by Zach | Feb 13, 2023 | Press Release
Feb 13, 2023 • 9:00 am EST
The 2022 Plus Award Marks the Tenth Time Skechers Has Earned Top Honor
LOS ANGELES–(BUSINESS WIRE)–
Skechers U.S.A., Inc. (NYSE:SKX), The Comfort Technology Company™, has been honored as Company of the Year by Footwear Plus for the tenth time. Skechers was also recently recognized by Footwear News with their Company of the Year award—marking the second time the brand has earned top honors from both industry publications for the same year. In addition, Skechers Kids received the Excellence in Children’s Design Award, the sixth such accolade from Footwear Plus that the Company has won for its popular kids’ styles.
“We always knew 2022 would be an extraordinary year for Skechers as we celebrated our 30th anniversary, so to be recognized with multiple Company of the Year awards is truly special. Receiving the award for our Skechers Kids collection further validates the innovation and relevancy of our children’s collections,” began Michael Greenberg, president of Skechers. “Our teams around the globe have worked tirelessly to navigate one of the most difficult economic environments in our history and found a way to execute and continue growing the brand. Innovative comfort technology products like Skechers Hands Free Slip-ins for men, women and kids, stylish designs like our Skechers Uno fashion sneakers, and buzzworthy collaborations resonate with consumers to build the brand across each demographic. I’m proud of all we achieved in our 30th year in business, and our pipeline is filled with new products, partnerships and initiatives that will keep us on this positive trajectory.”
“After 30 years in business, Skechers is as strong a player in the market as ever with an innovative product range that offers something for every consumer,” said Greg Dutter, editorial director for Footwear Plus. “While their Kids collection deservedly received separate recognition from voters, Skechers is a top-to-bottom industry leader, and that’s why they earned the 2022 Plus Award for Company of the Year.”
“It’s a great honor for Skechers to be selected by Footwear Plus voters as Company of the Year for an incredible tenth time,” said Skechers CEO Robert Greenberg. “We’re where we are today because of the dedication, creativity and insight of Skechers global team members who have each played a part in uniquely positioning us as a trusted brand with the global infrastructure and product range to deliver what consumers want—comfort, style, innovation, and quality at a reasonable price. And as great as 2022 has been for Skechers, we’re kicking it into overdrive with so much to come in the year ahead.”
Skechers’ previous Footwear Plus awards include the Company of the Year Award in 2005, 2006, 2008, 2009, 2010, 2014, 2015, 2019, and 2020 and Plus Awards for Design Excellence in 2000 for Young Women’s Fashion; 2001 for Women’s Streetwear; 2002 for Children’s; 2005 and 2006 for Men’s Streetwear; 2013 for the Running and Children’s categories; 2014 for Running; 2015 for Athleisure; and 2016, 2019 and 2020 for its Skechers Kids product.
Plus Award nominees are determined by market research, Footwear Plus staff, and select industry experts. Winners are determined by online voting open to industry members and consumers.
From fashion styles to lifestyle product and performance shoes for sport enthusiasts, Skechers’ offering is enhanced with the Company’s signature comfort innovations—including its Skechers Hands Free Slip-ins® Technology, Massage Fit® Technology, Skechers Arch Fit® Technology, Skechers Max Cushioning® Technology, Skechers Hyper Burst® Technology, Skechers Air-Cooled Memory Foam®, Skechers Relaxed Fit® Technology and Skechers Stretch Fit® Technology.
Skechers features a roster of global ambassadors in its campaigns including music icons Snoop Dogg and Chesca; television personalities Martha Stewart, Amanda Kloots and Brooke Burke; and a slate of retired sports stars such as football players and broadcasters Tony Romo and Howie Long, plus iconic boxer Sugar Ray Leonard, among other regional endorsees. Among the professional athletes currently competing in Skechers are golfers Brooke Henderson and Matt Fitzpatrick, who both won major championships in 2022; Dodgers pitcher Clayton Kershaw; and pickleball pros Catherine Parenteau and Tyson McGuffin.
The Company’s footwear and apparel collections are available in Skechers retail stores as well as at skechers.com, plus department stores and footwear retailers around the globe.
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 4,537 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 recent 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, 2021 and its quarterly reports on Form 10-Q in 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.
Jennifer Clay
SKECHERS U.S.A., Inc.
