expect below improving operating you time. do few that narrow If see

Camilo Lyon

All again. it. best and results great luck Got the Good guys.

Edward Rosenfeld

Thank you.

Zine Mazouzi

Thank you.

Operator

Thank you.

question next Our Paul Please proceed. Lejuez of comes from Citi.

Kelly Crago

our assume about supply are chain the delays question. Paul. curious for some I versus The for levels of ahead Kelly get your Thanks is XX% just inventory to XXXX, up inventory almost out This of on Crago is taking position. Hi. I’m there. which

curious you could state current comments your into improving So the could elaborate and the at And if supply strategy this chain all there. if make on you have any at you point. situation on the any visibility of

Edward Rosenfeld

think identified And Yeah, good inventory in Keep driving The inventory the end chain you’ve morning, in-transit just in the very we increase overall that’s up inventory. really the that comparing of on-hand is to as on-hand. with. lead DTC that’s Kelly. comfortable mix. DTC so here, the increase related And quarter. or – Yeah, also requires larger inventory of reason is more a there revenue the comfortable supply carries in remarks, year what’s the again, much XX% which or mind, the for it’s the of I for extended the percentage prepared inventory, heavier the up that remember articulated disruption. the And to reported the – that because Zine up sales big XXX%, with is time. XXXX was XX%, at we’re we’re the the The and the in-transit

XXX%. now about of XX working XX time divided average to And compared math, So XX just to XX by we’re in days XXXX do on the days transit pre-COVID. or about back was on at

as without the on based And be time. increase well. the in-transit any got transit So obviously, we’ve the growing then in inventory the business, XXX% should up business

very environment. to we’re we doing position, what this about do comfortable and we So inventory need feel the in

Kelly Crago

the that situation year? in comments you’re chain first Or and the of any this how improvement? of an into situation supply And can you on half are the thinking signs the visibility just about sort any seeing improve

Edward Rosenfeld

we’re No, not.

is But times seen the The been while is that still Freight meaningful we’ve dealing expensive. improvement. with good We’re a lead any really are still this for news I extended. now. haven’t –

we meet to So demand be built to planning deliver and our calendars prepared we we’ve products this the first that the into to think half. and able are in

Kelly Crago

And then how just business see strong about it. your to DTC on Got Great the this curious has been. business. comments

margin sit DTC of today margins is the EBIT a term this curious at versus Just relative that sort where point? longer believe something and historical EBIT is of driver you to business, this wholesale expansion

Edward Rosenfeld

last DTC – that’s than XX%. in top-line in question up it’s XXXX, your – story The to smaller really incredible us. I had on we’ve it’s the with to to was what’s actually over Yeah, business a the improvement the business for slightly been And in pretty the years. able of a And improvement been a that Compared over is the mean, the XXXX. been pretty store more deliver operating base we but important margin. exciting couple

it sub-X% XX.X% was So a delivered and margin again operating we XXXX. in in XXXX,

operating that really and So of company margin is achieve a a what sort to overall drives the as an overall – pretty meaningful – the exciting does is of going company we can and improvement meaningful forward.

Kelly Crago

Best of Got luck. Thank it. you.

Edward Rosenfeld

Kelly. Thanks,

Operator

you. Thank

Our B. next Riley. proceed. of Susan Anderson Please question comes from

Susan Anderson

for SG&A just maybe if the thoughts guide, some deleverage morning. if and could puts could my and margin could a on And Thanks that’s maybe the just bit, there. good if was little based this give about your I on Hi, you correct? you talk taking looks year. also, takes It question. wondering then SG&A for like it

Edward Rosenfeld

question. a It’s Yeah. good

looking the in guide, we’re least flat at can the to margin. for operating essentially margin. mentioned, high-end And see So at of you I gross the as think at we’re I guide flat looking mid-

So as of revenue that also a is SG&A flat. implies percentage that

revenue to the looking little end of So deleverage. be be essentially XX% growth we that that expecting that be But seeing typically seeing we’re because to That think of With to because, glad ourselves is the to potential would be if is revenue it growth, XXXX ability in as would expenses. The there a at neutral SG&A And we’d we low of a our kind high, leverage. to XXXX – on up of control we’re reason that’s the in points that flat. pride guide buckets to really you are basis that maybe the hundred headwinds SG&A couple having mentioned get mid at we sort you’re bit And there you we’re to looking I’m being delever. in revenue neutral. to XXXX a XX% forecasted, at percentage at typically, that X – very about of about of I SG&A offset brought have there.

