Doja Cat Battles Doja Cat in First Skechers Campaign

Doja Cat Battles Doja Cat in First Skechers Campaign

May 1, 2023 • 8:00 am EDT

LOS ANGELES–(BUSINESS WIRE)–
Global superstar and style icon Doja Cat steps into her recently announced role as the first-ever Skechers Artist-in-Residence with a fiercely energetic Skechers Uno campaign. The creative concept draws inspiration from Y2K, cyberpunk and anime aesthetics as two opposing personalities of the artist battle each other in the signature Skechers style.

Doja Cat Battles Doja Cat in First Skechers Campaign

Doja Cat brings her creative influence to the Skechers Uno campaign as the brand’s Artist-in-Residence. (Photo: Business Wire)

Doja Cat brings her creative influence to the Skechers Uno campaign as the brand’s Artist-in-Residence. (Photo: Business Wire)

“Building out this campaign and a new world for the Uno with my creative director Brett Alan Nelson and Skechers has been amazing,” said Doja Cat, Skechers Artist-in-Residence. “This is just the start. I look forward to sharing more of what we’ve been creating soon.”

“I was super inspired by the idea of the different Uno colors and which Uno gives you the most power,” added Doja Cat’s creative director, Brett Alan Nelson. “We reference old school anime fight scenes within a battle of ‘Doja Cat vs Doja Cat’ and the ultimate theme is that in the end we will never follow another’s footsteps.”

“Last week, Doja Cat shared that she’s our first Artist-in-Residence while wearing a dress designed with deconstructed Skechers Uno footwear,” added Michael Greenberg, president of Skechers. “Her Skechers campaign is the next illustration of Doja Cat bringing her unique creative influence and fashion-forward inspiration and style to Skechers. As an artist in both the music and fashion worlds, Doja adds a unique perspective to our organization.”

Famed for its signature air-infused wedge outsole, modernized silhouette, and vibrant colorways, the Skechers Uno collection has captivated shoppers everywhere through its ever-evolving range—seen on catwalks around the world as a coveted fashion sneaker.

The complete range of Skechers footwear is available in Skechers retail stores as well as at skechers.com/doja-cat, plus department stores and footwear retailers around the globe.

About Doja Cat

GRAMMY award-winning global superstar Doja Cat made her first upload to Soundcloud in 2013 at 16 years old. Raised in LA, she developed a knack for music by studying piano and dance as a kid. Signed to Kemosabe/RCA in 2014, she released her Purrr! EP followed by her debut album Amala in 2018, but the release of her single “Mooo!” in late 2018 catapulted her into the mainstream and was met with critical acclaim. The following year, she released her GRAMMY-nominated platinum album Hot Pink, which features “Streets,” the viral TikTok sensation that soundtracked the ‘Silhouette Challenge’ and her GRAMMY-nominated #1 smash record, “Say So” which has been RIAA certified 6x platinum.

Doja’s creativity and showmanship as a performer has been praised time and time again. She’s delivered unique and show stopping performances on nearly all the major award show stages and music festivals around the world and was named as one of the 100 most influential people of 2023 by TIME. Doja’s GRAMMY award-winning third album Planet Her dominated the charts, debuting at #1 on the Billboard Top R&B Albums chart and #2 on the Billboard Top 200 and Billboard Top R&B/Hip-Hop Albums chart. It also generated the highest first day Spotify streams for an album by a female rapper. The GRAMMY award-winning and RIAA certified platinum hit “Kiss Me More” ft. SZA, the lead single off Planet Her, hit #1 at Top 40 and Rhythm radio with over 5 billion streams worldwide. Earlier this year, Doja became the first woman to have four #1 hits from one album and landed #1 on the Billboard Artist 100 chart for the first time. More recently, in October 2022, Doja’s single “Vegas” from the Elvis Original Motion Picture Soundtrack hit #1 at Pop Radio – leading her to not only have the most #1’s at Pop Radio this decade but also the most top 10s among women on the Billboard Hot 100 this decade.

