Skechers Achieves Record Second Quarter 2019 Net Sales

by Zach | Jul 18, 2019 | Press Release

Jul 18, 2019 • 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, 2019.

Second Quarter Highlights

“As the world continues to become closer and digital becomes a critical means of communicating and embracing trends to tell your brand’s story, it’s no longer what is happening in one market that matters; it’s what’s happening across all markets. We’re continuing to strategically view our business with a global lens as trends are traveling faster,” stated Robert Greenberg, chief executive officer of Skechers. “Specifically, many of our key product styles are introduced at virtually the same time around the world, with nuances in certain markets, giving us the ability to replicate our success around the globe. In the second quarter, we saw this with the broad acceptance of our women’s and men’s sport and streetwear lines, as well as with the resurgence of our GOwalk collection and our fresh new Skech-Air styles. Our focus continues to be on comfort, innovation, style and quality as we design our diverse collection. Our efforts in the Skechers Performance division resulted in three awards in the second quarter—Gear of the Year from Outside Magazine for Skechers GO Run 7 Hyper, and Best of Outdoor Retailer from Shape and Editors’ Choice Outdoor Retailer from Runner’s World for our Skechers GO Run Maxroad 4 Hyper. Our efforts also paid off with total sales increases of 10.9 percent, the result of a 19.8 percent increase in our international business and a 1.5 percent increase in our domestic business. Now in the third quarter, we are delivering our back-to-school and fall offerings, and believe we have fresh styles in our core accounts that will drive growth, while we also deliver some unique and limited-edition styles in select doors that will create additional excitement for the Skechers brand.”

“Skechers’ record second quarter sales are a testament to the demand and strength for our brand and products,” began David Weinberg, chief operating officer of Skechers. “We experienced growth in every region, with the biggest dollar increases coming from India, the Middle East and China, as well as in Mexico with the conversion of the business to a joint venture. In our direct-to-consumer channels, we saw monthly sales increases in the quarter, an upward trend that’s continuing in July. Based on feedback from recent account meetings, we are seeing a similar trend within our domestic wholesale business in June and July and continue to believe we’ll have a stronger back half of the year. To support this growth, we are investing in our global infrastructure—including our ecommerce platforms and distribution centers, and designing and developing new products for 2020. As we look forward to the back-to-school and holiday selling seasons, we believe our momentum will continue worldwide.”

Second Quarter 2019 Financial Results

($ in millions, except per share data)

For the three-months ended

June 30,

Change

2019

2018

$

%

Sales

$

1,258.6

$

1,134.8

$

123.8

10.9

%

Gross Profit

609.8

561.0

48.8

8.7

%

Gross Margin

48.5

%

49.4

%

SG&A Expenses

505.1

484.9

20.2

4.2

%

As a % of Sales

40.1

%

42.7

%

Earnings from Operations

111.1

81.4

29.7

36.5

%

Operating Margin

8.8

%

7.2

%

Net Earnings

75.2

45.3

29.9

66.0

%

Diluted Earnings per Share

$

0.49

$

0.29

$

0.20

69.0

%

Sales grew 10.9 percent as a result of a 19.8 percent increase in the Company’s international business and 1.5 percent in its domestic business. On a constant currency basis, the Company’s sales increased 13.7 percent. By segments, the Company’s international wholesale business increased 18.2 percent, its Company-owned global direct-to-consumer business increased 14.4 percent, and the Company’s domestic wholesale business decreased 3.8 percent. Comparable same store sales in Company-owned stores and e-commerce increased 4.9 percent, including 4.2 percent in the United States and 6.7 percent internationally.

Gross margins decreased as a result of promotional efforts to clear seasonal merchandise in select international markets. This was partially offset by higher domestic margins from improved retail pricing and product mix in our direct-to-consumer and domestic wholesale businesses.

SG&A expenses increased 4.2 percent in the quarter. Selling expenses decreased by $0.5 million due to a lower advertising spend in the United States. General and administrative expenses increased by $20.7 million but decreased as a percentage of sales by 160 basis points. The dollar increase reflects additional spending of $18.5 million associated with the opening of 39 additional Company-owned Skechers stores, including 12 that opened in the second quarter, and $4.6 million associated with higher distribution costs in our subsidiaries, a result of increased sales.