received in we that that to benefits XXXX XXXX. in anniversary not is first we’re going The

rent would bucket So XXXX. think government abatements in in CARES other that concessions faster recovery than things second I happened got XXXX. Then the benefits some is That in in XXXX like be that international and be anticipated. got the that we we markets Act we and would

was and running there what low so had there unsustainably salaries the was at, our a but levels. our would And We period corporate call, payroll in revenue where back, retail were lean. come I unsustainably

in And so had people. we have to reinvest

so that’s bucket. second And the

we’re be, to marketing. really would third continue to in invest The going

smaller, And all to on and We go it back revenue this performance then regions. travel way got so and back is going but that see making. comes that’s as it’s up last is It’s not think just This our And is pre-pandemic, one see item an of again, but going where the international coming we’ve think top-of-funnel the well. to we marketing some to worth have in digital And again go marketing as as side. get investment brand you’re that percentage not to we our marketing a assumed time the was XXXX. customers back see well. line back. And

couple get fixed the headwinds. the points of the some a basis growing expenses, do putting remainder leverage hundred of the on of all to the about us to So we get together that year. neutral on Then, back for some of expenses, –

Susan Anderson

just expect just of deliveries continue of for due color that add give or spring strong any to if the year? Thanks. over-ordering? kind risk obviously wholesale you’re fourth the quarter, orders there’s you wholesalers there, was any seeing very follow-up. could cancellation in on could late trend fall, curious, and XX. you above to if Great. just And just either if and That’s a And helpful. then very I this I’m Do

Edward Rosenfeld

wholesale the Yeah. in very is The good. momentum business

Our sell-through has performance very been strong.

business taking customers, we be brands. key And We think mid-teens. the are in for key our wholesale can digits, double even in our low doubles, share up the year,

In be to your because was what first terms going versus comparisons. of of half, easier last second stronger the Was the half, of it’s it question? cancellations? first – part again, Yeah. in half the certainly And

Susan Anderson

Yeah. If there due I be later still is you wholesalers half since being growth? should the guess expect And to over-ordering. weaker, that a any just risk mentioned we back positive to or deliveries

Edward Rosenfeld

I think the back half, certainly not positive QX. in

that we I there it QX. a was think – in had just was special pretty quarter

plan So at now, least to down. as of going we’re QX

In terms still of of – by overall but QX, risk the in up way.

– In for having performance not of that, our we’re right risk cancellations, now. the from terms about there’s given consumer that always incredible of and we see some sell-through to just products concerned risk don’t demand but the terribly look, the we’re

Susan Anderson

so Okay. luck. Great. much. Thanks That’s very Good helpful.

Operator

Our next Please Sandler. of question Piper Erinn proceed. comes from Murphy

Erinn Murphy

Ed, mean, to parse is sustainable margins rate forward, from really achieved? any growth to the to range margins you going Good you from wanted morning. help is and I direct-to-consumer the SG&A about what Thank back us more Just expand circle come that in and you. XX% out do particular. XX.X% leverage? expansion I then margin Great. the going could the think feel

Edward Rosenfeld

Yeah.

But we’re XX% is year, time, there we’re is there? – flat. approximately the good. to So Over that gross certainly, little Maybe pretty margin, of plan in bit. some a this terms going room

anticipate grow to can So time. how much we that over cautious be want we about we

to I be operating the clear. want margin, On

year. are forecasting not margin DTC We operating in this expansion

fact, XX, laid into the we we’re guidance a again, XX something that’s attributable there, of little that In to built out SG&A contraction the like basis headwinds – maybe bit I that. points, earlier. And

Erinn Murphy

And helpful. as – did what Great. the DTC like about e-com as is you to looking top-line super line talk that well Okay. grow That’s bottom continuing Is dollars. within segment? overall the I guess, then, just

Edward Rosenfeld

I that again. double moderating mean, years, XXXX, believe seen that last of we’ve growth double digits. but digits Obviously, we For do from incredible the couple be could

Erinn Murphy

– on for Steve the you comments Has be to Can it you’ll call accounts remind name wanted in as big BB then in Madden. Dakota product? business just just the I apparel. said And your potential incremental to how you think terms today? earlier removing of fall, you is Great. And placement us that garnered that and that pivot I

Edward Rosenfeld

Yeah.

