Document And Entity Information
Document And Entity Information - $ / shares | 3 Months Ended | |||
Mar. 31, 2019 | May 06, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Document and Entity Information [Abstract] | ||||
Entity Registrant Name | STEVEN MADDEN, LTD. | |||
Document Type | 10-Q | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Common Stock, Shares Outstanding | 85,815,621 | |||
Amendment Flag | false | |||
Entity Central Index Key | 0000913241 | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Small Business | false | |||
Entity Emerging Growth Company | false | |||
Document Period End Date | Mar. 31, 2019 | |||
Document Fiscal Year Focus | 2019 | |||
Document Fiscal Period Focus | Q1 | |||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 160,256,000 | $ 200,031,000 | $ 125,383,000 |
Accounts receivable, net of allowances of $13,159, $10,849 and $884 | 31,362,000 | 25,057,000 | 58,759,000 |
Factor accounts receivable | 264,518,000 | 241,395,000 | 241,333,000 |
Inventories | 115,260,000 | 137,247,000 | 94,367,000 |
Marketable securities – available for sale | 61,383,000 | 66,968,000 | 54,669,000 |
Prepaid expenses and other current assets | 27,695,000 | 23,425,000 | 23,466,000 |
Operating Lease, Right-of-Use Asset | 181,896,000 | 0 | 0 |
Prepaid taxes | 590,000 | 9,002,000 | 24,509,000 |
Deferred taxes | 9,342,000 | 9,321,000 | 6,370,000 |
Total current assets | 661,064,000 | 703,125,000 | 622,486,000 |
Note receivable – related party | 1,835,000 | 1,927,000 | 2,199,000 |
Property and equipment, net | 63,657,000 | 64,807,000 | 69,599,000 |
Deposits and other | 1,995,000 | 1,967,000 | 2,233,000 |
Marketable securities – available for sale | 0 | 0 | 20,507,000 |
Goodwill – net | 148,345,000 | 148,112,000 | 149,331,000 |
Intangibles – net | 141,620,000 | 143,311,000 | 149,208,000 |
Total Assets | 1,209,754,000 | 1,072,570,000 | 1,021,933,000 |
Current liabilities: | |||
Accounts payable | 62,564,000 | 79,802,000 | 65,296,000 |
Accrued expenses | 99,887,000 | 130,592,000 | 101,912,000 |
Operating Lease, Liability, Current | 37,696,000 | 0 | 0 |
Income taxes payable | 0 | 0 | 1,566,000 |
Business Combination, Contingent Consideration, Liability, Current | 0 | 3,000,000 | 0 |
Accrued incentive compensation | 3,697,000 | 11,295,000 | 3,545,000 |
Total current liabilities | 203,844,000 | 224,689,000 | 172,319,000 |
Contingent payment liability | 3,000 | 0 | |
Business Combination, Contingent Consideration, Liability, Noncurrent | 0 | 0 | 3,000,000 |
Deferred rent | 0 | 15,786,000 | 15,654,000 |
Operating Lease, Liability, Noncurrent | 158,102,000 | 0 | 0 |
Deferred taxes | 4,041,000 | 4,041,000 | 3,602,000 |
Other liabilities | 13,221,000 | 13,372,000 | 19,136,000 |
Total Liabilities | 379,208,000 | 257,888,000 | 213,711,000 |
STOCKHOLDERS’ EQUITY | |||
Common stock – $.0001 par value, 135,000 shares authorized, 132,530, 131,991 and 131,261 shares issued, 85,729, 85,715 and 87,498 shares outstanding | 6,000 | 6,000 | 6,000 |
Additional paid-in capital | 431,228,000 | 424,835,000 | 397,135,000 |
Retained earnings | 1,240,004,000 | 1,217,521,000 | 1,152,616,000 |
Accumulated other comprehensive loss | (30,469,000) | (32,628,000) | (24,498,000) |
Treasury stock 46,801, 46,276 and 43,763 shares at cost | (821,074,000) | (803,920,000) | (723,673,000) |
Total Steven Madden, Ltd. stockholders’ equity | 819,695,000 | 805,814,000 | 801,586,000 |
Noncontrolling interest | 10,851,000 | 8,868,000 | 6,636,000 |
Total stockholders’ equity | 830,546,000 | 814,682,000 | 808,222,000 |
Total Liabilities and Stockholders’ Equity | 1,209,754,000 | 1,072,570,000 | 1,021,933,000 |
Preferred Stock [Member] | |||
STOCKHOLDERS’ EQUITY | |||
Preferred stock – $.0001 par value, 5,000 shares authorized; none issued; Series A Junior Participating preferred stock – $.0001 par value, 60 shares authorized; none issued | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Allowances for Accounts Receivable (in dollars) | $ 13,159 | $ 10,849 | $ 884 |
Preferred stock-issued | 0 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 135,000,000 | 135,000,000 | 135,000,000 |
Common stock, shares issued | 132,530,000 | 131,991,000 | 131,261,000 |
Common stock, shares outstanding | 85,729,000 | 85,715,000 | 87,498,000 |
Treasury stock-shares at cost | 46,801,000 | 46,276,000 | 43,763,000 |
Preferred Class A [Member] | |||
Preferred stock-par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock- shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Class B [Member] | |||
Preferred stock-par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock- shares authorized | 60,000 | 60,000 | 60,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales to external customers | $ 410,940 | $ 389,014 |
Cost of Goods and Services Sold | 253,943 | 248,281 |
Gross profit | 156,997 | 140,733 |
Commission and licensing fee income – net | 1,227 | 3,659 |
Operating expenses | 113,564 | 107,835 |
Impairment charge | (4,045) | |
Income from operations | 44,660 | 36,557 |
Interest and other income – net | 1,192 | 597 |
Income before provision for income taxes | 45,852 | 37,154 |
Provision for income taxes (Note J) | 10,587 | 7,956 |
Net income | 35,265 | 29,198 |
Less: net income attributable to noncontrolling interest | 740 | 525 |
Net income attributable to Steven Madden, Ltd. | $ 34,525 | $ 28,673 |
Basic net income per share (in dollars per share) | $ 0.43 | $ 0.35 |
Diluted net income per share (in dollars per share) | $ 0.41 | $ 0.33 |
Basic weighted average common shares outstanding | 80,534 | 82,092 |
Effect of dilutive securities – options/restricted stock | 3,721 | 3,897 |
Diluted weighted average common shares outstanding | 84,255 | 85,989 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.14 | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 35,265 | $ 29,198 |
Foreign currency translation adjustment, Pre-tax | 2,255 | 387 |
Foreign currency translation adjustment, Tax | 0 | 0 |
Other comprehensive income: | ||
Foreign currency translation adjustment, After-tax | 2,255 | 387 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | (249) | 970 |
Gain (loss) on cash flow hedging derivatives, Tax | 60 | (233) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (189) | 737 |
Unrealized gain (loss) on marketable securities, Pre-tax | 70 | (11) |
Unrealized gain (loss) on marketable securities, Tax | (17) | 3 |
Unrealized gain (loss) on marketable securities, After-tax | 53 | (8) |
Total other comprehensive (loss), Pre-tax | 2,076 | 1,346 |
Total other comprehensive (loss), Tax | 43 | (230) |
Total other comprehensive (loss), After-tax | 2,119 | 1,116 |
Comprehensive income | 37,384 | 30,314 |
Less: net income attributable to noncontrolling interest | 740 | 525 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 700 | 525 |
Comprehensive income attributable to Steven Madden, Ltd. | $ 36,684 | $ 29,789 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity Statement $ in Thousands | USD ($)$ / sharesshares |
Common Stock, Shares, Outstanding | shares | 88,047,000 |
Common stock – $.0001 par value, 135,000 shares authorized, 132,530, 131,991 and 131,261 shares issued, 85,729, 85,715 and 87,498 shares outstanding | $ 6 |
Additional paid-in capital | 390,723 |
Retained earnings | 1,135,701 |
Accumulated other comprehensive loss | $ (25,614) |
Treasury Stock, Shares | shares | 42,912,000 |
Treasury Stock, Value | $ (697,996) |
Noncontrolling interest | 6,111 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 808,931 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ 3 |
Stock Repurchased During Period, Shares | shares | (851,000) |
Payments for Repurchase of Common Stock | $ (25,677) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 71,000 |
Stock Issued During Period, Value, Stock Options Exercised | $ 1,519 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | shares | 231,000 |
Accrued interest on note receivable - related party | $ 4,893 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 387 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | 0 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 387 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (8) |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 737 |
Dividends, Common Stock, Cash | (11,758) |
Net Income (Loss) Attributable to Parent | 28,673 |
Less: net income attributable to noncontrolling interest | 525 |
Net income | 29,198 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ (233) |
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.13 |
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 |
Common Stock, Shares, Outstanding | shares | 87,498,000 |
Common stock – $.0001 par value, 135,000 shares authorized, 132,530, 131,991 and 131,261 shares issued, 85,729, 85,715 and 87,498 shares outstanding | $ 6 |
Additional paid-in capital | 397,135 |
Retained earnings | 1,152,616 |
Accumulated other comprehensive loss | $ (24,498) |
Treasury Stock, Shares | shares | 43,763,000 |
Treasury Stock, Value | $ (723,673) |
Noncontrolling interest | 6,636 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 808,222 |
Common Stock, Shares, Outstanding | shares | 85,715,000 |
Common stock – $.0001 par value, 135,000 shares authorized, 132,530, 131,991 and 131,261 shares issued, 85,729, 85,715 and 87,498 shares outstanding | $ 6 |
Additional paid-in capital | 424,835 |
Retained earnings | 1,217,521 |
Accumulated other comprehensive loss | $ (32,628) |
Treasury Stock, Shares | shares | 46,276,000 |
Treasury Stock, Value | $ (803,920) |
Noncontrolling interest | 8,868 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 814,682 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ (17) |