About Skechers U.S.A., Inc.

Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s war of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Media Contacts:

Jennifer Clay

SKECHERS U.S.A., Inc.

[email protected]

Lauren Weissman

R&CPMK

[email protected]

Source: Skechers U.S.A., Inc.

Skechers Announces First Quarter 2023 Financial Results and Record Quarterly Sales of $2 Billion

Skechers Announces First Quarter 2023 Financial Results and Record Quarterly Sales of $2 Billion

Apr 27, 2023 • 4:05 pm EDT

LOS ANGELES–(BUSINESS WIRE)–
Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced financial results for the first quarter ended March 31, 2023.

First Quarter Highlights

“Our first quarter 2023 marks a new milestone with quarterly sales of over $2 billion. The 10%, or $182 million, sales increase was the result of broad strength in most markets globally, including regional sales improvements of 21% in both EMEA and APAC, which includes growth of 3% in China,” began David Weinberg, Chief Operating Officer of Skechers. “With an increase of 24.5% worldwide, Direct-to-Consumer performed particularly well due to the improved inventory availability in stores and strong demand for our fresh comfort product offering. Our record sales, expanded gross margins of 48.9% and meaningfully improved inventory levels are an indication of the strength of our comfort technology products and impactful marketing worldwide. We continue to build efficiencies and expand our distribution capabilities around the globe to meet the demand for the comfort, innovation, style, and quality that Skechers consumers want. With plans to reach $10 billion in annual sales by 2026, we couldn’t be more positive about the many meaningful growth opportunities we see ahead.”

“Skechers takes a global product and people first approach to our business. Everything we do as an organization is with the priority of delivering the best and most comfortable products to meet nearly every footwear need. This is why we are the leading walking and work brand, why we’ve made comfort a must in every pair of our shoes, and why we continue to innovate, whether it’s through our kids lighted styles, performance pickleball footwear, golf footwear worn by major tournament winners, or Skechers Hands Free Slip-ins for consumers of all ages,” added Robert Greenberg, Chief Executive Officer of Skechers. “We never stop innovating and improving to meet the needs of our consumers. And we ensure Skechers remains top of mind through our marketing campaigns – whether it’s Snoop Dogg and Martha Stewart in this year’s Super Bowl, digital campaigns starring our talented roster of ambassadors, pickleball tournaments sponsorships, or store windows around the world. We’re expanding the opportunities for consumers to experience Skechers globally – be it at one of our more than 4,500 retail locations, Skechers e-commerce sites, or through the vast network of third-party retailers that carry our products. None of this would be possible without the global infrastructure and talented teams that we have in place. This year will bring challenges as certain markets wrestle with inventory backlogs, but I continue to believe that the trust and respect I have for this organization and the trust the consumers place in Skechers will result in another strong year for the brand.”

First Quarter 2023 Financial Results

 

 

Three Months Ended March 31,

 

 

Change

 

(in millions, except per share data)

 

2023

 

 

2022

 

 

$

 

 

%

 

Sales

 

$

2,001.9

 

 

$

1,819.6

 

 

 

182.3

 

 

 

10.0

 

Gross profit

 

 

978.6

 

 

 

824.2

 

 

 

154.4

 

 

 

18.7

 

Gross margin

 

 

48.9

%

 

 

45.3

%

 

 

 

 

 

 

360

bps

Operating expenses

 

 

755.0

 

 

 

648.3

 

 

 

106.7

 

 

 

16.5

 

As a % of sales

 

 

37.7

%

 

 

35.6

%

 

 

 

 

 

 

210

bps

Earnings from operations

 

 

223.6

 

 

 

175.9

 

 

 

47.7

 

 

 

27.1

 

Operating margin

 

 

11.2

%

 

 

9.7

%

 

 

 

 

 

 

150

bps

Net earnings

 

 

160.4

 

 

 

121.2

 

 

 

39.2

 

 

 

32.4

 

Diluted earnings per share

 

$

1.02

 

 

$

0.77

 

 

 

0.25

 

 

 

32.5

 

First quarter sales increased 10.0% as a result of a 21.1% increase internationally and a 4.8% decrease domestically. Both segments experienced growth, with Direct-to-Consumer increasing 24.5% and Wholesale increasing 3.5%. On a constant currency basis, sales increased 13.3%.

