More Than $2 Million Raised for Kids at the 10th Annual Skechers Pier to Pier Friendship Walk

by Zach | Oct 30, 2018 | Press Release

Donations for Children with Special Needs, School Foundations and Scholarships Have Totaled More Than $11 Million to Date

MANHATTAN BEACH, CA. – October 30, 2018 – The Skechers Foundation broke new fundraising records for children with special needs and education at Sunday’s 10th annual Skechers Pier to Pier Friendship Walk, surpassing $2 million in contributions and totaling over $11 million since the Walk’s launch. Supported by lead presenter Nickelodeon and media sponsor NBC4 Southern California, the event was attended by more than 15,000 walkers and participants as well as numerous entertainment and sport celebrities, including legendary boxer Sugar Ray Leonard, actress and model Brooke Burke and fitness icon Denise Austin.

“At 10 years, the Skechers Pier to Pier Friendship Walk is bigger and better than ever,” said Brooke Burke. “In the many years I’ve taken part, I’ve seen this event grow from a community movement to the largest event of its kind in California. The one thing that never changes is the commitment that all of these families and friends have for their children. It’s such an incredible model for the great things that our community can do for our kids.”

“This event has affected thousands of our kids in profound ways,” added Michael Greenberg, co-founder of the Skechers Pier to Pier Friendship Walk. “The children attending have grown up seeing the great impact a community can have, whether it’s their parents walking for their education, or how they can personally support kids with special needs through more than 33 Friendship Foundation school clubs in the South Bay. At a time when bullying continues to be a concern, we’ve raised a generation who is more sensitive to the needs of those who are different from them, thanks in part to this event and the Friendship Foundation. And I can’t wait to start our next decade of encouraging positive change in our community through this Walk.”

The Skechers Pier to Pier Friendship Walk has raised more than $11 million since its launch in 2009. Funds support The Friendship Foundation, an organization that assists children with special needs and their families through one-on-one peer mentoring and social recreational activities such as summer camps, outings to sporting events and a variety of classes that include music, yoga, cooking, art and drama. The Walk also funds education foundations committed to retaining vital academic programs, maintaining smaller classes, improving libraries and upgrading school technology, and also supports the Skechers Foundation’s annual scholarship program, which will donate $100,000 to deserving students across the country in 2019.

In addition to performances by seven-year-old singing sensation Malea Emma Tjandrawidjaja, upcoming High School Musical star Joshua Bassett, Nayah Damasen, Dream Crew and Pynk Le’monade, fans enjoyed autographs and photographs with characters SpongeBob and Patrick, and young celebrities from shows like Nickelodeon’s Knight Squad, NBC’s This is Us and CBS’ Young Sheldon.

The Skechers Pier to Pier Friendship Walk thanks its headlining sponsor Nickelodeon, media sponsor NBC4 Southern California and numerous additional sponsors, including: The Claudette & Ethan Rickett Care Foundation, Steel Sports, Ross Stores, Moose Toys, Continental Development, Vertra Suncare, JR 286, Kinecta Federal Credit Union, Northrup Grumman, Marshalls, Wells Fargo, United Legwear, Chevron, and more than 100 other companies who have supported our children.

To learn more about the Skechers Pier to Pier Friendship Walk, please visit skechersfriendshipwalk.com and follow us on Facebook, Twitter and Instagram.

About Skechers Foundation

The Skechers Foundation was established to provide families around the world with the necessities and skills to succeed in life. In addition to organizing the Skechers Pier to Pier Friendship Walk, the Skechers Foundation funds tax-exempt, 501(c)(3) nonprofit organizations that provide education and job training, shoes, clothing, fitness and nutrition guidance to communities in need.

About Skechers USA, Inc.

Skechers USA, Inc., based in Manhattan Beach, California, 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, 2,800 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, 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 the Company’s annual report on Form 10-K for the year ended December 31, 2017, and its quarterly report on Form 10-Q for the three months ended June 30, 2018. 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 Achieves Record Third Quarter 2018 Sales

by Zach | Oct 18, 2018 | Press Release

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the third quarter ended September 30, 2018.

