by Zach | May 11, 2021 | Press Release
May 11, 2021 • 4:05 pm EDT
LOS ANGELES–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a virtual fireside chat at the Morgan Stanley Life After Covid: 2021 Thematic Conference on Tuesday, May 18, 2021 at 12:00 p.m. PT.
The audio portion of the virtual fireside chat will be available live and on replay for 90 days at investors.skechers.com.
About SKECHERS USA, Inc.
Skechers (NYSE:SKX), a 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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,989 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. 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 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 be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; 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, 2020. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. 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.
Investor Relations: Andrew Greenebaum
Addo Investor Relations
[email protected]
Press: Jennifer Clay
Skechers
Vice President, Corporate Communications
(310) 937-1326
Source: SKECHERS USA, Inc.
by Zach | Apr 26, 2021 | Press Release
Apr 26, 2021 • 3:32 pm EDT
Wearing Skechers GO GOLF footwear, Canada’s Top-Winning Golfer in History Earns 10th Career Pro Victory
LOS ANGELES–(BUSINESS WIRE)–
Dressed head to toe in Skechers, from her visor and apparel to Skechers GO GOLF shoes, elite golfer Brooke Henderson mounted an impressive win on Saturday at the Hugel-Air Premia LA Open at the Wilshire Country Club in Los Angeles. Henderson won by a single shot, finishing 16 under par to achieve her tenth LPGA title—expanding her record as Canada’s winningest golfer in the history of the LPGA and PGA Tours.
Skechers GO GOLF elite athlete Brooke Henderson wins record-setting 10th career pro victory at the Hugel-Air Premia LA Open in Los Angeles. (Photo: Business Wire)
Skechers GO GOLF elite athlete Brooke Henderson wins record-setting 10th career pro victory at the Hugel-Air Premia LA Open in Los Angeles. (Photo: Business Wire)
“I love finding new ways to improve my game, and this tournament offered some great opportunities,” said Brooke Henderson. “I had a lot of breaks go my way on Saturday and it was exciting through that final chip for par on the 18th. I remained focused on my game and was thrilled to move up the leaderboard for the win. I appreciate all my supporters, and it was great to secure this title in L.A.—home to Skechers.”
“Brooke Henderson has always shown great talent, but over the past few years on the Tour, she’s developed an incredible maturity and tenacity—and we’re confident she will continue to break records and thrill her already huge fan base,” said Michael Greenberg, president of Skechers. “We’re honored that Skechers GO GOLF has been part of her rise and evolution into one of today’s top golfers, and we look forward to seeing all the ways that she’ll continue to grow as a global contender and golf legend.”
Henderson has become a prominent face in women’s golf since turning professional in December 2014. She won her first LPGA Tour event in 2015 at the Cambia Portland Classic, a title she would defend in 2016. She went on to become the second youngest player to capture a major championship with her win at the 2016 KPMG Women’s PGA Championship. In 2016, Brooke also represented Canada at the 2016 Olympic games in Brazil, where she tied for seventh place. In 2018, she won the Lotte Championship, and she also became the first Canadian in 45 years to win the national championship at the CP Women’s Open. Now with 10 titles, Henderson owns the record for most professional golf wins by a male or female Canadian, and in 2019 won the ESPY for Best Female Golfer. She is currently ranked #5 in the World Golf Rankings.
Henderson joined the Skechers Performance team in 2016, wears Skechers GO GOLF footwear and apparel on tour and has been featured in ongoing marketing campaigns for the brand. She has competed in recent tournaments wearing Skechers GO GOLF Elite 3™ footwear. Known for its lightweight, high-quality, stable and comfortable designs, Skechers GO GOLF has achieved prominence within the golf category alongside the brand’s award-winning running, walking and training collections.
