by | Feb 21, 2007 | Press Release
Feb 21, 2007 • 4:00 pm EST
— 2006 Net Sales of $1.205 Billion, an Increase of 19.8 Percent Over 2005
— 2006 Net Earnings of $71.0 Million, an Increase of 58.8 Percent Over 2005
— 2006 Diluted EPS of $1.59, an Increase of 50.0 Percent Over 2005
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, 2006.
Fiscal year 2006 net sales increased 19.8 percent to $1.205 billion as compared to net sales of $1.006 billion in 2005. Net earnings for 2006 were $71.0 million versus net earnings of $44.7 million in 2005. For fiscal year 2006, diluted earnings per share were $1.59 on 46,139,000 weighted average shares outstanding versus diluted earnings per share of $1.06 on 44,518,000 weighted average shares outstanding in the prior year.
Net sales for the fourth quarter of 2006 increased 36.2 percent to $304.5 million as compared to $223.5 million in the fourth quarter of 2005. Net earnings for the fourth quarter of 2006 were $14.6 million versus net earnings of $5.9 million in the fourth quarter of 2005. Net earnings per diluted share in the fourth quarter of 2006 were $0.33 on 46,564,000 weighted average shares outstanding compared to net earnings per diluted share of $0.14 on 41,229,000 weighted average shares outstanding in the fourth quarter of 2005.
“Our record sales are the result of successfully delivering the right product, in the right place at the right time and in the right quantity,” stated David Weinberg, chief operating officer of SKECHERS. “We have consistently delivered more in-season product, continuously offered fresh trend-right styles and introduced new lines and categories in our domestic and international wholesale channel as well as in our SKECHERS-owned retail businesses. This has resulted in improved margins and increased profitability.”
“We are very pleased with our record fourth quarter and full-year 2006 sales, which improved significantly over last year’s record fourth quarter and full-year sales,” said Fred Schneider, chief financial officer of SKECHERS. “The fourth quarter marks the second time we have achieved over $300 million in quarterly sales, with the first being in the third quarter of 2006. Furthermore, we continue to carefully manage our inventory and prudently invest our cash as we profitably grow the business.”
Gross profit for 2006 was $523.3 million compared to $420.5 million in 2005. Gross margin for 2006 was 43.4 percent versus 41.8 percent for 2005. Gross profit for the fourth quarter of 2006 was $127.9 million compared to $93.0 million in the fourth quarter of 2005. Gross margin in the fourth quarter 2006 was 42.0 percent versus 41.6 percent for the fourth quarter of 2005.
Robert Greenberg, the Company’s chief executive officer, began: “We are entering our 15th year of business as a $1.2 billion dollar company, an achievement we are extremely proud of. This is the result of building a globally recognized and accepted brand, SKECHERS, as well as successfully launching several other footwear brands. By the close of 2006, we had created 10 on-target brands and over 20 divisions comprised of relevant product that is supported by compelling marketing campaigns. Many of our established fashion and street brands – which are only a few years old – such as 310 Motoring and Marc Ecko Footwear, are creating their own niches in the market place and are now becoming sought after and respected brands. We see these brands, along with our newer brands like Zoo York, as being key players in the footwear industry with strong growth potential. Additionally, we believe that our continuous marketing efforts have helped build and establish each of our brands and have positively impacted 2006 sales. Our extensive marketing campaign includes print ads, outdoor, mall kiosks and in-store displays, as well new television campaigns. We also currently have eight celebrities behind our brands – Ashlee Simpson for SKECHERS, JoJo for Rhino Red, Evangeline Lilly for Michelle K, Donny Barley for Zoo York, Paul Wall for Avirex, and The Game, Nas and Terrence Howard for 310, each in sync with their respective brand’s image.”
Mr. Greenberg continued: “We believe that this is just the beginning for our brands and that we are in a very strong position in terms of our product offering, marketing efforts and operation execution. We believe we are now at the point where we can truly propel all our brands to new heights. We are setting new standards for ourselves and are looking forward to breaking our 2006 records in 2007.”
