2008 ANALYST AND INVESTOR EVENT

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SAFE HARBOR STATEMENT

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.

STEVEN MADDEN, LTD. MANAGEMENT

• Ed RosenfeldChairman & Chief Executive Officer

• Awadesh SinhaChief Operating Officer

• Arvind DhariaChief Financial Officer

• Steve MaddenCreative & Design Chief

• Rob SchmertzBrand Director

• Amelia Newton VarelaExecutive Vice President Wholesale & Retail

• Ian GomarPresident - Retail

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COMPANY OVERVIEW Ed Rosenfeld, Chairman & Chief Executive Officer

BRANDS & BUSINESS MODEL Rob Schmertz, Brand Director

DIVISIONAL OVERVIEW Ed Rosenfeld, Chairman & Chief Executive Officer Rob Schmertz, Brand Director Ian Gomar, President - Retail

BREAK

OPERATIONS OVERVIEW Awadhesh Sinha, Chief Operating Officer

CREATIVE OVERVIEW Steve Madden, Creative & Design Chief Rob Schmertz, Brand Director

FINANCIAL OVERVIEW Ed Rosenfeld, Chairman & Chief Executive Officer

AGENDA

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COMPANY OVERVIEWEd Rosenfeld

Chairman & Chief Executive Officer

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GROWTH HERITAGE: SALES SINCE IPO

0

50

100

150

200

250

300

350

400

450

$ in

milli

ons

1993 2008E

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FINANCIAL PERFORMANCE2007 EBITDA Margin = 14.7%

2007 ROIC = 27.5%

3 Year CAGR

10 Year CAGR

Net Sales 8.4% 21.9%

EBITDA 37.1% 27.6%

Diluted EPS 42.8% 23.6%

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LONG-TERM VALUE CREATION

SHOO S&P 500

Since IPO 11.9% 7.2%

10 Year 15.8% 1.8%

3 Year 22.3% 2.0%

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STRATEGIC PRIORITIES

Leveraging our Core Assets

Optimizing our Growth

Platform

Diversifying our Business

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LEVERAGING OUR CORE ASSETSSTEVE MADDEN BRAND• Diffusion brands (e.g. Madden Girl, Steven by Steve Madden,

Steve Madden’s Fix*)

• International expansion

• Category extensions

• Strengthening core channels

FOOTWEAR/ACCESSORIES EXPERTISE• Private label

• Betsey Johnson / Betseyville

• Fabulosity

• l.e.i.

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DIVERSIFYING OUR BUSINESS

2008E Sales by Channel

23%

20%

18%

11%

6%5%

17%

Specialty Retailers Department StoresMass Merchants Shoe ChainsMid-Tier Retailers InternetOff-Price and Other

2008E Sales by Segment

53%

21%

21%5%

Wholesale Retail

Adesso Madden "First Cost" Licensing

Note: Figures are current year company estimates; sales figures shown as if the Company reported sales from its “first cost” and licensing businesses

DIVERSIFYING OUR BUSINESS

41%

10%9%8%

2%

23%

4%2%1%

Steve Madden Women's Steve Madden Men'sSteven by Steve Madden Madden GirlBetsey Johnson / Betseyville Candie'sStevies Other BrandsPrivate Labels

2008E Sales by Brand

70%

10%

3%12%

5%

Women's Footwear Men's FootwearKids' Footwear Accessories (DMF)Other Licensed Categories

2008E Sales by Category

Note: Figures are current year company estimates; sales figures shown as if the Company reported sales from its “first cost” and licensing businesses

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InternationalAsia

New territories

RetailFull-priceInternetOutlet

LicensingNew categories

(apparel, jewelry,bedding & bath, etc.)

AccessoriesSteve Madden

& Steven Handbags

Private Labell.e.i.