Wholesale sales growth of $43.3 million, or 3.5%, which includes increases in EMEA of 20.1% and APAC of 24.1%, partially offset by a decrease in AMER of 13.2%. Wholesale average selling price increased 5.3% and volume decreased 1.9%.

Direct-to-Consumer sales growth of $139.0 million, or 24.5%, which includes increases in AMER of 28.6%, APAC of 17.9%, and EMEA of 29.5%. Direct-to-Consumer volume increased 27.2% and average selling price decreased 2.2%.

Gross margin was 48.9%, an increase of 360 basis points, due to higher average selling prices in Wholesale and a greater mix of Direct-to-Consumer sales.

Operating expenses increased $106.7 million, or 16.5%, and as a percentage of sales increased 210 basis points to 37.7%. Selling expenses increased $20.4 million, or 18.8%, and as a percentage of sales increased 50 basis points to 6.4%. The increase was due to higher brand demand creation expenditures. General and administrative expenses increased $86.4 million, or 16.0%, and as a percentage of sales increased 160 basis points to 31.3%. Increased expenses were primarily driven by labor, warehouse and distribution expenses, and increased facility costs, including rent and depreciation.

Earnings from operations increased $47.7 million, or 27.1%, to $223.6 million.

Net earnings were $160.4 million and diluted earnings per share were $1.02 compared with prior year net earnings of $121.2 million and diluted earnings per share of $0.77.

In the first quarter, the Company’s effective income tax rate was 18.5%.

“This was another record quarter for Skechers on both the top and bottom line. With broad-based strength globally, our consumers continue to seek out our brand for its compelling product assortment and attractive value proposition,” stated John Vandemore, Chief Financial Officer of Skechers. “We significantly grew our Direct-to-Consumer business and moderated our inventory level, overcoming continued challenges in the domestic wholesale market. We also saw encouraging early signs of a robust recovery in China. We remain confident in our strategy and our ability to achieve $10 billion in sales by 2026.”

Balance Sheet

Cash, cash equivalents and investments totaled $930.3 million, an increase of $141.9 million, or 18.0% from December 31, 2022, primarily due to operating cash flow, partially offset by capital expenditures of $71.2 million and the completion of $30.0 million of share repurchases in the first quarter of 2023.

Inventory was $1.50 billion, a decrease of $315.8 million or 17.4% from December 31, 2022. Inventory levels decreased in AMER, EMEA, and APAC.

Share Repurchase

During the first quarter, the Company repurchased approximately 676,000 shares of its Class A common stock at a cost of $30.0 million. At March 31, 2023, approximately $395.7 million remained available under the Company’s share repurchase program.

Outlook

For the second quarter of 2023, the Company believes it will achieve sales between $1.85 billion and $1.90 billion and diluted earnings per share of between $0.40 and $0.50. Further, the Company believes that for the fiscal year 2023, it will achieve sales between $7.9 billion and $8.1 billion and diluted earnings per share of between $3.00 and $3.20.

Store Count

 

 

Number of Stores

 

 

 

December 31, 2022

 

Opened

 

Closed

 

March 31, 2023

 

Domestic stores

 

539

 

13

 

(4

)

548

 

International stores

 

905

 

43

 

(21

)

927

 

Distributor, licensee and franchise stores

 

3,093

 

108

 

(127

)

3,074

 

Total Skechers stores

 

4,537

 

164

 

(152

)

4,549

 

First Quarter 2023 Conference Call

The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its first quarter 2023 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning April 27, 2023, at 7:30 p.m. ET, through May 11, 2023, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13737456.