[email protected]
(310) 937-1326
Source: Skechers U.S.A., Inc.
by Zach | Feb 8, 2023 | Press Release
Snoop Dogg flying high wearing Skechers Hands Free Slip-ins in Super Bowl commercial. (Photo: Business Wire)
Snoop Dogg illustrates how Skechers Hands Free Slip-ins are perfect for all walks of life in Super Bowl commercial. (Photo: Business Wire)
Feb 8, 2023 • 9:00 am EST
Culture and Entertainment Icon Takes Us Into His World for “All Walks of Life – Snoop Style”
LOS ANGELES–(BUSINESS WIRE)– Dogs are a crowd pleaser in Big Game commercials, so Skechers teamed up with the most famous and coolest one of all—Snoop Dogg.
Snoop Dogg flying high wearing Skechers Hands Free Slip-ins in Super Bowl commercial. (Photo: Business Wire)
In the thirty second Skechers x Snoop Dogg commercial, which will air in the United States and Canada during the fourth quarter of the Big Game on Sunday, February 12, Snoop rides, chills, clips and coaches in Skechers Hands Free Slip-ins® during an action-packed day that takes him from his paper delivery route to the Oval Office. The “All Walks of Life” concept was an idea from Snoop himself.
“I’m a man of the people. I’m excited to partner with Skechers, who always brings something for everyone—just like me,” said Snoop. “In this commercial, I got together with some of my friends, who also all have very active lifestyles and want to be stylish and comfortable at the same time, which we can do with Skechers. They’re shoes for all walks of life.”
The Skechers x Snoop Dogg commercial, which features Snoop’s megahit “Who am I? (What’s my name?),” follows Snoop through a whirlwind day as he demonstrates how Skechers fits every part of his outlandish life. Along for the ride in cameos are fellow Skechers ambassadors Howie Long, Tony Romo, and Snoop’s close friend Martha Stewart.
With few exceptions, Skechers has been a perennial advertiser during the Big Game since first appearing in a spot starring Joe Montana in 2010. One of the brand’s most talked-about spots from 2012 featured Mark Cuban watching a French bulldog named Mr. Quiggly racing in Skechers GOrun footwear. Last year, the brand featured Willie Nelson in its 10th campaign centered on the Big Game.
Skechers has been leading the industry in comfort with the development of innovative technologies and materials for many years. Consumers can only find these signature features in Skechers products, including Skechers Hands Free Slip-ins®, Skechers Arch Fit®, and Skechers Air-Cooled Memory Foam®, among others. The complete range of Skechers footwear for men, women and kids is available in Skechers retail stores as well as skechers.com, plus department stores and footwear retailers around the globe.
About Snoop Dogg
An Entertainment Industry Mogul, Snoop Dogg has reigned for nearly three decades as an unparalleled force who has raised the bar as a globally recognized innovator. Snoop Dogg is an American rapper, singer, songwriter, actor, record producer, DJ, media personality, businessman and icon. In addition to his extensive work in music, Snoop Dogg is a serial entrepreneur with endeavors in Web 3.0, tech, entertainment, lifestyle, global consumer brands, food/beverage and cannabis industries.
About Skechers U.S.A., Inc.
Skechers U.S.A., Inc. (NYSE: SKX), 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 4,537 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 recent 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, 2021 and its quarterly reports on Form 10-Q in 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.
Jennifer Clay
SKECHERS USA, Inc.
[email protected]
by Zach | Feb 2, 2023 | Press Release
Feb 2, 2023 • 4:05 pm EST
LOS ANGELES–(BUSINESS WIRE)–
Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), The Comfort Technology CompanyTM and a global footwear leader, today announced financial results for the fourth quarter and year ended December 31, 2022.
Fourth Quarter Highlights
“2022 was another milestone year for Skechers as we achieved record annual sales of $7.4 billion. This increase of $1.1 billion, or 18%, from the prior year was the result of four quarterly sales records, including fourth quarter sales of $1.88 billion,” began David Weinberg, Chief Operating Officer of Skechers. “Fourth quarter growth was driven by increases of 16% in Wholesale combined with 11% in Direct-to-Consumer. Wholesale results were driven by double-digit growth in the U.S., international distributors, Germany, India, Mexico, and Spain. The strength in our Direct-to-Consumer business was primarily driven by domestic sales. The growth within the quarter was partially offset by a 23% decrease in our China sales, which were impacted by COVID-related restrictions, including the temporary closure of more than 1,000 Skechers stores in November. With the recent elimination of the zero-COVID policy, we believe that our business in China will improve throughout 2023. In addition, while the inventory challenges at our domestic distribution center have been difficult to navigate, we are seeing improvements and remain confident in the strength of our brand and the demand for our products. We ended the year strong and expect to see continued growth in 2023.”
