by | Feb 5, 2008 | Press Release
Feb 5, 2008 • 4:00 pm EST
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 2007 fourth quarter and year end financial results will be broadcast live over the Internet on Wednesday, February 13, 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 | Jan 10, 2008 | Press Release
Jan 10, 2008 • 8:05 am EST
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 bebe stores, inc. (NASDAQ:BEBE) to design, develop and market BEBE SPORT women’s footwear. The BEBE SPORT footwear line is set to launch in the United States in Spring 2008 with a campaign featuring actress Eva Longoria, the current face of BEBE SPORT. BEBE SPORT footwear will launch worldwide in coming seasons.
In line with bebe’s distinctive line of contemporary apparel and accessories, the BEBE SPORT footwear collection is designed to appeal to the hip, sophisticated, body-conscious woman who wants to look sporty and sensual at the same time. BEBE SPORT footwear will be available at BEBE SPORT stores, better department stores, multi-branded footwear specialty chains and upscale footwear specialty boutiques.
“Bebe has an excellent reputation in the fashion industry and with consumers thanks to their approach of designing sophisticated yet sexy apparel to the often overlooked 21- to 35-year-old woman,” began Michael Greenberg, president of SKECHERS. “They have built a store base of more than 280 locations and are strategically broadening their scope with brand extensions like BEBE SPORT. We are excited about partnering with this dynamite brand, one that has Eva Longoria as its face and almost 60 stores specific to the SPORT brand, and are looking forward to marketing an exceptional line of sport-influenced sneakers, sandals and casuals.”
“We are very excited about our new partnership with SKECHERS, a company that truly understands the sport lifestyle footwear business,” commented Greg Scott, CEO of bebe stores, inc. “Their expertise in product development combined with their reach across multiple distribution channels in the U.S. is key,” continued Scott. “The company has a solid reputation around the world, as well as the logistics and infrastructure to deliver product to a multitude of fashion-savvy markets. This proficiency will be pivotal as we develop and expand BEBE SPORT into a global brand.”
ABOUT BEBE SPORT
bebe stores, inc. designs, develops and produces a distinctive line of contemporary women’s apparel and accessories, which it markets under the bebe, COLLECTION bebe, BEBE SPORT, bbsp and bebe O brand names. bebe currently operates 285 stores, of which 206 are bebe stores, 20 are bebe outlet stores, 58 are BEBE SPORT stores and 1 is a bebe accessories store. These stores are located in the United States, U.S. Virgin Islands, Puerto Rico and Canada. In addition, there is an online store at www.bebe.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, SKECHERS-owned retail stores and its e-commerce website, as well as in over 100 countries and territories through SKECHERS’ global network of distributors and subsidiaries in Canada, Brazil, Asia, and across Europe. Please visit www.skechers.com or call the SKECHERS 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, 2006 and Form 10-Q for the quarter ended September 30, 2007 and/or in bebe’s Form 10-K for the year ended July 7, 2007 and Form 10-Q for the quarter ended October 6, 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 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 | Jan 7, 2008 | Press Release
Jan 7, 2008 • 4:00 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that David Weinberg, the Company’s Chief Operating Officer, and Fred Schneider, the Company’s Chief Financial Officer, will be presenting at the 10th Annual ICR XChange Conference to be held on January 16-17, 2007, at the St. Regis Monarch Beach Resort in Dana Point, CA.
SKECHERS investor presentation is scheduled for Wednesday, January 16, 2008 at 2:40 P.M. Pacific Time. The audio portion of the presentation will be webcast live, and a replay will be available beginning three hours after the actual presentation time, on the Investor Relations page of the Company’s website at www.skx.com/investor.
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 subsidiaries in Canada, Brazil 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. 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, 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 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; 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 March 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 | Dec 5, 2007 | Press Release
Dec 5, 2007 • 6:00 am EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that David Weinberg, the Company’s Chief Operating Officer, and Fred Schneider, the Company’s Chief Financial Officer, will be presenting at the 8th Annual Wedbush California Dreamin’ Conference, to be held on December 11-12, 2007, at The Fairmont Miramar in Santa Monica, CA.
SKECHERS’ investor presentation is scheduled for Wednesday, December 12, 2007 at 11:15 a.m. Pacific Time. The presentation will be webcast live and archived online on the Investor Relations section of the Company’s website at www.skx.com/investor.
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 subsidiaries in Canada, Brazil 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. 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, 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 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; 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 March 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 | Dec 4, 2007 | Press Release
Dec 4, 2007 • 8:01 am EST
Global Footwear Company Sets the Stage for Significant Growth in Asia through Joint Venture with Luen Thai Enterprises
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it is expanding its sales and distribution in China through a joint venture (known as SKECHERS China) with Luen Thai Enterprises, a conglomerate based in Hong Kong with investments in various industries in Asia, North America and the Pacific Region. Over the next three years, SKECHERS China expects to open more than 1200 points-of-sale for the brand across China.
