by | Jul 9, 2008 | Press Release
Jul 9, 2008 • 8:35 am EDT
Footwear Company Brings American Idol Winner on Board for Endorsement Agreement
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has signed recent American Idol winner and rising star David Cook to a global endorsement agreement. This deal marks the first male celebrity to make SKECHERS’ roster since 2002, when actor Robert Downey Jr. was the face of the global brand, and the second American Idol winner, with Carrie Underwood being the first in 2005.
With exclusive worldwide rights to advertise footwear using Cook’s image through December 2009, SKECHERS will feature the 25-year-old singer in various SKECHERS’ styles through a campaign that will reflect his personality, interests and appeal. Launching in Fall ’08, the campaign coincides with the “PopTarts American Idols Live! Tour 2008,” and the debut of David’s first post-Idol album on 19 Recordings/RCA Records. The SKECHERS Cook campaign will include print, outdoor and in-store.
“I have always viewed SKECHERS as a cool company, so I am excited to be a part of their campaign,” said Cook, who proved his enduring popularity by breaking an all-time Billboard chart record with 11 songs debuting on the Hot 100 in a single week after winning American Idol. “They’ve had some sensational singers like Carrie Underwood and Christina Aguilera as they were starting out and it will be great to be a part of the SKECHERS roster.”
“We are thrilled that David will be representing SKECHERS in our marketing campaigns around the world,” stated Michael Greenberg, president of SKECHERS. “As a dynamic performer with a friendly, approachable personality, he’s a perfect fit for the SKECHERS brand and an exciting next step for our tradition of successful partnerships with emerging music stars.”
Greenberg continued, “The crossing-over of fashion and music is beneficial to both industries, and benefits the stars and the brands associated with them. For this reason, we have invested in such phenomenal stars as Britney Spears, Christina Aguilera, Carrie Underwood, Ashlee Simpson, and now, David Cook.”
Along with celebrated songstresses Spears, Aguilera, Underwood and Simpson, and male stars like Rob Lowe, Matt Dillon, former Lakers player Rick Fox and Downey Jr. have all appeared in SKECHERS marketing campaigns.
Mr. Cook did not plan to try out when he went to support his brother at the Omaha, Nebraska auditions for season seven of American Idol. Despite his intentions, he was convinced to sing, and was selected to continue to the Hollywood round. The guitar-playing rock singer overcame the odds to beat out over 100,000 contestants before advancing to the top 24. David received the necessary votes to stick around week after week, until he eventually won the title of “American Idol” at the finale in Los Angeles on May 21, 2008.
The global endorsement agreement was signed with 19 Merchandising Limited on behalf of Mr. Cook.
ABOUT SKECHERS USA, Inc.
Celebrating its 16th year in business, SKECHERS USA, Inc., 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, Asia, and across Europe, as well as through a joint venture in China and in Hong Kong. The company is based in Manhattan Beach, California. Please visit www.skechers.com or call the company’s information line at 877-INFO-SKX.
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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for the products and the various market factors described above; the ability to maintain brand image; the ability to sustain, manage and forecast growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, the occurrence of a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs and/or production delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of domestic warehouses, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the ability to open retail stores in new markets and/or the sales performance of existing retail stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in SKECHERS’ Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008. The risks included here are not exhaustive. We operate 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 businesses 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.
by | Apr 23, 2008 | Press Release
Apr 23, 2008 • 4:00 pm EDT
— First Quarter 2008 Net Sales Increase 11.6 Percent to $384.9 Million — First Quarter 2008 Net Earnings Increase 37.4 Percent to $32.8 Million — First Quarter 2008 EPS increase of 34.6 Percent to $0.70
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, 2008.
Net sales for the first quarter of 2008 rose 11.6 percent to $384.9 million compared to $344.9 million for the same period in 2007. Net earnings for the quarter were a record $32.8 million versus net earnings of $23.9 million for the first quarter of 2007. Diluted earnings per share were $0.70 on 46,664,000 weighted average shares outstanding versus diluted earnings per share of $0.52 on 46,803,000 weighted average shares outstanding for the first quarter of 2007.
