Steven Madden (SHOO)

Risks

• The current COVID-19 coronavirus pandemic and related government, private sector, and individual consumer responsive actions have and could continue to affect our business operations, store traffic, employee availability, supply chain, financial condition, liquidity, and cash flow.
• The fashion footwear, accessories and apparel industry is subject to rapid changes in consumer preferences. If we do not accurately anticipate fashion trends and promptly respond to consumer demand, we could lose sales, our relationships with customers could be harmed and our brand loyalty could be diminished.
• We face intense competition from both established companies and newer entrants into the market. Our failure to compete effectively could cause our market share to decline, which could harm our reputation and have a material adverse impact on our financial condition, results of operations and liquidity.
• If we and the retailers that are our customers are unable to adapt to recent and anticipated changes in the retail industry, the sales of our products may decline, which could have a material adverse effect on our financial condition, results of operations and liquidity.
• The loss of Steve Madden, our founder and Creative and Design Chief, or members of our executive management team could have a material adverse effect on our business.
• If we are not successful in implementing our growth strategy or integrating acquired businesses, we may not be able to take advantage of certain market opportunities and may become less competitive.
• If one or more of our significant customers were to reduce or stop purchases of our products, our sales and profits could decline.
• Our financial results are subject to quarterly fluctuations.
• Extreme or unseasonable weather conditions in locations where we or our customers and suppliers are located could adversely affect our business.
• We extend credit to most of our customers in the United States, and their failure to pay for products shipped to them could adversely affect our financial results.
• Our stock price may fluctuate substantially if our operating results are inconsistent with our forecasts or those of analysts who follow us.
• Disruptions to our product delivery systems and failure to effectively manage inventory based on business trends across various distribution channels could have a material adverse effect on our business, financial condition, results of operations and liquidity.
• Our reliance on foreign manufacturers to provide materials or produce our goods in a timely manner or to meet our quality standards could cause problems if we experience a supply chain disruption and we are unable to secure an alternative source of raw materials or end products.
• Changes in trade policies and tariffs imposed by the United States government and the governments of other nations could have a material adverse effect on our business and results of operations.
• If our manufacturers, the manufacturers used by our licensees or our licensees themselves fail to use acceptable labor practices or to otherwise comply with local laws and other standards, our business reputation could suffer.
• Our global operations expose us to a variety of legal, regulatory, political and economic risks that may adversely impact our results of operations in certain regions.
• Our business is exposed to foreign exchange rate fluctuations.
• We may be subject to additional tax liabilities as a result of audits by various taxing authorities.
• Disruption of our information technology systems and websites could adversely affect our financial results and our business reputation.
• Our business and reputation could be adversely affected if our computer systems or the systems of our business partners or service providers, become subject to a data security or privacy breach or other disruption from a third party.
• Failure to adequately protect our trademarks and intellectual property rights, to prevent counterfeiting of our products or to defend claims against us related to our trademarks and intellectual property rights could reduce sales and adversely affect the value of our brands.
• A portion of our revenue is dependent on licensing our trademarks. The actions of our licensees or the loss of a significant licensee could diminish our brand integrity and adversely affect our revenue and results of operations.
• Changes in economic conditions may adversely affect our financial condition, results of operations and liquidity.
• Litigation or other legal proceedings could divert management resources and result in costs that adversely affect our operating results from quarter to quarter.
• Changes in tax laws could have an adverse effect upon our financial results.
• SEC rules relating to “conflict minerals” require us to incur additional expenses and could adversely affect our business.
• Any failure to maintain effective internal control over our financial reporting could materially adversely affect us.