Mr. Weinberg continued: “With three years of record breaking quarters and our highest annual sales combined with our key performance indicators – including comp store sales growth and double-digit backlog, we believe that our strong growth pattern will continue and that 2007 will again bring new records as we push past the billion and a quarter mark in net sales.”
The Company now expects first quarter 2007 net sales to be in the range of $325 million to $335 million and diluted earnings per share in the range of $0.50 to $0.55.
Note that statements made by Mr. Weinberg, Mr. Schneider and Mr. Greenberg, as well as other statements included in this press release, may involve future goals and targets based upon current expectations. These comments, including those about guidance, are forward looking 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 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, 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 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; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent corporate governance legislation including the Sarbanes-Oxley Act of 2002; 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, 2005 and in the Company’s Form 10-Q for the quarter ended September 30, 2006. 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)
December December
31, 31,
2006 2005
------------------
ASSETS
Current Assets:
Cash and cash equivalents $160,485 $197,007
Short-term investments 60,000 -
Trade accounts receivable, net 177,740 134,600
Other receivables 8,035 6,888
------------------
Total receivables 185,775 141,488
------------------
Inventories 200,877 136,171
Prepaid expenses and other current assets 13,313 11,628
Deferred tax assets 12,384 5,755
------------------
Total current assets 632,834 492,049
------------------
Property and equipment, at cost less accumulated
depreciation and amortization 87,645 72,945
Intangible assets, less applicable amortization 633 1,131
Deferred tax assets 11,984 9,337
Other assets, at cost 4,843 6,495
------------------
TOTAL ASSETS $737,939 $581,957
==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current installments of long-term borrowings $576 $1,040
Accounts payable 161,150 108,395
Accrued expenses 20,321 21,404
------------------
Total current liabilities 182,047 130,839
------------------
Long-term borrowings, excluding current installments 106,805 107,288
------------------
Stockholders' equity 449,087 343,830
------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $737,939 $581,957
==================
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,
2006 2005 2006 2005
--------- --------- ----------- -----------
Net sales $304,494 $223,494 $1,205,368 $1,006,477
Cost of sales 176,561 130,457 682,022 585,995
--------- --------- ----------- -----------
Gross profit 127,933 93,037 523,346 420,482
Royalty income, net 1,202 1,556 4,114 6,628
--------- --------- ----------- -----------
129,135 94,593 527,460 427,110
--------- --------- ----------- -----------
Operating expenses:
Selling 22,935 15,042 109,886 81,378
General and
administrative 82,818 68,984 305,030 269,436
--------- --------- ----------- -----------
105,753 84,026 414,916 350,814
--------- --------- ----------- -----------
Earnings from operations 23,382 10,567 112,544 76,296
--------- --------- ----------- -----------
Other income (expense):
Interest, net (80) (677) (876) (4,786)
Other, net 652 (311) 980 1,287
--------- --------- ----------- -----------
572 (988) 104 (3,499)
--------- --------- ----------- -----------
Earnings before income
taxes 23,954 9,579 112,648 72,797
Income tax expense 9,372 3,678 41,654 28,080
--------- --------- ----------- -----------
Net earnings $14,582 $5,901 $70,994 $44,717
========= ========= =========== ===========
Net earnings per share:
Basic $0.35 $0.15 $1.73 $1.13
========= ========= =========== ===========
Diluted $0.33 $0.14 $1.59 $1.06
========= ========= =========== ===========
Weighted average shares:
Basic 41,622 39,956 41,079 39,686
========= ========= =========== ===========
Diluted 46,564 41,229 46,139 44,518
========= ========= =========== ===========
by | Feb 13, 2007 | Press Release
Feb 13, 2007 • 3:00 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE: SKX), a global leader in lifestyle footwear, today announced that the Company will announce 2006 fourth quarter and fiscal year results on Wednesday, February 21, 2007, after the market close. The Company will also hold a conference call to discuss these results with additional comments and details live over the Internet the same day at 4:30 p.m. Eastern time.
This call is being webcast by CCBN and can be accessed at SKECHERS website at www.skx.com.