“Our first quarter sales of $384.9 million represent a new first quarter record and the second highest quarter in the Company’s history,” began David Weinberg, chief operating officer of SKECHERS. “The record revenue and earnings were primarily the result of growth across our international wholesale and retail businesses. Our domestic wholesale, retail and e-commerce divisions also grew year over year in spite of negative comp store sales experienced by our retail stores. We are particularly gratified with our strong and broad-based improvement given the challenging U.S. retail environment.”
Gross profit for the first quarter of 2008 was $172.2 million or 44.7 percent of net sales compared to $149.0 million or 43.2 percent of net sales in the first quarter of last year.
“Our improved margins, record earnings and record quarterly earnings per share of $0.70, which is substantially above our first quarter guidance of $0.57 to $0.62, is primarily due to the high double-digit growth in our international subsidiary business, a lower tax rate resulting from our international growth, as well as the favorable impact of the exchange rates experienced during the quarter,” stated Fred Schneider, SKECHERS chief financial officer. “Our balance sheet continues to be very strong, enabling us to continue to invest in our growth. While we are cautiously optimistic that the liquidity will be restored for our auction rate securities in the short term, we felt it was prudent to classify them to a long-term asset during the quarter.”
“As we approach our 16th year in business, we are ready to drive our message to every fashion-savvy consumer in every metropolis around the world. We believe we are extremely well-positioned, even in light of the economic challenges the U.S. is currently experiencing. In fact, Sporting Goods Intelligence recently (April 14, 2008) reported that ‘SKECHERS became the (U.S.) market’s only other billion dollar brand outside of Nike and grew its (U.S. market) share’,” commented Robert Greenberg, SKECHERS’ chief executive officer. “We have multiple unique lines comprised of more than 2,500 trend-right and reasonably priced styles. We are able to successfully meet the needs of a diverse consumer base in the United States and internationally by marketing our product through multiple mediums and several channels of distribution. We believe our fashionable product, broad diversification, and willingness to support our business through both marketing and execution makes us the right brand for our consumers. We are pleased with our consistent growth and record earnings, and look to the coming year with an eye on further developing our domestic and international business in our existing markets and building our brand in the recently launched Brazil and China arenas, as well as growing our company-owned store base by another 20 to 25 locations – including our first in Scotland, which is opening this week. Our goal is to continue to ensure that SKECHERS remains a must-have brand.”
Mr. Weinberg continued: “We believe the sales momentum we are seeing will continue into the second quarter based on key indicators including our backlog and strong shipments to date this quarter. While we are encouraged by our key indicators, we remain cautious about the coming year and therefore are providing a broader guidance range for the second quarter. This guidance reflects the difficult retail environment, which has resulted in many retailers requesting product shipping closer to their need.”
The Company now expects second quarter 2008 net sales to be in the range of $350 million to $365 million and diluted earnings per share in the range of $0.30 to $0.38.
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, and across Europe, as well as through a joint venture in China. Please visit www.skechers.com or call the Company’s information line at 877-INFO-SKX.
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 of the Company, 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 the Company’s 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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for our products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage and forecast the Company’s growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, increases in labor or raw material costs, the occurrence of prolonged adverse weather conditions, a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs, production delays and/or transportation delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by our independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of the Company’s domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the Company’s ability to open retail stores in new markets and/or the sales performance of the Company’s existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2007. The risks included here are not exhaustive. We operate 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 the Company’s future performance.
