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
================== ========== ===========
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.