In addition to SKECHERS footwear, SKECHERS China will design and market a collection of SKECHERS-branded men’s and women’s fashionable active and leisure wear. The apparel, which is expected to reach market in 2009, will be designed as an extension of the footwear and should further grow the brand in China.
“China’s share of the global footwear market is estimated at close to $9 billion for 2008 with this number increasing due to the growing middle class,” stated Willie Tan, CEO of Luen Thai Enterprises and SKECHERS China. “SKECHERS is a famous global brand and there is a huge market segment in China waiting to be satisfied by SKECHERS’ trendy lifestyle footwear products. We expect to reach $10 to $15 million of sales by year-end 2008.”
“To SKECHERS, China is a country of giant potential — 1.3 billion people, steady market growth and rapid retail growth,” began Michael Greenberg, president of SKECHERS and chairman of SKECHERS China. “We see SKECHERS — a proven brand in hundreds of markets around the world — as ideal for China and ready to capitalize on the power of its population. And with Luen Thai Enterprises’ forward-looking management team, experience in the fashion supply chain and retail operations expertise, we believe it is the right company to help grow our business in China.”
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, hotel, travel and tour operations, 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.
The first shipments of SKECHERS product under the direction of SKECHERS China is planned for the Chinese New Year, February 2008. The offering will encompass all of the SKECHERS lines for men, women and kids — including lifestyle sport, casual and molded footwear. The footwear will be supported by a marketing campaign that includes print, TV and point-of-purchase materials and displays.
SKECHERS and Luen Thai Enterprises are both making a substantial investment in SKECHERS China to expand and maximize the growth of the brand. The joint venture will grow SKECHERS’ existing flagship store base from three to 10 locations in Shanghai, Beijing, Shenzen and Guangzhou by the end of 2009. The companies also plan to expand distribution to another 250 points-of-sale in the next two years, and more than double SKECHERS’ dedicated stores in 2009.
Mr. Tan continued: “We believe SKECHERS’ diverse offering of lifestyle footwear will be just what our target market is looking for and SKECHERS will be the leading lifestyle footwear brand in China.”
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, the 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 service providers worldwide. The company produces more than 80 million pieces of apparel annually for men, women and children.
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, 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. 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 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 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.
by | Oct 24, 2007 | Press Release
Oct 24, 2007 • 4:00 pm EDT
— Third Quarter 2007 Net Sales Increase 19.3 Percent to $395 Million — Record Nine Month 2007 Revenues of $1.092 Billion — Third Quarter 2007 Diluted Earnings Per Share Rise 8.2 Percent to $0.53
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the third quarter ended September 30, 2007.
Net sales for the third quarter of 2007 rose 19.3 percent to $395.0 million compared to $331.1 million for the same period in 2006. Third quarter 2007 net earnings were $24.7 million versus net earnings of $22.2 million in the third quarter of the prior year, an increase of 11.5 percent. Third quarter 2007 diluted earnings per share were $0.53 on 46,654,000 diluted shares outstanding, compared to $0.49 on 46,199,000 diluted shares outstanding in the prior year.
“We are again pleased to report record quarterly and nine-month sales. Our third quarter sales of $395 million were the highest quarterly sales in the Company’s 15 year history, resulting in the Company surpassing $1 billion in sales in the first nine-months of our fiscal year,” began David Weinberg, chief operating officer of SKECHERS. “The improvement in our sales was the result of growth across all channels of distribution – domestic and international wholesale and retail, and our e-commerce business – a testament to the strength of our brand around the world.”
Fred Schneider, chief financial officer, added: “We are pleased that, in spite of a difficult retail and consumer environment and our incurring of costs associated with refocusing some of our fashion brand initiatives, the Company was able to achieve better than forecasted bottom line results.”
For the nine-month period ended September 30, 2007, net sales rose 21.2 percent to $1.092 billion compared to net sales of $900.9 million in the first nine months of 2006. Net earnings for the first nine months of 2007 were $63.6 million versus $56.4 million in the first nine months of 2006, an increase of 12.8 percent. Diluted earnings per share for the first nine months of 2007 were $1.37 per share on 46,769,000 diluted shares outstanding versus $1.27 per share on 45,936,000 diluted shares outstanding.
Gross profit for the third quarter of 2007 was $171.7 million or 43.5 percent of net sales compared to $146.3 million or 44.2 percent of net sales in the third quarter of last year. The slightly lower gross margin from the prior year is due principally to lower margins in our domestic wholesale business, in part resulting from the closing of our Michelle K footwear and Kitson apparel and footwear lines in the quarter. Gross profit for the first nine months of 2007 was $472.7 million or 43.3 percent of sales versus $395.4 million or 43.9 percent of sales in the first nine months of the prior year.
