SKECHERS to Participate at the UBS Global Consumer & Retail Conference

by Zach | Feb 26, 2020 | Press Release

Feb 26, 2020 • 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 fireside chat at the UBS Global Consumer and Retail Conference taking place at the Four Seasons Hotel in Boston, on Wednesday, March 4, 2020 at 9:45 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 www.skx.com.

About SKECHERS USA, Inc.

Based in Manhattan Beach, California, Skechers designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. Skechers footwear is available in the United States and over 170 countries and territories worldwide via department and specialty stores, more than 3,550 Skechers Company-owned and third-party-owned retail stores, and the Company’s 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, and throughout Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, and Twitter.

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 the Private Securities Litigation Reform Act of 1995. 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 international economic, political and market conditions including the challenging consumer retail markets in the United States; the disruption of business and operations due to the coronavirus; 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, 2018, and its quarterly report on Form 10-Q for the three months ended September 30, 2019. 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 USA, Inc

Skechers Announces Record Fourth Quarter Sales of $1.33 Billion and Record Annual Sales of $5.22 Billion in 2019

by Zach | Feb 6, 2020 | Press Release

Feb 6, 2020 • 4:05 pm EST

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter Highlights

“2019 was a remarkable year for Skechers as we achieved four quarters of record sales, culminating in annual sales of over $5.2 billion—a significant milestone,” stated Robert Greenberg, chief executive officer of Skechers. “Our mission, as always, is to deliver style, comfort and innovation to the world. Our continued growth along with the 27 product and brand awards we received in 2019 are evidence that we accomplished our goal. 2019 was also the year we saw the resurgence of chunky sneakers—and as an originator in this category, we became a go-to source around the world. We also continued to grow our men’s business, introduced the next generations of our walk, run and golf shoes, and expanded the popular BOBS from Skechers line, helping save the lives of over 345,000 shelter pets in the United States in 2019 alone. We drove recognition of our brand with comprehensive campaigns that included football greats Tony Romo and Howie Long for men, animated commercials for kids, music video style fashion street commercials, and marketing support that highlighted comfort and innovative features of our collections. Our efforts in 2019 resulted in Skechers receiving two 2019 Plus Awards: Company of the Year and Children’s Excellence in Design from industry trade publication Footwear Plus.”

Mr. Greenberg continued: “We are deeply concerned by the health crisis in China, and for the well-being of our employees, partners, vendors and consumers in the region. We continue to monitor this situation and its potential disruption to our global business. The Skechers brand is strong in China, and we remain confident in our long-term prospects in the country.”

“The fourth quarter represented a new annual sales record and the second highest sales quarter in our history, both significant achievements for our brand,” began David Weinberg, chief operating officer of Skechers. “The growth of 23.1 percent in the fourth quarter was due to increases of 31.2 percent in our international sales and 13.0 percent in our domestic sales, with every region growing by double digits and international now representing 59.3 percent of our total business for the quarter. With comparable same store increases of 9.9 percent, including 10.3 percent in the domestic market, our direct-to-consumer channel continues to be a barometer for the strength of our brand. In the quarter, we opened a net 21 wholly owned Skechers stores, and 219 third-party stores, bringing our total Skechers store count to 3,547 worldwide. We have the infrastructure and inventory in place to meet the near-term demand for our brand, and we will continue to invest in our global operations.”

Fourth Quarter 2019 Financial Results

($ in millions, except per share data)