Wholesale FootwearMadden Girl

Steve Madden’s Fix*Fabulosity

GrowthOpportunities

OPTIMIZING OUR GROWTH PLATFORMOPTIMIZING OUR GROWTH PLATFORM

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BRANDS AND BUSINESS MODEL Rob SchmertzBrand Director

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OWNED BRANDS

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LICENSED BRANDSFootwear Accessories

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BRAND HISTORY

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BRAND STRENGTHSteve Madden has been 2nd most preferred footwear brand, behindNike, among teenagers nationally every year from 2002 - 2007

Source: Piper Jaffray Taking Stock With Teens Survey; Fall 2007Students were asked to list their favorite brands; responses were unaidedSurvey Inception: 2002

Brand % Total

1 Nike 29%

2 Steve Madden 7%

3 Adidas 6%

4 Puma 5%

5 Vans 4%

6 Footlocker 3%

7 Coach 2%

8 DC Shoes 2%

9 Rainbow 2%

10 Payless Shoes 2%

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MARKET SHARE

Brand Sales Market Share

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2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

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Steve Madden $114,987,241 27.6%

Jessica Simpson $90,296,839 21.7%

Skechers $59,058,834 14.2%

Rampage $31,747,980 7.6%

Report $21,464,440 5.1%

Rocket Dog $17,704,630 4.3%

Mia $15,335,360 3.7%

Roxy $15,272,270 3.7%

Chinese Laundry $13,315,420 3.2%

Unlisted By Kenneth Cole $10,496,130 2.5%

Mudd Footwear $6,027,227 1.4%

Madden Girl $4,701,982 1.1%

Diesel $4,386,931 1.1%

Baby Phat $3,434,603 0.8%

Me Too $1,721,581 0.4%

Volatile $1,547,564 0.4%

Rhino Red $1,438,155 0.3%

Dr. Martens $1,288,350 0.3%

Penny Loves Kenny $1,236,901 0.3%

Rebels $674,883 0.2%

Brand Sales Market Share

1 Coach $193,134,189 5.0%

2 Nine West $132,543,915 3.4%

3 Naturalizer $115,949,593 3.0%

4 Steve Madden $114,987,241 3.0%

5 Clarks England $114,496,536 3.0%

6 BCBG Girl $104,690,566 2.7%

7 Cole-Haan $100,416,367 2.6%

8 UGG $91,110,831 2.4%

9 Jessica Simpson $90,296,839 2.3%

10 Franco Sarto $83,625,090 2.2%

11 Easy Spirit $83,146,094 2.2%

12 Bandolino $80,175,635 2.1%

13 AK Anne Klein $69,206,143 1.8%

14 Born $61,088,259 1.6%

15 Skechers $59,058,834 1.5%

16 Guess $57,419,622 1.5%

17 Kenneth Cole Reaction $56,920,551 1.5%

18 LifeStride $56,479,450 1.5%

19 Merrell $55,934,311 1.5%

20 Stuart Weitzman $52,723,147 1.4%

#4 in 2007 Department Store Sales

#1 in 2007 Juniors Department Store Sales

Source: The NPD Group, Inc.

“TOP” LISTS

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HOW WE STAY COMPETITIVE

Design Expertise and Relentless Focus on Product

Test and React Strategy

Speed to Market

Innovative Marketing

Creative and Design ChiefSteve Madden

Steve Madden’s Fix*

DESIGN EXPERTISEOur top 8 designers have been with Steven Madden, Ltd. for an average of 11 years

Candie’sStevies

Steven bySteve Madden

Steve Madden Men’s

AdessoMaddenRetail

Brand DirectorRob Schmertz

2 Designers2 Linebuilders

1 Product DevelopmentCoordinator

6 Design Associates

2 Designers1 Linebuilder

1 Product Development Coordinator

1 Design Associate

1 Designer3 Linebuilders

16 Design Associates

1 Designer1 Linebuilder

1 Design Associate

2 Linebuilders1 Design Associate


1 Design Associate


3 Design Associates



1 Product Development Coordinator

1 Linebuilder1 Associate Linebuilder

Steve Madden Women’s

Madden Girl

Accessories (DMF)

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TEST…

Retail Sell-Through Data

Product Samples and Small-Scale

Production

Product Designs

Retail Stores/ Internet

Design Team

Sample Factory

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…AND REACT

“Test”Results

AdessoMadden

Customers

RetailStores

Wholesale Customers

Private Label Versions of

Successful StylesSuccessful Styles

Successful Styles

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SAMPLE FACTORYSteve Madden’s “Secret Weapon”