“Starting our fourth decade of business as a $7.4 billion company that grew over $1 billion this past year is a phenomenal achievement and one that leaves me with overwhelming pride for the dedication, creativity and insight of the global Skechers team. With their flexibility and drive, along with the support of both our loyal partners and consumers, we expect to achieve continued success across all areas of the business,” added Robert Greenberg, Chief Executive Officer of Skechers. “With the goal of $10 billion in sales by 2026, our aim is high, but we believe attainable due to several factors. Our range of comfort technology products is broader and more appealing than ever, and many new attention-grabbing collaborations are planned throughout this year. We are committed to our marketing strategy and will be revealing even more surprising star power in 2023, which we expect will enable us to reach a more diverse audience. And we have the global infrastructure and talented teams in place to deliver what consumers want – comfort, style, innovation, and quality at a reasonable price from a brand they trust. 2022 was an incredible year for us, and I’m looking forward to what 2023 will bring.”
Fourth Quarter 2022 Financial Results
Three Months Ended December 31,
Change
(in millions, except per share data)
2022
2021
$
%
Sales
$
1,878.8
$
1,655.4
223.4
13.5
Gross profit
909.7
808.2
101.5
12.6
Gross margin
48.4
%
48.8
%
(40
)bps
Operating expenses
823.0
715.1
107.9
15.1
As a % of sales
43.8
%
43.2
%
60
bps
Earnings from operations
86.6
93.1
(6.5
)
(6.9
)
Operating margin
4.6
%
5.6
%
(100
)bps
Net earnings
75.5
402.4
(326.9
)
(81.2
)
Diluted earnings per share
$
0.48
$
2.56
(2.08
)
(81.3
)
Adjusted diluted earnings per share
$
0.48
$
0.43
0.05
11.6
Fourth quarter sales increased 13.5% as a result of a 22.3% increase domestically and an 8.7% increase internationally, led by strength in wholesale sales. All segments experienced growth, with Wholesale increasing 15.7% and Direct-to-Consumer increasing 10.8%. On a constant currency basis, sales increased 19.1%.
Wholesale sales growth of $142.4 million, or 15.7%, was led by increases in EMEA of 31.1% and AMER of 18.6%. Wholesale volume increased 9.4% and average selling price increased 6.3%.
Direct-to-Consumer sales growth of $81.0 million, or 10.8%, was led by increases in AMER of 27.0% and EMEA of 19.1%. Direct-to-Consumer volume increased 14.8% and average selling price decreased 3.5%.
Gross margin was 48.4%, a decrease of 40 basis points, primarily the result of higher cost per unit and increased promotions, partially offset by average selling price increases.
Operating expenses increased $107.9 million, or 15.1%, and as a percentage of sales increased 60 basis points to 43.8%. Selling expenses increased $19.0 million, or 13.7%, due to higher global digital and brand demand creation expenditures. General and administrative expenses increased $88.9 million, or 15.4%, and as a percentage of sales increased 60 basis points to 35.4%. Increased expenses were primarily driven by volume-driven labor and distribution expenses in addition to higher costs at the domestic distribution center due to supply chain and logistics challenges.
Earnings from operations decreased $6.5 million, or 6.9%, to $86.6 million.
Net earnings were $75.5 million and diluted earnings per share were $0.48 compared with prior year net earnings of $402.4 million and earnings per share of $2.56. Adjusted diluted earnings per share were $0.48 compared with prior year adjusted diluted earnings per share of $0.43, excluding certain items related to tax benefit and legal settlements.
In the fourth quarter, the Company’s effective income tax rate was 9.6%.
“Skechers’ record fourth quarter and full year sales, demonstrate the strength of our brand as the comfort technology leader and the robust demand for our innovative product portfolio, which drove global growth across channels despite volatile economic conditions,” stated John Vandemore, Chief Financial Officer of Skechers. “We are making considerable progress on addressing the short-term challenges from elevated inventory levels and congestion in the supply chain, while staying keenly focused on executing against and investing in our long-term growth strategy.”
Full Year 2022 Financial Results
Year Ended December 31,
Change
(in millions, except per share data)
2022
2021
$
%
Sales
$
7,444.5
$
6,310.2
1,134.3
18.0
Gross profit
3,515.4
3,124.4
391.0
12.5
Gross margin
47.2
%
49.5
%
(230
)bps
Operating expenses
2,968.7
2,526.2
442.5
17.5
As a % of sales
39.9
%
40.0
%
(20
)bps
Earnings from operations
546.7
598.2
(51.5
)
(8.6
)
Operating margin
7.3
%
9.5
%
(210
)bps
Net earnings
373.0
741.5
(368.5
)
(49.7
)
Diluted earnings per share
$
2.38
$
4.73
(2.35
)
(49.7
)
Adjusted diluted earnings per share
$
2.38
$
2.59
(0.21
)
(8.1
)
Full year sales increased 18.0% reflecting a 20.0% increase domestically and a 16.6% increase internationally with the largest contribution derived from wholesale sales. Both segments experienced increases, with Wholesale increasing 23.2% and Direct-to-Consumer increasing 10.2%. On a constant currency basis, the Company’s sales increased 22.6%.