Skechers and PGA Tour Superstore are currently running the Meet Our Elite contest with Skechers athlete Brooke Henderson. Aspiring teen or junior golfers (age 13-18) in the United States can enter to win a virtual training session and meet and greet with Brooke, $2,500 to use towards future golf school or training, plus six months’ worth of Skechers footwear to keep them comfortable on and off the course. Additionally, two lucky first-prize winners will each receive $500 to use towards future golf school or training, plus three months’ worth of Skechers footwear. The deadline for entry is May 1, and complete details are available at www.skechers.com/m/meet-elite.
Skechers GO GOLF footwear is available at Skechers retail stores and skechers.com as well as select retail partners, including specialty golf pro shops.
About SKECHERS USA, Inc.
Skechers (NYSE:SKX), a 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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,989 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. 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 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 be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; 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, 2020. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. 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.
Media:
Jennifer Clay
Skechers
[email protected]
Source: SKECHERS USA, Inc.
by Zach | Apr 22, 2021 | Press Release
Apr 22, 2021 • 4:05 pm EDT
LOS ANGELES–(BUSINESS WIRE)–
SKECHERS U.S.A., Inc. (“Skechers” or the “Company”) (NYSE:SKX), a global footwear leader, today announced financial results for the first quarter ended March 31, 2021.
First Quarter Highlights
“Skechers new sales record in the first quarter is a remarkable achievement, especially given the lockdown measures in many key countries, including across Europe,” began Robert Greenberg, Chief Executive Officer of Skechers. “This significant growth is the result of continued demand for Skechers product as consumers desire comfort and quality in their footwear and walking remains a top COVID-19 pandemic activity. With warmer weather and increased vaccination rates around the world, traffic is improving in many of our retail stores, and our digital business continues to be a very strong growth driver. In the first quarter, we increased our marketing efforts in the United States and supported many open international markets, including the airing of new campaigns with football coach, Jon Gruden and sports analyst, Howie Long—both for Arch Fit shoes, and a Super Bowl spot with commentator, Tony Romo, for Max Cushioning footwear. In addition, we ran Brooke Burke Arch Fit and Skechers apparel commercials, and multiple campaigns, on traditional and digital platforms. As a comfort technology company, Skechers received several product awards for our sport, running and golf shoes, and we were named Company of the Year from leading industry trade publication Footwear Plus. Despite the ongoing challenges related to the pandemic, we are pleased with our exceptional start to 2021 and believe our growth is a testament to our execution and the relevance of the Skechers brand.”
“The momentum we experienced in the second half of 2020 continued into the first quarter as we achieved revenue growth of 15.0% over the same period in 2020, and an exceptional 12% increase over the first quarter of 2019. This resulted in the Company’s first quarterly sales of over $1.4 billion,” stated David Weinberg, Chief Operating Officer of Skechers. “The positive results were due to a 20.2% increase in our international business and an 8.5% increase in domestic sales compared to 2020. Driving the quarterly growth was a 23.8% increase in our International Wholesale, led by triple-digit growth in China, an 18.1% improvement in our direct-to-consumer business, with March being the strongest sales month, and a 143.0% increase in domestic e-commerce. Domestic Wholesale decreased 0.9% due to timing of shipments. Nonetheless, we saw strength across customer types and encouraging sell-through in multiple categories. The momentum in our direct-to-consumer business along with continuing demand for our comfort product, leads us to believe that Skechers’ remains on a positive trajectory.”
First Quarter 2021 Financial Results
Three Months Ended
March 31,
Change
(in millions, except per share data)
2021
2020
$
%
Sales
$
1,428.4
$
1,242.3
$
186.1
15.0
%
Gross profit
679.6
547.7
131.9
24.1
%
Gross margin
47.6
%
44.1
%
350
bps
SG&A expenses
528.0
508.1
19.9
3.9
%
As a % of sales
37.0
%
40.9
%
(394
)bps
Earnings from operations
157.7
44.8
112.9
252.0
%
Operating margin
11.0
%
3.6
%
743
bps
Net earnings
98.6
49.1
49.5
100.8
%
Diluted earnings per share
$
0.63
$
0.32
$
0.31
96.9
%
First quarter sales increased 15.0% as a result of a 20.2% increase in the Company’s international sales and an 8.5% increase in domestic sales. Increases in international sales were driven by wholesale. Domestic sales increases were driven by direct-to-consumer, including e-commerce growth of 143.0%, partially offset by a slight decline in wholesale. On a constant currency basis, the Company’s total sales increased 11.7%.
