Exhibit 99.1

Steve Madden Announces Third Quarter 2017 Results

LONG ISLAND CITY, N.Y., October 31, 2017 – Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion footwear and accessories for women, men and children, today announced financial results for the third quarter ended September 30, 2017.

Amounts referred to as “Adjusted” exclude the items that are described under the heading “Non-GAAP Adjustments.”

For the Third Quarter 2017:

·

Net sales increased 8.0% to $441.2 million compared to $408.4 million in the same period of 2016.

·

Gross margin was 37.6% as compared to 37.8% in the same period last year, a decrease of 20 basis points.

·

Operating expenses as a percentage of sales were 23.8%. Adjusted operating expenses as a percentage of sales were 23.7% as compared to 23.5% of sales in the same period of 2016.

·

Operating income totaled $65.4 million, or 14.8% of net sales. Adjusted operating income was $65.9 million, or 14.9% of net sales, compared with operating income of $63.8 million, or 15.6% of net sales, in the same period of 2016.

·

Net income was $44.2 million, or $0.77 per diluted share. Adjusted net income was $44.5 million, or $0.77 per diluted share, compared to $43.8 million, or $0.74 per diluted share, in the prior year’s third quarter.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We recorded solid sales and EPS growth in the quarter despite the challenging retail environment, led by strong performance across our Steve Madden wholesale footwear businesses, including Steve Madden Women’s, Men’s and Kids’ as well as Madden Girl. As we look ahead, we expect that we will continue to face industry headwinds, and as a result, we are planning our business prudently. That said, we believe that our strong brands, proven business model and on-trend product offerings position us well to meet our financial targets for the year and continue to enhance shareholder value over the long-term.”

Third Quarter 2017 Segment Results

Net sales for the wholesale business increased 8.7% to $376.9 million in the third quarter of 2017. Excluding the results of recently acquired Schwartz & Benjamin, wholesale net sales increased 1.6% to $352.0 million from $346.6 million in the third quarter of 2016, as an increase in the wholesale footwear business was partially offset by a decline in wholesale accessories. Gross margin in the wholesale business was 33.9%, flat compared to last year’s third quarter.

Retail net sales in the third quarter increased 4.0% to $64.3 million compared to $61.8 million in the third quarter of the prior year. Same store sales decreased 3.8% in the quarter compared to a 1.3% same store sales increase in the third quarter of 2016. Retail gross margin decreased to 59.3% in the third quarter of 2017 as compared to 59.9% in the third quarter of the prior year.

During the third quarter, the Company opened one full price store and three outlet stores in the U.S. as well as five full price stores in international markets. The Company ended the quarter with 202 company-operated retail locations, including four Internet stores. In addition, during the third quarter the Company opened 15 concessions in Asia and ended the quarter with 32 company-operated concessions in international markets.

The Company’s effective tax rate for the third quarter of 2017 was 32.1% on both a GAAP and Adjusted basis compared to 32.3% in the third quarter of the prior year.

Balance Sheet and Cash Flow

During the third quarter of 2017, the Company repurchased 228,562 shares of the Company’s common stock for approximately $9.3 million, which includes shares acquired through the net settlement of employee stock awards.

As of September 30, 2017, cash, cash equivalents, and current and non-current marketable securities totaled $176.9 million.

Company Outlook

The Company is maintaining its full-year outlook and expects that net sales in fiscal year 2017 will increase 9% to 11% over net sales in 2016. The Company expects that diluted EPS on a GAAP basis for fiscal year 2017 will be in the range of $2.03 to $2.09. The Company expects that Adjusted diluted EPS for fiscal year 2017 will be in the range of $2.18 to $2.24.

Non-GAAP Adjustments

Amounts referred to as “Adjusted” exclude the items below.

For the third quarter 2017:

·

$0.5 million pre-tax ($0.3 million after-tax) in expense in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring, included in operating expenses.

For the fiscal year 2017:

·

$1.7 million pre-tax ($1.1 million after-tax) in non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition, included in cost of sales.

·

$1.7 million pre-tax ($1.1 million after-tax) in expense incurred in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring, included in operating expenses.

·

$7.5 million pre-tax ($6.5 million after-tax) in estimated bad debt expense associated with the Payless ShoeSource bankruptcy, included in operating expenses.

