The following discussion of our financial condition and results of operations for the three months period ended March 31, 2021 should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. All references in this Quarterly Report to "we," "our," "us" and the "Company" refer to Steven Madden, Ltd. and its subsidiaries unless the context indicates otherwise. This Quarterly Report 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 our current beliefs, expectations and assumptions regarding anticipated events and trends affecting our 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 our control. Our 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:



•our ability to maintain adequate liquidity when negatively impacted by
unforeseen events such as an epidemic or pandemic (COVID-19), which may cause
disruption to our 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;
•our ability to accurately anticipate fashion trends and promptly respond to
consumer demand;
•our ability to compete effectively in a highly competitive market;
•our ability to adapt our business model to rapid changes in the retail
industry;
•our dependence on the retention and hiring of key personnel;
•our ability to successfully implement growth strategies and integrate acquired
businesses;
•our 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 their ability to
meet our quality standards;
•changes in trade policies and tariffs imposed by the United States government
and the governments of other nations in which we manufacture and sell products;
•disruptions to product delivery systems and our ability to properly manage
inventory;
•our ability to adequately protect our trademarks and other intellectual
property rights;
•legal, regulatory, political and economic risks that may affect our sales in
international markets;
•changes in U.S. and foreign tax laws that could have an adverse effect on our
financial results;
•additional tax liabilities resulting from audits by various taxing authorities;
•our ability to achieve operating results that are consistent with prior
financial guidance; and
•other risks and uncertainties indicated from time to time in our filings with
the Securities and Exchange Commission.

We do 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.

Overview:

($ in thousands, except earnings per share and per share data)

Steven Madden, Ltd. and its subsidiaries design, source, market and sell fashion-forward branded and private label footwear for women, men and children. In addition, we design, source, market and sell branded fashion handbags, apparel and accessories, as well as private label fashion handbags and accessories. We market and sell our products through better department stores, major department stores, mid-tier department stores, specialty stores, luxury retailers, value priced retailers, national chains, mass merchants, and online retailers, throughout the United States, Canada, Mexico and certain European nations. In addition, our products are marketed through our retail stores and our e-commerce websites within the United States, Canada and Mexico, our joint ventures in Europe, South Africa, Israel, Taiwan and China, and under distribution arrangements in Italy, the Middle East, South and Central America, Oceania and various countries in Asia. Our product lines include a broad range of contemporary styles designed to establish or capitalize on market trends, complemented by core product offerings. We have established a reputation for design creativity and our ability to offer quality products in popular styles at accessible price points, delivered in an efficient manner and time frame.




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Executive Summary

The impact of COVID-19 pandemic resulted in an unprecedented decline in our revenue and earnings during 2020 and included but not limited to, charges from adjustments to the carrying amount of certain trademarks, long-lived asset impairment charges and restructuring and other related charges. In 2021, despite the continued impact of the pandemic and supply chain disruption, our business saw improvements in our retail segment and improvements in sell-through performance at our wholesale partners.

Total revenue for the quarter ended March 31, 2021 increased 0.5% to $361,025 compared to $359,168 in the same period of last year. Net income attributable to Steven Madden, Ltd. was $21,197 in the first quarter of 2021 compared to net loss of $(17,451) in the same period of last year. The effective tax rate for the first quarter of 2021 decreased to 20.3% compared to 29.4% in the first quarter of last year. Net income was $0.26 per share on 81,889 diluted weighted average shares outstanding in the first quarter of 2021 compared to a loss of $(0.22) per share on 78,875 diluted weighted average shares outstanding in the first quarter of last year.

Our inventory turnover (calculated on a trailing twelve-month average) for the quarters ended March 31, 2021 and 2020 was 7.0 times and 8.0 times, respectively. Our total Company accounts receivable days outstanding increased to 79 days in the first quarter of 2021 compared to 72 days in the first quarter of 2020 primarily due to slower collections with the continued impact of the COVID-19 pandemic and mix of accounts. As of March 31, 2021, we had $272,990 in cash, cash equivalents and short-term investments, no debt and total stockholders' equity of $800,768. Working capital was $478,038 as of March 31, 2021, compared to $408,080 on March 31, 2020.











































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The following tables set forth information on operations for the periods indicated:

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