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 men’s, women’s and children’s footwear under the SKECHERS name, as well as under seven 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 7, 2007 | Press Release
Feb 7, 2007 • 5:02 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today stated that it denies all trademark infringement, unfair competition, trademark dilution and false advertising claims filed against the Company by ASICS America Corporation and ASICS Corporation (Japan) on January 26, 2007 in the U.S. District Court, Central District of California. ASICS alleges that several SKECHERS styles bear a stripe design similar to an ASICS stripe design. SKECHERS vehemently denies the allegations and is preparing to defend its shoes and customers in court.
“We believe that this lawsuit is completely without merit and will vigorously defend ourselves and our customers against such baseless allegations,” says Philip G. Paccione, General Counsel and Executive Vice President of SKECHERS. “Our stripe design does not look like the ASICS trademark; in fact, on the shoes in issue, our differences are patently obvious. Our designs use one horizontal stripe while ASICS uses two horizontal lines — a prominent feature of the ASICS trademark. In addition, our designs do not mimic the curves and contours of ASICS’ design. There are many differences.”
Paccione continued: “It is incredulous for ASICS to state in a press release that SKECHERS is trying ‘to free-ride on the ASICS brand image and good will.’ As owners of numerous famous trademarks and other intellectual property in the footwear industry, SKECHERS respects the trademarks of other brands and spends tens of millions of dollars each year to prominently brand and distinguish its own products from competitors. And as a practical matter, there is no possibility that any trade or individual consumer will be confused by the SKECHERS design. SKECHERS footwear and packaging are prominently branded with the globally recognized SKECHERS name and trademarks at every turn, which ASICS conveniently omitted from their complaint. We believe that this lawsuit is an attempt by ASICS to monopolize the use of commonly used stripe designs on footwear and undermine legitimate competition by using the courthouse.”
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 seven uniquely brand 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, 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 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; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent corporate governance legislation including the Sarbanes-Oxley Act of 2002; 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, 2005 and in the Company’s Form 10-Q for the quarter ended September 30, 2006. 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 | Feb 1, 2007 | Press Release
Feb 1, 2007 • 8:00 am EST
Footwear Plus Awards Global Lifestyle Footwear Brand and Fashion Brand Marc Ecko for Design Excellence
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that Footwear Plus magazine’s 8th annual Plus Awards have acknowledged the brand as Company of the Year. SKECHERS is the first company to win the coveted award two years in a row.
The magazine also presented its Men’s Streetwear Design Excellence Award for the second straight year to Unltd. by Marc Ecko footwear – which SKECHERS designs, develops and markets alongside Marc Ecko’s Rhino Red footwear for the United States and select global markets.
“To be singled out by our industry peers is a true honor – particularly since they’ve recognized us for two distinct, independently marketed brands two years running,” said Michael Greenberg, president of SKECHERS. “Always on the pulse of the latest trends, retailers have an eye for relevant brands that are resonating with consumers – and we look forward to building on these back-to-back successes.”
“Congratulations to SKECHERS for winning the Plus Award in the ‘Company of the Year’ category for the second straight year,” said Greg Dutter, associate publisher and editor in chief of Footwear Plus. “Retailers recognized SKECHERS’ ability to deliver design excellence across a multitude of brands, categories, and distribution tiers. The ability to design, market and sell one brand well is difficult enough in a challenging and highly competitive retail landscape, and the fact that SKECHERS is achieving this for 10 brands makes the Plus Award in the ‘Company of the Year’ category all the more deserving.”
Dutter added, “The retailers have spoken for the second year in a row: Marc Ecko is the winner of the Plus Award for design excellence in the Men’s Streetwear category. A fast-moving brand dependent on cutting-edge looks, Marc Ecko has consistently delivered the right looks at the right time. Whether it’s for a hook-up with Marc Ecko apparel or a statement all its own, Marc Ecko footwear is in step with the latest street fashions.”
