by | Feb 15, 2016 | Press Release
Feb 15, 2016 • 9:00 pm EST
- Ruling Applies Only to Three Commercially Insignificant and Discontinued SKECHERS Styles
- There Will Be No Disruption to Skechers Business
- Skechers Plans to Appeal
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader and the second largest footwear brand in the United States, today announced that adidas obtained a preliminary injunction prohibiting Skechers from selling two already discontinued styles from its vast footwear collection and from using the word “Supernova” in connection with a third minor discontinued style.
“The Court’s ruling is preliminary, not final,” stated Michael Greenberg, President of Skechers. “Further, it involves only three minor and commercially insignificant Skechers styles that have already been discontinued, and does not create any disruption in our business or have any impact on sales whatsoever. While this is a non-issue from a commercial standpoint, we are disappointed in the ruling and fully intend to appeal it in order to ensure that our footwear designers retain the freedom to use common design elements that have long been in the public domain.”
In September 2015, adidas sued Skechers in federal district court in Portland, Oregon, alleging that two Skechers styles and use of the word Supernova infringed adidas’ intellectual property rights. adidas sought a preliminary injunction prohibiting Skechers from selling the shoes pending the final outcome of trial. The Court held a hearing in December 2015 and, despite the overwhelming evidence showing that the Skechers styles did not infringe adidas’ intellectual property rights and did not cause likelihood of confusion with adidas’ styles, the judge granted the injunction.
“Skechers is an ardent brander that goes out of its way to distinguish its products from those of its competitors,” continued Mr. Greenberg. “We believe that none of our styles infringe adidas’ intellectual property and that there is no likelihood that consumers who see the Skechers styles will be confused in the slightest. We believe the final outcome of this legal proceeding will vindicate our position.”
Skechers offers two distinct footwear categories across more than 3,000 styles: a lifestyle division which includes comfort-focused, trend-right product for men, women and kids, and the Skechers Performance Division which offers Skechers GOrun and Skechers GOwalk footwear.
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 120 countries and territories worldwide via department and specialty stores, more than 1,340 SKECHERS retail stores, and the Company’s e-commerce website. The Company manages its international business through a network of global distributors, joint venture partners in Asia, and 13 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s 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 and opening of new stores, the completion of the Company’s European distribution center, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the quarter ended September 30, 2015. The risks included here are not exhaustive. The Company 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, Inc.
Jennifer Clay, 310-937-1326
VP of Corporate Communications
[email protected]
by | Feb 14, 2016 | Press Release
Feb 14, 2016 • 8:30 pm EST
Skechers Performance Elite Athletes Achieved Greatness as Spectators Cheered During the City’s Largest Race Weekend
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE: SKX) wraps up it’s inaugural weekend as title sponsor of the 2016 Skechers Performance Los Angeles Marathon. The Company celebrated with several milestones, making this the most notable race weekend in Skechers Performance’s history.
Weldon Kirui Wins the 2016 Skechers Performance Los Angeles Marathon, Wearing Skechers GOmeb Speed 3 – 2016. (Photo: Business Wire)
On Saturday, February 13, 2016, Skechers Performance elite athlete, Meb, secured his spot on the 2016 U.S. Olympic team, coming in second place with a marathon time of 2:12:21. This will be Meb’s fourth time competing in the Olympic Games. Meb also set a new American Master’s marathon record yesterday, crossing the finish line wearing his custom GOmeb Speed 3 – 2016. Skechers Performance elite athlete, Kara Goucher, also competed in the Olympic Trials with an incredible fan base cheering her on to the finish. Skechers Performance had a total of 27 elite athletes compete in the Trials.
On Sunday, the celebrations continued as Weldon Kirui represented Skechers Performance, taking first in the marathon with a winning time of 2:13:06. The crowd, including numerous Skechers employees cheered from the finish line to congratulate Kirui. He was awarded first place by Mayor Eric Garcetti, with Skechers executives, David Weinberg and Kathy Kartalis by his side. Kirui competed today wearing the Skechers GOmeb Speed 3 – 2016.