Stock Repurchased During Period, Shares | shares | (525,000) |
Payments for Repurchase of Common Stock | $ (17,154) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares | 32,000 |
Stock Issued During Period, Value, Stock Options Exercised | $ 722 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | shares | 507,000 |
Accrued interest on note receivable - related party | $ 5,671 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | 2,295 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest | (40) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2,255 |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 53 |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (189) |
Dividends, Common Stock, Cash | (12,042) |
Noncontrolling Interest, Increase from Business Combination | 1,283 |
Net Income (Loss) Attributable to Parent | 34,525 |
Less: net income attributable to noncontrolling interest | 740 |
Net income | 35,265 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 60 |
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.14 |
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 |
Common Stock, Shares, Outstanding | shares | 85,729,000 |
Common stock – $.0001 par value, 135,000 shares authorized, 132,530, 131,991 and 131,261 shares issued, 85,729, 85,715 and 87,498 shares outstanding | $ 6 |
Additional paid-in capital | 431,228 |
Retained earnings | 1,240,004 |
Accumulated other comprehensive loss | $ (30,469) |
Treasury Stock, Shares | shares | 46,801,000 |
Treasury Stock, Value | $ (821,074) |
Noncontrolling interest | 10,851 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 830,546 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 35,265 | $ 29,198 |
Adjustments to reconcile net income to net cash (used in) operating activities: | ||
Tax benefit from stock-based compensation | 5,350 | 5,541 |
Depreciation and amortization | 325 | 129 |
Loss on disposal of fixed assets | 4,045 | |
Impairment charges | (21) | 0 |
Deferred taxes | (10) | (12) |
Accrued interest on note receivable - related party | 5,671 | 4,893 |
Deferred rent (benefit) | 0 | (379) |
Marketable Securities, Realized Gain (Loss) | (5) | (133) |
Realized loss on sale of marketable securities | (5) | (133) |
Provision for Doubtful Accounts | 1,552 | 0 |
Changes, net of acquisitions, in: | ||
Accounts receivable | (7,857) | (19,286) |
Factor accounts receivable | (23,122) | (39,897) |
Notes receivable - related party | 21,987 | 15,957 |
Repayment of Notes Receivable from Related Parties | 102 | 102 |
Inventories | 3,810 | 3,543 |
Prepaid expenses, prepaid taxes, deposits and other | (47,943) | (20,371) |
Increase (Decrease) in Employee Related Liabilities | (7,598) | (6,922) |
Increase (Decrease) in Other Accrued Liabilities | (1,402) | 154 |
Net cash (used in) operating activities | (15,754) | (27,217) |
Net benefit in connection with reversal of contingent liability partially offset by acceleration of amortization related to Kate Spade license termination | (1,868) | 0 |
Cash flows from investing activities: | ||
Capital expenditures | (3,399) | (2,946) |
Purchases of marketable securities | (21,278) | (18,203) |
Repayment of notes receivable | 27,443 | 35,091 |
Acquisitions, net of cash acquired | 0 | 0 |
Net cash provided by investing activities | 2,766 | 13,942 |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | (17,154) | (25,677) |
Payments of Dividends | (12,042) | (11,758) |
Tax benefit from the exercise of options | 722 | 1,519 |
business combinations contingent liability payment | 0 | 7,000 |
Net cash (used in) financing activities | (27,191) | (42,916) |
Effect of Exchange Rate on Cash and Cash Equivalents | 404 | 360 |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 1,283 | 0 |
Net (decrease) in cash and cash equivalents | (39,775) | (55,831) |
Cash and cash equivalents – beginning of period | 200,031 | 181,214 |
Cash and cash equivalents – end of period | $ 160,256 | $ 125,383 |
Basis of Reporting
Basis of Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Reporting | Basis of Reporting The accompanying unaudited condensed consolidated financial statements of Steven Madden, Ltd. and subsidiaries (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. Certain adjustments were made to prior years' amounts to conform to the 2019 presentation and to reflect the three-for-two stock split (see Note B ). The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the operating results for the full year. These financial statements should be read in conjunction with the financial statements and related disclosures for the year ended December 31, 2018 included in the Annual Report of Steven Madden, Ltd. on Form 10-K filed with the SEC on February 28, 2019. |
Stock Split (Notes)
Stock Split (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | Stock Split On September 17, 2018, the Company announced that on September 11, 2018 its Board of Directors declared a three-for-two stock split of the Company's outstanding shares of common stock, effected in the form of a stock dividend on the Company's outstanding common stock. Stockholders of record at the close of business on October 1, 2018 received one additional share of Steven Madden, Ltd. common stock for every two shares of common stock owned on that date. The additional shares were distributed on October 11, 2018. Stockholders received cash in lieu of any fractional shares of common stock they otherwise would have received in connection with the dividend. All share and per share data provided herein gives effect to this stock split, applied retroactively. |
Use of Estimates
Use of Estimates | 3 Months Ended |
Mar. 31, 2019 | |
Use of Estimates [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant areas involving management estimates include variable consideration included in revenue, allowances for bad debts, inventory valuation, valuation of intangible assets, litigation reserves and contingent payment liabilities. The Company estimates variable consideration on trade accounts receivables and factor receivables for future customer chargebacks and markdown allowances, discounts, returns and other miscellaneous compliance-related deductions that relate to the current period sales. The Company evaluates anticipated chargebacks by reviewing several performance indicators of its major customers. These performance indicators, which include retailers’ inventory levels, sell-through rates and gross margin levels, are analyzed by management to estimate the amount of the anticipated customer allowance. |
Factor Receivable
Factor Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Due To and From Factor [Abstract] | |
Due To And From Factor | Factor Receivable The Company has a collection agency agreement with Rosenthal & Rosenthal, Inc. (“Rosenthal”). The agreement can be terminated by the Company or Rosenthal at any time upon 60 days prior written notice. Under the agreement, the Company can request advances from Rosenthal of up to 85% of aggregate receivables submitted to Rosenthal. The agreement provides the Company with a $30,000 credit facility with a $15,000 sub-limit for letters of credit at an interest rate based, at the Company’s election, upon a calculation that utilizes either the prime rate minus 0.5% or LIBOR plus 2.5% . As of March 31, 2019 and 2018 , no borrowings were outstanding under the credit facility and there were no open letters of credit. The Company also pays Rosenthal a fee based on a percentage of the gross invoice amount submitted to Rosenthal. With respect to receivables related to our private label business, the fee is 0.14% of the gross invoice amount. With respect to all other receivables, the fee is 0.20% of the gross invoice amount. Rosenthal assumes the credit risk on a substantial portion of the receivables that the Company submits to it and, to the extent of any loans made to the Company, Rosenthal maintains a lien on the Company’s receivables to secure the Company’s obligations. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities consist primarily of certificates of deposit and corporate bonds with maturities greater than three months and up to four years at the time of purchase. These securities, which are classified as available-for-sale, are carried at fair value, with unrealized gains and losses, net of any tax effect, reported in stockholders’ equity as accumulated other comprehensive income/(loss). These securities are classified as current and non-current marketable securities based upon their maturities. Amortization of premiums and discounts is included in interest income. For the three months ended March 31, 2019 and 2018 , the amortization of bond premiums totaled $130 and $199 , respectively. The value of these securities may fluctuate as a result of changes in market interest rates and credit risk. The schedule of maturities at March 31, 2019 and December 31, 2018 is as follows: Maturities as of Maturities as of 1 Year or Less 1 to 4 Years 1 Year or Less 1 to 4 Years Corporate bonds $ 18,182 $ — $ 24,617 $ — Certificates of deposit 43,201 — 42,351 — Total $ 61,383 $ — $ 66,968 $ — For the three months ended March 31, 2019 , losses of $5 were reclassified from accumulated other comprehensive income and recognized in the Condensed Consolidated Statements of Income in interest and other income compared to losses of $133 for the comparable period in 2018 . For the three months ended March 31, 2019 , current marketable securities included unrealized losses of $35 and no non-current marketable securities were held by the Company. For the comparable period in 2018 , current marketable securities included