Wholesale sales growth of $873.8 million, or 23.2%, was led by increases in AMER of 28.7% and EMEA of 33.9%. Wholesale volume increased 18.2% and average selling price increased 4.8%.
Direct-to-Consumer sales growth of $260.5 million, or 10.2%, was led by increases in AMER of 13.8% and EMEA of 25.3%. Direct-to-Consumer volume increased 6.6% and average selling price increased 3.4%.
Gross margin was 47.2%, a decrease of 230 basis points, primarily the result of higher freight and logistics costs, partially offset by average selling price increases.
Operating expenses increased $442.5 million or 17.5%. As a percentage of sales, operating expenses improved 20 basis points to 39.9%. Selling expenses increased $84.1 million or 16.8%, primarily due to higher global demand creation expenditures. General and administrative expenses increased $358.4 million or 17.7%, primarily due to supply chain and logistics challenges at the domestic distribution center in addition to increased labor and warehouse and distribution expenses, driven by higher unit volume.
Earnings from operations decreased $51.5 million to $546.7 million.
Net earnings were $373.0 million and diluted earnings per share were $2.38 compared with prior year net earnings of $741.5 million and earnings per share of $4.73. Adjusted diluted earnings per share were $2.38 compared with prior year adjusted diluted earnings per share of $2.59, excluding certain items related to tax benefit and legal settlements.
The Company’s effective income tax rate was 17.8%.
Balance Sheet
Cash, cash equivalents and investments totaled $788.4 million, a decrease of $252.1 million, or 24.2% from December 31, 2021, primarily as a result of working capital investments, particularly inventory, capital expenditures, and completing $74.2 million of share repurchases during 2022.
Inventory was $1.82 billion, an increase of $347.0 million or 23.6% from December 31, 2021. Increased inventory levels primarily reflect growth in AMER and EMEA.
Share Repurchase
In 2022, the Company repurchased 1.9 million shares of its Class A common stock at a cost of $74.2 million. At December 31, 2022, approximately $425.8 million remained available under the Company’s share repurchase program.
Outlook
For the fiscal year 2023, the Company believes it will achieve sales between $7.75 billion and $8.0 billion and diluted earnings per share of between $2.80 and $3.00. The Company believes that for the first quarter of 2023, it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.55 and $0.60. Further, the Company believes that total capital expenditures will be between $300 million and $350 million in 2023.
This guidance considers but may not fully represent the significant uncertainty surrounding 2023.
Store Count
Number of Stores
December 31, 2021
Opened
Closed(1)
December 31, 2022
Domestic stores
515
43
(19
)
539
International stores
845
172
(112
)
905
Distributor, licensee and franchise stores
2,946
529
(382
)
3,093
Total Skechers stores
4,306
744
(513
)
4,537
(1) Does not reflect temporary closures due to the COVID-19 pandemic.
Fourth Quarter 2022 Conference Call
The Company will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its fourth quarter 2022 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 February 2, 2023 at 7:30 p.m. ET, through February 16, 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: 13735418.