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
March 31, December 31,
2008 2007
---------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 152,436 $ 199,516
Short-term investments - 104,500
Trade accounts receivable, net 237,021 167,406
Other receivables 9,196 10,520
---------- ------------
Total receivables 246,217 177,926
---------- ------------
Inventories 178,368 204,211
Prepaid expenses and other current assets 21,789 13,993
Deferred tax assets 8,594 8,594
---------- ------------
Total current assets 607,404 708,740
---------- ------------
Property and equipment, at cost less
accumulated depreciation and amortization 106,687 98,400
Intangible assets, less applicable
amortization 14 78
Deferred tax assets 14,670 13,983
Long-term investments 107,616 -
Other assets, at cost 22,637 6,776
---------- ------------
TOTAL ASSETS $ 859,028 $ 827,977
========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term borrowings $ 323 $ 437
Accounts payable 148,187 164,466
Accrued expenses 33,288 19,949
---------- ------------
Total current liabilities 181,798 184,852
---------- ------------
Long-term borrowings, excluding current
installments 16,365 16,462
Stockholders' equity 660,865 626,663
---------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 859,028 $ 827,977
========== ============
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2008 2007
----------- ----------
Net sales $384,922 $344,896
Cost of sales 212,750 195,857
----------- ----------
Gross profit 172,172 149,039
Royalty income 840 1,201
----------- ----------
173,012 150,240
----------- ----------
Operating expenses:
Selling 25,534 26,841
General and administrative 99,221 85,984
----------- ----------
124,755 112,825
----------- ----------
Earnings from operations 48,257 37,415
----------- ----------
Other income (expense):
Interest, net 1,453 847
Other, net (97) (22)
----------- ----------
1,356 825
----------- ----------
Earnings before income taxes 49,613 38,240
Income tax expense 16,769 14,340
----------- ----------
Net earnings $32,844 $23,900
=========== ==========
Net earnings per share:
Basic $0.72 $0.54
=========== ==========
Diluted $0.70 $0.52
=========== ==========
Weighted average shares:
Basic 45,880 43,951
=========== ==========
Diluted 46,664 46,803
=========== ==========
by | Apr 16, 2008 | Press Release
Apr 16, 2008 • 9:01 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, announced that it recently held its first national sales conference in China with its joint venture partner Luen Thai Enterprises, a Hong Kong-based conglomerate with investments in various industries in Asia, North America and the Pacific Region. The three-day conference was held during the last week of March in Guangzhou, the nerve center of commercial and trade activities in the country’s booming Southern region of Guangdong.
The conference also heralded the official entry of SKECHERS into the China market. Guangzhou is the headquarters of SKECHERS in China, and company-owned flagship stores are already being established in major fashion cities across the country — specifically Beijing, Shanghai and Shenzhen.
Now supported with an even stronger foundation via the joint venture SKECHERS China Limited, the Company’s success is expected to be replicated in China, a country of approximately 1.4 billion people. With more than 3000 styles for men, women and children, SKECHERS believes there is great potential in the Chinese market.
“SKECHERS was born out of the passion that we all have for the footwear business,” said Michael Greenberg, president of SKECHERS and Chairman of SKECHERS China Limited, to an audience of more than 100 department store owners, mall operators and other franchisees. “It is this passion that will ensure the success of SKECHERS in China.”
Mr. Willie Tan, CEO of the joint venture, led the management team in securing the trust of partners and vendors by emphasizing the solid and capable background of the joint venture companies Luen Thai Enterprises and SKECHERS. Mr. Tan said: “Our experience in the China market and long business heritage in the country will propel SKECHERS to reach its target market. At SKECHERS, we have great products as well as the vision, passion and the commitment of the people. With SKECHERS, you can rely on strong infrastructure, systems support, world class marketing and positioning programs and highly experienced people to reach our target customers.”
At the close of the conference, Mr. Greenberg commented: “This is a first-class way to launch a brand in a country with so much opportunity, and it is exciting to see so many key accounts here – and to have them hungry for a lifestyle brand such as SKECHERS. The success of the event is evident in the enthusiasm of all here, as well as in the number of orders and inquiries made on the spot.”