The Company’s International Wholesale sales increased 23.8% and Direct-to-Consumer sales increased 18.1%, offset by a Domestic Wholesale sales decrease of 0.9%. Increases in the Company’s International Wholesale segment were driven by growth in China of 174.4%, partially offset by declines in Europe of 8.1% and a 6.5% decline in distributor sales. Direct-to-Consumer comparable same store sales increased 10.2%, driven by an increase of 25.7% domestically, partially offset by a decrease of 27.4% internationally.
Gross margin increased 350 basis points to 47.6% as a result of increased margins in both the International Wholesale and Direct-to-Consumer segments. The strong margin performance was driven by an increase in selling price across all channels and a favorable mix of e-commerce sales.
SG&A expenses increased $19.9 million, or 3.9%. Selling expenses increased by $11.2 million, or 15.2%, primarily due to higher domestic marketing expenses. General and administrative expenses increased by $8.6 million, or 2.0%. The increase was primarily the result of higher global warehouse and distribution expenses, partially offset by reduced retail labor.
Earnings from operations increased $112.9 million, or 252.0%, to $157.7 million.
Net earnings were $98.6 million and diluted earnings per share were $0.63.
In the first quarter, the Company’s effective income tax rate was 20.2% driven by profitability in higher tax jurisdictions such as the U.S. and China.
“Skechers record setting first quarter, in the midst of a global pandemic, is a reflection of the strength of our brand and product offering, combined with outstanding execution,” stated John Vandemore, Chief Financial Officer of Skechers. “Despite headwinds across the globe, we achieved triple-digit growth in e-commerce and China, and resurgent growth in domestic retail, all of which we believe are evidence of the potential for our brand. Additionally, our continued investments to support our growth initiatives are on track to provide long-term value to the business and for shareholders.”
Balance Sheet
Cash, cash equivalents and investments totaled $1.51 billion, a decrease of $65.1 million, or 4.1% from December 31, 2020.
Total inventory was $1.07 billion, an increase of $50.7 million or 5.0% from December 31, 2020. Increased inventory levels primarily reflect growth in the International Wholesale segment.
Outlook
For the fiscal year 2021, the Company believes it will achieve sales between $5.8 billion and $5.9 billion and diluted earnings per share of between $1.80 and $2.00. Further, the Company believes that for the second quarter of 2021, it will achieve sales between $1.45 billion and $1.50 billion and diluted earnings per share of between $0.40 and $0.50.
Store Count
Number of Store Locations as of
Number of Store Locations as of
December 31, 2020
Opened
Closed(1)
March 31, 2021
Domestic stores
523
6
(17
)
512
International stores
331
6
(3
)
334
Joint venture stores
467
37
(25
)
479
Distributor, licensee and franchise stores
2,570
146
(52
)
2,664
Total Skechers stores
3,891
195
(97
)
3,989
(1) Does not reflect temporary closures due to the COVID-19 pandemic.
Certain Non-GAAP Measures
To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we use the non-GAAP financial measures presented above to evaluate our results of operations, financial condition, liquidity and indebtedness. We believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness 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, thereby facilitating period-to-period comparisons of our business performance consistent with how management evaluates the Company’s operating performance and liquidity. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data the Company has determined that it is appropriate to make this data available to all investors. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. Reconciliations of these non-GAAP financial measures to the most nearly comparable GAAP financial measures are presented below.
First Quarter 2021 Conference Call
The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its first quarter 2021 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 22, 2021 at 7:30 p.m. ET, through May 6, 2021, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13718661.
About SKECHERS U.S.A., Inc.