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 4,537 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, 2021 and its quarterly reports on Form 10-Q in 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)
December 31, 2022
December 31, 2021
ASSETS
Current assets
Cash and cash equivalents
$
615,733
$
796,283
Short-term investments
102,166
98,580
Trade accounts receivable, net
848,287
732,793
Other receivables
86,036
80,043
Inventory
1,818,016
1,470,994
Prepaid expenses and other
176,035
193,547
Total current assets
3,646,273
3,372,240
Property, plant and equipment, net
1,345,370
1,128,909
Operating lease right-of-use assets
1,200,565
1,224,580
Deferred tax assets
454,190
451,355
Long-term investments
70,498
145,590
Goodwill
93,497
93,497
Other assets, net
83,094
75,109
Total non-current assets
3,247,214
3,119,040
TOTAL ASSETS
$
6,893,487
$
6,491,280
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$
957,384
$
876,342
Accrued expenses
294,143
265,420
Operating lease liabilities
238,694
225,658
Current installments of long-term borrowings
103,184
76,967
Short-term borrowings
19,635
1,195
Total current liabilities
1,613,040
1,445,582
Long-term operating lease liabilities
1,063,672
1,094,748
Long-term borrowings
216,488
263,445
Deferred tax liabilities
8,656
11,820
Other long-term liabilities
120,045
133,613
Total non-current liabilities
1,408,861
1,503,626
Total liabilities
3,021,901
2,949,208
Stockholders’ equity
Preferred Stock
—
—
Class A Common Stock
134
135
Class B Common Stock
21
21
Additional paid-in capital
403,799
429,608
Accumulated other comprehensive loss
(84,897
)
(48,323
)
Retained earnings
3,250,931
2,877,903
Skechers U.S.A., Inc. equity
3,569,988
3,259,344
Noncontrolling interests
301,598
282,728
Total stockholders’ equity
3,871,586
3,542,072
TOTAL LIABILITIES AND EQUITY
$
6,893,487
$
6,491,280
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(Unaudited)
Three Months Ended December 31,
Year Ended December 31,
(in thousands, except per share data)
2022
2021
2022
2021
Sales
$
1,878,785
$
1,655,385
$
7,444,550
$
6,310,187
Cost of sales
969,105
847,228
3,929,193
3,185,816
Gross profit
909,680
808,157
3,515,357
3,124,371
Operating expenses
Selling
157,951
138,892
583,626
499,532
General and administrative
665,092
576,203
2,385,061
2,026,652
Total operating expenses
823,043
715,095
2,968,687
2,526,184
Earnings from operations
86,637
93,062
546,670
598,187
Other income (expense)
15,731
(8,365
)
(24,413
)
(28,430
)
Earnings before income taxes
102,368
84,697
522,257
569,757
Income tax expense (benefit)
9,866
(337,902
)
93,095
(245,875
)
Net earnings
92,502
422,599
429,162
815,632
Less: Net earnings attributable to noncontrolling interests
16,987
20,177
56,134
74,129
Net earnings attributable to Skechers U.S.A., Inc.
$
75,515
$
402,422
$
373,028
$
741,503
Net earnings per share attributable to Skechers U.S.A., Inc.
Basic
$
0.49
$
2.58
$
2.40
$
4.77
Diluted
$
0.48
$
2.56
$
2.38
$
4.73
Weighted-average shares used in calculating net earnings per share attributable to Skechers U.S.A., Inc.
Basic
155,162
155,909
155,627
155,539
Diluted
156,278
157,340
156,608
156,794
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Supplemental Financial Information
(Unaudited)
Segment Information
Three Months Ended December 31,
Change
(in millions)
2022
2021
$
%
Wholesale sales
$
1,049.2
$
906.8
142.4
15.7
Gross profit
375.2
326.7
48.5
14.9
Gross margin
35.8
%
36.0
%
(30
)bps
Direct-to-Consumer sales
$
829.6
$
748.6
81.0
10.8
Gross profit
534.4
481.5
52.9
11.0
Gross margin
64.4
%
64.3
%
10
bps
Total sales
$
1,878.8
$
1,655.4
223.4
13.5
Gross profit
909.7
808.2
101.4
12.6
Gross margin
48.4
%
48.8
%
(40
)bps
Year Ended December 31,
Change
(in millions)
2022
2021
$
%
Wholesale sales
$
4,632.4
$
3,758.6
873.8
23.2
Gross profit
1,669.3
1,437.5
231.8
16.1
Gross margin
36.0
%
38.2
%
(220
)bps
Direct-to-Consumer sales
$
2,812.1
$
2,551.6
260.5
10.2
Gross profit
1,846.1
1,686.9
159.2
9.4
Gross margin
65.6
%
66.1
%
(50
)bps
Total sales
$
7,444.5
$
6,310.2
1,134.3
18.0
Gross profit
3,515.4
3,124.4
391.0
12.5
Gross margin
47.2
%
49.5
%
(230
)bps
Additional Sales Information
Three Months Ended December 31,
Change
(in millions)
2022
2021
$
%
Geographic sales
Domestic
Wholesale
$
365.4
$
315.5
49.9
15.8
Direct-to-Consumer
345.4
265.7
79.7
30.0
Total domestic sales
710.8
581.2
129.6
22.3
International
Wholesale
683.8
591.3
92.5
15.6
Direct-to-Consumer
484.2
482.9
1.3
0.3
Total international sales
1,168.0
1,074.2
93.8
8.7