“Skechers could not be more thrilled at how this weekend came together,” said Rick Higgins, SVP, Merchandising/Marketing, Skechers Performance. “There were so many incredible individuals from the Skechers team, the Conqur Endurance Group, and countless volunteers who put in long hours to make this event so successful. It was exciting to see not only our elite athletes compete so well, but also watch our entire company come together – from employees out racing, to those cheering along the course. We are looking forward to coming back next year – we are just getting started.”
At the two day Health and Wellness Expo, the festivities at the Skechers Performance booth kept participants and fans entertained as they filled the Los Angeles Convention Center. The DJ kept the energy high as participants shared inspirational posts that covered an expansive wall, posed for the photo booth, won numerous giveaways and shopped the official Skechers Performance Los Angeles Marathon footwear and apparel line.
Learn more at GOSkechers.com and follow us on Facebook (facebook.com/SkechersPerformance), Twitter (twitter.com/skechersGO) and Instagram (instagram.com/skechersperformance).
For more information and/or images please contact Jolene Abbott at 310.318.3100 x4839 or [email protected].
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 120 countries and territories worldwide via department and specialty stores, more than 1,200 SKECHERS retail stores, and the Company’s e-commerce website. The Company manages its international business through a network of global distributors, joint venture partners in Asia, and 13 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s future domestic and international growth, financial results and operations, its development of new products, future demand for its products, its planned domestic and international expansion and opening of new stores, the completion of the Company’s European distribution center, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the three months ended September 30, 2015. The risks included here are not exhaustive. The Company 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
Jolene Abbott, 310-318-3100 x4839
[email protected]
by | Feb 13, 2016 | Press Release
Feb 13, 2016 • 6:49 pm EST
Skechers Performance Elite Athlete, Meb, Took Second Place at the U.S. Olympic Team Trials with a Marathon Time of 2:12:21
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Skechers Performance Elite Athlete, Meb, secured his spot on the 2016 U.S. Summer Olympic team today, coming in second place with a marathon time of 2:12:21 at the Trials, which were held in Los Angeles on February 13, 2016. Wearing his namesake Skechers GOmeb Speed 3 – 2016 shoes, Meb also set the American Masters Record for the marathon today. This will be Meb’s fourth time competing as an Olympic athlete. He currently holds a silver medal from the 2004 Athens Olympics for the marathon and is the 2012 U.S. Olympic Trials marathon champion. He will be joining Galen Rupp and Jared Ward in Rio de Janerio, Brazil for the 2016 Summer Olympics.
Skechers Performance Elite Athlete, Meb, Crossing the Finish Line at the U.S. Olympic Team Trials, Wearing Skechers GOmeb Speed 3 – 2016. (Photo: Business Wire)
“It’s hard to put into words what I’m feeling right now,” said Meb. “There are so many people that have helped me get to where I am today and I could not have won without the support of my family and my incredible fans. I’m humbled beyond words and I could not be more proud to be an American athlete as I am today. I’m honored to be heading to Rio to represent the U.S.”
At 40 years old, Meb is currently the oldest Olympic marathoner competing in the 2016 Games, and today he proved there is no stopping this Southern Californian elite distance runner. Meb was the first American man to win the 2014 Boston Marathon since 1983 with a winning time of 2:08:37. Meb is also a three-time Olympian with a silver medal in the 2004 Athens Olympics for the marathon and is the 2012 US Olympic Trials marathon champion.
“Today marks an incredible day for the Skechers family, which we are proud to call Meb a part of,” said Rick Higgins, SVP, Merchandising/Marketing, Skechers Performance. “We could not be more thrilled for Meb’s monumental accomplishment today and he truly is an example of an American hero. We are looking forward to celebrating with Meb and supporting him on this Olympic journey to Rio.”
Meb has worked with the Skechers Performance Division since signing on as the brand ambassador in 2011. He has worked closely with the team in developing the brand’s performance running shoes including his namesake racing flat that he won in today—the Skechers GOmeb Speed 3 – 2016.
Learn more at GOSkechers.com and follow us on Facebook (facebook.com/SkechersPerformance), Twitter (twitter.com/skechersGO) and Instagram (instagram.com/skechersperformance).
For more information and/or images please contact Jolene Abbott at 310.318.3100 x4839 or [email protected].