unrealized losses of $82 while non-current marketable securities included unrealized losses of $118 . |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The accounting guidance under Accounting Standards Codification 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”) requires the Company to make disclosures about the fair value of certain of its assets and liabilities. ASC 820-10 clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. ASC 820-10 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. A brief description of those three levels is as follows: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. • Level 3: Significant unobservable inputs. The Company’s financial assets and liabilities subject to fair value measurements as of March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 Fair Value Measurements Fair value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 60,484 $ 60,484 $ — $ — Current marketable securities – available for sale 61,383 61,383 — — Forward contracts 454 — 454 — Total assets $ 122,321 $ 121,867 $ 454 $ — December 31, 2018 Fair Value Measurements Fair value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 77,050 $ 77,050 $ — $ — Current marketable securities – available for sale 66,968 66,968 — — Forward contracts 707 — 707 — Total assets $ 144,725 $ 144,018 $ 707 $ — Liabilities: Contingent consideration $ 3,000 $ — $ — $ 3,000 Total liabilities $ 3,000 $ — $ — $ 3,000 Our level 3 balance consists of contingent consideration related to an acquisition. The changes in our level 3 liabilities for the periods ended March 31, 2019 and December 31, 2018 are as follows: Balance at January 1, Payments Acquisitions Change in estimate Balance at March 31, 2019 Liabilities: Contingent consideration $ 3,000 — — (3,000 ) $ — Balance at January 1, Payments Acquisitions Change in estimate Balance at December 31, 2018 Liabilities: Contingent consideration $ 10,000 (7,000 ) — — $ 3,000 Forward contracts are entered into to manage the risk associated with the volatility of future cash flows (see Note M - Derivative Instruments). Fair value of these instruments is based on observable market transactions of spot and forward rates. The Company recorded a liability for potential contingent consideration in connection with the January 30, 2017 acquisition of Schwartz & Benjamin. Pursuant to the terms of an earn-out provision contained in the equity purchase agreement, as amended, between the Company and the sellers of Schwartz & Benjamin, earn-out payments are based on the performance of certain specified license agreements. The fair value of the contingent payments was estimated using the present value of the payments based on management’s projections of the financial results of Schwartz & Benjamin during the earn-out period. An earn-out payment in the aggregate amount of $7,000 was paid to the sellers of Schwartz & Benjamin in the first quarter of 2018, leaving a remaining balance of $3,000 at December 31, 2018 , which, in the first quarter of 2019, the Company reversed because it will not need to pay based on the termination of the Kate Spade license agreement, which will occur by the end of the current fiscal year. Accounting guidance permits entities to choose to measure financial instruments and certain other items at fair value that are not currently required to be measured at fair value. The accounting guidance also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that chose different measurement attributes for similar assets and liabilities. The Company has elected not to measure any eligible items at fair value. The carrying value of certain financial instruments such as accounts receivable, factor accounts receivable and accounts payable approximates their fair values due to the short-term nature of their underlying terms. The fair values of investments in marketable securities available for sale are determined by reference to publicly quoted prices in an active market. Fair value of the notes receivable held by the Company approximates their carrying value based upon their imputed or actual interest rate, which approximates applicable current market interest rates. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | – Leases During the first quarter 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet. The Company adopted the standard using the modified retrospective approach with an effective date as of January 1, 2019. The Company did not apply the new standard to comparative periods and therefore, those amounts are not presented below. The Company elected the package of three practical expedients. As such, the Company did not reassess whether expired or existing contracts are or contain a lease and did not need to reassess the lease classifications or reassess the initial direct costs associated with expired or existing leases. The Company did not elect the hindsight practical expedient and the land easement practical expedient, neither of which are applicable to the Company. Also, the Company has elected to take the practical expedient to not separate lease and non-lease components for all asset classes. The Company leases office space, sample production space, warehouses, showrooms, storage, and retail stores under operating leases. The Company’s portfolio of leases is primarily related to real estate and since most our leases do not provide a readily determinable implicit rate, the Company estimated its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Lease Position The table below presents the lease-related assets and liabilities recorded on the balance sheet as of the quarter ended March 31, 2019 : Classification on the Balance Sheet March 31, 2019 Assets Noncurrent Operating lease right-of-use asset $ 181,896 Liabilities Current Operating leases - current portion $ 37,696 Noncurrent Operating leases - long-term portion 158,102 Total operating lease liabilities $ 195,798 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate (1) 4.4 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Lease Costs The table below presents certain information related to lease costs for leases during the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Operating lease cost $ 11,357 Short-term lease cost 7 Total lease cost $ 11,364 Other Information The table below presents supplemental cash flow information related to leases as of the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 11,521 Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the balance sheet as of March 31, 2019 : Operating Leases 2019 (remaining nine months) $ 33,882 2020 43,830 2021 37,938 2022 29,845 2023 21,363 Thereafter 56,116 Total minimum lease payments 222,974 Less: interest 27,176 Present value of lease liabilities $ 195,798 |
Share Repurchase Program
Share Repurchase Program | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Share Repurchase Program [Text Block] | Share Repurchase Program The Company's Board of Directors authorized a share repurchase program (the “Share Repurchase Program”), effective as of January 1, 2004. The Share Repurchase Program does not have a fixed expiration or termination date and may be modified or terminated by the Board of Directors at any time. On several occasions the Board of Directors has increased the amount authorized for repurchase of the Company's common stock. The Share Repurchase Program permits the Company to effect repurchases from time to time through a combination of open market repurchases or in privately negotiated transactions at such prices and times as are determined to be in the best interest of the Company. During the three months ended March 31, 2019 , an aggregate of 458,143 shares of the Company's common stock were repurchased under the Share Repurchase Program, at a weighted average price per share of $32.65 , for an aggregate purchase price of approximately $14,960 . As of March 31, 2019 , approximately $75,982 remained available for future repurchases under the Share Repurchase Program. Subsequent to the end of the quarter, on April 24, 2019, the Board of Directors approved the extension of the Company's Share Repurchase Program for up to $200,000 in repurchases of the Company's common stock, which includes the amount remaining under the prior authorization. The Steven Madden, Ltd. 2006 Stock Incentive Plan provides the Company with the right to deduct or withhold, or require employees to remit to the Company, an amount sufficient to satisfy any applicable tax withholding obligations applicable to stock-based compensation awards. To the extent permitted, employees may elect to satisfy all or part of such withholding obligations by tendering to the Company previously owned shares or by having the Company withhold shares having a fair market value equal to the employee's withholding tax obligation. During the three months ended March 31, 2019 , an aggregate of 67,348 shares were withheld in connection with the settlement of vested restricted stock to satisfy tax withholding requirements, at an average price per share of $32.57 , for an aggregate purchase price of approximately $2,194 . |
Net Income Per Share of Common
Net Income Per Share of Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
Net Income Per Share of Common Stock [Abstract] | |