Total sales
$
1,878.8
$
1,655.4
223.4
13.5
Regional sales
Americas (AMER)
$
925.6
$
755.7
169.9
22.5
Europe, Middle East & Africa (EMEA)
413.7
320.9
92.8
28.9
Asia Pacific (APAC)
539.5
578.8
(39.3
)
(6.8
)
Total sales
$
1,878.8
$
1,655.4
223.4
13.5
China sales
$
308.0
$
402.4
(94.4
)
(23.4
)
Distributor sales
$
160.7
$
118.2
42.5
35.9
Year Ended December 31,
Change
(in millions)
2022
2021
$
%
Geographic sales
Domestic
Wholesale
$
1,831.6
$
1,448.3
383.3
26.5
Direct-to-Consumer
1,243.5
1,115.1
128.4
11.5
Total domestic sales
3,075.1
2,563.4
511.7
20.0
International
Wholesale
2,800.8
2,310.3
490.5
21.2
Direct-to-Consumer
1,568.6
1,436.5
132.1
9.2
Total international sales
4,369.4
3,746.8
622.6
16.6
Total sales
$
7,444.5
$
6,310.2
1,134.3
18.0
Regional sales
Americas (AMER)
$
3,854.4
$
3,152.3
702.1
22.3
Europe, Middle East & Africa (EMEA)
1,699.2
1,282.9
416.3
32.5
Asia Pacific (APAC)
1,890.9
1,875.0
15.9
0.9
Total sales
$
7,444.5
$
6,310.2
1,134.3
18.0
China sales
$
1,062.7
$
1,247.9
(185.2
)
(14.8
)
Distributor sales
$
557.1
$
387.2
169.9
43.9
SKECHERS U.S.A., INC. AND SUBSIDIARIES
Reconciliation of GAAP Earnings Financial Measures to Corresponding Non-GAAP Financial Measures
(Unaudited)
Adjusted Diluted Earnings Per Share (Non-GAAP Financial Measure)
We believe that adjusted diluted earnings per share provide meaningful supplemental information to investors in evaluating our business performance for the quarter and year ended December 31, 2022. Adjusted diluted earnings per share is not a measure of financial performance under GAAP and should be considered in addition to, and not a substitute for, diluted earnings per share which is the most comparable GAAP measure. We believe that this non-GAAP measure provides useful information to investors regarding our results of operations and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with valuable supplemental information regarding our results of operations, facilitating period-to-period comparisons of our business performance consistent with how management evaluates the Company’s operating performance. Our method of determining non-GAAP financial measures may differ from other companies’ methods and therefore may not be comparable to those used by other companies. The table below includes prior-year adjustments for a tax benefit due to the establishment of net deferred tax assets related to an intra-entity transfer of certain intellectual property rights, as well as charges related to the settlement of multiple legal matters and the related tax benefit.
Three Months Ended December 31,
Year Ended December 31,
2022
2021
2022
2021
Diluted earnings per share, as reported
$
0.48
$
2.56
$
2.38
$
4.73
Less: Income tax benefits
—
(2.23
)
—
(2.24
)
Plus: Settlement of legal matters
—
0.10
—
0.10
Adjusted diluted earnings per share
$
0.48
$
0.43
$
2.38
$
2.59
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 December 31,
2022
2021
Change
(in millions, except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP Measures
Reported GAAP Measure
$
%
Sales
$
1,878.8
$
92.8
$
1,971.6
$
1,655.4
316.2
19.1
Cost of sales
969.1
52.6
1,021.7
847.2
174.5
20.6
Gross profit
909.7
40.2
949.9
808.2
141.7
17.5
Operating expenses
823.0
33.7
856.7
715.1
141.6
19.8
Earnings from operations
86.6
6.5
93.2
93.1
0.1
0.1
Other income (expense)
15.8
(21.4
)
(5.6
)
(8.4
)
2.8
(33.3
)
Income tax expense (benefit)
9.9
1.4
11.3
(337.9
)
349.2
n/m
Less: Noncontrolling interests
17.0
1.5
18.5
20.2
(1.7
)
(8.4
)
Net earnings
$
75.5
$
(17.8
)
$
57.8
$
402.4
(344.6
)
(85.6
)
Diluted earnings per share
$
0.48
$
(0.11
)
$
0.37
$
2.56
(2.19
)
(85.5
)
Year Ended December 31,
2022
2021
Change
(in millions, except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP Measures
Reported GAAP Measure
$
%
Sales
$
7,444.5
$
291.6
$
7,736.1
$
6,310.2
1,425.9
22.6
Cost of sales
3,929.1
176.0
4,105.1
3,185.8
919.3
28.9
Gross profit
3,515.4
115.6
3,631.0
3,124.4
506.6
16.2
Operating expenses
2,968.7
97.0
3,065.7
2,526.2
539.5
21.4
Earnings from operations
546.7
18.6
565.3
598.2
(32.9
)
(5.5
)
Other income (expense)
(24.5
)
6.8
(17.7
)
(28.5
)
10.8
(37.9
)
Income tax expense (benefit)
93.1
4.3
97.4
(245.9
)
343.3
n/m
Less: Noncontrolling interests
56.1
2.2
58.3
74.1
(15.8
)
(21.3
)
Net earnings
$
373.0
$
18.9
$
391.9
$
741.5
(349.6
)
(47.1
)
Diluted earnings per share
$
2.38
$
0.12
$
2.50
$
4.73
(2.23
)
(47.1
)
Investor Relations
Eunice Han
[email protected]
Press
Jennifer Clay
[email protected]
Source: Skechers U.S.A., Inc.