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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,989 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. 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 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 be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; 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, 2020. More specifically, the COVID-19 pandemic has had and may continue to have a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. 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 March 31,
As of December 31,
(in thousands)
2021
2020
ASSETS
Current assets:
Cash and cash equivalents
$
1,284,540
$
1,370,826
Short-term investments
106,028
100,767
Trade accounts receivable, net
798,836
619,800
Other receivables
70,758
69,222
Total receivables
869,594
689,022
Inventory
1,067,437
1,016,774
Prepaid expenses and other current assets
137,138
166,962
Total current assets
3,464,737
3,344,351
Property, plant and equipment, net
992,512
935,441
Operating lease right-of-use assets
1,159,339
1,171,521
Deferred tax assets
63,339
63,884
Long-term investments
124,379
108,412
Goodwill
93,497
93,497
Other assets, net
87,763
95,263
Total non-current assets
2,520,829
2,468,018
TOTAL ASSETS
$
5,985,566
$
5,812,369
LIABILITIES AND EQUITY
Current liabilities:
Current installments of long-term borrowings
$
60,942
$
52,250
Short-term borrowings
1,138
3,297
Accounts payable
807,949
744,077
Operating lease liabilities
217,241
204,370
Accrued expenses
184,109
208,712
Total current liabilities
1,271,379
1,212,706
Long-term borrowings, excluding current installments
717,595
679,415
Long-term operating lease liabilities
1,039,763
1,065,069
Deferred tax liabilities
10,835
11,439
Other long-term liabilities
114,448
118,077
Total non-current liabilities
1,882,641
1,874,000
Total liabilities
3,154,020
3,086,706
Stockholders’ equity:
Preferred Stock
—
—
Class A Common Stock
134
134
Class B Common Stock
21
21
Additional paid-in capital
377,350
372,165
Accumulated other comprehensive loss
(36,349
)
(27,285
)
Retained earnings
2,234,973
2,136,400
Skechers U.S.A., Inc. equity
2,576,129
2,481,435
Noncontrolling interests
255,417
244,228
Total stockholders’ equity
2,831,546
2,725,663
TOTAL LIABILITIES AND EQUITY
$
5,985,566
$
5,812,369
SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
March 31,
(in thousands, except per share data)
2021
2020
Sales
$
1,428,418
$
1,242,345
Cost of sales
748,796
694,677
Gross profit
679,622
547,668
Royalty income
6,037
5,248
685,659
552,916
Operating expenses:
Selling
85,296
74,055
General and administrative
442,695
434,051
Selling, general and administrative
527,991
508,106
Earnings from operations
157,668
44,810
Other income (expense):
Interest income
796
2,307
Interest expense
(4,113
)
(1,999
)
Other, net
(10,857
)
3,471
Total other income (expense)
(14,174
)
3,779
Earnings before income tax expense
143,494
48,589
Income tax expense
28,985
7,429
Net earnings
114,509
41,160
Less: Net earnings (loss) attributable to noncontrolling interests
15,936
(7,941
)
Net earnings attributable to Skechers U.S.A., Inc.
$
98,573
$
49,101
Net earnings per share attributable to Skechers U.S.A., Inc.:
Basic
$
0.64
$
0.32
Diluted
$
0.63
$
0.32
Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.:
Basic
154,818
153,555
Diluted
155,936
154,652
SKECHERS U.S.A., INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(Unaudited)
Three Months Ended
March 31,
Change
(in millions)
2021
2020
$
%
Domestic Wholesale
Sales
$
374.7
$
378.0
(3.3
)
(0.9
)
Gross margin
37.3
%
38.4
%
(109
)bps
International Wholesale
Sales
$
712.2
$
575.2
137.0
23.8
Gross margin
45.0
%
41.8
%
324
bps
Direct-to-Consumer
Sales
$
341.5
$
289.1
52.4
18.1
Gross margin
64.1
%
56.0
%
810
bps
Total
Sales
$
1,428.4
$
1,242.3
186.1
15.0
Gross margin
47.6
%
44.1
%
350
bps
SKECHERS U.S.A., INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES (Unaudited)
Adjusted Earnings and Adjusted Diluted Earnings Per Share
We believe that Adjusted Earnings and Adjusted Diluted Earnings Per Share provide meaningful supplemental information to investors in evaluating our business performance for the quarter ended March 31, 2021. Adjusted Earnings and Adjusted Diluted Earnings Per Share are not measures of financial performance under GAAP and should be considered in addition to, and not a substitute for, Net Earnings and Diluted Net Earnings Per Share which are the most comparable GAAP measures. 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.