Net Income Per Share of Common Stock | Net Income Per Share of Common Stock Basic net income per share is based on the weighted average number of shares of common stock outstanding during the period, which does not include unvested restricted common stock subject to forfeiture of 5,455,000 shares for the three months ended March 31, 2019 , compared to 5,925,000 shares for the three months ended March 31, 2018 . Diluted net income per share reflects: (a) the potential dilution assuming shares of common stock were issued upon the exercise of outstanding in-the-money options and the proceeds thereof were used to purchase shares of the Company’s common stock at the average market price during the period, and (b) the vesting of granted non-vested restricted stock awards for which the assumed proceeds upon vesting are deemed to be the amount of compensation cost not yet recognized attributable to future services using the treasury stock method, to the extent dilutive. For the three months ended March 31, 2019 , options to purchase approximately 65,000 shares of common stock have been excluded from the calculation of diluted net income per share as compared to approximately 32,000 shares that were excluded for the three months ended March 31, 2018 , as the result would have been anti-dilutive. For the three months ended March 31, 2019 and 2018 , all unvested restricted stock awards were dilutive. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note J – Income Taxes The Company’s provision for income taxes for the three months ended March 31, 2019 and 2018 , respectively, is based on the estimated annual effective tax rate, plus or minus discrete items. The following table presents the provision for income taxes and the effective tax rates for the three months ended March 31, 2019 and 2018 : Three months ended March 31, 2019 2018 Income before provision for income taxes $ 45,852 $ 37,154 Provision for income taxes $ 10,587 $ 7,956 Effective tax rate 23.1 % 21.4 % The primary differences between the Company’s effective tax rates for the three months ended March 31, 2019 and 2018 are due to an increase in the disallowed executive compensation deduction, an increase in 2019 pre-tax income in jurisdictions with high tax rates, and a partially offsetting decrease in the amount of Global Intangible Low-Taxed Income ("GILTI") tax incurred. The Company recognizes interest and penalties, if any, related to uncertain income tax positions in income tax expense. Accrued interest and penalties on unrecognized tax benefits and interest and penalty expense was immaterial to the consolidated financial statements for all periods presented. The unrecognized tax benefits have not materially changed for the three months ended March 31, 2019. The Company files income tax returns in the U.S., for federal, state, and local purposes, and in certain foreign jurisdictions. The Company's tax years 2015 through 2018 remain open to examination by most taxing authorities. During 2017, the U.S. Internal Revenue Service completed its audit of the Company's 2014 U.S. income tax return. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Equity-Based Compensation In March 2006, the Company's Board of Directors approved the Steven Madden, Ltd. 2006 Stock Incentive Plan, as amended (the “2006 Plan”), under which nonqualified stock options, stock appreciation rights, performance shares, restricted stock, other stock-based awards and performance-based cash awards may be granted to employees, consultants and non-employee directors. The Company's stockholders approved the 2006 Plan as well as successive amendments of the 2006 Plan, most recently on May 25, 2012. On February 25, 2019, the Company’s Board of Directors approved the adoption of the Steven Madden, Ltd. 2019 Incentive Compensation Plan (the “2019 Plan”), subject to stockholder approval. If approved by the stockholders at the Company’s 2019 annual meeting, the 2019 Plan will become effective as of the date of its approval by the Board. If approved, the 2019 Plan will be a successor to the 2006 Plan, the term of which is set to expire on April 6, 2019. The following table summarizes the number of shares of common stock authorized for use under the 2006 Plan, the number of stock-based awards granted (net of expired or cancelled awards) under the 2006 Plan and the number of shares of common stock available for the grant of stock-based awards under the 2006 Plan: Common stock authorized 35,199,000 Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled (35,132,379 ) Common stock available for grant of stock-based awards as of March 31, 2019 66,621 Total equity-based compensation for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Restricted stock $ 4,617 $ 3,926 Stock options 1,054 967 Total $ 5,671 $ 4,893 Equity-based compensation is included in operating expenses on the Company’s Condensed Consolidated Statements of Income. Stock Options Cash proceeds and intrinsic values related to total stock options exercised during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 Proceeds from stock options exercised $ 722 $ 1,519 Intrinsic value of stock options exercised $ 329 $ 576 During the three months ended March 31, 2019 , options to purchase approximately 403,687 shares of common stock with a weighted average exercise price of $26.52 vested. During the three months ended March 31, 2018 , options to purchase approximately 486,528 shares of common stock with a weighted average exercise price of $24.40 vested. As of March 31, 2019 , there were unvested options relating to 1,279,150 shares of common stock outstanding with a total of $7,070 of unrecognized compensation cost and an average vesting period of 2.5 years . The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted, which requires several assumptions. The expected term of the options represents the estimated period of time until exercise and is based on the historical experience of similar awards. Expected volatility is based on the historical volatility of the Company’s common stock. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield is based on the Company's annualized dividend per share amount divided by the Company's stock price. The following weighted average assumptions were used for stock options granted during the three months ended March 31, 2019 and 2018 : 2019 2018 Volatility 32.4% to 33.4% 26.0% to 26.3% Risk free interest rate 2.4% to 2.5% 2.1% to 2.5% Expected life in years 3.0 to 5.0 3.0 to 5.0 Dividend yield 1.7% 1.8% Weighted average fair value $7.88 $6.15 Activity relating to stock options granted under the Company’s plans and outside the plans during the three months ended March 31, 2019 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2019 2,815,000 $ 26.03 Granted 32,000 32.29 Exercised (32,000 ) 22.75 Forfeited — — Outstanding at March 31, 2019 2,815,000 $ 26.14 4.5 years $ 21,687 Exercisable at March 31, 2019 1,536,000 $ 25.65 3.9 years $ 12,583 Restricted Stock The following table summarizes restricted stock activity during the three months ended March 31, 2019 and 2018 : 2019 2018 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Outstanding at January 1, 5,135,000 $ 18.42 5,874,000 $ 17.37 Granted 518,000 32.45 240,000 30.25 Vested (187,000 ) 25.09 (180,000 ) 23.01 Forfeited (11,000 ) 28.19 (9,000 ) 25.10 Outstanding at March 31, 5,455,000 $ 19.48 5,925,000 $ 17.71 As of March 31, 2019 , the Company had $65,537 of total unrecognized compensation cost related to restricted stock awards granted under the 2006 Plan. This cost is expected to be recognized over a weighted average of 4.5 years. The Company determines the fair value of its restricted stock awards based on the market price of its common stock on the date of grant. On March 25, 2019, pursuant to an amendment of the employment agreement between the Company and its Creative and Design Chief, Steven Madden, which effected the extension of the term of the agreement for three years through December 31, 2026, Mr. Madden was granted 200,000 restricted shares of the Company's common stock. The restricted stock award will vest in three nearly equal annual installments commencing on December 31, 2024. As of March 31, 2019 , Mr. Madden has options unexercised for 731,250 shares of the Company's common stock and 4,134,238 restricted shares of the Company's common stock. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following is a summary of the carrying amount of goodwill by segment as of March 31, 2019 : Wholesale Net Carrying Amount Footwear Accessories Retail Balance at January 1, 2019 $ 84,551 $ 49,324 $ 14,237 $ 148,112 Translation and other 168 — 65 233 Balance at March 31, 2019 $ 84,719 $ 49,324 $ 14,302 $ 148,345 The following table details identifiable intangible assets as of March 31, 2019 : Estimated Lives Cost Basis Accumulated Amortization (1) Impairment (2) Net Carrying Amount Trade names 6–10 years $ 9,220 $ 7,984 $ — $ 1,236 Customer relationships 10 years 47,019 28,804 — 18,215 License agreements 3–6 years 5,600 5,600 — — Non-compete agreement 5 years 2,440 2,440 — — Re-acquired right 2 years 4,200 4,200 — — Other 3 years 14 14 — — 68,493 49,042 — 19,451 Re-acquired right indefinite 35,200 9,319 — 25,881 Trademarks indefinite 100,333 — 4,045 96,288 $ 204,026 $ 58,361 $ 4,045 $ 141,620 (1) Includes the effect of foreign currency translation related primarily to the movements of the Canadian dollar and Mexican peso in relation to the U.S. dollar. Includes acceleration of accumulated amortization of the trade names of $1,132 , related to the termination of the Kate Spade license agreement which will occur by the end of the current fiscal year. (2) An impairment charge of $3,045 was recorded in the first quarter of 2015, and a final impairment charge of $1,000 was recorded in the fourth quarter of 2017 related to the Company's Wild Pair trademark. The impairment was triggered by a loss of future anticipated cash flows from a significant customer. The amortization of intangible assets amounted to $1,334 and $1,304 for the