Skechers Opens Flagship Retail Store on Famed Rue De Rivoli in Paris

by Zach | Aug 12, 2020 | Press Release

Aug 12, 2020 • 4:00 pm EDT

PARIS – 12 August 2020 – Global lifestyle brand Skechers has opened a flagship store on the famed Rue de Rivoli, one of the biggest shopping boulevards in Paris. The new store offers a full Skechers retail experience that will appeal to locals and eventually returning visitors to shop an expanded range of the latest Skechers lifestyle and performance footwear and apparel collections for men, women and kids.

“Skechers has built a solid and loyal consumer base in France, and Parisians love to wear the brand, so it’s exciting to be opening a high-profile flagship store on Rue de Rivoli,” said Stéphane Drapier, general manager of Skechers USA France. “With the exceptional amount of pedestrian traffic on this world-famous shopping street, we expect this store to be an impactful showpiece, drawing in consumers to try-on and experience the comfort and style of Skechers for themselves.”

“Skechers stores offer the best retail venue for shoppers to directly experience the vast assortment of our lifestyle and performance footwear, and this flagship location will reinforce Skechers as a global leader in footwear to consumers in Paris,” added David Weinberg, chief operating officer of Skechers. “Our business in France was up low double digits in 2019 and on track for continued growth prior to the pandemic. When nearly all businesses closed in March this year, we were just a couple weeks away from the originally scheduled opening of this beautiful store on Rue de Rivoli. Establishing a location in the center of Paris is a testament to our belief that Skechers will remain a go-to footwear brand in France and across Europe as the recovery continues and consumers seek comfort and quality along with style during this challenging year.”

The Skechers flagship store, located at Rue De Rivoli 102 (at the corner of Rue Saint-Denis), is situated in the popular shopping district near the Tour Saint-Jacques with convenient access via the Châtelet Metro station, and a few blocks from the Right Bank of the Seine along with major cultural destinations including the Louvre. The 545 m² (5,859 ft²) store features a high-resolution digital screen showcasing Skechers’ fashion-forward content in the entryway draws the hundreds of thousands of pedestrians who walk past the store every day. Once inside, consumers will find an inspired mid-century modern design with sustainable features including LED lighting and power-efficient HVAC as well as ample graphic displays highlighting the collections of men’s, women’s and kids’ lifestyle and performance footwear and apparel in a layout designed for flexibility and seasonal change.

The store opened with the same commitment to safety that Skechers is employing at all retail locations. Associates follow a rigorous sanitizing schedule (including high-touch, high-traffic areas), practice social distancing, and wear face coverings for their protection and that of shoppers.

The Skechers flagship store joins locations in Aeroville Mall outside Paris, Les Terrasses du Port and Plan de Campagne both in Marseille, as well as Aix en Provence, Toulon, Béziers, Montpellier and Bayonne. There are more than 3,615 Skechers destinations worldwide and more than 90 percent of the stores around the globe have reopened, including all locations in France. Skechers will limit store openings for the remainder of the year, with only locations in development prior to COVID-19 proceeding during this period.

About Skechers USA France, S.A.S. and Skechers USA, Inc.

Skechers USA France, S.A.S. is a subsidiary of Skechers USA, Inc. (NYSE:SKX), which is 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 3,615 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 and Instagram.

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 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, 2019 and its quarterly report on Form 10-Q for the three months ended June 30, 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

Skechers Named Women’s Footwear Brand of the Year at the Drapers Footwear Awards 2020

by Zach | Aug 10, 2020 | Press Release

Aug 10, 2020 • 5:00 pm EDT

LONDON–(BUSINESS WIRE)—10 August 2020—Skechers USA Ltd., a subsidiary of Skechers USA, Inc., today announced that the Company has been recognized as Women’s Footwear Brand of the Year at the Drapers Footwear Awards 2020 for a repeat win after taking home the same award in 2019. According to Drapers, Skechers was honoured because it has become one of the biggest and most well-known women’s brands in the industry—adding that Skechers knows its consumer, what she wants, how to talk to her, and who influences her.