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CLASSIC STEVE MADDEN ADVERTISING

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PRODUCT PLACEMENT

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PRODUCT PLACEMENT

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FRESH STEVE MADDEN BRANDING

INNOVATIVE MARKETING

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EMPLOYEE E-COMMERCE INITIATIVE

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Divisional Overview Ed Rosenfeld

Chairman & Chief Executive Officer

Rob SchmertzBrand Director

Ian GomarPresident - Retail

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WHOLESALE OVERVIEW

• LTM net sales = $304 million

• 8 footwear brands

• 6 accessories brands

• Tiered distribution strategy from better department stores through mid-tier retailers as well as specialty stores

• Carefully select top selling products from retail for wholesale business

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Mass Market

Retailers

FOOTWEAR PORTFOLIOBloomingdales

Nordstrom

Dillards

Macy’s

JCPenney

Kohl’s

Target

Wal-Mart

DSW

Famous Footwear

Private Labels

BrandedWholesale

AdessoMadden

“First Cost”

Shoe Chains

Better Department

Stores

Mid-Tier Retailers

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STEVE MADDEN WOMEN’S

• LTM wholesale net sales = $122 million

• Target consumer – women 16 to 35 years old

• Average retail price points– Shoes: $60 to $100– Boots: $90 to $160

• Distribution through better department stores and specialty stores

• 4,900 doors

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STEVE MADDEN MEN’S


• Target consumer – men 20 to 40 years old

• Average retail price points of $70 to $100


• 4,800 doors

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STEVEN BY STEVE MADDEN



• Average retail price points– Shoes: $90 to $160– Boots: $200 to $290


• 800 doors

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MADDEN GIRL


• Target consumer – young women 13 to 20 years old


• Distribution through department stores, mid-tier retailers and specialty stores

• 6,300 doors

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STEVIES

• LTM net sales = $6 million• Target consumer – young girls

6 to 9 years old and “tweens”10 to 12 years old



• 2,800 doors

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STEVE MADDEN’S FIX*

• New fashion sneaker brand launched in late 2007




• 750 doors

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CANDIE’S


• Target consumer – girls and young women 6 to 20 years old


• Distribution through Kohl’s

• 900 doors

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FABULOSITY

• New urban lifestyle brand created by Kimora Lee Simmons

• Target consumer – young women 13 to 25 years old


• Distribution through JC Penney

• Launching Spring 2009

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DANIEL M. FRIEDMAN & ASSOCIATES


• Accessories business acquired February 2006

2008E Sales by Category

76%

24%

Handbags Belts

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ACCESSORIES PORTFOLIOHandbags

Fabulosity JC Penney $28-$48 TBD

Brand Distribution Price Points DoorsSteven Department / Specialty Stores $98 - $298 160

Steve Madden Department / Specialty Stores $38 - $128 520

Betsey Johnson Department / Specialty Stores $165 - $395 130

Betseyville Department / Specialty Stores $25 - $145 721

Daisy Fuentes Kohl's $36 - $68 945

Private Labels Kohl's, Shopko, Costco, Payless $9.99 - $58 2,500

Belts

Fabulosity JC Penney $20-$24 TBD

Brand Distribution Price Points DoorsSteven Department / Specialty Stores $28-$42 643

Betsey Johnson Department / Specialty Stores $38-$68 273

Private Labels Kohl's, Shopko, Costco, Payless $12.99 - $24.00 2,500

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2008-2009 WHOLESALE FOCUSGoal: Optimize Penetration Across Channels

• Continue to stay ahead of fashion curve in Steve Madden Women’s and Steven

• Increase penetration of Madden Girl in department stores

• Improve product in Steve Madden Men’s, particularly in sport category

• Grow new brands (Steve Madden’s Fix* and Fabulosity)

