Skechers to Present at the Deutsche Bank Global Consumer Conference on June 6th

by Zach | May 30, 2023 | Press Release

May 30, 2023 • 9:00 am EDT

LOS ANGELES–(BUSINESS WIRE)–
Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a fireside chat at the Deutsche Bank Global Consumer Conference in Paris on Tuesday, June 6, 2023 at 10:30 a.m. ET / 4:30 p.m. CEST.

The audio portion of the fireside chat will be available live and on replay for 90 days on the Company’s website at investors.skechers.com.

About Skechers U.S.A., Inc.

Skechers U.S.A., Inc., The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

Investor Relations

Eunice Han

[email protected]

Press

Jennifer Clay

[email protected]

Source: Skechers U.S.A., Inc.

Skechers Promotes Richard Parker to Managing Director for UK & Ireland

by Zach | May 3, 2023 | Press Release

May 3, 2023 • 4:00 am EDT

Peter Youell Transitions to Special Projects Advisory Position

LONDON–(BUSINESS WIRE)–
After more than two decades with The Comfort Technology Company™, Skechers has promoted Richard Parker to Managing Director of the United Kingdom & Ireland.

“We celebrated the 30^th anniversary of Skechers in 2022 with the Company’s international business just shy of 60 percent of our total sales, a new annual record at $7.4 billion. Our UK business was a key contributor to that growth,” said David Weinberg, Chief Operating Officer of Skechers. “As we look to drive growth across the UK in the coming years, we have promoted Skechers veteran Richard Parker to Managing Director of Skechers United Kingdom and Ireland. We believe that with his varied experience, business acumen and success within the organization and market relationships, he will excel in his new role—one aptly served by Peter Youell for nearly 20 years. The energy and support Peter gave his team, creating a collaborative organization and developing each member’s strengths to all work, elevated the brand and helped establish a foundation for future successes.”

Through his 22-year tenure with Skechers, footwear industry veteran Richard Parker has held nearly every position within the UK & Ireland sales division—starting as an Area Sales Manager before handling Key Accounts and National Accounts including QVC and Amazon. For the last four years, Parker was the National Sales Manager for Skechers UK & Ireland where his dedication helped grow the business to its leading position in the market today.

Peter Youell has transitioned into an advisor role on special and key international projects with the Company. Youell joined Skechers in November 2004 as Sales Director and brought with him a wealth of experience at competitor brands. Within months, he was promoted to Managing Director of the United Kingdom & Ireland, and through his 18 years with the Company, helped guide Skechers from a £10M to a £200M business in the region.

About Skechers USA Ltd. and Skechers U.S.A., Inc.

Skechers USA Ltd. is a subsidiary of Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company™ based in Southern California. Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter, and TikTok.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “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 the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s war of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates 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 future performance.

Petra Kereem

Skechers USA Ltd.

[email protected]

+44 (0) 1707 655 955

Source: Skechers U.S.A., Inc.

Skechers Announces First Quarter 2023 Financial Results and Record Quarterly Sales of $2 Billion

by Zach | Apr 27, 2023 | Press Release

Apr 27, 2023 • 4:05 pm EDT

LOS ANGELES–(BUSINESS WIRE)–
Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology Company™ and a global footwear leader, today announced financial results for the first quarter ended March 31, 2023.

First Quarter Highlights

“Our first quarter 2023 marks a new milestone with quarterly sales of over $2 billion. The 10%, or $182 million, sales increase was the result of broad strength in most markets globally, including regional sales improvements of 21% in both EMEA and APAC, which includes growth of 3% in China,” began David Weinberg, Chief Operating Officer of Skechers. “With an increase of 24.5% worldwide, Direct-to-Consumer performed particularly well due to the improved inventory availability in stores and strong demand for our fresh comfort product offering. Our record sales, expanded gross margins of 48.9% and meaningfully improved inventory levels are an indication of the strength of our comfort technology products and impactful marketing worldwide. We continue to build efficiencies and expand our distribution capabilities around the globe to meet the demand for the comfort, innovation, style, and quality that Skechers consumers want. With plans to reach $10 billion in annual sales by 2026, we couldn’t be more positive about the many meaningful growth opportunities we see ahead.”