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 120 countries and territories worldwide via department and specialty stores, more than 1,200 SKECHERS retail stores, and the Company’s e-commerce website. The Company manages its international business through a network of global distributors, joint venture partners in Asia, and 13 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s future domestic and international growth, financial results and operations, its development of new products, future demand for its products, its planned domestic and international expansion and opening of new stores, the completion of the Company’s European distribution center, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the three months ended June 30, 2015. The risks included here are not exhaustive. The Company 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, Inc.
Jolene Abbott, 310-318-3100 ext. 4839
[email protected]
by | Feb 11, 2016 | Press Release
Feb 11, 2016 • 8:15 am EST
Global Footwear Brand Encourages Fans and Running Enthusiasts to Partake in Race Weekend and Support the City’s Biggest Running Event
LOS ANGELES–(BUSINESS WIRE)– Skechers Performance, a division of Skechers USA, Inc. (NYSE:SKX), embarks on three days of excitement surrounding the city’s biggest running event – the Skechers Performance Los Angeles Marathon. The marathon will be held on Sunday, February 14, 2016 with several activities leading up to the race including the Health and Fitness Expo, which is open to the public at the Los Angeles Convention Center, February 12th and 13th.
Official 2016 Skechers Performance Los Angeles Marathon Footwear (Photo: Business Wire)
“This weekend is creating so much excitement across Los Angeles,” said Rick Higgins, SVP, Merchandising/Marketing, Skechers Performance. “We truly wish all the runners, supporters and partners of the Skechers Performance Los Angeles Marathon the very best. What makes this race even more significant is that on Saturday, we will have 27 of our elite athletes competing at the Trials to make the 2016 U.S. Olympic team, and leading the pack is our very own Meb and Kara Goucher. We’ll be supporting them with all the fans, friends and family.”
On race day, spectators can join Skechers Performance at mile four and twenty-two, to cheer on the runners and receive giveaways such as noisemakers and t-shirts, while supplies last. During the Health and Fitness Expo, participants, spectators and fans will be able to commemorate the race with a complete collection of official footwear and apparel available at the Skechers Performance booth.
Designed in Los Angeles at Skechers’ headquarters, the official footwear was created in varying shades of deep blue, enamel green and turquoise to mirror the newly designed branding of the Skechers Performance Los Angeles Marathon logo. The line has several models to choose from for men and women including, maximum cushion (GOrun Ultra Road) and neutral running shoes (GOrun Ride 5) and a new stability shoe called the Skechers GOrun Forza, which features an extended medial post for additional support.
Furthermore, a new limited edition Skechers GOrun Forza model will be available to expo visitors only. Building off of one of Los Angeles’ most iconic symbols, this exclusive model features bright, multi-colored palm trees that pop against a black background. This model will only be available at the Skechers Performance expo booth on race weekend and will retail for $140.
In addition to designing the finishers shirts, Skechers Performance will have a full line of official race apparel including tech tees, jackets, running shorts, leggings, hats, and much more. Skechers Performance will also have a selection of casual tee shirts with bright graphics, such as the “LA 26.2” which incorporates the cityscape.
To build excitement for the Skechers Performance Los Angeles Marathon, a new advertising campaign featuring elite runners Meb and Kara Goucher is debuting. The new commercial spot will air leading up to and during race weekend and will coincide with print and outdoor advertising. The campaign features Skechers Performance’s new marketing message – Choose Greatness – which was inspired by Meb and Kara’s commitment to excel not only in their sport, but in everything they do daily.
Rounding out race weekend, Skechers Performance is excited to support world-class athletes and former Olympians, Meb and Kara Goucher, as they compete in the 2016 U.S. Olympic Trials Marathon on Saturday, February 13, 2016 here in Los Angeles. Both will be wearing a custom designed GOmeb Speed 3 – 2016 shoe that features a white and blue knit upper and a noticeable, bright gold outsole.
The Skechers Performance expo booth will be open Friday, February 12, 10am – 7pm and Saturday, February 13, 8am – 5pm. Skechers Performance will also have giveaways race weekend at a promotional space across from the main Skechers Performance booth at the Expo. Attendees can have their photo taken and make cheer signs to support runners.