Reconciliations of amounts on a GAAP basis to Adjusted amounts are presented in the Non-GAAP Reconciliation tables at the end of this release and identify and quantify all excluded items.

Conference Call Information

Interested stockholders are invited to listen to the second quarter earnings conference call scheduled for today, October 31, 2017, at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto http://www.stevemadden.com. An online archive of the broadcast will be available within one hour of the conclusion of the call and will be accessible for a period of 30 days following the call. Additionally, a replay of the call can be accessed by dialing 1-844-512-2921 (U.S.) and 1-412-317-6671 (international), passcode 8203375, and will be available until November 30, 2017.

About Steve Madden

Steve Madden designs, sources and markets fashion-forward footwear and accessories for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Report®, Big Buddha®, Brian Atwood®, Cejon®, Blondo® and Mad Love®, Steve Madden is a licensee of various brands, including Kate Spade®, Superga® and Avec Les Filles®. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, specialty stores, luxury retailers, national chains and mass merchants. Steve Madden also operates 202 retail stores (including Steve Madden’s four Internet stores). Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including for ready-to-wear, outerwear, intimate apparel, eyewear, hosiery, jewelry, fragrance, luggage and bedding and bath products. For local store information and the latest Steve Madden booties, pumps, men’s and women’s boots, dress shoes, sandals and more, visit http://www.stevemadden.com/

 

Safe Harbor

This press release and oral statements made from time to time by representatives of the Company contain certain “forward looking statements” as that term is defined in the federal securities laws. The events described in forward looking statements may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of the Company’s plans or strategies, projected or anticipated benefits from acquisitions to be made by the Company, or projections involving anticipated revenues, earnings or other aspects of the Company’s operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward looking statements. The Company cautions you that these statements concern current expectations about the Company’s future results and condition and are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the Company’s control, that may influence the accuracy of the statements and the projections upon which the statements are based. Factors which may affect the Company’s results include, but are not limited to, the risks and uncertainties discussed in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any one or more of these uncertainties, risks and other influences could materially affect the Company’s results of operations and financial condition and whether forward looking statements made by the Company ultimately prove to be accurate and, as such, the Company’s actual results, performance and achievements could differ materially from those expressed or implied in these forward looking statements. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA

(In thousands, except per share amounts)

(Unaudited)

		Three Months Ended								Nine Months Ended
		September 30, 2017				September 30, 2016				September 30, 2017				September 30, 2016
Net sales		$	441,193			$	408,384			$	1,181,728			$	1,063,143
Cost of sales			275,302				253,876				743,723				671,388
Gross profit			165,891				154,508				438,005				391,755
Commission and licensing fee income, net			4,746				5,304				10,838				10,259
Operating expenses			105,194				96,046				310,725				272,478
Income from operations			65,443				63,766				138,118				129,536
Interest and other income, net			564				747				1,956				1,117
Income before provision for income taxes			66,007				64,513				140,074				130,653
Provision for income taxes			21,181				20,810				45,703				38,212
Net income			44,826				43,703				94,371				92,441
Net income (loss) attributable to noncontrolling interest			596				(64	)			1,019				278
Net income attributable to Steven Madden, Ltd.		$	44,230			$	43,767			$	93,352			$	92,163
Basic income per share		$	0.81			$	0.77			$	1.69			$	1.61
Diluted income per share		$	0.77			$	0.74			$	1.61			$	1.54
Basic weighted average common shares outstanding			54,904				56,869				55,290				57,334
Diluted weighted average common shares outstanding			57,751				59,329				57,894				59,772

STEVEN MADDEN, LTD. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(In thousands)

						As of
		September 30, 2017				December 31, 2016				September 30, 2016
		(Unaudited)								(Unaudited)
Cash and cash equivalents		$	92,080			$	126,115			$	62,723
Marketable securities (current & non current)			84,815				110,054				120,737
Accounts receivables, net			337,200				200,958				269,853
Inventories			124,117				119,824				111,952
Other current assets			44,621				42,279				31,602
Property and equipment, net			73,922				72,381				74,382
Goodwill and intangibles, net			305,622				280,097				282,920
Other assets			9,026				9,167				8,220
Total assets		$	1,071,403			$	960,875			$	962,389
Accounts payable		$	102,906			$	80,584			$	102,095
Contingent payment liability (current & non current)			23,050				7,948				16,682
Other current liabilities			106,485				94,595				78,994
Other long term liabilities			35,961				36,676				40,978
Total Steven Madden, Ltd. stockholders’ equity			797,061				740,867				723,363
Noncontrolling interest			5,940				205				277
Total liabilities and stockholders’ equity		$	1,071,403			$	960,875			$	962,389