Third Quarter Highlights

Record sales of $1.176 billion, an increase of 7.5 percent, or 8.5 percent on a constant currency basis
International wholesale sales increased 11.8 percent
Company-owned global retail sales increased 10.6 percent
Total international wholesale and retail sales combined represented 55.5 percent of total sales
Diluted earnings per share of $0.58
Repurchased 1.4 million shares of common stock

“Achieving record third quarter sales is a notable accomplishment given the strength of our third quarter 2017 sales,” began Robert Greenberg, Skechers chief executive officer. “Both our domestic and international businesses grew, and we remained the leader in walking, work, casual lifestyle and sandals footwear in the United States. We experienced strong product successes across multiple divisions around the world, which was evident by our double-digit growth in both our international wholesale and worldwide Company-owned retail businesses. Skechers D’Lites, our heritage chunky style that has seen great success over the last two years in Asia, is now an in demand style across North America and Europe, and is poised for growth in South America, India and the Middle East. Through Skechers D’Lites, we are reaching a younger, more fashion-savvy audience, and getting press—from Marie Claire and Elle to HypeBae and Highsnobiety—and social media influencers are embracing this signature look. Further, we are seeing renewed acceptance of this chunky style by men. Our core footwear categories for men, women, work and golf are also performing well. We are achieving this growth with the right product mix combined with a balanced approach to marketing spend. As we continue to invest in our international infrastructure, we believe there is significant opportunity to grow our brand further through both wholesale, and Company-owned and third-party retail stores, which now stand at 2,802 locations worldwide. We’re looking forward to fourth quarter growth across both our domestic and international channels and a new annual sales record.”

“As we near the close of 2018, we believe the direction of our business is on target with our record sales in the third quarter, continued international growth and strong gross margins,” stated David Weinberg, chief operating officer of Skechers. “With three record sales quarters in 2018 and brand acceptance around the globe, we achieved a new record for the first nine months of $3.56 billion, an 11.5 percent increase over last year. In the third quarter, our international distributor business returned to growth, increasing 11.6 percent over the same period last year, and combined with our international joint venture and subsidiary business, our total international wholesale sales increased 11.8 percent for the period. International wholesale along with international retail now represents 55.5 percent of our total business. We expect our business in the United States—both wholesale and retail—to grow in the fourth quarter. We remain committed to efficiently and profitably growing our global footwear business.”


Third Quarter 2018 Financial Results
($ in millions, except per share data)


	For the three-months ended
	September 30,						Change

	2018			2017				$	%
Sales	$	1,176.4		$	1,094.8		$	81.6	7.5	%
Gross Profit		563.9			520.0			43.9	8.4	%
Gross Margin		47.9	%		47.5	%
SG&A Expenses		444.8			406.4			38.4	9.5	%
As a % of Sales		37.8	%		37.1	%
Earnings from Operations		123.9			116.5			7.4	6.4	%
Operating Margin		10.5	%		10.6	%
Net Earnings		90.7			92.3			-1.6	-1.7	%
Diluted Earnings per Share	$	0.58		$	0.59			-$0.01	-1.7	%

Sales grew 7.5 percent as a result of an 11.8 percent increase in the Company’s international wholesale business, and a 10.6 percent increase in its Company-owned globalretail business. Its domestic wholesale business decreased 3.0 percent. The Company’s total international business grew 12.5 percent and its total domestic business grew 1.8 percent. Third quarter comparable same store sales in Company-owned retail stores worldwide increased 1.9 percent, including an increase of 3.0 percent in the United States offset by a decrease of 0.8 percent in its international stores.

Gross margins slightly increased as higher domestic margins from improved retail pricing and product mix were partially offset by the impact of negative foreign currency exchange rates.

SG&A expenses increased 9.5 percent in the quarter. Selling expenses increased by 0.7 percent, but improved 50 basis points as a percentage of sales from 8.2 percent to 7.7 percent for the third quarter 2018. The $37.8 million increase in general and administrative expenses was primarily the result of the Company’s continued commitment to build its international brand presence and direct-to-consumer channels. General and administrative expenses in China grew $7.5 million to support continued expansion, including preparation for next month’s Single’s Day, and $13.3 million associated with operating 58 additional Company-owned Skechers stores worldwide, of which 13 opened in the third quarter. General and administrative expenses also included $11.1 million related to corporate and domestic operations, of which $4.8 million was for increased domestic warehouse and distribution costs.

