Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

Jun 3, 2010 • 9:05 am EDT

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that Judge Marilyn Milian of the popular television courtroom reality series, The People’s Court, will be the next celebrity to join its charity-related “Nothing Compares to Family” advertising campaign.

Judge Milian will appear in the SKECHERS campaign with her husband, John, and their daughters Cristi, 13; Alex, 12; and Sofi, 8. Milian partnered with SKECHERS to raise awareness for Camp Fiesta, Inc.–a summer camp for cancer patients of the Children’s Cancer Caring Center in Florida.

“Judge Milian will be a fantastic addition to the SKECHERS ‘Nothing Compares to Family’ campaign,” began Michael Greenberg, president of SKECHERS. “As a family brand, this campaign is essential to SKECHERS and allows us to work with a variety of celebrities while supporting, and more importantly promoting, a wide range of deserving charities.”

“I love that SKECHERS has built this campaign around the importance of family,” said Milian. “We talk often about the value of charity in our house, so I love that through SKECHERS our family can raise awareness together for Camp Fiesta, an organization near and dear to my heart.”

Milian, a graduate of Georgetown Law, began her career as an Assistant State Attorney for the Dade County State Attorney’s Office. With a decade of experience, she was appointed to become a Miami County Court Judge in the Domestic Violence Court, Criminal and Civil divisions. In 1999, Florida Governor Jeb Bush appointed Milian as a Miami Circuit Court Judge, where she served in the Criminal Division. Leveraging all of her experience as both attorney and jurist, Milian became the first Latina judge of The People’s Court in 2001. She is currently in her 10th season on the popular show.

The SKECHERS “Nothing Compares to Family” campaign began in 2008, and it has starred some of today’s popular celebrity families while benefiting children’s charities with ads breaking in weekly magazines and other fashion and lifestyle glossies. Judge Milian joins a roster of celebrities that has included Tori Spelling, Brandy, Jack Coleman, Trista and Ryan Sutter, Holly Robinson Peete, Niki Taylor, Cesar Milan and most recently Brooke Burke.

ABOUT SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “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 international, national and local general economic, political and market conditions including the global economic slowdown and the ongoing financial crisis and market instability; entry into the highly competitive performance footwear market; 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; 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 the Company’s Form 10-K for the year ended December 31, 2009 and the Company’s Form 10-Q for the quarter ended March 31, 2010. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the 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.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6314236&lang=en.

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

SKECHERS to Attend Piper Jaffray Consumer Conference on Tuesday, June 8

Jun 1, 2010 • 2:00 pm EDT

LOS ANGELES–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announced that David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer, will be presenting at the Piper Jaffray Consumer Conference to be held in New York at the Westin New York at Times Square on June 8 – June 9, 2010.

SKECHERS’ investor presentation is scheduled for Tuesday, June 8, at 2:30 p.m. EDT.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

SKECHERS Launching Branded Line of Backpacks and Bags

May 18, 2010 • 9:05 am EDT

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has signed a licensing agreement with Global Design Concepts to design, produce and distribute SKECHERS-branded backpacks, messenger and tote bags for men, women and kids.

Ready for Fall 2010 delivery, this new SKECHERS Bags line will include a wide range of products constructed with quality, durable materials branded with SKECHERS’ iconic logo. From small, trend-driven bags to larger, more functional backpacks, laptop and messenger bags, the collection will meet the needs of a wide demographic.

“It’s our goal to continue leveraging the branding power of SKECHERS to reach our consumers across an increasingly diverse assortment of product categories,” stated Michael Greenberg, president of SKECHERS. “Global Design Concepts is an expert manufacturer and distributor in the bags category, and we’re excited that this partnership provides women, men, and kids with new, exciting ways to accessorize their SKECHERS footwear purchases.”

“We’ve wanted to partner with SKECHERS because the brand has a remarkably strong extensive reach,” said Dan Sabbah, president and CEO of Global Design Concepts. “SKECHERS is a perfect match for our quality product, and we feel consumers who love SKECHERS footwear will be very excited about the new line of branded bags launching soon.”