“Skechers takes a global product and people first approach to our business. Everything we do as an organization is with the priority of delivering the best and most comfortable products to meet nearly every footwear need. This is why we are the leading walking and work brand, why we’ve made comfort a must in every pair of our shoes, and why we continue to innovate, whether it’s through our kids lighted styles, performance pickleball footwear, golf footwear worn by major tournament winners, or Skechers Hands Free Slip-ins for consumers of all ages,” added Robert Greenberg, Chief Executive Officer of Skechers. “We never stop innovating and improving to meet the needs of our consumers. And we ensure Skechers remains top of mind through our marketing campaigns – whether it’s Snoop Dogg and Martha Stewart in this year’s Super Bowl, digital campaigns starring our talented roster of ambassadors, pickleball tournaments sponsorships, or store windows around the world. We’re expanding the opportunities for consumers to experience Skechers globally – be it at one of our more than 4,500 retail locations, Skechers e-commerce sites, or through the vast network of third-party retailers that carry our products. None of this would be possible without the global infrastructure and talented teams that we have in place. This year will bring challenges as certain markets wrestle with inventory backlogs, but I continue to believe that the trust and respect I have for this organization and the trust the consumers place in Skechers will result in another strong year for the brand.”

First Quarter 2023 Financial Results

Three Months Ended March 31,

Change

(in millions, except per share data)

2023

2022

$

%

Sales

$

2,001.9

$

1,819.6

182.3

10.0

Gross profit

978.6

824.2

154.4

18.7

Gross margin

48.9

%

45.3

%

360

bps

Operating expenses

755.0

648.3

106.7

16.5

As a % of sales

37.7

%

35.6

%

210

bps

Earnings from operations

223.6

175.9

47.7

27.1

Operating margin

11.2

%

9.7

%

150

bps

Net earnings

160.4

121.2

39.2

32.4

Diluted earnings per share

$

1.02

$

0.77

0.25

32.5

First quarter sales increased 10.0% as a result of a 21.1% increase internationally and a 4.8% decrease domestically. Both segments experienced growth, with Direct-to-Consumer increasing 24.5% and Wholesale increasing 3.5%. On a constant currency basis, sales increased 13.3%.

Wholesale sales growth of $43.3 million, or 3.5%, which includes increases in EMEA of 20.1% and APAC of 24.1%, partially offset by a decrease in AMER of 13.2%. Wholesale average selling price increased 5.3% and volume decreased 1.9%.

Direct-to-Consumer sales growth of $139.0 million, or 24.5%, which includes increases in AMER of 28.6%, APAC of 17.9%, and EMEA of 29.5%. Direct-to-Consumer volume increased 27.2% and average selling price decreased 2.2%.

Gross margin was 48.9%, an increase of 360 basis points, due to higher average selling prices in Wholesale and a greater mix of Direct-to-Consumer sales.

Operating expenses increased $106.7 million, or 16.5%, and as a percentage of sales increased 210 basis points to 37.7%. Selling expenses increased $20.4 million, or 18.8%, and as a percentage of sales increased 50 basis points to 6.4%. The increase was due to higher brand demand creation expenditures. General and administrative expenses increased $86.4 million, or 16.0%, and as a percentage of sales increased 160 basis points to 31.3%. Increased expenses were primarily driven by labor, warehouse and distribution expenses, and increased facility costs, including rent and depreciation.

Earnings from operations increased $47.7 million, or 27.1%, to $223.6 million.

Net earnings were $160.4 million and diluted earnings per share were $1.02 compared with prior year net earnings of $121.2 million and diluted earnings per share of $0.77.

In the first quarter, the Company’s effective income tax rate was 18.5%.

“This was another record quarter for Skechers on both the top and bottom line. With broad-based strength globally, our consumers continue to seek out our brand for its compelling product assortment and attractive value proposition,” stated John Vandemore, Chief Financial Officer of Skechers. “We significantly grew our Direct-to-Consumer business and moderated our inventory level, overcoming continued challenges in the domestic wholesale market. We also saw encouraging early signs of a robust recovery in China. We remain confident in our strategy and our ability to achieve $10 billion in sales by 2026.”