Earnings from operations increased $7.4 million, or 6.4 percent.

Net earnings were $90.7 million and diluted earnings per share were $0.58. In the third quarter, the Company’s income tax rate was 13.7 percent reflecting its continued assessment of the impact of the recently enacted tax reform legislation. As a comparison, the Company’s income tax rate for the three months ended September 30, 2017 was 9.4 percent.


Nine months 2018 Financial Results
($ in millions, except per share data)


	For the nine-months ended
	September 30,						Change

	2018			2017				$	%
Sales	$	3,561.3		$	3,193.6		$	367.7	11.5	%
Gross Profit		1,707.9			1,484.8			223.1	15.0	%
Gross Margin		48.0	%		46.5	%
SG&A Expenses		1,369.6			1,168.0			201.6	17.3	%
As a % of Sales		38.5	%		36.6	%
Earnings from Operations		354.1			327.2			26.9	8.2	%
Operating Margin		9.9	%		10.2	%
Net Earnings		253.7			245.8			7.9	3.2	%
Diluted Earnings per Share	$	1.62		$	1.57		$	0.05	3.2	%

Sales grew 11.5 percent as a result of an 18.9 percent increase in the Company’s international wholesale business, and a 13.7 percent increase in its Company-owned globalretail business. For the nine-month period, its domestic wholesale business was essentially flat compared to the same prior year period. The Company’s combined international wholesale and retail business grew 19.7 percent and its combined domestic wholesale and retail business increased by 3.4 percent.

Gross margins increased due to strength in the Company’s international wholesale and Company-owned international retail businesses.

SG&A expenses increased 17.3 percent. This increase was due to an additional $176.3 million in general and administrative expenses. Selling expenses increased by $25.3 million.

Earnings from operations increased $26.9 million, or 8.2 percent.

Net earnings were $253.7 million and diluted earnings per share were $1.62. For the nine months, the Company’s income tax rate was 13.0 percent. As a comparison, the Company’s income tax rate for the nine months ending September 30, 2017 was 12.9 percent.

Balance Sheet

At quarter-end, cash, cash equivalents and investments totaled $959.8 million, an increase of $223.4 million, or 30.3 percent from December 31, 2017, and an increase of $156.9 million, or 19.5 percent, over September 30, 2017.

Total inventory, including inventory in transit, was $755.1 million, a $117.9 million decrease from December 31, 2017, and a $57.4 million increase over September 30, 2017. The majority of the year-over-year inventory increase was attributable to international wholesale and global retail, particularly in China.

Working capital was $1.616 billion at September 30, 2018, a $108.4 million increase over December 31, 2017, and a $140.7 million increase over September 30, 2017.

“In the third quarter, we continued to build the Skechers brand worldwide by growing our international wholesale and direct-to-consumer businesses,” began John Vandemore, chief financial officer of Skechers. “We remain committed to investing resources where we see the most significant growth opportunities, while also returning cash to shareholders directly by way of share repurchases. We are confident in our strategy to continue growing the Skechers brand across the globe.”

Share Repurchase

During the three months ended September 30, 2018, the Company repurchased approximately 1.4 million shares of its Class A common stock at a cost of $40.0 million under its existing share repurchase program. In total, the Company has repurchased almost 2.0 million shares of its Class A common stock at a cost of $58.0 million through the first nine months of 2018. At September 30, 2018, approximately $92.0 million remained available under the Company’s share repurchase program.

Outlook

For the fourth quarter of 2018, the Company believes it will achieve sales in the range of $1.100 billion to $1.125 billion, and diluted earnings per share of $0.20 to $0.25. The guidance is based on expected growth in each of the Company’s three segments. The Company now expects its effective tax rate to be between 13 and 15 percent, which implies a fourth quarter tax rate of between 17 and 20 percent.

Third Quarter 2018 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 third quarter 2018 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 October 18, 2018, at 7:30 p.m. ET, through November 2, 2018, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13683554.

About SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, 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, 2,802 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, 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 the Company’s annual report on Form 10-K for the year ended December 31, 2017, and its quarterly report on Form 10-Q for the three months ended June 30, 2018. 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)


	September 30, 2018		December 31, 2017
ASSETS
Current Assets:
Cash and cash equivalents	$	802,771	$	736,431
Short-term investments		87,277		–
Trade accounts receivable, net		503,954		405,921
Other receivables		48,843		27,083
Total receivables		552,797		433,004
Inventories		755,068		873,016
Prepaid expenses and other current assets		83,085		62,573
Total current assets		2,280,998		2,105,024
Property, plant and equipment, net		565,395		541,601
Deferred tax assets		28,224		29,922
Long-term investments		91,086		17,396
Other assets		38,772		41,139
Total non-current assets		723,477		630,058
TOTAL ASSETS	$	3,004,475	$	2,735,082
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings	$	4,581	$	1,801
Accounts payable		528,077		505,334
Short-term borrowings		12,674		8,011
Accrued expenses		119,584		82,202
Total current liabilities		664,916		597,348
Long-term borrowings, net of current installments		69,782		71,103
Deferred tax liabilities		160		161
Other long-term liabilities		102,362		118,259
Total non-current liabilities		172,304		189,523
Total liabilities		837,220		786,871
Stockholders’ equity:
Skechers U.S.A., Inc. equity		2,024,387		1,829,064
Noncontrolling interests		142,868		119,147
Total equity		2,167,255		1,948,211
TOTAL LIABILITIES AND EQUITY	$	3,004,475	$	2,735,082


SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Net sales	$	1,176,395		$	1,094,829		$	3,561,270		$	3,193,571
Cost of sales		612,529			574,842			1,853,344			1,708,765
Gross profit		563,866			519,987			1,707,926			1,484,806
Royalty income		4,860			2,917			15,732			10,368
		568,726			522,904			1,723,658			1,495,174
Operating expenses:
Selling		90,138			89,559			288,606			263,318
General and administrative		354,676			316,852			1,080,984			904,631
		444,814			406,411			1,369,590			1,167,949
Earnings from operations		123,912			116,493			354,068			327,225
Other income (expense):
Interest, net		1,809			(780	)		2,538			(3,321	)
Other, net		(2,849	)		2,147			(6,918	)		5,507
		(1,040	)		1,367			(4,380	)		2,186
Earnings before income tax expense		122,872			117,860			349,688			329,411
Income tax expense		16,821			11,030			45,521			42,546
Net earnings		106,051			106,830			304,167			286,865
Less: Net earnings attributable to noncontrolling interests		15,323			14,520			50,504			41,025
Net earnings attributable to Skechers U.S.A., Inc.	$	90,728		$	92,310		$	253,663		$	245,840


Net earnings per share attributable to Skechers U.S.A., Inc.:
Basic	$	0.58		$	0.59		$	1.62		$	1.58
Diluted	$	0.58		$	0.59		$	1.62		$	1.57

Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.:
Basic		155,766			155,824			156,238			155,502
Diluted		156,298			156,741			156,981			156,276


SKECHERS U.S.A., INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
NON-GAAP MEASURES
(unaudited)
(In thousands, except per share data)

	Three months ended September 30,
Constant Currency Sales	2018						2017		Change
	Reported GAAP Measure		Constant Currency Adjustment ⁽¹⁾		Adjusted for Non GAAP Measure			Reported GAAP Measure	$		%
Net Sales	$	1,176,395	$	11,839	$	1,188,234		$1,094,829	$	93,405	8.5	%

Certain Non-GAAP Measures

We use the non-GAAP financial measures discussed below 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. No adjustment has been made to foreign currency exchange transaction gains or losses in the calculation of constant currency net income.

Company Contact:
David Weinberg
Chief Operating Officer
John Vandemore
Chief Financial Officer
SKECHERS USA, Inc.
(310) 318-3100
or
Investor Relations:
Andrew Greenebaum
Addo Investor Relations
(310) 829-5400
or
Press:
Jennifer Clay
Vice President,
Corporate Communications
(310) 318-3100

SKECHERS USA, Inc. to Report Third Quarter 2018 Financial Results on Thursday, October 18th

by Zach | Oct 11, 2018 | Press Release

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 third quarter 2018 financial results after market close on Thursday, October 18, 2018. A conference call will be held the same day at 1:30 p.m. PT / 4:30 p.m. ET. 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 www.skx.com. For those unable to participate during the live broadcast, a replay will be available beginning October 18, 2018, at 7:30 p.m. ET, through November 1, 2018, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13683554.

About SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, 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, 2,715 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, 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]

Skechers Delivers 15,000 Pairs of Shoes to Children Still in Need in Puerto Rico

by Zach | Sep 20, 2018 | Press Release

Distribution to Those Impacted by Hurricane Maria is the Latest in the Company’s Donation of 15 Million Pairs of New Shoes to Kids Worldwide

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– With recognition that Puerto Rico remains in need of many essentials a year after Hurricane Maria devastated the territory, Skechers USA, Inc. (NYSE:SKX) has donated 15,000 pairs of new shoes to children on the island. The donation is part of the Company’s BOBS from Skechers philanthropic shoe program, through which the Company has donated 15 million pairs of new shoes to children affected by poverty, homelessness and natural disasters around the globe.

San Juan students personalize their new pair of BOBS from Skechers during a donation event, providing aid to those affected by Hurricane Maria in Puerto Rico. (Photo: Business Wire)

“Recovery from hurricanes is not a sprint, it’s a marathon – and much work still needs to be done in Puerto Rico,” said Michael Greenberg, president of Skechers. “We saw this with power taking nearly a year to be completely restored to the island, and we’re seeing it in the families still putting their lives back together today. It’s crucial that we continue to distribute supplies to families in cities as well as more remote regions to let them know that they haven’t been forgotten. And with residents just beginning to assess the damage from Hurricane Florence, our outreach continues as we expect to be in the Carolinas in the coming months to help those impacted in that region as well.”

Skechers coordinated with charity partner Delivering Good, local organization the Carlos Beltran Foundation and Skechers retail employees on the ground to deliver shoes to approximately 1,200 children through three donation events in August and September in the San Juan and Vega Baja regions to date, with another 1,900 pairs to reach children at seven donation events throughout the island by the end of September. Additional events are planned through the remainder of 2018.

The territory-wide relief effort is the latest in a series of donation events that the footwear brand has launched for hurricane victims in Puerto Rico and the States. In February 2018, Skechers donated 5,000 pairs of socks and 2,400 backpacks in care packages benefitting Puerto Rico’s city and remote residents. The Company also partnered with Delivering Good to distribute BOBS from Skechers shoes, goods and relief to flood victims in Texas and Florida following Hurricanes Harvey and Irma in 2017.

Since the program’s inception in 2011, the BOBS from Skechers program has donated new shoes to more than 15 million kids in the United States and more than 30 countries worldwide through the Head Start programs, education foundations, homeless shelters, disaster relief, and 501 (c)(3) organizations. Beyond the United States, the list of countries receiving donations in 2018 has also included Nicaragua, Haiti, Netherlands, Guatemala, Honduras, Jamaica, Lebanon and Jordan.

About Skechers USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, 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, 2,715 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit www.skechers.com and follow us on Facebook (facebook.com/SKECHERS), Instagram (Instagram.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).

About Delivering Good

Delivering Good, Inc. (formerly K.I.D.S./Fashion Delivers) is a 501(c)(3) nonprofit, and the charity of choice for new product donations made by hundreds of companies in the fashion, home and children’s industries. Donating new merchandise provides these companies with a simple and effective way to help millions of kids, adults and families facing poverty and disaster each year. Since 1985, over $1.8 billion of donated product has been distributed through our network of community partners. Learn more at www.Delivering-Good.org.

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 the Company’s annual report on Form 10-K for the year ended December 31, 2017, and its quarterly report on Form 10-Q for the three months ended June 30, 2018. 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 USA
Jennifer Clay, (310) 937-1326
[email protected]

Skechers Hits New York Fashion Week Runways

by Zach | Sep 13, 2018 | Press Release

Skechers D’Lites on the Hardware LDN runway during New York Fashion Week. Image courtesy of Hardware LDN/Dan Lecca.

Skechers D’Lites on the DFBK: Defend Brooklyn runway during New York Fashion Week. Image courtesy of Getty Images.