“Drapers reaches our target buying audience, so to be associated with the Footwear Awards and Drapers brand is essential. It’s the quality reference in the marketplace,” said Peter Youell, managing director, Skechers UK and Ireland. “For Skechers to be recognized and win the Women’s Brand of the Year award is a tremendous honour and true testament to our incredible product range, as well as our outstanding marketing and consumer reach. We are delighted to accept this award within the Women’s category for the second year in a row.”

“2019 was an exceptional year for Skechers’ women’s business—from both a sales and design standpoint. The same was ringing true in 2020 until the COVID-19 pandemic hit,” added Marvin Bernstein, managing partner of Skechers S.à.r.l. “But in true Skechers fashion, we acted and reacted, including strengthening our ecommerce business. In 2020, we have experienced triple-digit growth in our UK and European online businesses driven by our women’s footwear. Consumers trust Skechers and know we deliver on comfort, quality and style—all needed during this challenging year.”

Considering the unusual buying season in the wake of a global pandemic, Drapers launched a week-long celebration of all-things footwear named Footwear Futures, which concluded in a virtual Drapers Footwear Awards 2020 ceremony on 6 August. 

Drapers Magazine is the market-leading title offering unparalleled access to the UK fashion market.  The Drapers Footwear Awards acknowledge outstanding performance and innovation among retailers, brands and individuals in this fast-paced industry, and Skechers won over a strong competitive field against notable brands. In 2019, Skechers was recognized by Drapers as Women’s Brand of the Year as well as Children’s Brand of the Year at the Footwear Industry Awards.

Celebrity product endorsees for Skechers’ collections includes legendary athletes like Jamie Redknapp, Tony Romo, Clayton Kershaw, Sugar Ray Leonard and Howie Long; elite runners Meb Keflezighi and Ed Cheserek; and pro golfers Colin Montgomerie, Matt Kuchar, Brooke Henderson and Billy Andrade.

About SKECHERS USA, Inc.

Based in Manhattan Beach, California, Skechers (NYSE: SKX) 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 3,615 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 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, 2019 and its quarterly report on Form 10-Q for the three months ended June 30, 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:
Petra Kereem
Skechers USA Ltd.
[email protected]
(0) 1707 655 955

Skechers Announces Second Quarter 2020 Financial Results

by Zach | Jul 23, 2020 | Press Release

Jul 23, 2020 • 4:05 pm EDT

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the second quarter ended June 30, 2020.

Second Quarter Results

“Skechers, like most businesses around the world, has never faced a more challenging time than during the pandemic, which caused the closing of nearly every market worldwide,” stated Robert Greenberg, chief executive officer of Skechers. “COVID-19 continues to be a serious concern globally, and the health and welfare of our team, partners and customers remain our number one priority. In the face of this on-going challenge, I am extremely proud of our company. We are a resilient organization driven by a dedicated and flexible team determined to do what it takes to not only survive but position ourselves for a return to profitability. Now, with more than 90 percent of our Skechers stores safely re-opened and some markets in the early stages of recovery, we believe that we will remain a brand consumers and retailers trust to deliver comfort, quality, and style. We are hopeful that global economies will continue to improve, and as they do, we will continue to operate efficiently and judiciously during this pandemic.”

“The impact of COVID-19 to Skechers’ business was significant in the second quarter as we saw much of the world outside Asia shutter nearly all businesses,” began David Weinberg, chief operating officer of Skechers. “However, we remain optimistic about the early signs of recovery we witnessed during the quarter, including a return to growth in China, consistent improvement each month in some markets outside of China, and record shattering growth of over 400 percent in our Company-owned e-commerce business. While every country’s recovery has been unique, we began to see a similar recovery trend, first reflected in China and now extending into other markets globally including Australia, Germany, South Korea and Taiwan. We believe the positive sales trends in markets that have re-opened, as well as the efficiency with which we addressed the pandemic challenges, are strong indicators that when the global health crisis stabilizes, Skechers will remain a global footwear leader.”