by Zach | Jan 12, 2023 | Press Release
Jan 12, 2023 • 4:05 pm EST
LOS ANGELES–(BUSINESS WIRE)–
Skechers USA, Inc. (NYSE: SKX), The Comfort Technology Company™, today announced that the Company will release its fourth quarter and full year 2022 financial results after market close on Thursday, February 2, 2023. Following the press release, David Weinberg, Chief Operating Officer, and John Vandemore, Chief Financial Officer, will review the results during a conference call at approximately 4:30 p.m. ET / 1:30 p.m. PT.
The conference call will be broadcast live over the Internet and accessible on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to listen to the live broadcast, a replay will be available at the same location and archived on the site for one year.
About Skechers USA, Inc.
Skechers USA, Inc. (NYSE:SKX), 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 4,458 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]
Source: Skechers USA, Inc.
by Zach | Dec 20, 2022 | Press Release
Dec 20, 2022 • 4:00 am EST
The Brand’s New Destination at Grafton Street will Showcase its Diverse Comfort Offering
DUBLIN–(BUSINESS WIRE)–
Skechers, The Comfort Technology Company™, is elevating its presence in Ireland with the opening of a flagship store on Dublin’s Grafton Street. Joining the concept store on Henry Street and four retail destinations in greater Dublin, the new 929-square-meter location is designed to present Skechers’ extensive offering and comfort technologies in one of the country’s most highly trafficked districts.
Skechers opens its first flagship store on Grafton Street, expanding the Company’s presence in Ireland. (Photo: Business Wire)
Skechers opens its first flagship store on Grafton Street, expanding the Company’s presence in Ireland. (Photo: Business Wire)
“Millions of Ireland’s locals and tourists know and love Skechers’ renowned technologies, and Skechers is making it easier than ever to enjoy more comfort through its footwear and apparel,” said Peter Youell, managing director for Skechers in the UK and Ireland. “Through our ambassadors Jamie Redknapp and Myleene Klass and our beautiful product showcase, our head-to-toe offering is on full display at our new flagship store on Grafton Street—and its central location alongside esteemed international retailers will attract consumers of every age to the latest Skechers offers, from our Skechers Hands Free Slip-ins™ styles to our extensive performance, fashion, sport, casual and work and children’s collections.”
“Skechers has an established network of stores across Great Britain and Ireland, and we continue to invest in key markets like this on our path to reach $10 billion in annual sales by 2026,” said David Weinberg, chief operating officer of Skechers. “This flagship destination adds dimension to our brand—building excitement and driving our comfort message home in a district that makes big impressions on consumers. We believe this new store’s an ideal centerpiece—ready to captivate and drive growth across Ireland and Northern Ireland as well as Europe.”
Displaying Skechers’ unique assortment of shoes, coordinating apparel and accessories as well as a dedicated performance shop, the new destination at 13-14 Grafton Street mirrors the brand’s premier retail stores while catering to local styles—a reimagined mid-century modern design with state-of-the art technology including digital screens and colorful lightboxes presenting its latest marketing.
From fashion styles to lifestyle product and performance shoes for sport enthusiasts, Skechers’ offering is enhanced with the Company’s signature comfort innovations—including its patented Skechers Hands Free Slip-ins Technology™, Massage Fit® Technology, Skechers Arch Fit® Technology, Skechers Max Cushioning® Technology, Skechers Hyper Burst® Technology, Skechers Air-Cooled Memory Foam®, Skechers Relaxed Fit® Technology and Skechers Stretch Fit® Technology.
The flagship store joins 111 Skechers retail stores across Ireland and the UK. Consumers can also find the brand’s collections at over 525 Skechers stores in the United States, more than 3,800 international stores, online at Skechers.com, and at leading retailers worldwide.