STEVEN MADDEN, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW DATA

(In thousands)

(Unaudited)

 

		Nine Months Ended
		September 30, 2017				September 30, 2016
Net cash provided by operating activities		$	35,010			$	73,464
Investing Activities
Purchases of property and equipment			(11,710	)			(12,908	)
Sales of marketable securities, net			28,290				2,736
Repayment of notes receivable			221				249
Acquisition, net of cash acquired			(17,396	)			—
Net cash used in investing activities			(595	)			(9,923	)
Financing Activities
Common stock share repurchases for treasury			(73,226	)			(66,394	)
Purchase of noncontrolling interest			—				(3,759	)
Payment of contingent liability			(7,359	)			(8,048	)
Proceeds from exercise of stock options			11,312				4,869
Net cash used in financing activities			(69,273	)			(73,332	)
Effect of exchange rate changes on cash and cash equivalents			823				100
Net (decrease) in cash and cash equivalents			(34,035	)			(9,691	)
Cash and cash equivalents - beginning of period			126,115				72,414
Cash and cash equivalents - end of period		$	92,080			$	62,723

STEVEN MADDEN, LTD. AND SUBSIDIARIES

 

NON-GAAP RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

The Company uses non-GAAP financial information to evaluate its operating performance and in order to represent the manner in which the Company conducts and views its business. Additionally, the Company believes the information assists investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding items that are not indicative of its core business. The non-GAAP financial information is provided in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.

Table 1 - Reconciliation of GAAP gross profit to Adjusted gross profit

 

		Nine Months Ended
		September 30, 2017
Consolidated
GAAP gross profit		$	438,005
Non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition			1,654
Adjusted gross profit		$	439,659
Wholesale
GAAP gross profit		$	325,717
Non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition			1,654
Adjusted gross profit		$	327,371

 

Table 2 - Reconciliation of GAAP operating expenses to Adjusted operating expenses

 

		Three Months Ended				Nine Months Ended
		September 30, 2017				September 30, 2017
GAAP operating expenses		$	105,194			$	310,725
Expense incurred in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring			488				1,255
Bad debt expense associated with the Payless ShoeSource bankruptcy			—				7,500
Adjusted operating expenses		$	104,706			$	301,970

Table 3 - Reconciliation of GAAP operating income to Adjusted operating income

 

		Three Months Ended				Nine Months Ended
		September 30, 2017				September 30, 2017
GAAP operating income		$	65,443			$	138,118
Non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition			—				1,654
Expense incurred in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring			488				1,255
Bad debt expense associated with the Payless ShoeSource bankruptcy			—				7,500
Adjusted operating income		$	65,931			$	148,527

 

Table 4 - Reconciliation of GAAP provision for income taxes to Adjusted provision for income taxes

 

		Three Months Ended				Nine Months Ended
		September 30, 2017				September 30, 2017
GAAP provision for income taxes		$	21,181			$	45,703
Tax effect of non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition			—				579
Tax effect of expense incurred in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring			181				465
Tax effect of bad debt expense associated with the Payless ShoeSource bankruptcy			—				964
Adjusted provision for income taxes		$	21,362			$	47,711

 

Table 5 - Reconciliation of GAAP net income to Adjusted net income

 

		Three Months Ended				Nine Months Ended
		September 30, 2017				September 30, 2017
GAAP net income attributable to Steven Madden, Ltd.		$	44,230			$	93,352
After-tax impact of non-cash expense associated with the purchase accounting fair value adjustment of inventory acquired in the Schwartz & Benjamin acquisition			—				1,075
After-tax impact of expense incurred in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring			307				790
After-tax impact of bad debt expense associated with the Payless ShoeSource bankruptcy			—				6,536
Adjusted net income attributable to Steven Madden, Ltd.		$	44,537			$	101,753
GAAP diluted income per share		$	0.77			$	1.61
Adjusted diluted income per share		$	0.77			$	1.76

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