The iconic Skechers D’Lites footwear collection appears on the runway at seven NYFW shows

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Models walked the runways at seven New York Fashion Week shows this season in Skechers styles from the global footwear brand’s iconic and retro Skechers D’Lites line. Declared the “It Shoe of 2018” earlier this year by Hypebae, the chunky sneaker style paired perfectly with an eclectic assortment of designer fashion activewear and swimwear collections for Spring/Summer 2019.

Skechers D’Lites on the DFBK: Defend Brooklyn runway during New York Fashion Week. Image courtesy of Getty Images.

“Skechers is the original chunky sneaker dating back nearly two decades, and we love that so many designers are choosing to coordinate Skechers D’Lites with their new collections,” said Robert Greenberg, Skechers chief executive officer. “From influencers around the globe to fashion press to the runways this week, Skechers D’Lites is in-demand and on-trend with a uniquely Skechers level of comfort that people love.”

The seven shows that featured models wearing Skechers D’Lites include: Hardware LDN, FTL Moda, Mery Playa by Sofia Resing, Tumbler and Tipsy by Michael Kuluva, DFBK: Defend Brooklyn, Bonnie Bouche by Angela Simmons, and #Unfiltered by Jessica Abo.

Styles from the collection worn this week include the classic black and white Skechers D’Lites – Biggest Fan as well as select colorways from the Skechers D’Lites X One Piece collaboration with the acclaimed anime series.

Skechers pioneered the chunky sneaker look two decades ago with the Skechers Energy for men and women as well as the Skechers Stamina for men. The style evolved and the Company introduced Skechers D’Lites—a lighter version of its original style—in 2007. Though the collection has always had a dedicated consumer base, popularity accelerated across Asia over the last two years after regional marketing included K-Pop groups. The collection has since been featured on the fashion editorial pages of Elle, Marie Claire and GQ, among others. And in 2017, the Company relaunched an even lighter update of Skechers D’Lites in celebration of its ten-year anniversary.

About Skechers USA, Inc.

SKECHERS USA, Inc., (NYSE: SKX) based in Manhattan Beach, California, 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, 2,715 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit www.skechers.com and follow us on Facebook (facebook.com/SKECHERS), Instagram (Instagram.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).

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 the Company’s annual report on Form 10-K for the year ended December 31, 2017, and its quarterly report on Form 10-Q for the three months ended June 30, 2018. 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 USA
Jennifer Clay, 310-937-1326
[email protected]

Skechers Claims Shareholder Lawsuit and Allegations Without Merit

by Zach | Sep 11, 2018 | Press Release

Footwear Company Plans to Vigorously Defend Lawsuit

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Skechers USA, Inc. (NYSE:SKX), a global footwear leader, denies the allegations in the recent alleged shareholder class actions filed by Laborers Local 235 Benefit Fund as frivolous and without merit, and plans on defending them vigorously.

David Weinberg, Skechers chief operating officer, commented: “This shareholder lawsuit (Laborers Local 235 Benefit Fund) is without merit. Between October 2017 and July 2018, the Company announced four consecutive quarters of record net sales, including our highest quarterly net sales in the first quarter of 2018, and record annual sales for the full-year 2017. (See referenced earnings announcements.) During that time, the Company was—and still is—focused on efficiently and strategically growing our business on a global scale. This includes investing in our infrastructure, diligently managing our balance sheet and bringing expenses in line with growth. The lawsuit at best shows a complete misunderstanding of the challenges facing both the international footwear industry and our growth-oriented global business. We will vigorously defend the Company and our officers against this frivolous lawsuit in court.”

On September 4, 2018, Laborers Local 235 Benefit Fund filed a securities class action against the Company and certain of its officers, in the United States District Court for the Southern District of New York, case 1:18-cv-08039. The lawsuit alleges that between October 20, 2017 and July 19, 2018, the Company made materially false statements or omissions of material facts to investors about its operations and prospects.

Skechers will be represented in the lawsuit by Seth Aronson and Abby Rudzin of O’Melveny & Myers in New York and Los Angeles.

About Skechers USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, 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, 2,715 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 and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit www.skechers.com and follow us on Facebook (facebook.com/SKECHERS), Instagram (Instagram.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).

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 the Company’s annual report on Form 10-K for the year ended December 31, 2017, and its quarterly report on Form 10-Q for the three months ended June 30, 2018. 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 USA
Jennifer Clay, 310-937-1326
[email protected]