Earnings from operations increased $29.7 million, or 36.5 percent, to $111.1 million.

Net earnings were $75.2 million and diluted earnings per share were $0.49. In the second quarter, the Company’s effective income tax rate was 18.4 percent.

Six months 2019 Financial Results

($ in millions, except per share data)

For the six-months ended

June 30,

Change

2019

2018

$

%

Sales

$

2,535.3

$

2,384.9

$

150.4

6.3

%

Gross Profit

1,200.3

1,144.1

56.2

4.9

%

Gross Margin

47.3

%

48.0

%

SG&A Expenses

934.9

924.8

10.1

1.1

%

As a % of Sales

36.9

%

38.8

%

Earnings from Operations

276.9

230.2

46.7

20.3

%

Operating Margin

10.9

%

9.7

%

Net Earnings

183.9

162.9

21.0

12.9

%

Diluted Earnings per Share

$

1.19

$

1.04

$

0.15

14.4

%

For the six-month period, sales grew 6.3 percent, or 9.3 percent on a constant currency basis. By segments, the Company’s international wholesale business increased 12.9 percent, its Company-owned direct-to-consumer business increased 11.0 percent and its domestic wholesale business decreased 7.7 percent. The Company’s international business grew 14.2 percent while its domestic business decreased by 2.5 percent.

Gross margins decreased as a result of promotional efforts to clear seasonal inventory in select international markets.

SG&A expenses increased 1.1 percent. This increase was due to an additional $24.9 million in general and administrative expenses mainly attributable to opening 39 company-owned stores, partially offset by a decrease in selling expenses of $14.8 million from lower domestic advertising.

Earnings from operations increased $46.7 million, or 20.3 percent, to $276.9 million.

Net earnings were $183.9 million and diluted earnings per share were $1.19.

Balance Sheet

At quarter-end, cash, cash equivalents and investments totaled $973.0 million, a decrease of $92.9 million, or 8.7 percent from December 31, 2018, and an increase of $61.3 million, or 6.7 percent, compared to June 30, 2018.

Total inventory, including inventory in transit, was $855.6 million, a $7.6 million decrease from December 31, 2018, and a $33.2 million increase over June 30, 2018. The majority of the year-over-year inventory increase is attributable to growth in our international wholesale business.

Working capital was $1.587 billion at June 30, 2019, a $128.2 million decrease over December 31, 2018, and a $78.8 million decrease from June 30, 2018, partially attributable to the inclusion of current liabilities totaling $170.9 million arising from the adoption of ASU 842 in the first quarter of 2019.

“In the second quarter, we continued to successfully execute against our strategy by growing both our international and direct to consumer businesses,” said John Vandemore, chief financial officer of Skechers. “Our product continues to resonate worldwide, and we are committed to investing in our global infrastructure and operational capabilities to meet consumer demand for the Skechers brand. This includes the construction of our first distribution center in China, the expansion of our North American distribution capabilities, the upgrade of our European logistics center and the further development of our direct-to-consumer offerings, both in e-commerce and in our retail stores. These strategic investments will benefit both our future sales growth and provide us an opportunity to execute against our long-term operating margin targets.”

Share Repurchase

During the three months ended June 30, 2019, the Company repurchased approximately 511,000 shares of its Class A common stock at a cost of $15.0 million under its existing share repurchase program. At June 30, 2019, approximately $20.0 million remained available under the Company’s share repurchase program.

Outlook

For the third quarter of 2019, the Company believes it will achieve sales in the range of $1.325 billion to $1.350 billion, and diluted earnings per share of $0.65 to $0.70. The guidance is based on expected growth in each of the Company’s three segments. The Company expects its full-year effective tax rate to be between 17 and 20 percent.

Store Count

Number of

Store

Locations as

of March 31,

2019

Opened

Closed

Number of

Store

Locations as

of June 30,

2019

Store count

Company-owned domestic stores

474

4

(1)

477

Company-owned international stores

284

8

(1)

291

Joint-venture stores

227

87

⁽¹⁾

(8)

306

Distributor, licensee and franchise stores

2,075

141

(118)

⁽¹⁾

2,098

Total Skechers stores

3,060

240

(128)

3,172

⁽¹⁾ Includes the conversion of 75 distributor-owned stores in Mexico to joint venture-owned.