About Skechers U.S.A., Inc.

Skechers U.S.A., Inc., The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in approximately 180 countries and territories through department and specialty stores, and direct to consumers through digital stores, and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter and TikTok.

Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s invasion of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

As of

 

 

As of

 

(in thousands)

 

March 31, 2023

 

 

December 31, 2022

 

ASSETS

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

760,040

 

 

$

615,733

 

Short-term investments

 

 

89,507

 

 

 

102,166

 

Trade accounts receivable, net

 

 

1,052,687

 

 

 

848,287

 

Other receivables

 

 

82,948

 

 

 

86,036

 

Inventory

 

 

1,502,247

 

 

 

1,818,016

 

Prepaid expenses and other

 

 

222,556

 

 

 

176,035

 

Total current assets

 

 

3,709,985

 

 

 

3,646,273

 

Property, plant and equipment, net

 

 

1,377,588

 

 

 

1,345,370

 

Operating lease right-of-use assets

 

 

1,239,222

 

 

 

1,200,565

 

Deferred tax assets

 

 

461,614

 

 

 

454,190

 

Long-term investments

 

 

80,743

 

 

 

70,498

 

Goodwill

 

 

93,497

 

 

 

93,497

 

Other assets, net

 

 

81,822

 

 

 

83,094

 

Total non-current assets

 

 

3,334,486

 

 

 

3,247,214

 

TOTAL ASSETS

 

$

7,044,471

 

 

$

6,893,487

 

LIABILITIES AND EQUITY

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

892,057

 

 

$

957,384

 

Accrued expenses

 

 

269,225

 

 

 

294,143

 

Operating lease liabilities

 

 

247,411

 

 

 

238,694

 

Current installments of long-term borrowings

 

 

100,469

 

 

 

103,184

 

Short-term borrowings

 

 

30,471

 

 

 

19,635

 

Total current liabilities

 

 

1,539,633

 

 

 

1,613,040

 

Long-term operating lease liabilities

 

 

1,092,711

 

 

 

1,063,672

 

Long-term borrowings

 

 

230,275

 

 

 

216,488

 

Deferred tax liabilities

 

 

8,722

 

 

 

8,656

 

Other long-term liabilities

 

 

126,835

 

 

 

120,045

 

Total non-current liabilities

 

 

1,458,543

 

 

 

1,408,861

 

Total liabilities

 

 

2,998,176

 

 

 

3,021,901

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred Stock

 

 

 

 

 

Class A Common Stock

 

 

134

 

 

 

134

 

Class B Common Stock

 

 

20

 

 

 

21

 

Additional paid-in capital

 

 

383,540

 

 

 

403,799

 

Accumulated other comprehensive loss

 

 

(80,217

)

 

 

(84,897

)

Retained earnings

 

 

3,411,374

 

 

 

3,250,931

 

Skechers U.S.A., Inc. equity

 

 

3,714,851

 

 

 

3,569,988

 

Noncontrolling interests

 

 

331,444

 

 

 

301,598

 

Total stockholders’ equity

 

 

4,046,295

 

 

 

3,871,586

 

TOTAL LIABILITIES AND EQUITY

 

$

7,044,471

 

 

$

6,893,487

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

 

 

Three Months Ended March 31,

 

(in thousands, except per share data)

 

2023

 

 

2022

 

Sales

 

$

2,001,928

 

 

$

1,819,594

 

Cost of sales

 

 

1,023,349

 

 

 

995,431

 

Gross profit

 

 

978,579

 

 

 

824,163

 

Operating expenses

 

 

 

 

 

 

 

 

Selling

 

 

128,560

 

 

 

108,209

 

General and administrative

 

 

626,442

 

