About Steven Madden

Steven Madden, Ltd. and its subsidiaries design, source, and market fashion-forward branded and private label footwear, accessories and apparel for women, men, and children. The company distributes its products in the wholesale channel through 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 other international markets through its joint ventures in Israel, South Africa, China, Taiwan, Malaysia, and the Middle East along with special distribution arrangements in certain European countries, North Africa, South and Central America, Australia, and various countries in Asia. In addition, the company’s products are distributed through its direct-to-consumer channel within the United States, Canada, Mexico, and Europe, and its joint ventures in Israel, South Africa, China, Taiwan, and the Middle East. The company’s product lines include a broad range of contemporary styles designed to establish or capitalize on market trends, complemented by core product offerings. The company has established a reputation for design creativity and its ability to offer quality, trend-right products at accessible price points, delivered in an efficient manner and time frame. The company’s strategy for the continued growth of its business includes expanding its presence beyond footwear, accessories, and apparel through the selective licensing of its brands. Segments The company operates through five segments: Wholesale Footwear, Wholesale Accessories/Apparel, Direct-to-Consumer, First Cost, and Licensing. Wholesale Footwear This segment designs, sources, and markets the company’s brands and sells its 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 its joint ventures and international distributor network. The company’s Wholesale Footwear business consists of fashion-forward footwear for women, men, and children. The company’s products are designed and marketed for various lifestyles and include dress shoes, boots, booties, fashion sneakers, sandals, and casual shoes. The Wholesale Footwear segment primarily consists of the following brands: Steve Madden, Dolce Vita, Betsey Johnson, GREATS, Blondo, Anne Klein, Mad Love, and Superga. This segment also includes the company’s private label footwear business. This segment represented 56.3% of total revenue during 2022. Wholesale Accessories/Apparel This segment designs, sources, and markets the company’s brands and sells its products 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 its joint ventures and international distributor network. The company’s Wholesale Accessories/Apparel business primarily consists of handbags, apparel, small leather goods, belts, soft accessories, fashion scarves, wraps, gifting, and other trend accessories. The Wholesale Accessories/Apparel segment primarily consists of the following brands: Steve Madden, Anne Klein, Betsey Johnson, Cejon, and Dolce Vita. This segment also includes the company’s private label handbag and accessories business. This segment represented 18.6% of total revenue during 2022. Direct-to-Consumer This segment consists of Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores, and the company’s directly operated digital e-commerce websites. The company’s retail stores are located in regional malls and shopping centers, as well as high streets in major cities across the United States, Canada, Mexico, Israel, South Africa, Taiwan, China, and the Middle East. The company’s stores play an important role in its test-and-react strategy, and also serve as fulfillment and return locations for its e-commerce business. The company’s stores also serve as a marketing tool that allows it to strengthen global brand recognition and to showcase selected items from its full line of branded and licensed products. In addition to these testing and marketing benefits, the company has been able to leverage sales information gathered at Steve Madden retail stores and its websites to assist its wholesale customers in their order placement and inventory management. The company’s retail stores and websites enhance overall sales and profitability and its ability to react quickly to changing consumer demands. The company operates brick-and-mortar retail stores, including Steve Madden full-price stores, Steve Madden outlet stores and Dolce Vita full-price store. In addition, during 2022, the company opened two concessions in Taiwan and one concession in China, ending the year with 20 company-operated concessions in international markets. In addition to its stores, the company’s Direct-to-Consumer business offers products online through its e-commerce sites in the United States, Canada, Mexico, Europe, Israel, South Africa and Asia. The company operates branded e-commerce sites, which include: www.stevemadden.com, www.dolcevita.com, www.betseyjohnson.com, www.blondo.com, www.greats.com, and www.superga-usa.com. This segment represented 24.6% of total revenue during 2022. First Cost This segment represents commission-based activities where the company serves as a buying agent for footwear products under private labels for select national chains, and value-priced retailers. As a buying agent, the company utilizes its expertise and its relationships with shoe manufacturers to facilitate the production of private label product to customer specifications. Licensing This segment is engaged in the licensing of the Steve Madden and Betsey Johnson trademarks for use in the sale of select apparel, accessory, and home categories, as well as various other non-core products. Most of the company’s license agreements require the licensee to pay it a royalty based on actual revenue, a minimum royalty in the event the specified revenue targets are not achieved and a percentage of sales for advertising the brand. Brands Steve Madden: The company designs, sources, and markets fashion-forward footwear, accessories, and apparel for women, men, and children under the Steve Madden brand. The Steve Madden brand is a leader in the fashion footwear industry with permission from the customer to sell products across most footwear categories, including dress shoes, boots, booties, fashion sneakers, and casuals. While the brand appeals to a wide demographic, the core target consumer is 16 to 35 years old. The Steve Madden brand is sold globally, including the U.S., Canada, Mexico, Europe, Asia-Pacific, Africa, and Latin America. Dolce Vita: Dolce Vita is a contemporary women's brand known for its effortless