XXXX. does of because that and or for $XX in terms get said, probably the business, And accounts that some doors, somewhere as to the close Steve see some in et So additional maybe fall. new overall quite between come and we’re about wider XXXX. us $XX just the expanded giving we are million million growth because for growth of think the targeting of part to I we’re And – that opportunity not I XX% that $XX million more excited under Madden and we’re positioning accounts brand, assortment, cetera, of that

Erinn Murphy

way Is mostly in you’re Madden – you are you’re Great. into the are of splashier brand? kind you. that brands this question Or And be to campaigns focused portfolio Steve then other doing like leaning year. sounds going It this the that just Thank within last on the deeper year? marketing some there dollars. on a

Edward Rosenfeld

devoted majority But Steve Betsey because the other that’s to of investing there, we’re are consumers And obviously, we how also warranted is well, Dolce to too. dollars momentum, those continue the – really Madden. The Johnson I mean, – in vast much the our both and of it and the Vita brands. majority brands with than Yeah. have engage to as because want nice of bigger

Erinn Murphy

I’ll Thanks helpful. so much. hop That’s in. Great.

Edward Rosenfeld

Erinn. Thanks

Operator

you. Thank

Laura from proceed. question Capital. Loop Champine Please of comes Our next

Laura Champine

do to as come to congratulations of much opposed my you’re good to that you guidance. a on units? that question. year end Of mix taking guidance. price how growth looking question XX% nice from My for is and for Thanks this And the top-line XX% about expect year, to the

Edward Rosenfeld

low from, It’s end. brand it say, XX% product. the on it’s We high – raised would anywhere end prices I to a really the by I’d good varies say, and question. on But X%

So that’s a ASP. revenue growth and good from chunk AUR of the overall is coming

Laura Champine

Got you. it. Thank

Edward Rosenfeld

Laura. Thanks,

Operator

you. Thank

Tom Our comes Please next of Nikic Wedbush proceed. question Securities. from

Tom Nikic

my Thanks everyone. morning, good taking question. Hey, for

the Just a business. on follow-up DTC

of have kind just here. my I sure – I think want ducks I in row to make

grow wholesale. you be think like said kind pretty have of but is little this bit? helpful. than that do Like that of low-single-digit and would contextualize a rate should compares anything I kind slower Like you – it year, tough it probably you a growth that mid-single-digit growth, like growth? Can

Edward Rosenfeld

Yeah. terms to e-com with revenue of high-singles obviously double-digit DTC mid- growth. that’s we’re and forecasting in bricks-and-mortar. overall, Again, slower overall

Tom Nikic

how about think count? expect year? And you new of Like that we openings should this how a it. Got about couple Like store store do

Edward Rosenfeld

Yeah.

U.S. about opening up go You’ll international see markets. of store will – a a the handful flat, U.S. few be in count but stores bit. this little That’s we The not are a

Tom Nikic

good And this Ed. Thanks, luck year.

Edward Rosenfeld

you. Thank

Operator

you. Thank

question comes proceed. of from Poser Our Williams Sam Trading. next Please

Sam Poser

for Good Thanks my morning. questions. taking

things. a outside of few shifted business. flow of the of where talk you can Just production few you Asia more And a One, I’ve and that have timing to how got with are you’ve as about well.