 

 

540,050

 

Total operating expenses

 

 

755,002

 

 

 

648,259

 

Earnings from operations

 

 

223,577

 

 

 

175,904

 

Other income (expense)

 

 

9,923

 

 

 

(5,746

)

Earnings before income taxes

 

 

233,500

 

 

 

170,158

 

Income tax expense

 

 

43,216

 

 

 

33,992

 

Net earnings

 

 

190,284

 

 

 

136,166

 

Less: Net earnings attributable to noncontrolling interests

 

 

29,841

 

 

 

14,943

 

Net earnings attributable to Skechers U.S.A., Inc.

 

$

160,443

 

 

$

121,223

 

Net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

Basic

 

$

1.03

 

 

$

0.78

 

Diluted

 

$

1.02

 

 

$

0.77

 

Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.

 

 

 

 

 

 

 

 

Basic

 

 

155,140

 

 

 

155,996

 

Diluted

 

 

156,755

 

 

 

157,448

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Supplemental Financial Information

(Unaudited)

Segment Information

 

 

Three Months Ended March 31,

 

 

Change

 

(in millions)

 

2023

 

 

2022

 

 

$

 

 

%

 

Wholesale sales

 

$

1,294.6

 

 

$

1,251.3

 

 

 

43.3

 

 

 

3.5

 

Gross profit

 

 

512.0

 

 

 

455.0

 

 

 

57.0

 

 

 

12.5

 

Gross margin

 

 

39.6

%

 

 

36.4

%

 

 

 

 

 

 

320

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

707.3

 

 

$

568.3

 

 

 

139.0

 

 

 

24.5

 

Gross profit

 

 

466.6

 

 

 

369.2

 

 

 

97.4

 

 

 

26.4

 

Gross margin

 

 

66.0

%

 

 

65.0

%

 

 

 

 

 

 

100

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

2,001.9

 

 

$

1,819.6

 

 

 

182.3

 

 

 

10.0

 

Gross profit

 

 

978.6

 

 

 

824.2

 

 

 

154.4

 

 

 

18.7

 

Gross margin

 

 

48.9

%

 

 

45.3

%

 

 

 

 

 

 

360

bps

Additional Sales Information

 

 

Three Months Ended March 31,

 

 

Change

 

(in millions)

 

2023

 

 

2022

 

 

$

 

 

%

 

Geographic sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

441.9

 

 

$

538.6

 

 

 

(96.7

)

 

 

(17.9

)

Direct-to-Consumer

 

 

299.0

 

 

 

239.4

 

 

 

59.6

 

 

 

24.9

 

Total domestic sales

 

 

740.9

 

 

 

778.0

 

 

 

(37.1

)

 

 

(4.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

 

852.6

 

 

 

712.8

 

 

 

139.8

 

 

 

19.6

 

Direct-to-Consumer

 

 

408.4

 

 

 

328.8

 

 

 

79.6

 

 

 

24.2

 

Total international sales

 

 

1,261.0

 

 

 

1,041.6

 

 

 

219.4

 

 

 

21.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

2,001.9

 

 

$

1,819.6

 

 

 

182.3

 

 

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

945.9

 

 

$

946.9

 

 

 

(1.0

)

 

 

(0.1

)

Europe, Middle East & Africa (EMEA)

 

 

534.5

 

 

 

441.2

 

 

 

93.3

 

 

 

21.1

 

Asia Pacific (APAC)

 

 

521.5

 

 

 

431.5

 

 

 

90.0

 

 

 

20.9

 

Total sales

 

$

2,001.9

 

 

$

1,819.6

 

 

 

182.3

 

 

 

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China sales

 

$

282.0

 

 

$

273.0

 

 

 

9.0

 

 

 

3.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributor sales

 

$

103.9

 

 

$

97.0

 

 

 

6.9

 

 

 

7.2

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures

(Unaudited)