Second Quarter 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 second quarter 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 July 18, 2019, at 7:30 p.m. ET, through August 1, 2019, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13692115.

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 3,170 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; 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 March 31, 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 the companies cannot predict all such risk factors, nor can the companies assess the impact of all such risk factors on their respective businesses 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)

June 30,

December 31,

2019

2018

ASSETS

Current Assets:

Cash and cash equivalents

$

779,281

$

872,237

Short-term investments

104,271

100,029

Trade accounts receivable, net

641,431

501,913

Other receivables

44,768

55,683

Total receivables

686,199

557,596

Inventories

855,627

863,260

Prepaid expenses and other current assets

67,165

79,018

Total current assets

2,492,543

2,472,140

Property, plant and equipment, net

683,254

585,457

Operating lease right-of-use assets

996,774

–

Deferred tax assets

52,510

39,431

Long-term investments

89,486

93,745

Other assets

106,669

37,482

Total non-current assets

1,928,693

756,115

TOTAL ASSETS

$

4,421,236

$

3,228,255

LIABILITIES AND EQUITY

Current Liabilities:

Current installments of long-term borrowings

$

3,986

$

1,666

Accounts payable

640,170

679,553

Operating lease liabilities

170,899

–

Short-term borrowings

9,998

7,222

Accrued expenses

169,520

161,781

Total current liabilities

994,573

850,222

Long-term borrowings, net of current installments

100,024

88,119

Long-term operating lease liabilities

904,205

–

Deferred tax liabilities

442

451

Other long-term liabilities

98,319

100,188

Total non-current liabilities

1,102,990

188,758

Total liabilities

2,097,563

1,038,980

Stockholders’ equity:

Skechers U.S.A., Inc. equity

2,132,907

2,034,958

Noncontrolling interests

190,766

154,317

Total equity

2,323,673

2,189,275

TOTAL LIABILITIES AND EQUITY

$

4,421,236

$

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

Six Months Ended

June 30,

June 30,

2019

2018

2019

2018

Net sales

$

1,258,565

$

1,134,797

$

2,535,321

$

2,384,875

Cost of sales

648,730

573,840

1,334,977

1,240,815

Gross profit

609,835

560,957

1,200,344

1,144,060

Royalty income

6,341

5,350

11,542

10,872

616,176

566,307

1,211,886

1,154,932

Operating expenses:

Selling

113,507

114,022

183,721

198,468

General and administrative

391,588

370,927

751,220

726,308

505,095

484,949

934,941

924,776

Earnings from operations

111,081

81,358

276,945

230,156

Other income (expense):

Interest, net

1,162

1,054

3,027

731

Other, net

553

(7,473

)

(4,433

)

(4,070

)

1,715

(6,419

)

(1,406

)

(3,339

)

Earnings before income tax expense

112,796

74,939

275,539

226,817

Income tax expense

20,798

14,080

52,521

28,700

Net earnings

91,998

60,859

223,018

198,117

Less: Net earnings attributable to

noncontrolling interests

16,818

15,575

39,079

35,181

Net earnings attributable to

Skechers U.S.A., Inc.

$

75,180

$

45,284

$

183,939

$

162,936

Net earnings per share attributable to

Skechers U.S.A., Inc.:

Basic

$

0.49

$

0.29

$

1.20

$

1.04

Diluted

$

0.49

$

0.29

$

1.19

$

1.04

Weighted average shares used in calculating

earnings per share attributable to

Skechers U.S.A., Inc.:

Basic

153,413

156,518

153,446

156,476

Diluted

153,912

157,091

154,051

157,366

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

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES

(unaudited)

(In thousands, except per share data)

Constant Currency Sales

Three months ended June 30,

2019

2018

Change

Reported GAAP Measure

Constant Currency Adjustment ⁽¹⁾

Adjusted for Non GAAP Measure

Reported GAAP Measure

$

%

Net Sales

$1,258,565

$31,831

$1,290,396

$1,134,797

$155,599

13.7%

Constant Currency Sales

Six months ended June 30,

2019

2018

Change

Reported GAAP Measure

Constant Currency Adjustment ⁽¹⁾

Adjusted for Non GAAP Measure

Reported GAAP Measure

$

%

Net Sales

$2,535,321

$70,786

$2,606,107

$2,384,875

$221,232

9.3%

Certain Non-GAAP Measures

We use the non-GAAP financial measures discussed above to evaluate our results of operations, financial condition, liquidity and indebtedness. We believe that the presentation of 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.