Second Quarter 2020 Financial Results

(Dollars in millions, except per share data)

Three months ended

June 30,

Change

2020

2019

$

%

Sales

$

729.5

$

1,258.6

$

(529.1

)

-42.0

%

Gross Profit

368.6

609.8

(241.2

)

-39.6

%

Gross Margin

50.5

%

48.5

%

SG&A Expenses

432.1

505.1

(73.0

)

-14.5

%

As a % of Sales

59.2

%

40.1

%

Earnings / (loss) from Operations

(61.0

)

111.1

(172.1

)

-154.9

%

Operating Margin

(8.4

)

%

8.8

%

Net Earnings / (loss)

(68.1

)

75.2

(143.3

)

-190.6

%

Diluted Earnings / (loss) per Share

$

(0.44

)

$

0.49

$

(0.93

)

-189.8

%

Sales decreased 42.0 percent as a result of a 37.8 percent decrease in its international business and a 47.3 percent decrease in the Company’s domestic business, reflecting the impact of the global pandemic. The Company’s international sales declines were partially offset by an 11.5 percent increase in China sales. The Company’s international wholesale business decreased 29.9 percent and its domestic wholesale business decreased 57.2 percent. With nearly all its Skechers stores closed at some point in the quarter, its direct-to-consumer business decreased 47.1 percent, which includes a 428.2 percent increase in its e-commerce business. Comparable same store sales in its direct-to-consumer business decreased 45.6 percent, including a decrease of 35.9 percent in the United States and 66.9 percent internationally.

Gross margins increased by approximately 210 basis points as a result of a favorable mix of online and international sales.

SG&A expenses decreased $73.0 million, or 14.5 percent in the quarter. Selling expenses decreased by $53.3 million, or 46.9 percent, primarily due to lower advertising and marketing expenses globally. General and administrative expenses decreased by $19.7 million, or 5.0 percent, despite the inclusion of an incremental $10.2 million in bad debt expense, due predominately to the impact of COVID-19 on wholesale customers across the globe. The decrease was primarily the result of a reduction in compensation related expenses due to the temporary closure of its retail stores and the furlough of select corporate staff.

Earnings (loss) from operations decreased $172.1 million, or 154.9 percent, to a loss of $61.0 million.

Net loss was $68.1 million and diluted loss per share was $0.44.

In the second quarter, the Company’s effective income tax rate was 7.2 percent, resulting in a net tax benefit of $4.3 million.

“Despite the challenges of the second quarter, we are optimistic about the early-stage recovery we are seeing in much of our business, including a return to growth in China and the explosive growth of our e-commerce channel,” said John Vandemore, chief financial officer of Skechers. “We ended the second quarter in a position of significant financial strength, having grown our cash balances sequentially by more than $175 million through prudent inventory, working capital and operating expense management. We remain confident in our ability to manage through this crisis and are extremely optimistic about the long-term future of the Skechers brand.”

Six Months 2020 Financial Results

(Dollars in millions, except per share data)

Six Months ended

June 30,

Change

2020

2019

$

%

Sales

$

1,971.8

$

2,535.3

$

(563.5

)

-22.2

%

Gross Profit

916.2

1,200.3

(284.1

)

-23.7

%

Gross Margin

46.5

%

47.3

%

SG&A Expenses

940.2

934.9

5.3

0.6

%

As a % of Sales

47.7

%

36.9

%

Earnings / (loss) from Operations

(16.2

)

276.9

(293.1

)

-105.9

%

Operating Margin

(0.8

)

%

10.9

%

Net Earnings / (loss)

(19.0

)

183.9

(202.9

)

-110.3

%

Diluted Earnings / (loss) per Share

$

(0.12

)

$

1.19

$

(1.31

)

-110.1

%

For the first six months, sales decreased 22.2 percent, reflecting the impact of the global pandemic on our businesses worldwide.

Gross margins decreased slightly due to lower international gross margins, including the impact of a one-time, non-cash purchase price adjustment related to the acquisition of the Company’s interest in the Mexico joint venture in 2019 of $8.0 million.

For the first six months, SG&A expenses increased by 0.6 percent or $5.3 million. Selling expenses decreased by 26.9 percent or $49.4 million, primarily due to lower advertising and marketing expenses globally. General and administrative expenses increased by 7.3 percent or $54.7 million, reflecting the inclusion of Mexico operations and a net increase in new Company-owned Skechers stores.