ABOUT Luen Thai Enterprises
Based in Hong Kong, Luen Thai Enterprises is a conglomerate with businesses and investments in multiple industries including footwear manufacturing and supply-chain services, ocean and air cargo services, long-line fishing and distribution of fresh seafood products, real estate development, travel and tours, and wholesale distribution. Luen Thai Enterprises has business operations in China, Japan, Philippines, the United States, Micronesia and the Pacific region. A sister company of Luen Thai Enterprises, Luen Thai Holdings Limited is one of the leading apparel manufacturing and supply chain services providers worldwide. The Company produces more than 80 million pieces of apparel annually for men, women and children.
Luen Thai Enterprises is a privately held company and employs more than 2,000 people. It is part of close to a $1 billion group of companies that also includes footwear manufacturing, logistics, hotels, travel and tour operation among others. Most of the businesses have been operating for more than 20 years. Luen Thai Enterprises is steadily bolstering its foundation in Mainland China. Its strong business network in the local retail industry and long heritage of doing business in the country is expected to complement SKECHERS China’s growth plans.
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, subsidiaries in Canada, Brazil, Asia, and across Europe, as well as in China through a joint venture. Please visit www.skechers.com or call the Company’s information line at 877-INFO-SKX.
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 of the Company, 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 the Company’s 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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for our products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage and forecast the Company’s growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, increases in labor or raw material costs, the occurrence of prolonged adverse weather conditions, a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs, production delays and/or transportation delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by our independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of the Company’s domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the Company’s ability to open retail stores in new markets and/or the sales performance of the Company’s existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2007. The risks included here are not exhaustive. We operate 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 the Company’s future performance.
by | Apr 14, 2008 | Press Release
Apr 14, 2008 • 4:00 pm EDT
United States Court of Appeals for the Ninth Circuit Affirms Dismissal
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, announced today that the United States Court of Appeals for the Ninth Circuit affirmed dismissal of the private class action securities lawsuit against the Company and individual defendants Robert Greenberg, Michael Greenberg, Jeffrey Greenberg and David Weinberg. The lawsuit alleged that the Company and the individual defendants committed fraud when they made optimistic projections in 2002 press releases and conference calls while knowing that the Company was experiencing a decrease in product demand.
The Ninth Circuit concluded that the plaintiff shareholders failed to state facts giving rise to an inference that defendants made fraudulent statements. The Ninth Circuit affirmed the ruling of the United States District Court for the Central District of California, which twice had previously dismissed the shareholder lawsuit in its entirety.
“We are pleased with the Court’s ruling,” commented David Weinberg, the Chief Operating Officer and a co-defendant in the lawsuit. “We have said continuously that neither the Company nor the individual defendants engaged in any wrongful conduct whatsoever and we have been vindicated by the courts again and again for the past four years. We are very satisfied that the United States Court of Appeals has agreed with this view.”
The Company was represented in the matter by Seth Aronson and David Hurwitz of O’Melveny & Myers LLP in Los Angeles, California.
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 10 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 Canadian and European subsidiaries. Please visit www.skechers.com or call the Company’s information line at 877-INFO-SKX.
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 of the Company, 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 the Company’s 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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for our products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage and forecast the Company’s growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, increases in labor or raw material costs, the occurrence of prolonged adverse weather conditions, a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs, production delays and/or transportation delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by our independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of the Company’s domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the Company’s ability to open retail stores in new markets and/or the sales performance of the Company’s existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2007. The risks included here are not exhaustive. We operate 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 the Company’s future performance.
by | Apr 9, 2008 | Press Release
Apr 9, 2008 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that the Company’s conference call to review fiscal year 2008 first quarter financial results will be broadcast live over the internet on Wednesday, April 23, 2008 at 4:30 pm Eastern Time.
This call is being webcast by CCBN and can be accessed at SKECHERS website at www.skx.com. The call will be archived for two weeks.