Three months ended

December 31,

Change

2019

2018

$

%

Sales

$

1,330.7

$

1,080.8

$

249.9

23.1

%

Gross Profit

637.7

515.7

122.0

23.7

%

Gross Margin

47.9

%

47.7

%

SG&A Expenses

548.3

436.8

111.5

25.5

%

As a % of Sales

41.2

%

40.4

%

Earnings from Operations

94.1

83.7

10.4

12.4

%

Operating Margin

7.1

%

7.7

%

Net Earnings

59.5

47.4

12.1

25.5

%

Diluted Earnings per Share

$

0.39

$

0.31

$

0.08

25.8

%

Sales grew 23.1 percent as a result of a 31.2 percent increase in the Company’s international business, or 32.3 percent on a constant currency basis, and a 13.0 percent increase in its domestic business. On a constant currency basis, the Company’s total sales increased 23.8 percent. By segments, the Company’s international wholesale business increased 32.8 percent, its Company-owned direct-to-consumer business increased 19.4 percent, and the Company’s domestic wholesale business increased 10.4 percent. Comparable same store sales in Company-owned stores and e-commerce increased 9.9 percent, including 10.3 percent in the United States and 8.8 percent internationally.

Gross margins increased by 20 basis points as a result of improved average selling price per unit, partially offset by an increase in the average cost per unit driven, in part, by higher duties in its domestic wholesale business.

SG&A expenses increased 25.5 percent in the quarter and were modestly higher as a percentage of sales. Selling expenses increased by $26.8 million primarily due to higher advertising expenditures. General and administrative expenses increased by $84.7 million and remained flat as a percentage of sales. The increase is primarily reflective of additional spending of $32.7 million associated with its direct-to-consumer business and 47 net additional Company-owned Skechers stores, including 21 that opened in the fourth quarter, and $28.2 million to support the growth of its joint venture business, including in China and the addition of operations in Mexico.

Earnings from operations increased $10.4 million, or 12.4 percent, to $94.1 million.

Net earnings were $59.5 million and diluted earnings per share were $0.39.

In the fourth quarter, the Company’s effective income tax rate was 14.0 percent.

Year Ended 2019 Financial Results

($ in millions, except per share data)

Years ended

December 31,

Change

2019

2018

$

%

Sales

$

5,220.1

$

4,642.1

$

578.0

12.5

%

Gross profit

2,491.2

2,223.6

267.6

12.0

%

Gross Margin

47.7

%

47.9

%

SG&A Expenses

1,995.2

1,806.4

188.8

10.5

%

As a % of Sales

38.2

%

38.9

%

Earnings from Operations

518.4

437.8

80.6

18.4

%

Operating Margin

9.9

%

9.4

%

Net Earnings

346.6

301.0

45.6

15.1

%

Diluted Earnings per Share

$

2.25

$

1.92

$

0.33

17.2

%

For the full year, sales grew 12.5 percent, the result of a 20.2 percent increase in the Company’s international business, or 24.3 percent on a constant currency basis, and a 3.3 percent increase in its domestic business.

Gross margins decreased slightly as a result of promotional efforts to clear seasonal inventory during the year and an increase in the average cost per unit in select international markets, partially offset by an increase in the average selling price in the Company’s direct-to-consumer business.

For the full-year period, SG&A expenses increased by 10.5 percent or $188.8 million. Selling expenses decreased as a percentage of sales but increased by $19.5 million. General and administrative expenses increased $169.3 million but improved as a percentage of sales. The increase is mainly due to 47 additional Company-owned stores and investments to grow its operations internationally.

Earnings from operations increased $80.6 million, or 18.4 percent, to $518.4 million.

Net earnings were $346.6 million and diluted earnings per share were $2.25.

Balance Sheet

At year-end, cash, cash equivalents and investments totaled $1.03 billion, a decrease of $34.5 million, or 3.2 percent from December 31, 2018. The decrease in cash as compared to December 31, 2018 is mainly attributable to investments the Company made to acquire the minority interest in its India joint venture and to form a new joint venture in Mexico.

Total inventory, including inventory in transit, was $1.07 billion, a $206.6 million increase from December 31, 2018. The majority of the year-over-year inventory increase is to support growth in its international wholesale business and expansion of its direct-to-consumer business globally.

Working capital was $1.58 billion, a $40.5 million decrease over December 31, 2018, partially attributable to the inclusion of current operating lease liabilities totaling $191.1 million arising from the adoption of ASU 842 as of January 2019.