three months ended March 31, 2019 and 2018 , respectively, and is included in operating expenses in the Company's Condensed Consolidated Statements of Income. The estimated future amortization expense of purchased intangibles as of March 31, 2019 is as follows: 2019 (remaining nine months) $ 3,233 2020 2,578 2021 1,912 2022 1,486 2023 1,486 Thereafter 8,756 $ 19,451 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments The Company uses derivative instruments, specifically, forward foreign exchange contracts, to manage the risk associated with the volatility of future cash flows. The foreign exchange contracts are used to mitigate the impact of exchange rate fluctuations on certain forecasted purchases of inventory and are designated as cash flow hedging instruments. As of March 31, 2019 , the fair value of the Company's foreign currency derivatives, which is included on the Condensed Consolidated Balance Sheets in other assets, is $454 . As of March 31, 2019 , the Company's hedging activities was considered effective and, thus, no ineffectiveness from hedging activities were recognized in the Condensed Consolidated Statements of Income. The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income ("OCI") for the three months ended March 31, 2019 and 2018 : Cash Flow Hedges Forward Contracts: Location of Gain or Loss Recognized in Net Income on Derivative Gain/(Loss) Recognized in Accumulated OCI Gain/(Loss) Reclassified into Income From Accumulated OCI 2019 Cost of Sales $ 488 $ — 2018 Cost of Sales $ 186 $ 3 |
Commitments, Contingencies and
Commitments, Contingencies and Other | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other | Commitments, Contingencies and Other Future Minimum Royalty and Advertising Payments: The Company has minimum commitments related to the Company’s license agreements. The Company sources, distributes, advertises and sells pursuant to its exclusive license agreements with unaffiliated licensors. Royalty amounts under the license agreements are generally based on a stipulated percentage of sales, although most of these agreements contain provisions for the payment of minimum annual royalty amounts. The license agreements have various terms and some have additional renewal options, provided that minimum sales levels are achieved. As of March 31, 2019 the Company had future minimum royalty and advertising payments of $38,663 . Legal Proceedings: The Company has been named as a defendant in certain lawsuits in the normal course of business. In the opinion of management, after consulting with legal counsel, the liabilities, if any, resulting from these matters should not have a material effect on the Company's financial position or results of operations. It is the policy of management to disclose the amount or range of reasonably possible losses in excess of recorded amounts or cash flows. |
Operating Segment Information
Operating Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
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 certain territories within Asia, Europe, North America (excluding the United States) and Africa 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, Taiwan and Israel 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, fragrance 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, outerwear, sleepwear, activewear, jewelry, watches, bedding, luggage, umbrellas and household goods. The Licensing segment also licenses the Dolce Vita® trademark for use in connection with the manufacture, marketing and sale of swimwear. As of and for the three months ended, Wholesale Footwear Wholesale Accessories Total Wholesale Retail First Cost Licensing Consolidated March 31, 2019 Net sales to external customers $ 276,587 $ 71,507 $ 348,094 $ 62,846 $ — $ — $ 410,940 Gross profit 98,322 21,916 120,238 36,759 — — 156,997 Commissions and licensing fees – net — — — — (416 ) 1,643 1,227 Income/(loss) from operations 48,272 4,867 53,139 (9,706 ) (416 ) 1,643 44,660 Segment assets $ 837,947 $ 84,485 922,432 254,479 25,579 7,264 1,209,754 Capital expenditures $ 1,692 $ 1,707 $ — $ — $ 3,399 March 31, 2018 Net sales to external customers $ 275,056 $ 56,099 $ 331,155 $ 57,859 $ — $ — $ 389,014 Gross profit 90,288 17,615 107,903 32,830 — — 140,733 Commissions and licensing fees – net — — — — 868 2,791 3,659 Income/(loss) from operations 38,378 2,409 40,787 (7,889 ) 868 2,791 36,557 Segment assets $ 827,539 $ 51,945 879,484 118,846 23,603 — 1,021,933 Capital expenditures $ 1,526 $ 1,420 $ — $ — $ 2,946 Revenues by geographic area for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 Domestic (a) $ 364,315 $ 341,595 International 46,625 47,419 Total $ 410,940 $ 389,014 (a) Includes revenues of $74,822 and $97,033 for the three months ended March 31, 2019 and 2018, respectively, 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Standards [Abstract] | Note P – Recent Accounting Pronouncements Recently Adopted In February 2016, the FASB issued Accounting Standards Update No. 2016-02 ("ASU 2016-02"), "Leases," as amended, which is effective January 1, 2019. Under ASU 2016-02, lessees will be required to recognize for all leases with terms longer than twelve months, at the commencement date of the lease, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease measured on a discounted basis, and a right-to-use asset, which is an asset that represents the lessee’s right to use or control the use of a specified asset for the lease term. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. The Company adopted the new standard on the effective date January 1, 2019. A modified retrospective transition approach was used, applying the new standard to all leases existing at the date of initial application. The Company applied ASC-840, including disclosure requirements, in the comparative periods in the year the Company adopted the new guidance. (See Note G - Leases) In February 2018, the FASB issued Accounting Standards Update No. 2018-02 ("ASU 2018-02"), "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," which allows for stranded tax effects in accumulated other comprehensive income resulting from the U.S. Tax Cuts and Jobs Act to be reclassified to retained earnings. ASU 2018-02 is effective January 1, 2019 and did not have any significant impact on the Company’s financial position or results of operations. Not Yet Adopted In August 2018, the FASB issued Accounting Standards Update No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Topic 350): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract.” This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance is effective for the Company on a prospective or retrospective basis beginning on January 1, 2020, with early adoption permitted. While the Company is currently assessing the impact of the new guidance, it is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued Accounting Standards Update No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This new guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance is effective for the Company beginning on January 1, 2020, with early adoption permitted. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. While the Company is currently assessing the impact of the new guidance, it is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update 2016-13 ("ASU 2016-13"), "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the effect that the new guidance will have on its financial statements and related disclosures. |
Basis of Reporting (Policies)
Basis of Reporting (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Reporting The accompanying unaudited condensed consolidated financial statements of Steven Madden, Ltd. and subsidiaries (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. Certain adjustments were made to prior years' amounts to conform to the 2019 presentation and to reflect the three-for-two stock split (see Note B ). The results of operations for the three-month period ended March 31, 2019 are not necessarily indicative of the operating results for the full year. These financial statements should be read in conjunction with the financial statements and related disclosures for the year ended December 31, 2018 included in the Annual Report of Steven Madden, Ltd. on Form 10-K filed with the SEC on February 28, 2019. |
Use of Estimates, Policy [Policy Text Block] | Significant areas involving management estimates include variable consideration included in revenue, allowances for bad debts, inventory valuation, valuation of intangible assets, litigation reserves and contingent payment liabilities. The Company estimates variable consideration on trade accounts receivables and factor receivables for future customer chargebacks and markdown allowances, discounts, returns and other miscellaneous compliance-related deductions that relate to the current period sales. The Company evaluates anticipated chargebacks by reviewing several performance indicators of its major customers. These performance indicators, which include retailers’ inventory levels, sell-through rates and gross margin levels, are analyzed by management to estimate the amount of the anticipated customer allowance. |