Constant Currency Adjustment
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,
2021
2020
Change
(in millions,
except per share data)
Reported GAAP Measure
Constant Currency
Adjustment
Adjusted for Non-GAAP Measures
Reported GAAP Measure
$
%
Sales
$
1,428.4
$
(40.2
)
$
1,388.2
$
1,242.3
145.9
11.7
Cost of sales
748.8
(24.2
)
724.6
694.6
30.0
4.3
Gross profit
$
679.6
$
(16.0
)
$
663.6
$
547.7
115.9
21.2
Royalty income
6.1
(0.5
)
5.6
5.2
0.4
7.7
SG&A expenses
528.0
(11.4
)
516.6
508.1
8.5
1.7
Earnings from operations
$
157.7
$
(5.1
)
$
152.6
$
44.8
107.8
240.6
Other income (expense)
(14.2
)
10.4
(3.8
)
3.8
(7.6
)
(200.0
)
Income tax (benefit) expense
29.0
(0.9
)
28.1
7.4
20.7
279.7
Less: Noncontrolling interests
15.9
(1.1
)
14.8
(7.9
)
22.7
(287.3
)
Net earnings
$
98.6
$
7.3
$
105.9
$
49.1
56.8
115.7
Diluted earnings per share
$
0.63
$
0.05
$
0.68
$
0.32
0.36
112.5
Investor Relations:
Andrew Greenebaum
Addo Investor Relations
[email protected]
Press:
Jennifer Clay
Vice President,
Corporate Communications
SKECHERS U.S.A., Inc.
(310) 318-3100
Source: SKECHERS U.S.A., Inc.
by Zach | Apr 13, 2021 | Press Release
Apr 13, 2021 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE: SKX), a global leader in lifestyle and performance footwear, today announced that it will release its first quarter 2021 financial results after market close on Thursday, April 22, 2021. A conference call will be held the same day at 4:30 p.m. ET / 1:30 p.m. PT. Participating on the call will be David Weinberg, Chief Operating Officer, and John Vandemore, Chief Financial Officer.
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 22, 2021 at 7:30 p.m. ET, through May 6, 2021, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13718661.
About SKECHERS USA, Inc.
Based in Manhattan Beach, 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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,891 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, Twitter and TikTok.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210413005259/en/
Investor Relations:
Addo Investor Relations
Andrew Greenebaum
310-829-5400
Source: SKECHERS USA, Inc.
by Zach | Mar 8, 2021 | Press Release
Mar 8, 2021 • 4:05 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced that John Vandemore, Chief Financial Officer, will participate in a virtual fireside chat at the UBS Global Consumer & Retail Conference on Wednesday, March 10, 2021 at 11:00 a.m. PT.
The audio portion of the virtual fireside chat will be available live and on replay for 90 days at investors.skechers.com.
About SKECHERS USA, Inc.
Based in Manhattan Beach, 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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,891 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. 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 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 be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; 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, 2020. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. 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.
Investor Relations: Andrew Greenebaum
Addo Investor Relations
[email protected]
Press: Jennifer Clay
Vice President, Corporate Communications
(310) 937-1326
Source: SKECHERS USA, Inc.
by Zach | Mar 1, 2021 | Press Release
Mar 1, 2021 • 9:00 am EST
Skechers Kids Also Wins Footwear Plus’ Excellence in Children’s Design Award for its New Collections and Innovations
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– For the ninth time in the past 15 years, Skechers has been honored as Company of the Year by Footwear Plus. Along with the top honor for 2020, Skechers Kids received the Excellence in Children’s Design Award, the fourth such accolade from Footwear Plus that the Company has won for its popular kids’ styles.