SKECHERS Bags will be available in department, specialty, sporting goods, and general athletic footwear stores throughout the United States and Canada.

“Global Design Concepts caught our eye with their exciting design flair,” explained Paul Flett, senior vice president of licensing at SKECHERS. “Combine that with a passion for innovation and great grasp of our brand DNA, and it’s clear why they represent a welcome addition to our growing portfolio of high quality licensees.”

In addition to Global Design Concepts, SKECHERS has partnered with licensees to produce a wide range of products including children’s apparel, sunglasses, legwear, medical scrubs, and leather accessories. The Company is currently negotiating with additional licensees both domestic and abroad and continues to seek out partnerships and opportunities that will bring the SKECHERS brand to new product segments around the globe.

About Global Design Concepts, Inc.

Global Design Concepts, Inc. was founded in 1999 with the goal of becoming the accessory manufacturer of choice for the industry. This objective was quickly achieved through innovative design, quality product and strong retail relationships all supporting meaningful brands. Global Design Concepts brings to the table what it does best, providing innovative trend-right products at market sensitive prices. Over 200 employees in four countries produce seasonal trend-driven product lines that include backpacks, bags, luggage, lunch bags, small leather goods, diaper bags and more for retail partners worldwide. For more information, visit www.gdcny.com.

ABOUT SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “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 international, national and local general economic, political and market conditions including the global economic slowdown and the ongoing financial crisis and market instability; entry into the highly competitive performance footwear market; 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; 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 the Company’s Form 10-K for the year ended December 31, 2009 and the Company’s Form 10-Q for the quarter ended March 31, 2010. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the 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.

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

SKECHERS Launching Branded Line of Leather Accessories

May 13, 2010 • 9:05 am EDT

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has signed a licensing agreement with French Craft Leather Goods Co., Inc. to design, produce and distribute a SKECHERS-branded line of leather goods and accessories for men, women and kids. The new line of belts, buckles and wallets will hit retailers in June 2010.

“Over the last 18 years, the SKECHERS brand has grown to become a global leader in lifestyle footwear,” said Michael Greenberg, president of SKECHERS. “And now SKECHERS’ brand recognition is bigger than our core product, making this the perfect time to expand our licensing program into new categories. We couldn’t ask for a better partner than French Craft to help SKECHERS meet the needs of our consumers from head-to-toe and beyond.”

“French Craft is excited to be joining the SKECHERS family as a leather goods licensee,” began Andy Fox, president of French Craft. “We’re confident that this line will provide SKECHERS consumers with the perfect way to complement and accessorize the footwear and brand they love so much.”

Embracing the SKECHERS style and image, belts and wallets in the new trend-right collection will be constructed using full grain leather, split leather, suede, cotton, or nylon with a focus on contemporary embellishments and accents. Buckles will be cast in zinc, steel or brass. Additionally, the wallet line will include an assortment of trifolds, bifolds, credit card cases, front pocket wallets, checkbook wallets, pass cases and children’s coin purses.

“French Craft represents a strong addition to our fast growing portfolio of best-in-class licensees,” explained Paul Flett, senior vice president of licensing at SKECHERS. “Through this partnership we will develop synergic accessory products that complement our brand proposition. This ultimately helps us meet increasing consumer demand for SKECHERS across exciting new product categories.”

SKECHERS belts, buckles and wallets will be available in fine independent department, specialty and sporting goods stores throughout the United States and Canada.

In addition to French Craft, SKECHERS has partnered with licensees to produce a wide range of products including children’s apparel, sunglasses, legwear, medical scrubs, backpacks and bags. The Company is currently negotiating with additional licensees both domestic and abroad and continues to seek out partnerships and opportunities that will bring the SKECHERS brand to new product segments around the globe.

About French Craft Leather Goods Co., Inc.