Earnings (loss) from operations decreased $293.1 million, or 105.9 percent, to a loss of $16.2 million.

Net loss was $19.0 million and diluted loss per share was $0.12.

Balance Sheet

At quarter-end, cash, cash equivalents and investments totaled $1.56 billion, an increase of $524.5 million, or 50.9 percent from December 31, 2019, and an increase of $583.0 million, or 59.9 percent, over June 30, 2019. The increase primarily reflects the drawdown of $490 million from the Company’s senior unsecured credit facility in the first quarter.

Total inventory, including inventory in transit, was $1.03 billion, a decrease of $42.1 million or 3.9 percent from December 31, 2019, and an increase of $172.1 million or 20.1 percent over June 30, 2019. The higher year-over-year inventory levels reflect lower wholesale shipping and decreased retail activity associated with the global pandemic.

Outlook

The Company is not providing further financial guidance at this time given the ongoing business disruption and substantial uncertainty surrounding the impact of the pandemic on its business globally.

Store Count

Number of Store Locations as of

Number of Store Locations as of

March 31, 2020

Opened

Closed⁽¹⁾

June 30, 2020

Company-owned domestic stores

508

3

(1

)

510

Company-owned international stores

304

4

–

308

Joint-venture stores

377

21

(8

)

390

Distributor, licensee and franchise stores

2,386

81

(60

)

2,407

Total Skechers stores

3,575

109

(69

)

3,615

⁽¹⁾ Does not reflect temporary closures due to the COVID-19 pandemic.

Second Quarter 2020 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 second quarter 2020 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 July 23, 2020 at 7:30 p.m. ET, through August 6, 2020, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13706218.

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 3,615 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 generally accepted accounting principles in the United States. This announcement also 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 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, 2019, and its quarterly report on Form 10-Q for the three-months ended March 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 contract manufacturers 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 COVID-19 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, dollars in thousands)

June 30,

December 31,

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

$

1,352,120

$

824,876

Short-term investments

105,677

112,037

Trade accounts receivable, net

478,011

645,303

Other receivables

68,104

53,932

Total receivables

546,115

699,235

Inventories

1,027,735

1,069,863

Prepaid expenses and other current assets

105,141

113,580

Total current assets

3,136,788

2,819,591

Property, plant and equipment, net

833,103

738,925

Operating lease right-of-use assets

1,102,885

1,073,660

Deferred tax assets

49,198

49,088

Long-term investments

98,236

94,589

Goodwill

93,497

71,412

Other assets, net

94,339

45,678

Total non-current assets

2,271,258

2,073,352

TOTAL ASSETS

$

5,408,046

$

4,892,943

LIABILITIES AND EQUITY

Current liabilities:

Current installments of long-term borrowings

$

69,359

$

66,234

Short-term borrowings

13,870

5,789

Accounts payable

621,142

764,844

Operating lease liabilities

194,508

191,129

Accrued expenses

177,907

210,235

Total current liabilities

1,076,786

1,238,231

Long-term borrowings, excluding current installments

680,109

49,183

Long-term operating lease liabilities

1,099,798

966,011

Deferred tax liabilities

12,435

322

Other long-term liabilities

101,774

103,089

Total non-current liabilities

1,894,116

1,118,605

Total liabilities

2,970,902

2,356,836

Stockholders’ equity:

Skechers U.S.A., Inc. equity

2,224,715

2,314,665

Non-controlling interests

212,429

221,442

Total stockholders’ equity

2,437,144

2,536,107

TOTAL LIABILITIES AND EQUITY

$

5,408,046

$

4,892,943

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited, dollars in thousands except per share data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Sales

$

729,472

$

1,258,565

$

1,971,817

$

2,535,321

Cost of sales

360,906

648,730

1,055,583

1,334,977

Gross profit

368,566

609,835

916,234

1,200,344

Royalty income

2,596

6,341

7,844

11,542

371,162

616,176

924,078

1,211,886

Operating expenses:

Selling

60,240

113,507

134,295

183,721

General and administrative

371,893

391,588

805,944

751,220

432,133

505,095

940,239

934,941

Earnings / (loss) from operations

(60,971

)