“Skechers record setting fourth quarter and full year 2019 results reflect the strength of our brand, product offerings and global execution capabilities,” said John Vandemore, chief financial officer of Skechers. “We continue to make investments globally to build on those strengths and to support our strategy to expand internationally and to deepen our direct to consumer relationships in store and online.”

Outlook

For the first quarter of 2020, the Company believes it will achieve sales in the range of $1.400 billion to $1.425 billion, and diluted earnings per share of $0.70 to $0.75. This guidance reflects continued growth in each of the Company’s three reportable segments, and a full-year effective tax rate of 16 to 18 percent. It also incorporates an initial estimate of the impact to the Company of current events in China, including a significant number of temporary store closures and below average comparable store sales. This estimate could materially change if the situation in China worsens considerably and effects the Company’s business outside of China or its supply chain.

Store Count

Number of Store Locations as of

Number of Store Locations as of

September 30, 2019

Opened

Closed

December 31, 2019

Company-owned domestic stores

488

9

–

497

Company-owned international stores

291

12

–

303

Joint-venture stores

318

41

(5

)

354

Distributor, licensee and franchise stores

2,210

218

(35

)

2,393

Total Skechers stores

3,307

280

(40

)

3,547

Fourth Quarter and Full-Year 2019 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 fourth quarter and full year 2019 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning February 6, 2020 at 7:30 p.m. ET, through February 20, 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: 13698318.

About SKECHERS USA, Inc.

Based in Manhattan Beach, California, Skechers designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. Skechers footwear is available in the United States and over 170 countries and territories worldwide via department and specialty stores, more than 3,547 Skechers Company-owned and third-party-owned retail stores, and the Company’s 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, and throughout Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, and Twitter.

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 the Private Securities Litigation Reform Act of 1995. 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 international economic, political and market conditions including the challenging consumer retail markets in the United States; the disruption of business and operations due to the coronavirus; 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, 2018, and its quarterly report on Form 10-Q for the three months ended September 30, 2019. 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)

(In thousands)

December 31,

December 31,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

824,876

$

872,237

Short-term investments

112,037

100,029

Trade accounts receivable, net

645,303

501,913

Other receivables

53,932

55,683

Total receivables

699,235

557,596

Inventories

1,069,863

863,260

Prepaid expenses and other current assets

113,580

79,018

Total current assets

2,819,591

2,472,140

Property, plant and equipment, net

738,925

585,457

Operating lease right-of-use assets

1,073,660

—

Deferred tax assets

49,088

39,431

Long-term investments

94,589

93,745

Other assets, net

117,090

37,482

Total non-current assets

2,073,352

756,115

TOTAL ASSETS

$

4,892,943

$

3,228,255

LIABILITIES AND EQUITY

Current liabilities:

Current installments of long-term borrowings

$

66,234

$

1,666

Short-term borrowings

5,789

7,222

Accounts payable

764,844

679,553

Operating lease liabilities

191,129

—

Accrued expenses

210,235

161,781

Total current liabilities

1,238,231

850,222

Long-term borrowings, excluding current installments

49,183

88,119

Long-term operating lease liabilities

966,011

—

Deferred tax liabilities

322

451

Other long-term liabilities

103,089

100,188

Total non-current liabilities

1,118,605

188,758

Total liabilities

2,356,836

1,038,980

Stockholders’ equity:

Skechers U.S.A., Inc. equity

2,314,665

2,034,958

Non-controlling interests

221,442

154,317

Total stockholders’ equity

2,536,107

2,189,275

TOTAL LIABILITIES AND EQUITY

$

4,892,943

$

3,228,255

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Years Ended

December 31,

December 31,

2019

2018

2019

2018

Net sales

$

1,330,732

$

1,080,798

$

5,220,051

$

4,642,068

Cost of sales

692,983

565,119

2,728,894

2,418,463

Gross profit

637,749

515,679

2,491,157

2,223,605

Royalty income

4,666

4,850

22,493

20,582

642,415

520,529

2,513,650

2,244,187

Operating expenses:

Selling

88,664

61,829

369,901

350,435

General and administrative

459,669

375,003

1,625,306

1,455,987

548,333

436,832

1,995,207

1,806,422

Earnings from operations

94,082

83,697

518,443

437,765

Other income / (expense):

Interest income

2,282

3,848

11,782

10,128

Interest expense

(2,315

)

(2,107

)

(7,509

)

(5,847

)

Other, net

1,917

(3,243

)

(6,711

)

(10,162

)

Total other income / (expense)

1,884

(1,502

)

(2,438

)

(5,881

)

Earnings before income tax expense

95,966

82,195

516,005

431,884

Income tax expense

13,465

15,090

88,753

60,611

Net earnings

82,501

67,105

427,252

371,273

Less: Net earnings attributable to non-controlling interests

22,969

19,728

80,692

70,232

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

$

59,532

$

47,377

$

346,560

$

301,041

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

Basic

$

0.39

$

0.31

$

2.26

$

1.93

Diluted

$

0.39

$

0.31

$

2.25

$

1.92

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

Basic

153,379

154,553

153,392

155,815

Diluted

154,630

154,980

154,151

156,450

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

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

Three months ended

December 31,

Change

2019

2018

$

%

Net sales:

Domestic wholesale

$

295,915

$

267,957

$

27,958

10.4

%

International wholesale

638,418

480,816

157,602

32.8

%

Direct-to-consumer

396,399

332,025

64,374

19.4

%

Total

$

1,330,732

$

1,080,798

$

249,934

23.1

%

Gross profit:

Domestic wholesale

$

103,646

$

96,174

$

7,472

7.8

%

International wholesale

296,106

224,403

71,703

32.0

%

Direct-to-consumer

237,997

195,102

42,895

22.0

%

Total

$

637,749

$

515,679

$

122,070

23.7

%

Gross margin percentage:

Domestic wholesale

35.0

%

35.9

%

International wholesale

46.4

%

46.7

%

Direct-to-consumer

60.0

%

58.8

%

Total gross margin percentage

47.9

%

47.7

%

Years ended

December 31,

Change

2019

2018

$

%

Net sales:

Domestic wholesale

$

1,247,550

$

1,259,615

$

(12,065

)

-1.0

%

International wholesale

2,462,632

2,054,770

407,862

19.8

%

Direct-to-consumer

1,509,869

1,327,683

182,186

13.7

%

Total

$

5,220,051

$

4,642,068

$

577,983

12.5

%

Gross profit:

Domestic wholesale

$

457,944

$

468,340

$

(10,396

)

-2.2

%

International wholesale

1,133,573

976,739

156,834

16.1

%

Direct-to-consumer

899,640

778,526

121,114

15.6

%

Total

$

2,491,157

$

2,223,605

$

267,552

12.0

%

Gross margin percentage:

Domestic wholesale

36.7

%

37.2

%

International wholesale

46.0

%

47.5

%

Direct-to-consumer

59.6

%

58.6

%

Total gross margin percentage

47.7

%

47.9

%

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

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES

(Unaudited)

(In thousands, except per share data)

Three months ended December 31,

2019

2018

Change

Reported GAAP Measure

Constant Currency Adjustment ⁽¹⁾

Adjusted for Non-GAAP Measure

Reported GAAP Measure

$

%

Total domestic sales

$

541,978

$

–

$

541,978

$

479,458

$

62,520

13.0

%

Total international sales

788,754

7,019

795,773

601,340

194,433

32.3

%

Net sales

$

1,330,732

$

7,019

$

1,337,751

$

1,080,798

$

256,953

23.8

%

Years Ended December 31,

2019

2018

Change

Reported GAAP Measure

Constant Currency Adjustment ⁽¹⁾

Adjusted for Non-GAAP Measure

Reported GAAP Measure

$

%

Total domestic sales

$

2,197,391

$

–

$

2,197,391

$

2,128,100

$

69,291

3.3

%

Total international sales

3,022,660

102,700

3,125,360

2,513,968

611,392

24.3

%

Net sales

$

5,220,051

$

102,700

$

5,322,751

$

4,642,068

$

680,683

14.7

%

Constant Currency Adjustment ⁽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 Wins Eighth Footwear Plus Company of the Year Award

