SHOO Steve Madden Presentation 2015 - Morgan Stanley Latest

8/20/2019 SHOO Steve Madden Presentation 2015 - Morgan Stanley Latest

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Except for the historical information contained herein,

this presentation contains forward-looking statements

that involve known and unknown risks, uncertainties

and other unknown factors that could cause the actual

results of the Company to be materially different from

the historical results or from any future results

expressed or implied by such forward-looking

statements.

Safe Harbor Agreement


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Investment Highlights

• Strong Brand Portfolio led by Steve Madden

• Leading Footwear Capability

• Diversified Business Model

• Proven Track Record

• Strong Balance Sheet

• Meaningful Growth Opportunities

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ompany Overview


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$1.4 billion net sales

Steve Madden

80%

20%

Footwear Accessories

83%

17%

Wholesale Retail

90%

10%

U.S. International

• Total Company has8% share of U.S.women’s fashion

footwear market#1 Share

• Accessoriesincludes handbags,belts and coldweatheraccessories

• Wholesaledistribution fromluxury to mass

• Retail distributionthrough 165 ownedretail stores including4 e-commerce sites

• Distribution inapproximately 80countries


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Market Share – Key

Customers

Steve Madden Brand

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Nordstrom

Macy’s

Lord & Taylor

Dillards

DSW

Zappos

#1

#1

#1

#2

#1

#1

Skechers

Steve Madden

UGG

Clarks England

Nike

Sperry Top-Sider

Nine West

Naturalizer

Toms

Converse

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

3.1%

2.8%

2.6%

2.6%

2.0%

1.4%

1.4%

1.2%

1.2%

1.0%

Market Share – U.S. Women’s

Fashion Footwear

__________

Note: Net sales for Steve Madden brand includes Steve Madden and all related brands (e.g. Madden Girl, Steven by Steve Madden, etc.)

$798 million in net sales

Brand Share Retailer Rank inDepartment


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Steve Madden Brand Net Sales

2009 2010 2011 2012 20132008 2014

$395

$456

$538

$589

$704

$769 $762 $798

TTM

CAGR = 11%

__________

Note: Net sales for Steve Madden brand includes Steve Madden and all related brands (e.g. Madden Girl, Steven by Steve Madden, etc.)

(Dollars in Millions)


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The Steve Madden Model

• Proven Design Team

• Test-and-React Strategy

• Speed to Market

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Expanding Brand Portfolio

Mass9

Luxury Brian Atwood Acquired 2014

Freebird by Steven Created in-house 2012

Dolce Vita Acquired 2014

Superga Licensed 2011

Blondo Acquired 2015

Betsey Johnson Acquired 2010

Big Buddha Acquired 2010

Report Acquired 2011

Madden Girl Created in-house 2006

Mad Love Created in-house 2011


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Diversifying by Category, Channel &Geography

100%

US Footwear

LTM2005

W h o l e

s a l e

68%

23%

9%

US Footwear Accessories

International

R e t a i l

96%

4%

US Full-Price E-Commerce

53%

17%

17%

13%

US Full-Price E-Commerce

Outlets International


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Financial Performance


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Net Sales Diluted EPS

Financial Performance

CAGR = 21%

(Dollars in Millions, Except Per Share Amounts)

__________

Note: 1) All figures exclude non-recurring items.

2) 2015E amounts represent the mid-point of guidance.

$0.50

$0.81

$1.19

$1.50

$1.89 $1.97

$1.76

$1.90

2009 2010 2011 2012 20132008 2014 2009 2010 2011 2012 20132008 2014 2015E

$457 $504

$635

$969

$1,227$1,314

$1,335$1,422

CAGR = 18%

2015E


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• Cash, Equivalents and Marketable Securities $151

• Total Debt $0

• Inventory Turn 9.0 x

• YTD Repurchases of Common Stock in 2015 $104(2.7 mm shares)

(Balance Sheet Data as of September 30, 2015)

(Dollars in Millions)

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Balance Sheet and

Cash Flow Highlights


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Retail

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• $234 mm in LTM net sales andLTM operating margin of 6.3%

(compared to 2011-2013

operating margin of 12.8%)

• Implemented new e-commerceplatform in 2014

• Expanding outlet presence

• Expanding full-price storesoutside U.S.

2017 operating margin target = 10%


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Dolce Vita

• Contemporary footwear brandacquired in August 2014

• >$100 mm in net sales with

operating loss at time of acquisition

– Significant gross marginopportunity

– Bloated expense structure

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2017 operating margin target = 10%


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Men’s and Kids(Dollars in Millions)

Men’s Kids

LTM Net Sales = $111 mm

-- % of total footwear = 12%

LTM Net Sales = $58 mm

-- % of total footwear = 6%

2017 net sales target (men’s/kids combined) = $200 mm


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STEVE M DDEN

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SHOO Steve Madden Presentation 2015 - Morgan Stanley Latest