111,081

(16,161

)

276,945

Other income / (expense):

Interest income

1,547

3,067

3,854

6,209

Interest expense

(4,804

)

(1,905

)

(6,785

)

(3,182

)

Other, net

4,704

553

8,157

(4,433

)

Total other income / (expense)

1,447

1,715

5,226

(1,406

)

Earnings (loss) before income tax expense

(59,524

)

112,796

(10,935

)

275,539

Income tax expense / (benefit)

(4,307

)

20,798

3,122

52,522

Net earnings / (loss)

(55,217

)

91,998

(14,057

)

223,017

Less: Net earnings attributable to non-controlling interests

12,880

16,818

4,939

39,079

Net earnings / (loss) attributable to Skechers U.S.A., Inc.

$

(68,097

)

$

75,180

$

(18,996

)

$

183,938

Net earnings / (loss) per share attributable to Skechers U.S.A., Inc.:

Basic

$

(0.44

)

$

0.49

$

(0.12

)

$

1.20

Diluted

$

(0.44

)

$

0.49

$

(0.12

)

$

1.19

Weighted average shares used in calculating net earnings / (loss) per share attributable to Skechers U.S.A, Inc.:

Basic

154,138

153,413

153,849

153,446

Diluted

154,138

153,912

153,849

154,051

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

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited, dollars in thousands)

Three Months ended

June 30,

Change

2020

2019

$

%

Sales:

Domestic wholesale

$

130,738

$

305,307

$

(174,569)

-57.2%

International wholesale

385,181

549,551

(164,370)

-29.9%

Direct-to-consumer

213,553

403,707

(190,154)

-47.1%

Total

$

729,472

$

1,258,565

$

(529,093)

-42.0%

Gross profit:

Domestic wholesale

$

50,426

$

116,643

$

(66,217)

-56.8%

International wholesale

180,449

249,939

(69,490)

-27.8%

Direct-to-consumer

137,691

243,253

(105,562)

-43.4%

Total

$

368,566

$

609,835

$

(241,269)

-39.6%

Gross margin percentage:

Domestic wholesale

38.6%

38.2%

International wholesale

46.8%

45.5%

Direct-to-consumer

64.5%

60.3%

Total gross margin percentage

50.5%

48.5%

Six Months ended

June 30,

Change

2020

2019

$

%

Sales:

Domestic wholesale

$

508,700

$

652,001

$

(143,301)

-22.0%

International wholesale

960,380

1,177,619

(217,239)

-18.4%

Direct-to-consumer

502,737

705,701

(202,964)

-28.8%

Total

$

1,971,817

$

2,535,321

$

(563,504)

-22.2%

Gross profit:

Domestic wholesale

$

195,703

$

243,094

$

(47,391)

-19.5%

International wholesale

420,924

538,668

(117,744)

-21.9%

Direct-to-consumer

299,607

418,582

(118,975)

-28.4%

Total

$

916,234

$

1,200,344

$

(284,110)

-23.7%

Gross margin percentage:

Domestic wholesale

38.5%

37.3%

International wholesale

43.8%

45.7%

Direct-to-consumer

59.6%

59.3%

Total gross margin percentage

46.5%

47.3%

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, dollars in thousands except per share data)

Three months ended June 30,

2020

2019

Change

Reported GAAP Measure

Constant Currency

Adjustment⁽¹⁾

Adjusted for Non-GAAP Measure

Reported GAAP Measure

$

%

Sales

$

729,472

$

12,904

$

742,376

$

1,258,565

$

(516,189

)

-41.0%

Cost of sales

360,906

7,395

368,301

648,730

(280,429

)

-43.2%

Gross profit

$

368,566

$

5,509

$

374,075

$

609,835

$

(235,760

)

-38.7%

Royalty income

2,596

145

2,741

6,341

(3,600

)

-56.8%

SG&A expenses

432,133

6,652

438,785

505,095

(66,310

)

-13.1%

Earnings / (loss) from operations

$

(60,971

)

$

(998

)

$

(61,969

)

$

111,081

$

(173,050

)