The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN’s individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.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 10 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 Canadian and European subsidiaries. Please visit www.skechers.com or call the Company’s information line at 877-INFO-SKX.
by | Feb 13, 2008 | Press Release
Feb 13, 2008 • 4:00 pm EST
— Record 2007 Net Sales of $1.394 Billion, an Increase of 15.7 Percent Over 2006
— 2007 Net Earnings of $75.7 Million, an Increase of 6.6 Percent Over 2006
— 2007 Diluted EPS of $1.63, an Increase of 2.5 Percent Over 2006
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the fourth quarter and fiscal year ended December 31, 2007.
Fiscal year 2007 net sales increased 15.7 percent to $1.394 billion as compared to net sales of $1.205 billion in 2006. Net earnings for 2007 were $75.7 million versus net earnings of $71.0 million in 2006. For fiscal year 2007, diluted earnings per share were $1.63 based on 46,741,000 weighted average shares outstanding versus diluted earnings per share of $1.59 based on 46,139,000 weighted average shares outstanding in the prior year.
Net sales for the fourth quarter of 2007 were $302.0 million as compared to $304.5 million in the fourth quarter of 2006. Net earnings for the fourth quarter of 2007 were $12.1 million versus net earnings of $14.6 million in the fourth quarter of 2006. Net earnings per diluted share in the fourth quarter of 2007 were $0.26 based on 46,639,000 weighted average shares outstanding as compared to net earnings per diluted share of $0.33 based on 46,564,000 weighted average shares outstanding in the fourth quarter of 2006.
“We are pleased with our record annual sales of just under $1.4 billion and three record sales quarters and increased profitability during 2007, the result of successfully growing our business worldwide,” stated Fred Schneider, chief financial officer of SKECHERS. “Our international business grew significantly during the fourth quarter, which offset the closing of some underperforming brands and a decrease in our domestic business resulting from the slow U.S. retail climate, enabling us to deliver nearly flat fourth quarter revenues. In this challenging domestic retail environment, many of our accounts are booking closer to season and moving shipments from the fourth quarter to the early part of the first quarter. This shift has contributed to our strong double-digit backlog going into the first quarter, which does not have the benefit from the lines we discontinued.”
Gross profit for 2007 was $600.0 million compared to $523.3 million in 2006. Gross margin for 2007 was 43.0 percent versus 43.4 percent for 2006. Gross profit for the fourth quarter of 2007 was $127.3 million compared to $127.9 million in the fourth quarter of 2006. Gross margin in the fourth quarter 2007 was 42.1 percent versus 42.0 percent for the fourth quarter of 2006.
Robert Greenberg, the Company’s chief executive officer, commented: “We are extremely proud to close our 15th year of business just shy of $1.4 billion in annual sales. SKECHERS has truly become a global brand with new ventures in Brazil and China – two areas with tremendous potential, operations in over 100 countries, and more than 250 SKECHERS retail stores around the world. 2007 marked the launch of our nano lite(TM) molded footwear Cali Gear by SKECHERS, which we believe has great opportunities in the U.S. and abroad. We continued to support each of our SKECHERS and fashion brands with an aggressive marketing approach that included in-store, TV, outdoor and print. In 2007, our marketing featured several celebrities: Ashlee Simpson for SKECHERS, JoJo for Rhino Red, and most recently a Red by Marc Ecko television and print campaign featuring High School Musical stars Vanessa Hudgens and Ashley Tisdale, which will continue this year. In 2008, we are looking forward to continuing to build our brands – including the recent addition of BEBE SPORT footwear supported by the image of Eva Longoria in the sporty fashion shoes – and believe we have more room to grow both our SKECHERS and fashion lines. We believe that 2008 will be another year of strong global growth, and we look forward to breaking new records and exploring new opportunities for growth.”
“We believe that our continuous marketing efforts have helped build and establish each of our brands and positively impacted 2007 sales. We are in a very strong position in terms of our product offering, marketing efforts and operations with plans to grow our distribution capabilities with a new 1.8 million-square-foot, single facility,” added David Weinberg, chief operating officer of SKECHERS. “In 2008, we are focusing on growing our established lines, launching BEBE SPORT, capitalizing on our brand in the international marketplace and exploring additional expansion opportunities overseas. We are also looking to grow our U.S. retail operations with another 25 to 30 new stores this year and continuing to support our international distributors and subsidiaries. Although the U.S. retail environment has been soft for many of our partners as well as in some of our own stores, we believe our momentum will continue in 2008 as our current backlog is up 29 percent year-over-year, and we are experiencing strong shipments in the first quarter.”