Edward Rosenfeld

we’ve QX. moving hear similar China, trending Yeah. for Brazil Steve was know, a half place follow-up of the to outside the in that? Mexico I we’re spring products about primarily And you very talked XXXX. didn’t question XXXX. Madden approximately of Women’s What Sam, as fall and of for about

Sam Poser

it once long Like coming just unloaded? on I ask over how can long how question been didn’t quick you on up how but I it’s by – are it how the – is the taking QX. now? the is it’s guess pick boat, longer, long about other stuff or – No, docks – sitting

Edward Rosenfeld

think we’re when entire the the delays to talking trying there, about to XX, But incorporate Well, too. transit time. there XX I we’re are

Sam Poser

in air And I incremental freight what that you. guess? XXXX, the – XXXX airfreight did your percent air you then, how you – Got or have freight, much over had

Edward Rosenfeld

of So do really It’s wholesale. in our XXXX, if XXXX air. we that the low-single-digits most in to DTC you compare it’s

XXXX there was that and XXXX. think a But ended around to was there. airfreight Is XX%, little I in we right, at increase that compared XX% Zine?

Zine Mazouzi

Yeah. That’s correct. Yeah.

Sam Poser

you incremental can And dollars us what tell were? those

Edward Rosenfeld

the and A airing no, the I was my don’t lot. I top increase the per know, it between unit, increase we’re head. significant. in know don’t that the because percentage But the in of airfreight that off –

Sam Poser

did for impact Let gross me How year? points this. basis many ask margin you the it negatively

Edward Rosenfeld

consolidated? In DTC or the in

Sam Poser

total. In

Edward Rosenfeld

XXXX XXXX. in versus basis about got XXX point we’ve freight, Overall, negative impact it

Sam Poser

your positive issues, see, in in not which that back You so should all – other we positive theoretically that flow XXXX, come get fiscal XXXX, XXXX? in should because it through exceptionally And a should might be margin? hopefully, that but way should down of gross be to

Edward Rosenfeld

be again, We forecast we We we to – XXXX. have as intend built a less to given rate where – – to the part the particularly freight. built given it don’t impact XXXX, – they in today, impact. rates, there’s to were the early fly freight going in compared so. they freight the neutral negative we’re air in XXXX, going think of utilize air to Again, where are But as

the So overall, benefit. freight doesn’t air us incremental any give

Sam Poser

next Got it. Talking XXXX, about year? like

Edward Rosenfeld

[ph] to [We’re Yes. I benefit I certainly get do] am that XXXX. in XXXX, a able not Yes. apologize. hopeful we

Sam Poser

then… Okay. And

Zine Mazouzi

modeling they hopeful when XXXX get and that just they run when contracts negotiated, through in the Sam, we’re keep benefit, the we just get mind April. that, will April that

you’re the probably today, rates. of impacted negotiating you’re XXXX, increases. is be great So XXXX, this to part environment even freight in the get by what it not still will going that first And in in means if

Sam Poser

for that would if freight the it, helps. think. hopefully, air, I less – less of you’re mean, still if using cleared of should down ports a air out, go once way once cuts these But you’re course lot need get – But, using that I

Zine Mazouzi

– ocean, consolidated our of ocean a we you as via the lot And correct. more units do know. That’s

well. So that’s as a driver big

Sam Poser

success. All right. Well, thanks much very continued for

Zine Mazouzi

Thanks, Sam.

Operator

you. Thank

of Our next Jay from Please question comes UBS. proceed. Sole

Jay Sole

BB on – what to to follow-up think so years, growth would vision is like Madden? number. Madden wanted what X XXXX when mean Obviously, I you to see Thanks big – apparel about news. for I Steven XX% Steve business Great. X the you your a pretty company for what’s just it much. Dakota for Is the Ed, accomplish? the

Edward Rosenfeld

a It’s Jay. question, good

So great want customers the a I that have want take hitting just our for it we having target. numbers hot revenue want think for an we’re lack – about products I what right customers. love. of care to that on not better products be will now that, is themselves. It’s our great exciting important focused of do to be it I are a And about if we It’s And term.