Balance Sheet

Cash, cash equivalents and investments totaled $930.3 million, an increase of $141.9 million, or 18.0% from December 31, 2022, primarily due to operating cash flow, partially offset by capital expenditures of $71.2 million and the completion of $30.0 million of share repurchases in the first quarter of 2023.

Inventory was $1.50 billion, a decrease of $315.8 million or 17.4% from December 31, 2022. Inventory levels decreased in AMER, EMEA, and APAC.

Share Repurchase

During the first quarter, the Company repurchased approximately 676,000 shares of its Class A common stock at a cost of $30.0 million. At March 31, 2023, approximately $395.7 million remained available under the Company’s share repurchase program.

Outlook

For the second quarter of 2023, the Company believes it will achieve sales between $1.85 billion and $1.90 billion and diluted earnings per share of between $0.40 and $0.50. Further, the Company believes that for the fiscal year 2023, it will achieve sales between $7.9 billion and $8.1 billion and diluted earnings per share of between $3.00 and $3.20.

Store Count

Number of Stores

December 31, 2022

Opened

Closed

March 31, 2023

Domestic stores

539

13

(4

)

548

International stores

905

43

(21

)

927

Distributor, licensee and franchise stores

3,093

108

(127

)

3,074

Total Skechers stores

4,537

164

(152

)

4,549

First Quarter 2023 Conference Call

The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its first quarter 2023 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning April 27, 2023, at 7:30 p.m. ET, through May 11, 2023, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13737456.

About Skechers U.S.A., Inc.

Skechers U.S.A., Inc., The Comfort Technology Company™ based in Southern California, designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company’s collections are available in approximately 180 countries and territories through department and specialty stores, and direct to consumers through digital stores, and over 4,500 Company- and third-party-owned physical retail stores. The Company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter and TikTok.

Reference in this press release to “Sales” refers to Skechers’ net sales reported under GAAP. This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements can be identified by the use of forward-looking language such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “plan,” “project,” “will,” “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 the disruption of business and operations due to the COVID-19 pandemic; delays or disruptions in our supply chain; international economic, political and market conditions including the effects of inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail markets in the United States and the impact of Russia’s invasion of Ukraine; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers; decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2022. Taking these and other risk factors associated with the COVID-19 pandemic into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates 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 future performance.

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

As of

As of

(in thousands)

March 31, 2023

December 31, 2022

ASSETS

Current assets

Cash and cash equivalents

$

760,040

$

615,733

Short-term investments

89,507

102,166

Trade accounts receivable, net

1,052,687

848,287

Other receivables

82,948

86,036

Inventory

1,502,247

1,818,016

Prepaid expenses and other

222,556

176,035

Total current assets

3,709,985

3,646,273

Property, plant and equipment, net

1,377,588

1,345,370

Operating lease right-of-use assets

1,239,222

1,200,565

Deferred tax assets

461,614

454,190

Long-term investments

80,743

70,498

Goodwill

93,497

93,497

Other assets, net

81,822

83,094

Total non-current assets

3,334,486

3,247,214

TOTAL ASSETS

$

7,044,471

$

6,893,487

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

$

892,057

$

957,384

Accrued expenses

269,225

294,143

Operating lease liabilities

247,411

238,694

Current installments of long-term borrowings

100,469

103,184

Short-term borrowings

30,471

19,635

Total current liabilities

1,539,633

1,613,040

Long-term operating lease liabilities

1,092,711

1,063,672

Long-term borrowings

230,275

216,488

Deferred tax liabilities

8,722

8,656

Other long-term liabilities

126,835

120,045

Total non-current liabilities

1,458,543

1,408,861

Total liabilities

2,998,176

3,021,901

Stockholders’ equity

Preferred Stock

—

—

Class A Common Stock

134

134

Class B Common Stock

20

21

Additional paid-in capital

383,540

403,799

Accumulated other comprehensive loss

(80,217

)

(84,897

)

Retained earnings

3,411,374

3,250,931

Skechers U.S.A., Inc. equity

3,714,851

3,569,988

Noncontrolling interests

331,444

301,598

Total stockholders’ equity

4,046,295

3,871,586

TOTAL LIABILITIES AND EQUITY

$

7,044,471

$

6,893,487

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(Unaudited)