The Company announced that it expects first quarter 2008 net sales to be in the range of $385 million to $395 million and diluted earnings per share to be in the range of $0.57 to $0.62.
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, Asia, and across Europe. Please visit www.skechers.com or call the Company’s information line at 877-INFO-SKX.
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, including statements made by Messrs. Schneider, Greenberg and Weinberg, as well as other statements about guidance. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements of the Company, 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 the Company’s 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; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for the products and the various market factors described above; the ability of the Company to maintain its brand image; the ability to sustain, manage and forecast the Company’s growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, the occurrence of prolonged adverse weather conditions, a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs, production delays and/or transportation delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by the Company’s independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of the Company’s domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the Company’s ability to open retail stores in new markets and/or the sales performance of the Company’s existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company’s Form 10-K for the year ended December 31, 2006 and the Company’s Form 10-Q for the quarter ended September 30, 2007. The risks included here are not exhaustive. We operate 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 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 the Company’s future performance.
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31, December 31,
2007 2006
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $199,516 $160,485
Short-term investments 104,500 60,000
Trade accounts receivable, net 167,406 177,740
Other receivables 10,520 8,035
------------ ------------
Total receivables 177,926 185,775
------------ ------------
Inventories 204,211 200,877
Prepaid expenses and other current assets 13,993 15,321
Deferred tax assets 8,594 9,490
------------ ------------
Total current assets 708,740 631,948
Property and equipment, at cost less
accumulated depreciation and amortization 98,400 87,645
Intangible assets, less applicable
amortization 78 633
Deferred tax assets 13,983 11,984
Other assets, at cost 6,776 4,843
------------ ------------
TOTAL ASSETS $827,977 $737,053
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term
borrowings $ 437 $ 576
Accounts payable 164,466 161,150
Accrued expenses 19,949 19,435
------------ ------------
Total current liabilities 184,852 181,161
Long-term borrowings, excluding current
installments 16,462 106,805
Stockholders' equity 626,663 449,087
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $827,977 $737,053
============ ============
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
------------------ ----------------------
Net sales $302,041 $304,494 $1,394,181 $1,205,368
Cost of sales 174,789 176,561 794,192 682,022
------------------ ---------- -----------
Gross profit 127,252 127,933 599,989 523,346
Royalty income 787 1,202 4,179 4,114
------------------ ---------- -----------
128,039 129,135 604,168 527,460
------------------ ---------- -----------
Operating expenses:
Selling 21,079 22,935 126,527 109,886
General and administrative 89,823 82,818 364,711 305,030
------------------ ---------- -----------
110,902 105,753 491,238 414,916
------------------ ---------- -----------
Earnings from operations 17,137 23,382 112,930 112,544
------------------ ---------- -----------
Other income (expense):
Interest, net 1,434 (80) 5,277 (876)
Other, net (31) 652 98 980
------------------ ---------- -----------
1,403 572 5,375 104
------------------ ---------- -----------
Earnings before income taxes 18,540 23,954 118,305 112,648
Income tax expense 6,445 9,372 42,619 41,654
------------------ ---------- -----------
Net earnings $ 12,095 $ 14,582 $ 75,686 $ 70,994
================== ========== ===========
Net earnings per share:
Basic $ 0.26 $ 0.35 $ 1.67 $ 1.73
================== ========== ===========
Diluted $ 0.26 $ 0.33 $ 1.63 $ 1.59
================== ========== ===========
Weighted average shares:
Basic 45,750 41,622 45,262 41,079
================== ========== ===========
Diluted 46,639 46,564 46,741 46,139
================== ========== ===========