-155.8%

Other income / (expense)

1,447

(5,208

)

(3,761

)

1,715

(5,476

)

-319.3%

Income tax expense / (benefit)

(4,307

)

71

(4,236

)

20,798

(25,034

)

-120.4%

Less: Non-controlling interests

12,880

127

13,007

16,818

(3,811

)

-22.7%

Net earnings / (loss)

$

(68,097

)

$

(6,404

)

$

(74,501

)

$

75,180

$

(149,681

)

-199.1%

Diluted earnings / (loss) per share

$

(0.44

)

$

(0.04

)

$

(0.48

)

$

0.49

$

(0.97

)

-198.0%

Six months ended June 30,

2020

2019

Change

Reported GAAP Measure

Constant Currency

Adjustment⁽¹⁾

Adjusted for Non-GAAP Measure

Reported GAAP Measure

$

%

Sales

$

1,971,817

$

32,428

$

2,004,245

$

2,535,321

$

(531,076

)

-20.9%

Cost of sales

1,055,583

20,201

1,075,784

1,334,977

(259,193

)

-19.4%

Gross profit

$

916,234

$

12,227

$

928,461

$

1,200,344

$

(271,883

)

-22.7%

Royalty income

7,844

(150

)

7,694

11,542

(3,848

)

-33.3%

SG&A expenses

940,239

14,504

954,743

934,941

19,802

2.1%

Earnings / (loss) from operations

$

(16,161

)

$

(2,427

)

$

(18,588

)

$

276,945

$

(295,533

)

-106.7%

Other income / (expense)

5,226

4,796

10,022

(1,406

)

11,428

-812.8%

Income tax expense

3,122

298

3,420

52,522

(49,102

)

-93.5%

Less: Non-controlling interests

4,939

(411

)

4,528

39,079

(34,551

)

-88.4%

Net earnings / (loss)

$

(18,996

)

$

2,482

$

(16,514

)

$

183,938

$

(200,452

)

-109.0%

Diluted earnings / (loss) per share

$

(0.12

)

$

0.02

$

(0.10

)

$

1.19

$

(1.29

)

-108.4%

Constant Currency Adjustment and Acquisition Related Charges ⁽¹⁾

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.

Certain Non-GAAP Measures

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 provides 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 and is 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.

Company Contact:

David Weinberg

Chief Operating Officer

John Vandemore

Chief Financial Officer

SKECHERS USA, Inc.

(310) 318-3100

Investor Relations:

Andrew Greenebaum

Addo Investor Relations

(310) 829-5400

Press:

Jennifer Clay

Vice President,

Corporate Communications

SKECHERS USA, Inc.

(310) 318-3100

Source: SKECHERS USA, Inc.

SKECHERS USA, Inc. to Report Second Quarter 2020 Financial Results on Thursday, July 23rd

by Zach | Jul 16, 2020 | Press Release

Jul 16, 2020 • 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 second quarter 2020 financial results after market close on Thursday, July 23, 2020. 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 July 23, 2020 at 7:30 p.m. ET, through August 6, 2020, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13706218.

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 3,575 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.

Investor Relations:

Addo Investor Relations

Andrew Greenebaum

310-829-5400

Source: SKECHERS USA, Inc.

Skechers Announces Virtual Participation at the Evercore ISI Virtual Consumer & Retail Summit

by Zach | Jun 8, 2020 | Press Release

Jun 8, 2020 • 9:00 am EDT

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 Evercore ISI Virtual Consumer & Retail Summit on Monday, June 15, 2020 at 11:00 AM ET.

The audio portion of the fireside chat will be available live and on replay for 90 days at the ‘Investor Relations’ section of the Company’s Website 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 3,575 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 also 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 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, 2019 and its quarterly report on Form 10-Q for the three months ended March 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.

Company Contact:

David Weinberg

Chief Operating Officer

John Vandemore

Chief Financial Officer

SKECHERS USA, Inc.

(310) 318-3100

Press:

Jennifer Clay

Vice President, Corporate Communications

(310) 318-3100

Investor Relations:

Andrew Greenebaum

Addo Investor Relations

(310) 829-5400

Source: SKECHERS