Presented today at the World Shoe Association’s The Shoe Show tradeshow in Las Vegas, the prestigious Plus Awards are nominated and voted on annually by footwear retailers nationwide, and recognize design excellence for the year.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of men’s, women’s and children’s footwear under the SKECHERS name, as well as under nine 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 our 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 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; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent corporate governance legislation including the Sarbanes-Oxley Act of 2002; 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, 2005 and in the Company’s Form 10-Q for the quarter ended September 30, 2006. Furthermore, 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 | Jan 19, 2007 | Press Release
Jan 19, 2007 • 9:00 am EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, announced today that it has called for redemption on February 20, 2007 (the “Redemption Date”) for all of its outstanding 4.5% Convertible Subordinated Notes due April 15, 2007 (the “Notes”). There is $90 million in aggregate principal amount of Notes currently outstanding.
The Notes called for redemption may be converted at any time before 5:00 PM on the last business day before the Redemption Date. Holders of the Notes may convert their Notes to shares of the Company’s Class A Common Stock, at a conversion rate of 38.5089 shares of Class A Common Stock per $1,000 principal amount of the Notes (equivalent to a conversion price of $25.9680 per share). The closing market price as of January 18, 2007 was $34.15. Holders will have their Notes redeemed at a redemption price of 100.9% of principal outstanding, plus interest accrued and unpaid thereon, up to, but not including, the Redemption Date. For any Notes not converted into shares of Class A Common Stock, the Company expects to fund the redemption with cash on hand.
About SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of men’s, women’s and children’s footwear under the SKECHERS name, as well as under seven 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 our 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 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; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent corporate governance legislation including the Sarbanes-Oxley Act of 2002; 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, 2005 and in the Company’s Form 10-Q for the quarter ended September 30, 2006. Furthermore, 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 | Jan 8, 2007 | Press Release
Jan 8, 2007 • 9:06 am EST
— Fourth Quarter 2006 Revenues Expected to Exceed Fourth Quarter 2005 by 32.0 to 34.2 Percent — Fourth Quarter 2006 EPS Expected to Exceed Fourth Quarter 2005 EPS by More Than 100 Percent
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that it now expects fourth quarter 2006 revenues to be in the range of $295 million to $300 million, which is above the high-end of the Company’s previous guidance of $255 million to $265 million, and 32.0 to 34.2 percent higher than fourth quarter 2005 revenues of $223.5 million. The Company now expects diluted earnings per share for the fourth quarter to be $0.28 to $0.31, exceeding the Company’s previous guidance for the fourth quarter of $0.22 to $0.27.
The Company now expects revenue for fiscal year 2006 to be in the range of $1.196 to $1.201 billion, above its previous guidance of $1.156 to $1.166 billion, and diluted earnings per share for the full year are expected to be between $1.55 and $1.58, exceeding the Company’s previous guidance of $1.49 to $1.54.
“We are very pleased with our continued strong sales performance in the fourth quarter, which represents a strong end to a record year, and more than a 30 percent increase over the fourth quarter 2005,” said Robert Greenberg, Chairman and Chief Executive Officer of SKECHERS. “With our commitment to delivering fresh product supported by focused and creative advertising, all ten of our brands are performing well. The strong reception to our brands drove sales across all of our business channels — wholesale, retail, international and e-commerce – and enabled us to generate record fourth quarter and full year 2006 results. We look forward to further building on this momentum as we enter the Spring 2007 selling season.”
“The fourth quarter was an exceptional end to what we believe was a stellar year for us in terms of both sales and brand strength,” began Michael Greenberg, President of SKECHERS, “and we believe the positive sales trend will continue into 2007. Through our indicators – 29 percent year-end increase in backlog worldwide, and, for the fourth quarter, continued high single-digit comp store sales and strong sell-throughs at retail – we believe the first quarter of 2007 will again be a record quarter.”
The Company’s discussion of fourth quarter and fiscal year 2006 financial and operating results and expected 2007 performance is based upon preliminary information and is subject to change based upon actual financial and operating results for the respective periods. Note that statements made by the Company 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 seven uniquely brand 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 our 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 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; the ability to obtain additional capital to fund operations, finance growth and service debt obligations; the ability to attract and retain qualified personnel; compliance with recent corporate governance legislation including the Sarbanes-Oxley Act of 2002; 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, 2005 and in the Company’s Form 10-Q for the quarter ended September 30, 2006. 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.