style for the modern individual. Dolce Vita is more than just shoes and handbags, it’s about creating a community, supporting underrepresented voices, and responsibly building a brand that the company can be proud of with every step. The Dolce Vita brand is sold globally, including the U.S., Canada, Israel, Australia, and Indonesia. The company acquired the Dolce Vita footwear trademark in 2014 and in 2021, it acquired the remaining intellectual property rights of Dolce Vita, including handbags and other accessories. Anne Klein: The Anne Klein brand has a rich heritage going back over 50 years and is recognized for its dedication to timeless American classics. Anne Klein footwear and accessories are sold in the U.S., Canada, Mexico, and Israel. The company entered into a license agreement with WHP Global for a license to use the Anne Klein, AK Sport, AK Anne Klein Sport, and Lion Head Design (collectively ‘Anne Klein’) trademarks in connection with the design, marketing, and sale of footwear and accessories in 2018. Blondo: The Blondo brand is a 100+ year-old footwear brand recognized for its quality water-resistant leather boots, booties, casual shoes and sneakers. The Blondo brand is primarily sold in the U.S. and Canada. The company acquired the intellectual property and related assets of Blondo in 2015. GREATS: The GREATS brand is a Brooklyn-based, digitally native footwear brand founded in 2014 which specializes in premium quality, responsibly made sneakers for men and women. The GREATS brand is primarily sold in the U.S. The company acquired the GREATS brand in 2019. Mad Love: The Mad Love brand is a beach-to-the-street lifestyle brand created to appeal to women with a young attitude and active lifestyle, and marketed exclusively to Target Corporation. In spring 2021, Mad Love became a sustainable brand, designed and created with the mission to make the company’s earth a better place. Superga: In 2011, the company entered into a license agreement with Basic Properties America Inc. and BasicNet S.p.A., for the use of the Superga trademark in connection with the marketing and sale of footwear. The Superga license was terminated as of December 31, 2022. Distribution Wholesale The company’s products are distributed in its wholesale channel to over 2,000 retailers, including 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 other international markets through its joint ventures in Israel, South Africa, China, Taiwan, Malaysia, and the Middle East along with special distribution arrangements in certain European countries, North Africa, South and Central America, Australia and various countries in Asia. The company’s top ten wholesale customers, in no particular order, include: Nordstrom, Macy's, Dillard's, DSW, The TJX Companies, Ross Stores, Burlington Stores, Amazon, Walmart, and Target. Direct-to-Consumer The company’s Direct-to-Consumer channel consists of Steve Madden and Dolce Vita full-price retail stores, Steve Madden outlet stores, Steve Madden shop-in-shops and directly operated e-commerce websites. The company’s retail stores are located in regional malls and shopping centers, as well as high streets in major cities across the United States, Canada, Mexico, Israel, South Africa, Taiwan, China, and the Middle East. Through the company’s joint venture partnerships in China and Taiwan, it also has company-operated concessions. As of December 31, 2022, the company operated brick-and-mortar retail stores, including Dolce Vita full-price and Steve Madden outlet stores, and e-commerce websites. In addition, the company had 20 company-operated concessions in international markets. Marketing Principal top of funnel marketing activities include digital brand marketing, social media and influencer marketing, experiential events, in-store and online promotions, and public relations focusing primarily on digital product and brand placements, celebrity seeding, as well as public and media appearances. The company fosters high value lifetime customer relationships with investments in marketing technology and talent, both in-house and via strategic partnerships with external agencies. The company continues to promote its e-commerce websites where customers can purchase Steve Madden, Dolce Vita, Betsey Johnson, Blondo, and GREATS products. Trademarks The company considers its owned trademarks to be among its most valuable assets and have registered many of its marks in the United States and 149 other countries and in numerous International Classes. Trademarks to be most significant to the company’s business include Steve Madden, Madden Girl, Madden NYC, Betsey Johnson, LUV BETSEY by Betsey Johnson Design, Dolce Vita, DV, DV Dolce Vita, MadLove, Blondo, Blondo Waterproof plus Heart, Steven, SM Pass, and GREATS. The company licenses its Steve Madden trademark for use in connection with the manufacture, marketing, and sale of women’s outerwear, sleepwear and intimates, hosiery, jewelry, hair accessories, watches, eyeglasses, sunglasses, umbrellas, bedding and bath, luggage, fragrance, children’s apparel, and men’s leather accessories. The company licenses the Betsey Johnson trademark for use in connection with the manufacture, marketing, and sale of women's and children’s apparel, hosiery, fragrance and beauty, medical scrubs, jewelry, watches, eyeglasses, sunglasses, stationary, bedding and bath, luggage, umbrellas, and self-care products. Seasonality The company’s operating results are subject to some variability due to seasonality and other factors. The highest percentage of the company’s boot sales occur in the fall and winter months (its third and fourth fiscal quarters (year ended December 31, 2019)) and the highest percentage of the company’s sandal sales occur in the spring and summer months (its first and second fiscal quarters). Historically, some of the company’s businesses, including its Direct-to-Consumer segment, have experienced holiday retail seasonality. The company’s diverse range of product offerings, however, provides some mitigation to the impact of seasonal changes in demand for certain items. Competition The company’s competitors include specialty companies, as well as companies with diversified product lines. Many of these competitors, including Aldo, Sam Edelman, Lucky Brand and Vince Camuto. History Steven Madden, Ltd. was founded in 1990. The company was incorporated as a New York corporation in 1990 and reincorporated in Delaware in 1998.