• Expand product assortment for Steve Madden Kids

• Grow Steve Madden and Steven handbags

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RETAIL OVERVIEW

•LTM net sales = $122 million

•99 stores− 93 Steve Madden

stores

− 5 Steven by Steve Madden stores

− 1 Internet store

•Strong brand building platform

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U.S. STORE LOCATIONS

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STORE AVERAGES

Net Sales $1.1 mm

Square Footage 1,701

Sales per square foot

$623

Net Sales $1.8 mm

Square Footage 1,575

Sales per square foot

$1,146

Steve Madden Stores Steven by Steve Madden Stores

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NEW STORE ECONOMICS

TargetedPerformance

• Net Sales $1,000,000• Cash Flow Contribution Margin 15 - 18%• Investment (Includes Inventory) $400,000• Targeted ROI (Before Tax) 37.5 - 45%

STORE DESIGN: OLD WORLD

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STORE DESIGN: NEW PROTOTYPE

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E-COMMERCE

• Largest retail “store”

• Broad online product assortment

• LTM net sales = $15.4 million

• YTD net sales growth = 26%

• Average monthly visits = 1.2 million

• E-mail list = 865,000 people

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2008-2009 RETAIL FOCUSGoal: Improve Profitability and Leverage Brand Building Tool

• Leverage systems enhancements and new personnel to improve store performance

• Close underperforming locations

• Continue to open stores opportunistically in select markets

• Further enhance e-commerce business

• Explore outlet opportunity

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ADESSO MADDEN

• “First cost” commission-based business with no inventory risk or investment

• LTM net commission income = $10.6 million

Adesso Madden “First Cost”

Private Label International

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PRIVATE LABEL

• Allows Company to leverage its product design capabilities and sourcing relationships in order to generate additional income

• Key customers = Target, Wal-Mart

• Candie’s transitioning to “first cost” model

• l.e.i. will be growth vehicle

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INTERNATIONAL

• Company operates internationally through retail and/or wholesale distribution agreements with local partners

• Company’s products currently distributed in 47 countries

• Company currently has 47 free-standing retail stores and 52 concessions (shop-in-shops) internationally

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INTERNATIONAL REACH

Wholesale Retail Both

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2008-2009 ADESSO MADDEN FOCUS

Goal: Deliver Consistent Growth by Maximizing Mass Market andInternational Channels

Private Label• Transition Candie’s to new design team and “first cost” model

• Build l.e.i. business with Wal-Mart

International• Expand in Asia through partnership with GRI• Explore partnerships for Europe, Brazil, and India

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LICENSING

• LTM royalty income = $3.2 million

• Current licenses:− Cold weather and other

fashion accessories− Outerwear− Hosiery− Sunglasses and eyeglasses

• Significant growth opportunity

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2008-2009 LICENSING FOCUSGoal: Effectively Leverage/Monetize our Powerful Brand

• Build infrastructure to support licensing program

• Sign additional licenses – targeted areas include:

– Bedding and bath

– Loungewear

– Jewelry

– Swimwear

– Apparel

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BREAK10 minutes

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INVESTING FOR GROWTH AND DRIVING EFFICIENCIES

Awadhesh SinhaChief Operating Officer

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KEY OPERATING INITIATIVES

• Sourcing initiatives

• IT / Systems upgrades and planned improvements

• Logistics accomplishments and future enhancements

• Website initiatives

• Tax savings – 42.5% to 39.0%

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• Currently source about 95% of products from China through agents

• Recently opened sourcing office in China– Plan to source 40% of products direct to factory through

sourcing office by end of 2010

• Increasing production from Mexico, India, Brazil

• Exploring possibility of Texas warehouse to reduce freight costs and transit time from Mexico

SOURCING INITIATIVES

Infrastructure:

• New Data Center

• New Emergency Generator

• Mainframe Computer

– 3 AS400 – New

• Real Time Private Network

• New Phone System

– VOIP

2006 2007

X

X

X

X

X

IT / SYSTEMS UPGRADES

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Wholesale:• New EDI System• In Transit Inventory Control SystemRetail:• POS Systems Upgrade• Centralized Credit Approval• Trickle Polling• Warehouse & Distribution Systems

(Location based Inventory)• Send Sale• Traffic Counter

2006 2007XX

XXXX

XX

IT / SYSTEMS UPGRADES

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• Planning & Allocation – Retail Stores