Three Months Ended March 31,

(in thousands, except per share data)

2023

2022

Sales

$

2,001,928

$

1,819,594

Cost of sales

1,023,349

995,431

Gross profit

978,579

824,163

Operating expenses

Selling

128,560

108,209

General and administrative

626,442

540,050

Total operating expenses

755,002

648,259

Earnings from operations

223,577

175,904

Other income (expense)

9,923

(5,746

)

Earnings before income taxes

233,500

170,158

Income tax expense

43,216

33,992

Net earnings

190,284

136,166

Less: Net earnings attributable to noncontrolling interests

29,841

14,943

Net earnings attributable to Skechers U.S.A., Inc.

$

160,443

$

121,223

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

Basic

$

1.03

$

0.78

Diluted

$

1.02

$

0.77

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

Basic

155,140

155,996

Diluted

156,755

157,448

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Supplemental Financial Information

(Unaudited)

Segment Information

Three Months Ended March 31,

Change

(in millions)

2023

2022

$

%

Wholesale sales

$

1,294.6

$

1,251.3

43.3

3.5

Gross profit

512.0

455.0

57.0

12.5

Gross margin

39.6

%

36.4

%

320

bps

Direct-to-Consumer sales

$

707.3

$

568.3

139.0

24.5

Gross profit

466.6

369.2

97.4

26.4

Gross margin

66.0

%

65.0

%

100

bps

Total sales

$

2,001.9

$

1,819.6

182.3

10.0

Gross profit

978.6

824.2

154.4

18.7

Gross margin

48.9

%

45.3

%

360

bps

Additional Sales Information

Three Months Ended March 31,

Change

(in millions)

2023

2022

$

%

Geographic sales

Domestic

Wholesale

$

441.9

$

538.6

(96.7

)

(17.9

)

Direct-to-Consumer

299.0

239.4

59.6

24.9

Total domestic sales

740.9

778.0

(37.1

)

(4.8

)

International

Wholesale

852.6

712.8

139.8

19.6

Direct-to-Consumer

408.4

328.8

79.6

24.2

Total international sales

1,261.0

1,041.6

219.4

21.1

Total sales

$

2,001.9

$

1,819.6

182.3

10.0

Regional sales

Americas (AMER)

$

945.9

$

946.9

(1.0

)

(0.1

)

Europe, Middle East & Africa (EMEA)

534.5

441.2

93.3

21.1

Asia Pacific (APAC)

521.5

431.5

90.0

20.9

Total sales

$

2,001.9

$

1,819.6

182.3

10.0

China sales

$

282.0

$

273.0

9.0

3.3

Distributor sales

$

103.9

$

97.0

6.9

7.2

SKECHERS U.S.A., INC. AND SUBSIDIARIES

Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures

(Unaudited)

Constant Currency Adjustment (Non-GAAP Financial Measure)

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the Company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.

Three Months Ended March 31,

2023

2022

Change

(in millions, except per share data)

Reported GAAP Measure

Constant Currency

Adjustment

Adjusted for Non-GAAP Measures

Reported GAAP Measure

$

%

Sales

$

2,001.9

$

59.3

$

2,061.2

$

1,819.6

241.6

13.3

Cost of sales

1,023.3

34.5

1,057.8

995.4

62.4

6.3

Gross profit

978.6

24.8

1,003.4

824.2

179.2

21.7

Operating expenses

755.0

18.1

773.1

648.3

124.8

19.3

Earnings from operations

223.6

6.7

230.3

175.9

54.4

30.9

Other income (expense)

9.8

(12.8

)

(3.0

)

(5.8

)

2.8

48.3

Income tax expense

43.2

1.4

44.6

34.0

10.6

31.3

Less: Noncontrolling interests

29.8

1.7

31.5

14.9

16.6

111.1

Net earnings

$

160.4

$

(9.2

)

$

151.2

$

121.2

30.0

24.7

Diluted earnings per share

$

1.02

$

(0.06

)

$

0.96

$

0.77

0.19

24.7

Investor Relations

Eunice Han

[email protected]

Press

Jennifer Clay

[email protected]

Source: Skechers U.S.A., Inc.