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.

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) 829-540

Press:

Jennifer Clay

Vice President,

Corporate Communications

(310) 318-3100

Source: SKECHERS USA, Inc.

Skechers Ambassador Tony Romo Earns Second Win at American Century Celebrity Championship

by Zach | Jul 15, 2019 | Press Release

Jul 15, 2019 • 1:52 pm EDT

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Skechers congratulates legendary quarterback and burgeoning golf star Tony Romo for his second consecutive win at the American Century Celebrity Championship at Edgewood Tahoe South Golf Course in Lake Tahoe, Nevada. Competing in Skechers GO GOLF Pro 4™ footwear, Romo won the Stableford-format event with 71 points, 14 points ahead of the competition. The Skechers ambassador will donate his $125,000 winnings to the tournament’s official charity, Stowers Institute for Medical Research.

“Last year’s win was really special. I felt really confident coming back here and to win again is an amazing feeling,” said Tony Romo. “And it doesn’t hurt that these Skechers GO GOLF shoes go the distance when it comes to comfort—we played a lot of holes this week and I feel great! The win helps with that, of course!”

“It’s a thrill to be along for the ride on Tony’s journey following his golf passion,” said Michael Greenberg, president of Skechers. “He’s been an incredible asset to our team—and fans love his phenomenal broadcasting talents and seeing him in our campaigns. Admittedly, when we started working with Tony for our men’s lifestyle campaign, we couldn’t have imagined that he’d eventually star in a Skechers GO GOLF commercial. As his performance this weekend proved, he’s the real deal on the golf course as well the gridiron, so is there anything Tony Romo can’t do?”

After winning the Walter Payton Award in 2002 at the end of his collegiate career, Tony Romo signed as an undrafted free agent with the Cowboys in 2003 and became their starting quarterback during the 2006 season. Over the next decade, he guided the team to four postseason appearances and was named to the Pro Bowl four times. Romo is legendary in Dallas, holding several team career records including passing touchdowns, passing yards, most games with at least 300 passing yards and games with three or more touchdown passes, and his 97.1 passer rating is fourth all-time for the league and the highest among retired players. Romo retired following the 2016 season and has transitioned to the broadcast booth, where he has been the lead color analyst alongside Jim Nantz for CBS Sports.

Tony Romo has appeared in multiple campaigns for Skechers men’s lifestyle footwear, including during this year’s Super Bowl, as well as for Skechers GO GOLF footwear. Elite pros wearing Skechers GO GOLF on tour include this year’s ESPY “Best Female Golfer” award winner Brooke Henderson, as well as Matt Kuchar, Wesley Bryan, Billy Andrade and Russell Knox.

Known for its lightweight, high-quality, stable and comfortable designs, Skechers Performance GO GOLF has achieved prominence within the golf category alongside the brand’s award-winning running, walking and training collections. Skechers Performance GO GOLF is available at Skechers retail stores and skechers.com as well as select retail partners, including specialty golf pro shops.

About Skechers U.S.A., 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 3,060 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 March 31, 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 the companies cannot predict all such risk factors, nor can the companies assess the impact of all such risk factors on their respective businesses 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
[email protected]

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

SKECHERS USA, Inc. to Report Second Quarter 2019 Financial Results on Thursday, July 18th

by Zach | Jul 9, 2019 | Press Release

Jul 9, 2019 • 4:05 pm 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 2019 financial results after market close on Thursday, July 18, 2019. 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 18, 2019, at 7:30 p.m. ET, through August 1, 2019, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13692115.

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 3,060 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.

Investor Relations:

Addo Investor Relations

Andrew Greenebaum

310-829-5400

[email protected]

Source: SKECHERS USA, Inc.