Constant Currency Adjustment (Non-GAAP Financial Measure)

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

 

Change

 

(in millions, except per share data)

 

Reported GAAP Measure

 

 

Constant Currency

Adjustment

 

 

Adjusted for Non-GAAP Measures

 

 

Reported GAAP Measure

 

 

$

 

 

%

 

Sales

 

$

2,001.9

 

 

$

59.3

 

 

$

2,061.2

 

 

$

1,819.6

 

 

 

241.6

 

 

 

13.3

 

Cost of sales

 

 

1,023.3

 

 

 

34.5

 

 

 

1,057.8

 

 

 

995.4

 

 

 

62.4

 

 

 

6.3

 

Gross profit

 

 

978.6

 

 

 

24.8

 

 

 

1,003.4

 

 

 

824.2

 

 

 

179.2

 

 

 

21.7

 

Operating expenses

 

 

755.0

 

 

 

18.1

 

 

 

773.1

 

 

 

648.3

 

 

 

124.8

 

 

 

19.3

 

Earnings from operations

 

 

223.6

 

 

 

6.7

 

 

 

230.3

 

 

 

175.9

 

 

 

54.4

 

 

 

30.9

 

Other income (expense)

 

 

9.8

 

 

 

(12.8

)

 

 

(3.0

)

 

 

(5.8

)

 

 

2.8

 

 

 

48.3

 

Income tax expense

 

 

43.2

 

 

 

1.4

 

 

 

44.6

 

 

 

34.0

 

 

 

10.6

 

 

 

31.3

 

Less: Noncontrolling interests

 

 

29.8

 

 

 

1.7

 

 

 

31.5

 

 

 

14.9

 

 

 

16.6

 

 

 

111.1

 

Net earnings

 

$

160.4

 

 

$

(9.2

)

 

$

151.2

 

 

$

121.2

 

 

 

30.0

 

 

 

24.7

 

Diluted earnings per share

 

$

1.02

 

 

$

(0.06

)

 

$

0.96

 

 

$

0.77

 

 

 

0.19

 

 

 

24.7

 

 

Investor Relations

Eunice Han

[email protected]

Press

Jennifer Clay

[email protected]

Source: Skechers U.S.A., Inc.

Doja Cat Is Skechers’ First Artist-in-Residence

Doja Cat Is Skechers’ First Artist-in-Residence

Apr 27, 2023 • 12:16 pm EDT

LOS ANGELES–(BUSINESS WIRE)–
Skechers confirms what Doja Cat announced—that she is the brand’s first Artist-in-Residence.

Doja Cat Is Skechers’ First Artist-in-Residence

Skechers Artist-in-Residence Doja Cat in custom Skechers Uno dress and footwear at 2023 TIME100 gala. Photo credit: Kevin Mazur / Getty Images

Skechers Artist-in-Residence Doja Cat in custom Skechers Uno dress and footwear at 2023 TIME100 gala. Photo credit: Kevin Mazur / Getty Images

“Skechers has given me a new canvas to create and I can’t wait to show everyone what we are building,” said Doja Cat who rocked a stunning custom dress crafted from deconstructed Skechers Uno fashion sneakers during her performance at the TIME100 gala in New York on Wednesday night.

About Doja Cat

GRAMMY award-winning global superstar Doja Cat made her first upload to Soundcloud in 2013 at 16 years old. Raised in LA, she developed a knack for music by studying piano and dance as a kid. Signed to Kemosabe/RCA in 2014, she released her Purrr! EP followed by her debut album Amala in 2018, but the release of her single “Mooo!” in late 2018 catapulted her into the mainstream and was met with critical acclaim. The following year, she released her GRAMMY-nominated platinum album Hot Pink, which features “Streets,” the viral TikTok sensation that soundtracked the ‘Silhouette Challenge’ and her GRAMMY-nominated #1 smash record, “Say So” which has been RIAA certified 6x platinum.