by Zach | Feb 5, 2020 | Press Release

Feb 5, 2020 • 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 eighth time in the past 15 years, Skechers has been honored as Company of the Year by Footwear Plus. Along with the top honor for 2019, Skechers Kids received the Excellence in Children’s Design Award, the third such accolade from Footwear Plus that the Company has won for its popular kids’ styles, new collections and innovative technologies.

“2019 was a year of significant sales growth, brand milestones, product awards and achievements for Skechers, including delivering some of our best footwear collections for children,” said Michael Greenberg, president of Skechers. “Through all of our active and casual looks, performance shoes, work offerings and cause-focused collections, our mission has always been to deliver style, innovation and comfort to the world—and it’s such an honor to be voted as Company of the Year by our industry, as well as earn an Excellence in Design Award for our children’s product.”

“Congratulations to Skechers on its Company of the Year and Children’s Plus Awards for 2019,” said Greg Dutter, editorial director of Footwear Plus, creators of the 21st annual industry accolades recognizing excellence in design and retail. “Despite stiff headwinds spanning tariff hikes to epic retail disruption, Skechers not only weathered the storm, it achieved record sales and growth. Skechers did what it does best: fire on all cylinders, driving growth through wholesale, DTC, brick-and-mortar and digital channels and hitting on key trends in men’s, women’s, and children’s categories ranging from performance athletic to the trendiest casual styles. Skechers has become synonymous with shoes, reflecting a brand width and familiarity that meets the masses.”

Throughout 2019, the brand’s vast product diversity and reputation as an industry disruptor was unparalleled. Skechers has become a coveted fashion brand, appearing on HypeBae and Fashion Week catwalks worldwide thanks to its iconic D’Lites, Energy, heritage products and high-profile collaborations. The Company won 25 awards last year alone, including plaudits for its Skechers GOrun Hyper and Skechers GO GOLF collections—performance technology that has helped elite athletes like golfers Brooke Henderson and Matt Kuchar and runner Ed Cheserek reach new career highs. Skechers has also expanded its international business to over 55 percent of its total sales, achieving growth in global regions around the world.

Skechers’ previous Footwear Plus awards include the Company of the Year Award in 2005, 2006, 2008, 2009, 2010, 2014 and 2015, 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 for its Skechers Kids product.

Now the world’s third largest athletic lifestyle brand, Skechers 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 fashion lines D’Lites and Skecher Street; core collections like Skechers Sport, Skechers USA and Modern Comfort; the philanthropic offering BOBS from Skechers; and performance innovations such as Skechers GOrun, Skechers GOwalk and Skechers GO GOLF. Many of the Company’s styles are infused with Skechers’ Air-Cooled Memory Foam insole technology, flexible knit and stretch fabrics, and comfort fits for every foot, including Arch Fit, Wide Fit and Relaxed Fit.

Celebrity product endorsees for Skechers’ collections include TV personality Brooke Burke; Dodgers’ ace pitcher Clayton Kershaw; football legends Tony Romo and Howie Long; 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 (NYSE:SKX) designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. Skechers footwear is available in the United States and over 170 countries and territories worldwide via department and specialty stores, more than 3,300 Skechers Company-owned and third-party-owned retail stores, and the Company’s 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, and throughout Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, and Twitter.

This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 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, 2018, and its quarterly report on Form 10-Q for the three months ended September 30, 2019. 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 operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Moreover, reported results should not be considered an indication of future performance.

Jennifer Clay

SKECHERS USA, Inc.

310.937.1326

Source: Skechers USA, Inc.