For more information on the 2016 Skechers Performance Los Angeles Marathon, visit www.lamarathon.com. For additional information on Skechers Performance, visit www.GOskechers.com or follow the brand on Facebook (facebook.com/SkechersPerformance), Twitter (twitter.com/skechersGO) and Instagram (instagram.com/skechersperformance).
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 120 countries and territories worldwide via department and specialty stores, more than 1,050 Skechers retail stores, and Skechers’ e-commerce website. Skechers manages its international business through a network of global distributors, joint venture partners in Asia, and 12 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s future domestic and internationalgrowth, financial results and operations, its development of new products, future demand for its products, its planned domestic and international expansion and opening of new stores, the completion of the Company’s European distribution center, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the three months ended June 30, 2015. The risks included here are not exhaustive. The Company 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, Inc.
Jolene Abbott, 310-318-3100 x 4839
[email protected]
by | Feb 10, 2016 | Press Release
Feb 10, 2016 • 4:01 pm EST
- Record Annual Sales of $3.147 Billion
- Record Fourth Quarter 2015 Net Sales of $722.7 Million, an Increase of 26.8 Percent
- Fourth Quarter 2015 Earnings from Operations of $54.7 Million, an Increase of 65.7 Percent
- Fourth Quarter 2015 Net Earnings of $29.4 Million
- Fourth Quarter 2015 Diluted Earnings Per Share of $0.19
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader and the second largest athletic footwear brand in the United States, today announced financial results for the fourth quarter and year ended December 31, 2015. All share and per share information has been retroactively adjusted for the three-for-one stock split that was effective on October 15, 2015.
Net sales for the fourth quarter of 2015 were $722.7 million compared to $569.7 million in the fourth quarter of 2014. Gross profit for the fourth quarter of 2015 was $329.9 million or 45.6 percent of net sales compared to $257.6 million or 45.2 percent of net sales in the fourth quarter of 2014.
“Skechers achieved record fourth quarter sales of more than $722 million in 2015. This resulted in earnings from operations of $54.7 million in the fourth quarter, which is an increase of 65.7 percent from the same prior year period, and record annual revenues of $3.147 billion for 2015, an increase of 32.4 percent compared to 2014,” began David Weinberg, SKECHERS chief operating officer and chief financial officer. “The fourth quarter growth was across our key product lines for men, women and kids, which led to high single-digit gains in our domestic wholesale business, and double-digit increases in our international wholesale and Company-owned retail stores businesses. Also in the fourth quarter, our international business grew to 41 percent of our total sales, bringing it closer to our goal of 50 percent within the next two to three years.”
Net earnings for the fourth quarter of 2015 were $29.4 million compared to net earnings of $21.9 million in the fourth quarter of 2014. Net earnings per diluted share in the fourth quarter of 2015 were $0.19 based on 154.6 million weighted average shares outstanding compared to $0.14 based on 154.1 million weighted average shares outstanding in the fourth quarter of 2014. Our annual effective tax rate for 2015 increased slightly to 21.7 percent from 21.3 percent as of September 30, 2015, which increased our fourth quarter 2015 effective tax rate to 23.9 percent and reduced our earnings per share by $0.01. In addition, the Company’s gross margins were negatively impacted by approximately $8.1 million due to negative foreign currency translations and an additional $2.0 million in other expenses related to foreign currency transaction losses during the fourth quarter of 2015.
Fiscal year 2015 net sales were a record $3.147 billion compared to net sales of $2.378 billion in 2014. Gross profit for 2015 was $1.424 billion or 45.2 percent of net sales compared to $1.072 billion or 45.1 percent of net sales in 2014. Earnings from operations for 2015 were $350.8 million compared to $209.1 million in 2014.
Net earnings for 2015 were $231.9 million compared to $138.8 million in 2014. Net earnings per diluted share for fiscal year 2015 were $1.50 based on 154.2 million weighted average shares outstanding compared to $0.91 based on 153.1 million weighted average shares outstanding in the prior year.