“After such an unprecedented 2020, it’s a great honor for Skechers to be recognized as Company of the Year,” said Michael Greenberg, president of Skechers. “We began the year at full throttle building on the growth of record sales in 2019. When faced with the pandemic, we were able to pivot quickly to navigate this difficult year. Key to this was developing fresh product that focused on the comfort consumers desired, doubling down on e-commerce when stores closed, and investing in our infrastructure to prepare for the future. This was only possible thanks to the hard work, dedication, and resilience of everyone in the Skechers organization.”
Added Greenberg: “Skechers is a family brand that designs footwear to meet the needs and wants of people of all ages. We believe that developing shoes for the littlest of feet is just as important as for adults. Parents look to our boys’ and girls’ collections for durability, comfort, and quality in every pair, plus that signature fun factor that Skechers delivers best. In this year of remote learning, families turned to the brand they trust most, and we appreciate the acknowledgement of Skechers Kids with the Children’s Design Award for all our efforts.”
“Congratulations to Skechers on its Company of the Year and Children’s Design Plus Awards for 2020,” said Greg Dutter, editorial director of Footwear Plus, creators of the 22nd annual industry accolades recognizing excellence in design and retail. “Skechers was recognized because they were able to pivot, adapt and navigate a year that involved extensive business disruption due to the ongoing global pandemic. Their casual and comfortable collections were exactly what consumers wanted at just the right time. Plus, despite the challenges, Skechers continued to innovate on trend and in style with collaborations and exciting designs for kids.”
Skechers’ previous Footwear Plus awards include the Company of the Year Award in 2005, 2006, 2008, 2009, 2010, 2014, 2015, and 2019 and Plus Awards for Design Excellence in 2000 for Young Women’s Fashion; 2001 for Women’s Streetwear; 2002 for Kids’ Fashion; 2005 and 2006 for Men’s Streetwear; 2013 for the Running and Children’s categories; 2014 for Running Design; 2015 for Athleisure; and 2016 and 2019 for its Skechers Kids product.
Skechers is the world’s third largest athletic lifestyle footwear brand and offers a growing collection of footwear, apparel and accessories for every age and activity. In addition to the Company’s award-winning Skechers Kids collection, Skechers’ DNA spans core collections like Skechers Sport, Skechers USA and Modern Comfort; the philanthropic offering BOBS from Skechers; performance lines such as Skechers GOrun, Skechers GOwalk and Skechers GO GOLF; and Skechers Work for safety and comfort on the job. Comfort is a focus across the entire Skechers range including Max Cushioning plus patented and podiatrist-certified Arch Fit. Styles across multiple categories feature innovative Goodyear outsoles for enhanced traction, stability and durability. Within Skechers lifestyle collections are buzz-worthy collaborations with known brands and properties including renowned children’s author Dr. Seuss and muralist James Goldcrown.
Celebrity product endorsees for Skechers’ collections include TV personality Brooke Burke; Dodgers’ ace pitcher Clayton Kershaw; football legends Tony Romo and Howie Long; Raiders head coach Jon Gruden; and boxing icon Sugar Ray Leonard. The Company’s performance ambassadors include elite marathon champion and Boston Marathon winner Meb Keflezighi; elite runner Ed Cheserek; and pro golfers Matt Kuchar, Brooke Henderson, Billy Andrade and Colin Montgomerie.
About SKECHERS USA, Inc.
Based in Manhattan Beach, 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 the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,891 Company and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America. 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 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 be,” “will continue,” “will result,” “could,” “may,” “might,” or any variations of such words with similar meanings. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in forward-looking statements. Factors that might cause or contribute to such differences include the disruption of business and operations due to the COVID-19 pandemic; international economic, political and market conditions including the challenging consumer retail markets in the United States; 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, 2020. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its factories and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. 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.
Media Contact:
Jennifer Clay
SKECHERS USA, Inc.
310.937.1326
Source: SKECHERS USA, Inc.