Jay Sole

of lot more going that the a online. forward? wholesale physical for apparel distribution see forward? I What you want like channels? good is is distribution mean, distribution do presence of partners with to do company’s strategy the is have there going own strategy the you mean I Obviously, a within

Edward Rosenfeld

want do on stevemadden.com. we important Well, it to be

stores, if far apparel longer-term be as that carry own do ever that think our not bricks-and-mortar a as I stores would in would strategy. of we So built handful are that be doors. I put a – much it But really to our

So it’s be the wholesale stevemadden.com for to near-term. going and

Jay Sole

– that mentioned that sell worked consumer from do to confident signs I growing you big What you I knows Madden feel just business. over the consumer learned has on years, the what And Madden handbags footwear. Steve mean it. how do the hard ready build to everybody brand Got couple obviously, do buy you’ve of from brand past is Steve that Obviously, into strong really have to apparel? apparel? you about apparel? permission mean, What how you you’ve

Edward Rosenfeld

We’ve Steve been off a also line. – wholesale with on seen gives We’ve the doing we’ve BB monitoring And we’ve success to going full at And of years – the take go co-branded what confidence channel. the in us this obviously, stevemadden.com. been in Yeah. Madden. what’s Dakota force and seeing been to with selling couple the

understand show So intend we’re tell excited we that’s to got And we’ve but you. to you, it. do. – I We can we’ve got about what

Jay Sole

it. Got

much. so Okay. you Thank

Operator

you. Thank

from the comes next proceed. Please of Group. question Our Dana Telsey Telsey

Dana Telsey

things. nice a Good such morning. couple Congratulations fourth A quarter. on of

you and others. about as from hearing you think current are we’re the trends, flat And talked just – XXXX, then, did XXXX? in other impact recovery of we seeing that And as margins through think January? the we gross the any when As shaping you you as cadence are Omicron you there SG&A, should shape or is of go you that think about flat you. Thank

Edward Rosenfeld

a do we we it to a attribute the just which else, Thanks, in slowdown February, bit see seen a January, everybody we’ve rebound did Dana. about nice in like and then of Yeah, Omicron. trajectory of

of look, and for half, margin SG&A you of to cadence, we half, of split a percentage color and tried revenue a think the as back In for around gross terms some sense earnings first give I revenue. the

it. anything you. for else have So don’t about that’s I I think

Zine Mazouzi

and Dana, well the as on I think, [same the quarter] side QX [ph]. gave Ed last color a little for wholesale

Dana Telsey

you how how whether cost increases? thinking freight increases, headwinds, year? – about able it to price it offset? is are product does price this And timing of And of much Is increases it differ or price by category, the

Edward Rosenfeld

thoughtful gross about the we’re and to based does surgical we’ve to it. and the It But got X% implemented range vary is XX%. be trying products, Yeah. really sort the on those and to spring. between brand and able anywhere promo of for And some headwinds are on the seeing margin the achieve of normalization cost cetera. of that is And FOB activity, year in the flat we that how we’re context et the assuming for

Dana Telsey

you. Thank

Edward Rosenfeld

Thanks, Dana.

Operator

you. Thank

question from & Please next Marotta comes of Our King Associates. Steve proceed. CL

Steven Marotta

the Good trying Zine let quarter of reconcile you mentioned private basically in with earlier remarks, a was Can in that that pull into morning, the XQ lot supply chain. and about to your you there up beat the not XQ. Ed, size of prepared forward talk Danielle. I’m Ed, fourth label the a magnitude? in from

trying of the the I’m original label? between the to exception forward the and understand beat with guidance pull differential private from So

Edward Rosenfeld

that we QX to we million $XX from about QX – out talked was $XX the I into moving from QX. fall million think, when QX. had going We call, into Yeah. then, are And last maybe on we anticipated

I because being anticipated, private still this little It of out. pull probably label. forward a of ended than think bit would better some up $XX was of million we that fell that

net – but that’s a So number.

branded So into we so. out QX QX, forward, then moved had that goods and than private that pull in offset we as more that from label

Steven Marotta

Central America. correct? and expected Okay. in versus There’s That’s XXXX. helpful. variance material And XXXX that just no reiterating the South Is comments about sourcing from

Edward Rosenfeld

Correct.

Steven Marotta

much. Okay. Excellent. you Thank very

Edward Rosenfeld

Thanks.

Operator

would Thank for conference remarks. I Ed Rosenfeld you. back like turn closing the to now to

Edward Rosenfeld

thanks much with and Have Well, this day. on speaking you morning, look we Great. a for joining call. good very to the us forward next

Zine Mazouzi

Thank you.

Operator

concludes disconnect. participating, Thank This conference for may call. now you today’s you and

Steven Madden (SHOO) 27 Feb 222021 Q4 Earnings call transcript