Robert Greenberg, SKECHERS chief executive officer, commented: “Surpassing $3 billion in annual sales is a remarkable accomplishment and to achieve this growth across both our domestic and international businesses speaks to the global strength of the Skechers brand. In the United States, we are the number two footwear brand and the number one walking and work brand, and we were named the 2015 Company of the Year and received the Athleisure Design Excellence award by Footwear Plus magazine. Our accelerated international growth is an indicator of the global acceptance of our product and marketing, which now includes icons Ringo Starr and Sugar Ray Leonard as well as pop superstars Demi Lovato and Meghan Trainor. While we continue to take increased shelf space within our existing accounts worldwide, the Skechers retail store count has also grown to more than 1,300 Company-owned and third-party owned locations at year-end. Pivotal to this growth has been continued product innovation and expansion into more categories enabling us to appeal to an even broader demographic. As the title sponsor of the Skechers Performance Los Angeles Marathon and the official running sponsor of the European Ironman, we are reaching elite athletes and running enthusiasts like never before. With Demi Lovato’s social media posts about Skechers, we are also resonating with hundreds of thousands of savvy teenagers around the world. Our cast of characters remains a focus for our kids advertising, while also capturing the tweens with takedowns of our popular adult sport styles. As we continue to focus on comfort, style and quality in every shoe design, we are expanding our business within both existing doors and into new accounts and countries as well. With an additional 330 to 340 Skechers retail stores opening worldwide this year, we estimate there will be more than 1,650 Skechers stores by the end of 2016, of which approximately 575 stores will be Company-owned. Looking at 2016, we plan to continue to grow worldwide and believe we will see strong double-digit and, in some cases, triple-digit gains in countries around the world.”
Mr. Weinberg added: “The record net sales growth we achieved for 2015—both the gains of 22 percent in our domestic wholesale channel and 59 percent in our international distributor and subsidiary business channel over 2014—is very significant given the sluggish domestic retail environment in the back half of 2015, as well as declining currencies in several key countries. The improvements in our wholesale and Skechers retail businesses were due to the continued strong demand for our fresh product and our impactful marketing.”
Mr. Weinberg continued: “As we look at the coming year, we believe our Company-owned retail stores are on target with mid- to high-single digit retail comps in January and we are continuing to gain market share. We have had a very strong start to the first quarter with January sales up approximately 35 percent compared to January 2015 as well as a strong first week of February. Our backlogs are up 9.5 percent at December 31, 2015, which were impacted by some distributors pulling forward orders from January to December. During the fourth quarter, our distributor sales increased 91.6 percent as compared to the same period last year. Additionally, our incoming order rate in January was also very strong with both our domestic wholesale and European subsidiary businesses ordering closer to season, which is resulting in increasingly improved backlogs for the first quarter. It is important to note that our backlog does not include Company-owned Skechers retail stores—of which we have 68 more stores than in the prior year, as well as our joint ventures in Asia, including China, which we expect will have very strong double-digit growth in 2016. Our inventories are up approximately 36.7 percent from the prior year end with fourth quarter 2015 net sales that increased 27 percent, and our financial position is strong with $508.0 million in cash and cash equivalents. To further position the Company for continued growth, we have improved efficiencies in our distribution centers, which allowed for us to ship more than 2.3 million pairs from our European distribution center in January 2016, an improvement of more than 100 percent from the same period last year. With the anticipated completion of the final expansion phase of our European distribution center in May, we will have more than a million square feet of space. With the strong start to the first quarter and the broad acceptance of our brand worldwide, we see significant potential to continue to grow our international business in 2016 by investing in our product, marketing and infrastructure. We remain comfortable with the majority of the analysts’ current consensus range of $885 million to $920 million in net sales and $0.50 to $0.55 in earnings per share for the first quarter.”