Robert Greenberg, SKECHERS’ chief executive officer, commented: “We just completed a record quarter, one that was just shy of $400 million. Our much improved quarterly sales wouldn’t be possible without a great product offering – including the new Cali Gear by SKECHERS line and our now proven Marc Ecko and Zoo York footwear lines – supported by a targeted approach to advertising. Domestically, the brand continues to grow at a steady, strong rate – which we are particularly satisfied with due to the reported tough back-to-school retail environment. Internationally, where we continue to see tremendous potential, our sales are growing at mid double-digit rates – including key markets such as United Kingdom and Canada. We are gratified by this growth, and are optimistic about the launch this quarter of our brand in Brazil, a country we see as virtually untapped. We continue to build an exceptional product that is relevant for the global footwear market, and believe that our current focused product offering and marketing will drive sales through this year and the coming year, resulting in continued record sales.”
“It is important to note that 2006 fourth quarter results were particularly strong – up over 36 percent from the prior year – and that quarter benefited from our catching up with inventory positions during 2006. We believe our fourth quarter 2007 sales will be in-line with last years’ quarterly sales which demonstrates the continued strength of our brand, considering the current domestic retail environment and the discontinuing of some of the fashion brands. We continue to see positive retail comps, and very strong international sales,” stated Mr. Weinberg. “We are focusing on growing our key brands where we continue to see many opportunities; further building our own retail store base with an additional thirteen stores in the fourth quarter and improving our wholesale distribution around the world. Our current positive indicators, including our double digit backlog leads us to believe that our positive sales momentum will continue in 2008.”
The Company expects fourth quarter sales to be in the range of $305.0 million to $315.0 million and diluted earnings per share of between $0.26 and $0.31. Embedded in this guidance is the assumption that with the repositioning of 310 Motoring and the closing of Michelle K and the Kitson footwear and apparel lines, full-margin sales will be reduced by approximately $8 million from the prior year’s corresponding quarter. For the full 2007 year, the Company expects sales to be in the range of $1.397 billion and $1.407 billion and earnings per share between $1.63 and $1.68.
Note that statements made by Mr. Weinberg, Mr. Schneider and Mr. Greenberg may involve future goals and targets, based upon current expectations and current plans. These comments are forward looking, plans may change and actual results may differ materially.
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. 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 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 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; 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 June 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)
September 30, December 31,
2007 2006
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ASSETS
Current Assets:
Cash and cash equivalents $121,158 $160,485
Short-term investments 103,075 60,000
Trade accounts receivable, net 206,312 177,740
Other receivables 9,063 8,035
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Total receivables 215,375 185,775
------------- ------------
Inventories 186,819 200,877
Prepaid expenses and other current
assets 18,432 15,321
Deferred tax assets 9,490 9,490
------------- ------------
Total current assets 654,349 631,948
Property and equipment, at cost less
accumulated depreciation and amortization 96,916 87,645
Intangible assets, less applicable
amortization 193 633
Deferred tax assets 11,984 11,984
Other assets, at cost 6,526 4,843
------------- ------------
TOTAL ASSETS $769,968 $737,053
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term
borrowings $ 423 $ 576
Accounts payable 126,902 161,150
Accrued expenses 14,580 19,435
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Total current liabilities 141,905 181,161
Long-term borrowings, excluding current
installments 16,567 106,805
Stockholders' equity 611,496 449,087
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $769,968 $737,053
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SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
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Net sales $395,033 $331,126 $1,092,140 $900,874
Cost of sales 223,363 184,823 619,403 505,461
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Gross profit 171,670 146,303 472,737 395,413
Royalty income 998 1,359 3,392 2,912
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172,668 147,662 476,129 398,325
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Operating expenses:
Selling 37,657 35,703 105,448 86,951
General and administrative 98,431 77,476 274,888 222,212
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136,088 113,179 380,336 309,163
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Earnings from operations 36,580 34,483 95,793 89,162
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Other income (expense):
Interest, net 1,710 (252) 3,843 (796)
Other, net 298 69 129 328
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2,008 (183) 3,972 (468)
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Earnings before income taxes 38,588 34,300 99,765 88,694
Income tax expense 13,844 12,101 36,173 32,281
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Net earnings $ 24,744 $ 22,199 $ 63,592 $ 56,413
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Net earnings per share:
Basic $ 0.54 $ 0.54 $ 1.41 $ 1.38
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Diluted $ 0.53 $ 0.49 $ 1.37 $ 1.27
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Weighted average shares:
Basic 45,721 41,316 45,095 40,897
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Diluted 46,654 46,199 46,769 45,936
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