Marketable Securities, Policy [Policy Text Block] | Marketable Securities Marketable securities consist primarily of certificates of deposit and corporate bonds with maturities greater than three months and up to four years at the time of purchase. These securities, which are classified as available-for-sale, are carried at fair value, with unrealized gains and losses, net of any tax effect, reported in stockholders’ equity as accumulated other comprehensive income/(loss). These securities are classified as current and non-current marketable securities based upon their maturities. Amortization of premiums and discounts is included in interest income. For the three months ended March 31, 2019 and 2018 , the amortization of bond premiums totaled $130 and $199 , respectively. The value of these securities may fluctuate as a result of changes in market interest rates and credit risk. The schedule of maturities at March 31, 2019 and December 31, 2018 is as follows: Maturities as of Maturities as of 1 Year or Less 1 to 4 Years 1 Year or Less 1 to 4 Years Corporate bonds $ 18,182 $ — $ 24,617 $ — Certificates of deposit 43,201 — 42,351 — Total $ 61,383 $ — $ 66,968 $ — For the three months ended March 31, 2019 , losses of $5 were reclassified from accumulated other comprehensive income and recognized in the Condensed Consolidated Statements of Income in interest and other income compared to losses of $133 for the comparable period in 2018 . For the three months ended March 31, 2019 , current marketable securities included unrealized losses of $35 and no non-current marketable securities were held by the Company. For the comparable period in 2018 , current marketable securities included unrealized losses of $82 while non-current marketable securities included unrealized losses of $118 . |
Marketable Securities Marketabl
Marketable Securities Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | The schedule of maturities at March 31, 2019 and December 31, 2018 is as follows: Maturities as of Maturities as of 1 Year or Less 1 to 4 Years 1 Year or Less 1 to 4 Years Corporate bonds $ 18,182 $ — $ 24,617 $ — Certificates of deposit 43,201 — 42,351 — Total $ 61,383 $ — $ 66,968 $ — |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities | The Company’s financial assets and liabilities subject to fair value measurements as of March 31, 2019 and December 31, 2018 are as follows: March 31, 2019 Fair Value Measurements Fair value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 60,484 $ 60,484 $ — $ — Current marketable securities – available for sale 61,383 61,383 — — Forward contracts 454 — 454 — Total assets $ 122,321 $ 121,867 $ 454 $ — December 31, 2018 Fair Value Measurements Fair value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 77,050 $ 77,050 $ — $ — Current marketable securities – available for sale 66,968 66,968 — — Forward contracts 707 — 707 — Total assets $ 144,725 $ 144,018 $ 707 $ — Liabilities: Contingent consideration $ 3,000 $ — $ — $ 3,000 Total liabilities $ 3,000 $ — $ — $ 3,000 Balance at January 1, Payments Acquisitions Change in estimate Balance at March 31, 2019 Liabilities: Contingent consideration $ 3,000 — — (3,000 ) $ — Balance at January 1, Payments Acquisitions Change in estimate Balance at December 31, 2018 Liabilities: Contingent consideration $ 10,000 (7,000 ) — — $ 3,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure [Table Text Block] | Lease Position The table below presents the lease-related assets and liabilities recorded on the balance sheet as of the quarter ended March 31, 2019 : Classification on the Balance Sheet March 31, 2019 Assets Noncurrent Operating lease right-of-use asset $ 181,896 Liabilities Current Operating leases - current portion $ 37,696 Noncurrent Operating leases - long-term portion 158,102 Total operating lease liabilities $ 195,798 Weighted-average remaining lease term (in years) 6 Weighted-average discount rate (1) 4.4 % (1) Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Lease, Cost [Table Text Block] | Lease Costs The table below presents certain information related to lease costs for leases during the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Operating lease cost $ 11,357 Short-term lease cost 7 Total lease cost $ 11,364 |
Schedule of Leases Supplemental Cash Flows | Other Information The table below presents supplemental cash flow information related to leases as of the quarter ended March 31, 2019 : Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 11,521 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the lease liabilities recorded on the balance sheet as of March 31, 2019 : Operating Leases 2019 (remaining nine months) $ 33,882 2020 43,830 2021 37,938 2022 29,845 2023 21,363 Thereafter 56,116 Total minimum lease payments 222,974 Less: interest 27,176 Present value of lease liabilities $ 195,798 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Share Based Compensation Shares Authorized Under Stock Plans Issued And Avaliability | The following table summarizes the number of shares of common stock authorized for use under the 2006 Plan, the number of stock-based awards granted (net of expired or cancelled awards) under the 2006 Plan and the number of shares of common stock available for the grant of stock-based awards under the 2006 Plan: Common stock authorized 35,199,000 Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled (35,132,379 ) Common stock available for grant of stock-based awards as of March 31, 2019 66,621 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Total equity-based compensation for the three months ended March 31, 2019 and 2018 is as follows: Three Months Ended March 31, 2019 2018 Restricted stock $ 4,617 $ 3,926 Stock options 1,054 967 Total $ 5,671 $ 4,893 |
Schedule Of Cash Proceeds And Intrinsic Values For Stock Options Exercised | Cash proceeds and intrinsic values related to total stock options exercised during the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 Proceeds from stock options exercised $ 722 $ 1,519 Intrinsic value of stock options exercised $ 329 $ 576 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used | The following weighted average assumptions were used for stock options granted during the three months ended March 31, 2019 and 2018 : 2019 2018 Volatility 32.4% to 33.4% 26.0% to 26.3% Risk free interest rate 2.4% to 2.5% 2.1% to 2.5% Expected life in years 3.0 to 5.0 3.0 to 5.0 Dividend yield 1.7% 1.8% Weighted average fair value $7.88 $6.15 |
Schedule of Share-based Compensation, Stock Options, Activity | Activity relating to stock options granted under the Company’s plans and outside the plans during the three months ended March 31, 2019 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2019 2,815,000 $ 26.03 Granted 32,000 32.29 Exercised (32,000 ) 22.75 Forfeited — — Outstanding at March 31, 2019 2,815,000 $ 26.14 4.5 years $ 21,687 Exercisable at March 31, 2019 1,536,000 $ 25.65 3.9 years $ 12,583 |
Schedule of Nonvested Share Activity | The following table summarizes restricted stock activity during the three months ended March 31, 2019 and 2018 : 2019 2018 Number of Shares Weighted Average Fair Value at Grant Date Number of Shares Weighted Average Fair Value at Grant Date Outstanding at January 1, 5,135,000 $ 18.42 5,874,000 $ 17.37 Granted 518,000 32.45 240,000 30.25 Vested (187,000 ) 25.09 (180,000 ) 23.01 Forfeited (11,000 ) 28.19 (9,000 ) 25.10 Outstanding at March 31, 5,455,000 $ 19.48 5,925,000 $ 17.71 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of the carrying amount of goodwill by segment as of March 31, 2019 : Wholesale Net Carrying Amount Footwear Accessories Retail Balance at January 1, 2019 $ 84,551 $ 49,324 $ 14,237 $ 148,112 Translation and other 168 — 65 233 Balance at March 31, 2019 $ 84,719 $ 49,324 $ 14,302 $ 148,345 |
Schedule of Indentifiable Intangible Assets | The following table details identifiable intangible assets as of March 31, 2019 : Estimated Lives Cost Basis Accumulated Amortization (1) Impairment (2) Net Carrying Amount Trade names 6–10 years $ 9,220 $ 7,984 $ — $ 1,236 Customer relationships 10 years 47,019 28,804 — 18,215 License agreements 3–6 years 5,600 5,600 — — Non-compete agreement 5 years 2,440 2,440 — — Re-acquired right 2 years 4,200 4,200 — — Other 3 years 14 14 — — 68,493 49,042 — 19,451 Re-acquired right indefinite 35,200 9,319 — 25,881 Trademarks indefinite 100,333 — 4,045 96,288 $ 204,026 $ 58,361 $ 4,045 $ 141,620 (1) Includes the effect of foreign currency translation related primarily to the movements of the Canadian dollar and Mexican peso in relation to the U.S. dollar. |
Schedule of Intangible Assets, Future Amortization Expense | The estimated future amortization expense of purchased intangibles as of March 31, 2019 is as follows: 2019 (remaining nine months) $ 3,233 2020 2,578 2021 1,912 2022 1,486 2023 1,486 Thereafter 8,756 $ 19,451 |
Derivative Instruments Derivati
Derivative Instruments Derivative Table (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the pre-tax amounts from derivative instruments affecting income and other comprehensive income ("OCI") for the three months ended March 31, 2019 and 2018 : Cash Flow Hedges Forward Contracts: Location of Gain or Loss Recognized in Net Income on Derivative Gain/(Loss) Recognized in Accumulated OCI Gain/(Loss) Reclassified into Income From Accumulated OCI 2019 Cost of Sales $ 488 $ — 2018 Cost of Sales $ 186 $ 3 |
Operating Segment Information (
Operating Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | As of and for the three months ended, Wholesale Footwear Wholesale Accessories Total Wholesale Retail First Cost Licensing Consolidated March 31, 2019 Net sales to external customers $ 276,587 $ 71,507 $ 348,094 $ 62,846 $ — $ — $ 410,940 Gross profit 98,322 21,916 120,238 36,759 — — 156,997 Commissions and licensing fees – net — — — — (416 ) 1,643 1,227 Income/(loss) from operations 48,272 4,867 53,139 (9,706 ) (416 ) 1,643 44,660 Segment assets $ 837,947 $ 84,485 922,432 254,479 25,579 7,264 1,209,754 Capital expenditures $ 1,692 $ 1,707 $ — $ — $ 3,399 March 31, 2018 Net sales to external customers $ 275,056 $ 56,099 $ 331,155 $ 57,859 $ — $ — $ 389,014 Gross profit 90,288 17,615 107,903 32,830 — — 140,733 Commissions and licensing fees – net — — — — 868 2,791 3,659 Income/(loss) from operations 38,378 2,409 40,787 (7,889 ) 868 2,791 36,557 Segment assets $ 827,539 $ 51,945 879,484 118,846 23,603 — 1,021,933 Capital expenditures $ 1,526 $ 1,420 $ — $ — $ 2,946 |