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 120 countries and territories worldwide via department and specialty stores, more than 1,340 SKECHERS Company-owned and third-party retail stores, and the Company’s e-commerce website. The Company manages its international business through a network of global distributors, joint venture partners in Asia, and 13 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s 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 and opening of new stores, the completion of the Company’s European distribution center, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the quarter ended September 30, 2015. The risks included here are not exhaustive. The Company 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) |
| |
|
|
December 31, |
|
December 31, |
|
|
2015 |
|
2014 |
| ASSETS |
|
|
|
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
507,991 |
|
$ |
466,685 |
| Trade accounts receivable, net |
|
|
343,930 |
|
|
272,103 |
| Other receivables |
|
|
18,661 |
|
|
16,510 |
| Total receivables |
|
|
362,591 |
|
|
288,613 |
| Inventories |
|
|
620,247 |
|
|
453,837 |
| Prepaid expenses and other current assets |
|
|
57,363 |
|
|
57,015 |
| Deferred tax assets |
|
|
22,275 |
|
|
18,864 |
| Total current assets |
|
|
1,570,467 |
|
|
1,285,014 |
| Property, plant and equipment, net |
|
|
435,907 |
|
|
373,183 |
| Other assets |
|
|
41,034 |
|
|
16,721 |
| Total non-current assets |
|
|
476,941 |
|
|
389,904 |
| TOTAL ASSETS |
|
$ |
2,047,408 |
|
$ |
1,674,918 |
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
| Current Liabilities: |
|
|
|
|
| Current installments of long-term borrowings |
|
$ |
15,653 |
|
$ |
101,407 |
| Accounts payable |
|
|
473,983 |
|
|
352,815 |
| Short-term borrowings |
|
|
59 |
|
|
1,810 |
| Accrued expenses |
|
|
87,318 |
|
|
49,705 |
| Total current liabilities |
|
|
577,013 |
|
|
505,737 |
| Long-term borrowings, net of current installments |
|
|
68,942 |
|
|
15,081 |
| Other long-term liabilities |
|
|
25,719 |
|
|
19,993 |
| Total non-current liabilities |
|
|
94,661 |
|
|
35,074 |
| Total liabilities |
|
|
671,674 |
|
|
540,811 |
| Stockholders’ equity: |
|
|
|
|
| Skechers U.S.A., Inc. equity |
|
|
1,327,556 |
|
|
1,075,249 |
| Noncontrolling interests |
|
|
48,178 |
|
|
58,858 |
| Total equity |
|
|
1,375,734 |
|
|
1,134,107 |
| TOTAL LIABILITIES AND EQUITY |
|
$ |
2,047,408 |
|
$ |
1,674,918 |
| |
| SKECHERS U.S.A., INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| (Unaudited) |
| (In thousands, except per share data) |
| |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
| Net sales |
|
$ |
722,683 |
|
|
$ |
569,722 |
|
|
$ |
3,147,323 |
|
|
$ |
2,377,561 |
|
| Cost of sales |
|
|
392,829 |
|
|
|
312,093 |
|
|
|
1,723,315 |
|
|
|
1,305,656 |
|
| Gross profit |
|
|
329,854 |
|
|
|
257,629 |
|
|
|
1,424,008 |
|
|
|
1,071,905 |
|
| Royalty income |
|
|
3,921 |
|
|
|
2,179 |
|
|
|
11,745 |
|
|
|
9,107 |
|
|
|
|
333,775 |
|
|
|
259,808 |
|
|
|
1,435,753 |
|
|
|
1,081,012 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Selling |
|
|
57,934 |
|
|
|
40,198 |
|
|
|
235,586 |
|
|
|
181,018 |
|
| General and administrative |
|
|
221,133 |
|
|
|
186,598 |
|
|
|
849,343 |
|
|
|
690,923 |
|
|
|
|
279,067 |
|
|
|
226,796 |
|
|
|
1,084,929 |
|
|
|
871,941 |
|
| Earnings from operations |
|
|
54,708 |
|
|
|
33,012 |
|
|
|
350,824 |
|
|
|
209,071 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| Interest, net |
|
|
(1,969 |
) |
|
|
(3,093 |
) |
|
|
(10,006 |
) |
|
|
(11,629 |
) |
| Other, net |
|
|
(2,141 |
) |
|
|
(1,230 |
) |
|
|
(7,321 |
) |
|
|
(6,062 |
) |
|
|
|
(4,110 |
) |
|
|
(4,323 |
) |
|
|
(17,327 |
) |
|
|
(17,691 |
) |
| Earnings before income tax expense |
|
|
50,598 |
|
|
|
28,689 |
|
|
|
333,497 |
|
|
|
191,380 |
|
| Income tax expense |
|
|
12,108 |
|
|
|
2,833 |
|
|
|
72,450 |
|
|
|
39,184 |
|
| Net earnings |
|
|
38,490 |
|
|
|
25,856 |
|
|
|
261,047 |
|
|
|
152,196 |
|
| Less: Net earnings attributable to noncontrolling interests |
|
|
9,042 |
|
|
|
3,935 |
|
|
|
29,135 |
|
|
|
13,385 |
|
| Net earnings attributable to Skechers U.S.A., Inc. |
|
$ |
29,448 |
|
|
$ |
21,921 |
|
|
$ |
231,912 |
|
|
$ |
138,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
1.52 |
|
|
$ |
0.91 |
|
| Diluted |
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
1.50 |
|
|
$ |
0.91 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
|
|
|
| Basic |
|
|
153,346 |
|
|
|
152,092 |
|
|
|
152,847 |
|
|
|
151,839 |
|
| Diluted |
|
|
154,570 |
|
|
|
154,066 |
|
|
|
154,200 |
|
|
|
153,079 |
|
Company Contact:
SKECHERS USA, Inc.