• Budgeting, Forecasting & Financial Systems

• Retail ERP

• Web PDM

• B 2 B – International & Wholesale

• Call center technology refresh

• Integrated retail payroll management implementation

FUTURE IT / SYSTEMS INITIATIVES

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LOGISTICS ACCOMPLISHMENTS

• Added 3rd distribution center

• Reduced compliance chargebacks

• Achieved better freight rates from factory to distribution center (while cutting down transit time)

• Achieved better freight rates from distribution center to retail stores

• Implemented pre-custom clearance

• Established 24-hour turnaround time at distribution center

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• Further improve supply chain environment:– Improved reporting/visibility

– Transportation management

– Cross docking and yard management

– Forecasting systems for warehouse labor allocation

FUTURE LOGISTICS INITIATIVES

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WEBSITE INITIATIVES

• Automation of pre-order/back order status

• Gift card offering

• Marketing database segmentation

• In-store pick-up

• More efficient use of call center personnel

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INFRASTRUCTURE & SYSTEMS COSTS

• Investments of $4.2 and $3.8 million for 2006 and 2007 respectively

• Anticipate investment of $3.0 to $4.0 million per year for 2008 and 2009

• Approximately $1.5 to $2.0 million per year after 2009

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2008-2009 INFRASTRUCTURE FOCUS

Goal: Create Superior Infrastructure to Support our Growth

• Further improve sourcing capabilities including diversification of production

• Implement next stage of IT / systems upgrades for Corporate, Retail and Supply Chain

• Leverage supply chain improvements

• Complete website upgrades for enhanced functionality and improved customer service

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CREATIVE OVERVIEW Steve Madden

Creative & Design Chief

Rob SchmertzBrand Director

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PRODUCT WALK-THROUGH

15 Minute Webcast Break – On-site Merchandise Review

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FINANCIAL OVERVIEW AND CLOSING REMARKS

Ed RosenfeldChairman & Chief Executive Officer

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RECENT FINANCIAL HIGHLIGHTS

(Dollars in Millions, Except Per Share Data)Six Months Ended LTM

2005 2006 2007 6/30/07 6/30/08 6/30/08

Net Sales $375.8 $475.2 $431.1 $214.9 $209.9 $426.0% Growth 11.1% 26.4% (9.3%) -- (2.4%) --

Gross Profit $139.2 $198.4 $173.4 $87.6 $85.8 $171.5% Margin 37.0% 41.8% 40.2% 40.8% 40.9% 40.3%

EBITDA $37.7 $86.8 $63.2 $37.5 $25.1 $50.8% Margin 10.0% 18.3% 14.7% 17.5% 11.9% 11.9%

EBIT $31.6 $78.3 $54.1 $33.2 $19.9 $40.9% Margin 8.4% 16.5% 12.6% 15.4% 9.5% 9.6%

Net Income $19.2 $46.3 $33.6 $20.1 $12.7 $26.2% Margin 5.1% 9.7% 7.8% 9.3% 6.0% 6.2%

Diluted EPS $0.92 $2.09 $1.58 $0.92 $0.67 $1.32% Growth 59.5% 128.0% (24.7%) -- (27.5%) --

All data excludes non-recurring items

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BALANCE SHEET AND CASH FLOW

Cash and Securities = $46.3 million (as of 6/30/08)

Average Free Cash Flow (2005-2007) = $37.8 million

Returning Capital to Shareholders

• Dutch Auction for 2.6 million shares (12.9%) of Company completed in 1Q08 at $17.00 per share

• $145 million returned to shareholders in share repurchases and dividends since 2005

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LOOKING AHEAD

Full Year 2008 Guidance

Implied Back Half Guidance

Sales Growth 0-2% 2-6%

Diluted EPS $1.55-$1.65 $0.88-$0.99

Diluted EPS Growth

(2)-5% 38-54%

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WELL POSITIONED FOR FUTURE

Leveraging our Core Assets

Steve Madden brand

Design and marketing expertise

Brands

Channels

Products

Geographies

Poised for long-term growth and value creation

Diversifying our Business

Optimizing our Growth Platform

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Q&A

2008 ANALYST AND INVESTOR EVENT

2008 ANALYST AND INVESTOR EVENT - IIS Windows...

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