French Craft Accessories was founded in 1934. Originally located in New York, the company relocated to Los Angeles in 1950. With over seventy years of industry experience, French Craft today is at the forefront in the fashion accessories field. The Company’s customers order from an enormous inventory of products in Los Angeles that includes belts, buckles, wallets, hats, watches, and gift sets. Wholesalers benefit from French Craft’s extensive merchandising staff which handle the complete design process from development and sampling through production and worldwide shipping. For more information, visit www.frenchcraft.com.

ABOUT SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “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 international, national and local general economic, political and market conditions including the global economic slowdown and the ongoing financial crisis and market instability; entry into the highly competitive performance footwear market; 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; 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 the Company’s Form 10-K for the year ended December 31, 2009 and the Company’s Form 10-Q for the quarter ended March 31, 2010. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the 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.

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

SKECHERS to Present at Robert W. Baird 2010 Growth Stock Conference on Thursday, May 20

May 11, 2010 • 9:00 am EDT

LOS ANGELES–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announced that David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer, will be presenting at the Robert W. Baird 2010 Growth Stock Conference to be held on Tuesday, May 18 – Thursday, May 20, at the Four Seasons Hotel in Chicago, Illinois.

SKECHERS’ investor presentation is scheduled for Thursday, May 20, at 12:35 p.m. CDT.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

Judge Marilyn Milian of The People’s Court Joins Skechers “Nothing Compares to Family” Advertising Campaign

SKECHERS Announces Record First Quarter 2010 Sales, Operating Income, Net Earnings and Earnings Per Share

Apr 28, 2010 • 4:00 pm EDT

  • Net Sales of $492.8 Million
  • Operating Income of $81.0 Million
  • Net Earnings of $56.3 Million
  • Diluted Earnings Per Share of $1.15

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the first quarter ended March 31, 2010.

First quarter 2010 net sales increased 43.5 percent to $492.8 million compared to $343.5 million in the first quarter of 2009. Operating income for the first quarter of 2010 was $81.0 million compared to $6.2 million in the first quarter of 2009. Net earnings for the first quarter of 2010 were $56.3 million versus net earnings of $8.2 million in the first quarter of 2009. Diluted earnings per share were $1.15 based on 48,742,000 weighted average shares outstanding as compared to net earnings per diluted share of $0.18 based on 46,467,000 weighted average shares outstanding, which is an increase of approximately 2.3 million shares from the first quarter of 2009. The first quarter 2010 earnings are based on a higher tax rate of 31.5 percent; we currently expect our annual effective tax rate to be approximately 32 percent for 2010.

“Our first quarter net sales of nearly $500 million and earnings per share of $1.15 mark the highest quarterly sales and EPS in our nearly 18-year history, and continue the strong momentum we experienced in the second half of 2009,” began David Weinberg, chief operating officer and chief financial officer. “The significant revenue growth in our domestic and international wholesale and retail channels, increased profitability and much improved margins are evidence that we continue to grow market share in the global footwear market. We believe our momentum is the result of our strong product offering, backed by targeted marketing efforts, strong execution, and increased brand awareness globally.”

Gross profit for the first quarter of 2010 was $237.4 million or 48.2 percent of net sales compared to $125.4 million or 36.5 percent of net sales in the first quarter of last year.

Robert Greenberg, SKECHERS chief executive officer, commented: “Achieving record quarterly revenues is an incredible way to start both a new year and a new decade. We are extremely pleased with our growth – and what it means for us, the SKECHERS brand and our position in the world market. We believe challenging times, such as the past couple of years, present opportunities. We believe that our decisive actions in 2009, including the continued development of new product and consistent marketing efforts, resulted in our accelerated growth, improved profitability, and a growing buzz about SKECHERS in the first quarter. We see this momentum continuing for us and many of our retail partners as we remain dedicated to delivering fresh men’s, women’s and kids’ product and developing new marketing campaigns to support these efforts, including our latest with Hall of Fame quarterback Joe Montana. The strong growth we are experiencing is primarily the result of the positive reaction of consumers in the United States to our product offering. We believe this enthusiasm and acceptance is beginning to spread around the world as these new styles are just reaching South America, Europe, Asia, and beyond. It is an exciting place to be, the Number 2 athletic brand in the United States, and we are eager for continued growth in 2010 and throughout this decade.”