Schedule of Revenues, by Geographic Area | Three months ended March 31, 2019 2018 Income before provision for income taxes $ 45,852 $ 37,154 Provision for income taxes $ 10,587 $ 7,956 Effective tax rate 23.1 % 21.4 % Revenues by geographic area for the three months ended March 31, 2019 and 2018 are as follows: Three Months Ended March 31, 2019 2018 Domestic (a) $ 364,315 $ 341,595 International 46,625 47,419 Total $ 410,940 $ 389,014 (a) Includes revenues of $74,822 and $97,033 for the three months ended March 31, 2019 and 2018, respectively, 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. |
Factor Receivable (Detail)
Factor Receivable (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Line of Credit Facility, Collateral | .85 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 |
Letters Of Credit SubLimit Capacity Amount | $ 15,000 |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
Factoring Fee | 0.20% |
First Cost and Private Label business [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Factoring Fee | 0.14% |
London Interbank Offered Rate (LIBOR) [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Marketable Securities (Detail)
Marketable Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Marketable Securities [Abstract] | ||
Available-for-sale Securities, Gross Realized Gains | $ 5 | $ 133 |
Available-for-sale Securities, Gross Unrealized Loss | 35 | 82 |
Investment Income, Amortization of Premium | $ 130 | $ 199 |
Marketable Securities Marketa_2
Marketable Securities Marketable Securities Table (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Loss | $ 35 | $ 82 | |
Available-for-sale Securities, Current | 61,383 | 54,669 | $ 66,968 |
Available-for-sale Securities, Noncurrent | 0 | 20,507 | 0 |
Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Current | 18,182 | 24,617 | |
Available-for-sale Securities, Noncurrent | 0 | 0 | |
Certificates of Deposit [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Current | 43,201 | 42,351 | |
Available-for-sale Securities, Noncurrent | $ 0 | $ 0 | |
Other Long-term Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Loss | $ 118 |
Fair Value Measurement (Detail)
Fair Value Measurement (Detail) - (Table) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2019 | |||
Document Period End Date | Mar. 31, 2019 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested In Period | 403,687 | 486,528 | ||
Business Acquisition, Contingent Consideration, Actual Cash Payment | $ 7,000,000 | $ 7,000,000 | ||
Assets: | ||||
Available-for-sale Securities, Current | $ 61,383,000 | 54,669,000 | 66,968,000 | |
Notes Receivable, Related Parties, Noncurrent | 1,835,000 | 2,199,000 | 1,927,000 | |
Available-for-sale Securities, Noncurrent | 0 | 20,507,000 | 0 | |
Contingent payment liability | 3,000 | 0 | ||
Business Acquisition, Contingent Consideration, Change in Estimate | (3,000,000) | |||
Liabilities: | ||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 454,000 | 707,000 | ||
Available-for-sale Securities, Gross Unrealized Loss | $ 35,000 | $ 82,000 | ||
Share based compensation arrangement by share based payment award options exercisable during period weighted average exercise price - in dollars per share | $ 26.52 | $ 24.40 | ||
Repayment of Notes Receivable from Related Parties | $ (102,000) | $ (102,000) | ||
Increase (Decrease) in Accrued Interest Receivable, Net | 10,000 | 12,000 | ||
Fair Value [Member] | ||||
Assets: | ||||
Cash Equivalents | 60,484,000 | 77,050,000 | ||
Current marketable securities – available for sale | 66,968,000 | |||
Total assets | 122,321,000 | 144,725,000 | ||
Contingent payment liability | 0 | 3,000,000 | $ 10,000,000 | |
Liabilities: | ||||
Total liabilities | 3,000,000 | |||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Cash Equivalents | 60,484,000 | 77,050,000 | ||
Current marketable securities – available for sale | 61,383,000 | 66,968,000 | ||
Total assets | 121,867,000 | 144,018,000 | ||
Contingent payment liability | 0 | |||
Liabilities: | ||||
Total liabilities | 0 | |||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Cash Equivalents | 0 | 0 | ||
Current marketable securities – available for sale | 0 | 0 | ||
Total assets | 454,000 | 707,000 | ||
Contingent payment liability | 0 | |||
Liabilities: | ||||
Total liabilities | 0 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Assets: | ||||
Cash Equivalents | 0 | 0 | ||
Current marketable securities – available for sale | 0 | 0 | ||
Total assets | $ 0 | 0 | ||
Contingent payment liability | 3,000,000 | |||
Liabilities: | ||||
Total liabilities | 3,000,000 | |||
Other Long-term Investments [Member] | ||||
Liabilities: | ||||
Available-for-sale Securities, Gross Unrealized Loss | $ 118,000 | |||
Changes Measurement [Member] | ||||
Liabilities: | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 11,521 | ||
Prepaid expenses and other current assets | 27,695 | $ 23,425 | $ 23,466 |
Lessee, Operating Lease, Liability, Payments, Due | 33,882 | ||
Operating Lease, Cost | 11,357 | ||
Short-term Lease, Cost | $ 7 | ||
Document Period End Date | Mar. 31, 2019 | ||
Operating Lease, Right-of-Use Asset | $ 181,896 | 0 | 0 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 0.00% | ||
Operating Lease, Liability, Current | $ 37,696 | 0 | 0 |
Operating Lease, Liability, Noncurrent | 158,102 | $ 0 | $ 0 |
Operating Lease, Liability | 195,798 | ||
Lease, Cost | 11,364 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 43,830 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 37,938 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 29,845 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 21,363 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 56,116 | ||
Lessee, Operating Lease, Liability, Payments, Due | 222,974 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 27,176 | ||
Operating Lease, Liability | $ 195,798 |
Share Repurchase Program Share
Share Repurchase Program Share Repurchse Program (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 24, 2019 | |
Stock Repurchase Program, Authorized Amount | $ 75,982,000 | ||
Shares Paid for Tax Withholding for Share Based Compensation | 67,348 | ||
Stock Repurchased During Period, Shares | 525,000 | 851,000 | |
Stock Repurchased During Period, Value | $ 14,960 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 200,000 | ||
Document Period End Date | Mar. 31, 2019 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 32.57 | ||
Payments Related to Tax Withholding for Share-based Compensation | $ 2,194 | ||
Common Stock [Member] | |||
Stock Repurchased During Period, Shares | 458,143 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 32.65 | ||
Trade Names [Member] | |||
Amortization | $ 1,132 |
Net Income Per Share of Commo_2
Net Income Per Share of Common Stock (Detail) - shares | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 5,455,000 | 5,925,000 | 5,135,000 | 5,874,000 |
Document Period End Date | Mar. 31, 2019 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 65,000 | 32,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 45,852 | $ 37,154 |
Provision for income taxes (Note J) | $ 10,587 | $ 7,956 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 23.08951% | 21.41358% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) - (Table 1) - shares | 3 Months Ended | |
Mar. 31, 2019 | May 25, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common stock authorized | 35,199,000 | |
Stock-based awards, including restricted stock and stock options granted, net of expired or cancelled | (35,132,379) | |
Common stock available for grant of stock-based awards as of June 30, 2012 | 66,621 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Detail) - (Table 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total | $ 5,671 | $ 4,893 |
Restricted Stock [Member] | ||
Allocated Share-based Compensation Expense | 4,617 | 3,926 |
Stock Options [Member] | ||
Allocated Share-based Compensation Expense | $ 1,054 | $ 967 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Detail) - (Table 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Proceeds from stock options exercised | $ 722 | $ 1,519 |
Intrinsic value of stock options exercised | $ 329 | $ 576 |
Stock-Based Compensation (Det_4
Stock-Based Compensation (Detail) - (Table 4) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 32.40% | 26.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 33.40% | 26.30% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 2.50% | 2.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 2.40% | 2.10% |
Dividend yield | 0.00% | 0.00% |
Weighted average fair value | $ 7.88 | $ 6.15 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 3 years | 3 years |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life in years | 5 years | 5 years |
Stock-Based Compensation (Det_5
Stock-Based Compensation (Detail) - (Table 5) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at January 1, 2012 | 2,815,000 | |
Outstanding at January 1, 2012 (in Dollars per share) | $ 26.03 | |
Granted | 32,000 | |
Granted (in Dollars per share) | $ 32.29 | |
Exercised | (32,000) | (71,000) |
Exercised (in Dollars per share) | $ 22.75 | |
Cancelled/Forfeited | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ 0 | |