Doja’s creativity and showmanship as a performer has been praised time and time again. She’s delivered unique and show stopping performances on nearly all the major award show stages and music festivals around the world and was named as one of the 100 most influential people of 2023 by TIME. Doja’s GRAMMY award-winning third album Planet Her dominated the charts, debuting at #1 on the Billboard Top R&B Albums chart and #2 on the Billboard Top 200 and Billboard Top R&B/Hip-Hop Albums chart. It also generated the highest first day Spotify streams for an album by a female rapper. The GRAMMY award-winning and RIAA certified platinum hit “Kiss Me More” ft. SZA, the lead single off Planet Her, hit #1 at Top 40 and Rhythm radio with over 5 billion streams worldwide. Earlier this year, Doja became the first woman to have four #1 hits from one album and landed #1 on the Billboard Artist 100 chart for the first time. More recently, in October 2022, Doja’s single “Vegas” from the Elvis Original Motion Picture Soundtrack hit #1 at Pop Radio – leading her to not only have the most #1’s at Pop Radio this decade but also the most top 10s among women on the Billboard Hot 100 this decade.

About Skechers U.S.A., Inc.

Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s war of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Media Contacts:

Jennifer Clay

SKECHERS U.S.A., Inc.

[email protected]

Lauren Weissman

R&CPMK

[email protected]

Source: Skechers U.S.A., Inc.

Skechers to Acquire Scandinavia Distributor

Skechers to Acquire Scandinavia Distributor

Apr 27, 2023 • 9:00 am EDT

The Footwear and Apparel Brand Signs Agreement with Sports Connection to Establish Wholly-Owned Subsidiary

LOS ANGELES & ESBJERG, Denmark–(BUSINESS WIRE)–
Skechers, The Comfort Technology Company™, today announced that it has signed an agreement to acquire its existing Scandinavian distributor, Sports Connection Holding ApS.

Skechers to Acquire Scandinavia Distributor

Skechers is acquiring its third-party Scandinavia distributor and its 58 stores to expand the brand’s reach in Europe. (Photo: Business Wire)

Skechers is acquiring its third-party Scandinavia distributor and its 58 stores to expand the brand’s reach in Europe. (Photo: Business Wire)

The Sports Connection business comprises 58 existing Skechers retail locations, several e-commerce solutions as well as over 1,600 wholesale customers. It will become a wholly-owned subsidiary of Skechers, primarily responsible for driving the brand’s continued growth in the Nordic countries of Denmark, Finland, Norway, Sweden, Greenland and the Faroe Islands.

“With the planned acquisition of our long-serving and successful distributor in Scandinavia, we are welcoming the Sports Connection team more closely into the Skechers family,” said David Weinberg, chief operating officer of Skechers USA, Inc. “We are looking forward to further broadening our reach in Europe by combining the team’s local expertise with our worldwide capabilities and financial resources.”

“We have a long history of partnership with Skechers,” said Peter Jørgensen, CEO of Sports Connection, which was founded in 1994 and has been Skechers’ exclusive distributor in the Nordics since 2005; Jørgensen will now serve as country manager for Skechers in all Nordic countries. “We are proud of the progress we have made growing the Skechers brand as a distributor partner. We have built the infrastructure to support our vast direct-to-consumer and wholesale presence across the Nordics, and this new structure will allow us to leverage our efforts for additional growth in the future. We innately understand how the brand delivers its dynamic collection of styles and signature comfort technologies for every age and activity.”

Skechers will continue to conduct business at the former Sports Connection offices and showrooms in Finland, Norway, Sweden, and Denmark where its Nordic headquarters are located in Esbjerg.

About Skechers USA, Inc.

Skechers USA, Inc. (NYSE:SKX) is The Comfort Technology Company™ based in Southern California. Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on YouTube and on Instagram in Denmark, Sweden, Norway and Finland.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s war of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Corporate Media Contact:

Jennifer Clay

SKECHERS USA, Inc.