About Skechers USA Ltd. and Skechers USA, Inc.
Skechers USA Ltd. is an English subsidiary of Skechers USA, 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 4,458 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, and Twitter.
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 around the world, the challenging consumer retail markets in the United States and the impact of Russia’s recent 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, 2021 and its quarterly reports on Form 10-Q in 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 UK
T: +44 (0) 1707 655 955
Source: Skechers USA Ltd.
by Zach | Nov 17, 2022 | Press Release
Nov 17, 2022 • 2:02 pm EST
The Skechers Street™ capsule is inspired by the artist’s iconic personal style
LOS ANGELES–(BUSINESS WIRE)–
Calling fashion and music lovers everywhere—Skechers has collaborated with multi-platinum global pop sensation Ava Max on a limited-edition footwear collection, with the first two styles launching today. This on-trend capsule is the evolution of an ongoing partnership between Skechers and Ava Max. It all began with her wearing Skechers D’Lites in her 2021 “My Head and My Heart” video, which led to a campaign launch earlier this year for the brand’s best-selling Skechers Uno sneaker.
Limited-edition Skechers x Ava Max collab launches with two fashion sneaker styles. (Photo: Business Wire)
Limited-edition Skechers x Ava Max collab launches with two fashion sneaker styles. (Photo: Business Wire)
“It has been incredible working with the Skechers team to bring my vision to life with the Skechers x Ava Max collaboration,” said Ava Max. “I wanted to create my own spin on classic silhouettes, and I am so excited for it to finally be here!”
Sneakerheads can wear their favorite popstar’s glam-meets-edge look with two hot styles designed with guidance from the singer and songwriter herself. Skechers x Ava Max: Roadies Surge, a high-top lace-up fashion sneaker boot, brings the Y2K vibe with black patent leather upper and classic rugged lug outsole. Skechers x Ava Max: Uno Hi is an elevated update to the iconic Skechers Uno fashion sneaker in monochromatic off-white with patent leather trim on a platform wedge for extra height.
The global hitmaker, whose tracks have been streamed more than 12 billion times, was recently honored with awards for International Artist of the Year and Best Video of the Year at the 2022 LOS40 Music Awards in Spain, and performed her new single “Million Dollar Baby” at the 2022 MTV Europe Music Awards in Dusseldorf on Sunday. Ava Max’s second studio album, Diamonds & Dancefloors, is scheduled to be released on January 27, 2023.
The first limited-edition Skechers x Ava Max capsule collection is available at skechers.com and in select Skechers flagship stores starting today. Additional styles will follow later in 2023.
About AVA MAX:
Ava Max is ready to take her already extraordinary rise to the pinnacle of pop success to even greater heights with her new single “Million Dollar Baby” and upcoming album Diamonds and Dancefloors. With over 12.5B worldwide streams, an array of smash collaborations, and multiple RIAA gold and platinum certifications in the US alone, the first-generation Albanian American artist has fast proven a true pop superstar, hailed for her seismic voice, idiosyncratic high fashion mindset, and undeniable knack for cinematic, theatrical popcraft. 2018 saw Max make her explosive arrival with the blockbuster success of the RIAA 4x-platinum certified hit, “Sweet but Psycho.” Currently boasting more than 4B global streams, the track took the world by storm, spending three weeks in the top 10 on Billboard’s “Hot 100” while reaching #1 in more than 20 countries around the world. Max kept up the pace with a series of smash singles, including the RIAA gold certified “So Am I,” “Salt,” and the platinum “My Head & My Heart,” as well as the platinum certified title track to her acclaimed full-length debut, Heaven & Hell. 2021 saw Max unveil “Every Time I Cry” and her worldwide hit anthem with Tiësto, “The Motto,” which has proven to be an undeniable international blockbuster, reaching the top 5 on Billboard’s “Dance/Electronic Songs” chart while earning over 955M worldwide streams thus far. Now, with new singles “Maybe You’re The Problem,” “Million Dollar Baby” and “Weapons” and the upcoming arrival of Diamonds & Dancefloors, Ava Max is poised to push pop even further, setting a direct course toward the top and beyond.
About SKECHERS USA, Inc.
Skechers USA, Inc. (NYSE:SKX), 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 4,458 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 around the world, the challenging consumer retail markets in the United States and the impact of Russia’s recent 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, 2021 and its quarterly reports on Form 10-Q in 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.
Cara Maffucci
Rogers & Cowan/PMK
[email protected]
Jennifer Clay
Skechers USA
[email protected]
Source: Skechers USA, Inc.