“With strong April sales in our wholesale and international business, double digit retail store comps, accelerating backlog, and the addition of 20 to 25 more retail stores in the United States and in new markets in Europe this year, we believe our momentum will continue throughout the year. More new relevant men’s, women’s and kids’ product will also be delivering for back to school in June and July, which can result in a shift in revenue between the second and third quarters,” Mr. Weinberg added. “We are well-positioned for growth in 2010 and beyond with clean inventory, a cash position of $326 million at quarter end, and a new, more efficient, 1.8 million-square-foot distribution center in Rancho Belago, California in development.”

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.

This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and can be identified by the use of forward looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will be,” “will continue,” “will result,” “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 international, national and local general economic, political and market conditions including the global economic slowdown and the ongoing financial crisis and market instability; entry into the highly competitive performance footwear market; 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; 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 the Company’s Form 10-K for the year ended December 31, 2009. The risks included here are not exhaustive. The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time and the Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

                                                      March 31,    December 31,

                                                      2010         2009

ASSETS

Current Assets:

Cash and cash equivalents                             $ 325,879    $ 265,675

Short-term investments                                  -            30,000

Trade accounts receivable, net                          291,963      219,924

Other receivables                                       4,619        12,177

Total receivables                                       296,582      232,101

Inventories                                             189,002      224,050

Prepaid expenses and other current assets               31,170       28,233

Deferred tax assets                                     8,950        8,950

Total current assets                                    851,583      789,009

Property and equipment, at cost less accumulated        174,072      171,667
depreciation and amortization

Intangible assets, less applicable amortization         8,618        9,011

Deferred tax assets                                     13,665       13,660

Other assets, at cost                                   13,183       12,205

TOTAL ASSETS                                          $ 1,061,121  $ 995,552

LIABILITIES AND EQUITY

Current Liabilities:

Current installments of long-term borrowings          $ 16,024     $ 529

Short-term borrowings                                   1,323        2,006

Accounts payable                                        184,325      196,163

Accrued expenses                                        40,886       31,843

Total current liabilities                               242,558      230,541

Long-term borrowings, excluding current installments    -            15,641

Total liabilities                                       242,558      246,182

Equity:

Skechers U.S.A., Inc. equity                            815,249      745,922

Noncontrolling interests                                3,314        3,448

Total equity                                            818,563      749,370

TOTAL LIABILITIES AND EQUITY                          $ 1,061,121  $ 995,552




SKECHERS U.S.A., INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except per share data)

                                                    Three Months Ended March 31,

                                                    2010        2009

Net sales                                           $ 492,764   $ 343,470

Cost of sales                                         255,346     218,041

Gross profit                                          237,418     125,429

Royalty income                                        385         272

                                                      237,803     125,701

Operating expenses:

Selling                                               34,309      21,510

General and administrative                            122,487     98,038

                                                      156,796     119,548

Income from operations                                81,007      6,153

Other income (expense):

Interest, net                                         713         664

Other, net                                            209         (218    )

                                                      922         446

Earnings before income taxes                          81,929      6,599

Income tax expense (benefit from)                     25,806      (753    )

Net income                                            56,123      7,352

Less: Net income attributable to noncontrolling       (173    )   (868    )
interest

Net earnings attributable to Skechers U.S.A., Inc.  $ 56,296    $ 8,220

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

Basic                                               $ 1.20      $ 0.18

Diluted                                             $ 1.15      $ 0.18

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

Basic                                                 46,781      46,221

Diluted                                               48,742      46,467