[email protected]

Skechers Denmark Contact:

Glennie Mäkinen Maibom

[email protected]

Source: Skechers USA, Inc.

Skechers Elite Athlete Matt Fitzpatrick Wins RBC Heritage

Skechers Elite Athlete Matt Fitzpatrick Wins RBC Heritage

Apr 18, 2023 • 1:00 am EDT

LONDON–(BUSINESS WIRE)–
Skechers brand ambassador and 2022 U.S. Open champion Matt Fitzpatrick earned his first victory of the 2023 season at the RBC Heritage at Harbour Town Golf Links in Hilton Head, South Carolina on Sunday. Wearing Skechers GO GOLF Pro 5 Hyper™, Fitzpatrick defeated the defending champion on the third playoff hole after an exciting final round ended in a tie.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20230417005886/en/

Skechers Elite Athlete Matt Fitzpatrick Wins RBC Heritage

Matt Fitzpatrick, competing in Skechers GO GOLF Pro 5 Hyper™ footwear, wins RBC Heritage in Hilton Head, South Carolina. Photo credit: Sam Greenwood via Getty

Matt Fitzpatrick, competing in Skechers GO GOLF Pro 5 Hyper™ footwear, wins RBC Heritage in Hilton Head, South Carolina. Photo credit: Sam Greenwood via Getty

“I’ve been coming to Hilton Head and playing this course since I was a kid, so to earn this win is so special to me, almost like winning at home,” said Matt Fitzpatrick. “Last year was amazing, signing on with Skechers and introducing its comfortable footwear to my game, and winning my first major championship last summer. Earning my first 2023 title fairly early in the season, knowing all the work I have put in, I feel my head and heart are in the game, and I am ready for another amazing year!”

“Matt Fitzpatrick continues to impress, and we couldn’t be more thrilled that he is part of the Skechers family,” said Michael Greenberg, president of Skechers. “From his career-best second round of 63 to that incredible shot on the final playoff hole at Hilton Head this weekend, Matt’s success proves to golfers everywhere how Skechers GO GOLF footwear delivers the consistent comfort and performance that can elevate anyone’s game, no matter where or how you play.”

After a successful amateur career, Fitzpatrick turned pro at the age of 19. The English native earned his first professional victory in 2015 at the British Masters at Woburn Golf Club. The next year, he was selected for the Ryder Cup European team and went on to win the 2016 DP World Tour Championship. Since his professional debut, Fitzpatrick has achieved seven wins on the European Tour, most recently winning the Estrella Damm N.A. Andalucía Masters at Real Club Valderrama. He has nine worldwide wins and earned his first major championship title in June 2022 at the U.S. Open. Fitzpatrick is currently ranked #8 in the World Golf Rankings.

In 2022, Fitzpatrick joined the roster of Skechers golf pros currently including Brooke Henderson and Billy Andrade who wear Skechers GO GOLF® on tour. Former quarterback and broadcaster Tony Romo is also an ambassador for the brand’s golf footwear and appears in Skechers GO GOLF marketing campaigns.

Known for its lightweight, high-quality, stable and comfortable designs, Skechers GO GOLF has achieved prominence within the golf category alongside the brand’s award-winning running, walking and training collections. Select styles from The Comfort Technology Company™ include signature innovations like Skechers Arch Fit®, ULTRA GO® and Hyper Burst® cushioning, along with other key features.

Skechers GO GOLF footwear is available at Skechers retail stores and skechers.com as well as select retail partners, including specialty golf pro shops.

About SKECHERS USA Ltd. and SKECHERS U.S.A., Inc.

Skechers USA Ltd. is a subsidiary of Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company™ based in Southern California. Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s war of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022 and its quarterly reports on Form 10-Q in 2023. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Petra Kareem

Skechers

[email protected]

Source: Skechers U.S.A., Inc.