Outstanding at June 30, 2012 | 2,815,000 | |
Outstanding at June 30, 2012 (in Dollars per share) | $ 26.14 | |
Outstanding at June 30, 2012 | 4 years 6 months | |
Outstanding at June 30, 2012 (in Dollars) | $ 21,687 | |
Exercisable at June 30, 2012 | 1,536,000 | |
Exercisable at June 30, 2012 (in Dollars per share) | $ 25.65 | |
Exercisable at June 30, 2012 | 3 years 10 months 24 days | |
Exercisable at June 30, 2012 (in Dollars) | $ 12,583 |
Stock-Based Compensation (Det_6
Stock-Based Compensation (Detail) - (Table 6) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested at January 1 | 5,135,000 | 5,874,000 |
Non-vested at January 1 (in Dollars per share) | $ 18.42 | $ 17.37 |
Granted | 518,000 | 240,000 |
Granted (in Dollars per share) | $ 32.45 | $ 30.25 |
Vested | (187,000) | (180,000) |
Vested (in Dollars per share) | $ 25.09 | $ 23.01 |
Forfeited | (11,000) | (9,000) |
Forfeitures (in dollars per share) | $ 28.19 | $ 25.10 |
Non-vested at March 31 | 5,455,000 | 5,925,000 |
Non-vested at March 31 (in Dollars per share) | $ 19.48 | $ 17.71 |
Stock-Based Compensation (Det_7
Stock-Based Compensation (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 25, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | May 25, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 32.57 | |||
Document Period End Date | Mar. 31, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 35,199,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Vested In Period | 403,687 | 486,528 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable During Period Weighted Average Exercise Price (in Dollars per share) | $ 26.52 | $ 24.40 | ||
Share Based Compensation Arrangement By Share-Based Payment Award Equity Options Nonvested Number | 1,279,150 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||
Employee Service Share Based Compensation Nonvested Restricted Awards Total Compensation Cost Not Yet Recognized Period For Recognition | 4 years 6 months | |||
Related Party Transaction Restricted Shares Granted During The Period | 200,000 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 7,070 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 731,250 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 65,537 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 4,134,238 | |||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 32.65 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) - (Table 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Goodwill – net | $ 148,345 | $ 148,112 | $ 149,331 |
Goodwill [Roll Forward] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 233 | ||
Wholesale Footwear [Member] | |||
Goodwill – net | 84,719 | 84,551 | |
Goodwill [Roll Forward] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 168 | ||
Wholesale Accessories [Member] | |||
Goodwill – net | 49,324 | 49,324 | |
Goodwill [Roll Forward] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | ||
Retail [Member] | |||
Goodwill – net | 14,302 | $ 14,237 | |
Goodwill [Roll Forward] | |||
Goodwill, Foreign Currency Translation Gain (Loss) | $ 65 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Detail) - (Table 2) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Dec. 31, 2017 | Mar. 31, 2015 | Dec. 31, 2018 | Mar. 31, 2018 | |
Finite-Lived Trade Names, Gross | $ 9,220 | ||||
Other Finite-Lived Intangible Assets, Gross | 14 | ||||
Finite-Lived Contractual Rights, Gross | 4,200 | ||||
Finite-Lived Customer Lists, Gross | 47,019 | ||||
Finite-Lived Noncompete Agreements, Gross | 2,440 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 49,042 | ||||
Impairment of Intangible Assets, Finite-lived | 0 | ||||
Accumulated amortization | 58,361 | ||||
Finite-Lived Intangible Assets, Gross | 68,493 | ||||
Indefinite-Lived Contractual Rights | 25,881 | ||||
Loss on disposal of fixed assets | 4,045 | $ 1,000 | $ 3,045 | ||
Finite-Lived Intangible Assets, Net | 19,451 | ||||
Indefinite-Lived Trademarks | 96,288 | ||||
Intangible Assets, Gross (Excluding Goodwill) | 204,026 | ||||
Intangibles – net | 141,620 | $ 143,311 | $ 149,208 | ||
Re-acquired right [Member] | |||||
Accumulated amortization | 9,319 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 35,200 | ||||
Trademarks [Member] | |||||
Accumulated amortization | 0 | ||||
Loss on disposal of fixed assets | 4,045 | ||||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 100,333 | ||||
Trade names [Member] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 7,984 | ||||
Finite-Lived Intangible Assets, Net | $ 1,236 | ||||
Customer relationships [Member] | |||||
Estimated Lives | 10 years | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 28,804 | ||||
Finite-Lived Intangible Assets, Net | 18,215 | ||||
Licensing agreements [Member] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | 5,600 | ||||
Finite-Lived Intangible Assets, Net | 0 | ||||
Finite-Lived License Agreements, Gross | $ 5,600 | ||||
Non-compete agreement [Member] | |||||
Estimated Lives | 5 years | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 2,440 | ||||
Finite-Lived Intangible Assets, Net | $ 0 | ||||
Re-acquired right [Member] | |||||
Estimated Lives | 2 years | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 4,200 | ||||
Finite-Lived Intangible Assets, Net | $ 0 | ||||
Other [Member] | |||||
Estimated Lives | 3 years | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 14 | ||||
Finite-Lived Intangible Assets, Net | $ 0 | ||||
Minimum [Member] | Trade names [Member] | |||||
Estimated Lives | 6 years | ||||
Minimum [Member] | Licensing agreements [Member] | |||||
Estimated Lives | 3 years | ||||
Maximum [Member] | Trade names [Member] | |||||
Estimated Lives | 10 years | ||||
Maximum [Member] | Licensing agreements [Member] | |||||
Estimated Lives | 6 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Detail) - (Table 3) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of Intangible Assets | $ 1,334,000 | $ 1,304,000 |
Document Period End Date | Mar. 31, 2019 | |
Stock Repurchased During Period, Shares | 525,000 | 851,000 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 3,233,000 | |
2014 | 2,578,000 | |
2015 | 1,912,000 | |
2016 | 1,486,000 | |
2017 | 1,486,000 | |
Thereafter | 8,756,000 | |
Total | 19,451,000 | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | 1,132 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Total | $ 1,236,000 | |
Common Stock [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Stock Repurchased During Period, Shares | 458,143 |
Derivative Instruments Deriva_2
Derivative Instruments Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | $ 454 | $ 707 | |
Accumulated Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 488 | $ 186 | |
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 0 | $ 3 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other Commitments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitment | $ 38,663 |
Operating Segment Information_2
Operating Segment Information (Detail) - (Table 1) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
March 31, 2019 | |||
Net sales to external customers | $ 410,940,000 | $ 389,014,000 | |
Gross profit | 156,997,000 | 140,733,000 | |
Commissions and licensing fees – net | 1,227,000 | 3,659,000 | |
Operating Income (Loss) | 44,660,000 | 36,557,000 | |
Segment assets | 1,209,754,000 | 1,021,933,000 | $ 1,072,570,000 |
Capital expenditures | 3,399,000 | 2,946,000 | |
Wholesale Footwear [Member] | |||
March 31, 2019 | |||
Net sales to external customers | 276,587,000 | 275,056,000 | |
Gross profit | 98,322,000 | 90,288,000 | |
Commissions and licensing fees – net | 0 | 0 | |
Operating Income (Loss) | 48,272,000 | 38,378,000 | |
Segment assets | 837,947,000 | 827,539,000 | |
Wholesale Accessories [Member] | |||
March 31, 2019 | |||
Net sales to external customers | 71,507,000 | 56,099,000 | |
Gross profit | 21,916,000 | 17,615,000 | |
Commissions and licensing fees – net | 0 | 0 | |
Operating Income (Loss) | 4,867,000 | 2,409,000 | |
Segment assets | 84,485,000 | 51,945,000 | |
Total Wholesale [Member] | |||
March 31, 2019 | |||
Net sales to external customers | 348,094,000 | 331,155,000 | |
Gross profit | 120,238,000 | 107,903,000 | |
Commissions and licensing fees – net | 0 | 0 | |
Operating Income (Loss) | 53,139,000 | 40,787,000 | |
Segment assets | 922,432,000 | 879,484,000 | |
Capital expenditures | 1,692,000 | 1,526,000 | |
Retail [Member] | |||
March 31, 2019 | |||
Net sales to external customers | 62,846,000 | 57,859,000 | |
Gross profit | 36,759,000 | 32,830,000 | |
Commissions and licensing fees – net | 0 | ||
Operating Income (Loss) | (9,706,000) | (7,889,000) | |
Segment assets | 254,479,000 | 118,846,000 | |
Capital expenditures | 1,707,000 | 1,420,000 | |
First Cost Member | |||
March 31, 2019 | |||
Commissions and licensing fees – net | (416,000) | 868,000 | |
Operating Income (Loss) | (416,000) | 868,000 | |
Segment assets | 25,579,000 | 23,603,000 | |
Capital expenditures | 0 | 0 | |
Licensing [Member] | |||
March 31, 2019 | |||
Commissions and licensing fees – net | 1,643,000 | 2,791,000 | |
Operating Income (Loss) | 1,643,000 | 2,791,000 | |
Segment assets | 7,264,000 | 0 | |
Capital expenditures | $ 0 | $ 0 |
Operating Segment Information_3
Operating Segment Information (Detail) - (Table 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Domestic | $ 410,940 | $ 389,014 |
Domestic Destination [Member] | ||
Segment Reporting Information [Line Items] | ||
Domestic | 364,315 | 341,595 |
Non-US [Member] | ||
Segment Reporting Information [Line Items] | ||
Domestic | 46,625 | 47,419 |
Geographical [Member] | ||
Segment Reporting Information [Line Items] | ||
Domestic | $ 74,822 | $ 97,033 |