David Weinberg
Chief Operating Officer,
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Addo Communications
Andrew Greenebaum
(310) 829-5400
by | Feb 8, 2016 | Press Release
Feb 8, 2016 • 10:15 am EST
The Performance Footwear Brand to Sponsor Meb through 2023
LOS ANGELES–(BUSINESS WIRE)– Skechers Performance, a division of Skechers USA, Inc. (NYSE:SKX), today announced the contract extension of world-class distance runner, Meb. Meb will continue as brand ambassador for Skechers Performance through 2023. Skechers Performance will remain Meb’s official footwear and apparel sponsor and continue to feature the elite marathoner in marketing campaigns as well as collaborate with Meb on footwear introductions.
Skechers Performance Elite Athlete, Meb, Wearing the Skechers GOrun Ride 5. (Photo: Business Wire)
Since launching performance footwear in 2011, Skechers Performance has built an award-winning line up of running shoes based on the philosophy of listening to runners’ needs and building the best shoes not only for athletes, but with athletes. This philosophy began when Skechers Performance launched the first GOrun shoe with Meb as the official brand ambassador and consultant.
“Skechers Performance has helped me achieve my goals over the past five years and the team’s support through all the highs and lows has been very consistent,” said Meb. “Being 40 years old and training for the Olympic Trials is a huge achievement and Skechers Performance has helped make this possible. They know what it means to be a partner and working with the brand to help create the best running shoes possible has been a rewarding experience. It’s not something many athletes have the opportunity to do.”
After joining Skechers Performance, Meb set a personal record (PR) at the 2011 New York Marathon, PR’d at the 2012 Olympic Trials in Houston and took fourth place at the 2012 Olympic Games. He then went on to set his current PR (2:08:37) and win the 2014 Boston Marathon at the age of 38, wearing his namesake Skechers GOmeb Speed 3. Meb is the only athlete in history to win the New York Marathon, the Boston Marathon and an Olympic Medal. Meb also currently holds the U.S. marathon masters record, which was set at the 2015 New York Marathon with his time of 2:13:32.
In 2016, sights are now set on Meb’s race at the upcoming Olympic Trials as he competes in the marathon for a spot on the U.S. team. Skechers Performance Elite Athlete, Kara Goucher, will also be competing for a spot on the women’s team. The trials will be held in Los Angeles on February 13th, the day before the Skechers Performance Los Angeles Marathon.
“Working with Meb has been an incredible journey and we are truly honored to have not only a star athlete on our team, but an inspirational person,” said Rick Higgins, SVP, Merchandising/Marketing, Skechers Performance. “Meb’s motivation is contagious. Anyone that has the pleasure of meeting him knows what I mean. He is a phenomenal role model, an essential ambassador to the sport, and a champion on and off the course. We are excited to continue working with Meb, as he has truly become a part of the Skechers family.”
From grassroots events to securing the title sponsorship of a major race such as the Los Angeles Marathon, Skechers Performance has continued to rapidly grow in the performance footwear market. Skechers USA is currently the second largest athletic footwear company in the U.S. and the Performance division’s steadfast commitment to running is evident not only via the Company’s athlete partnerships and marketing initiatives, but with the product innovation. The new spring 2016 performance footwear line reflects such innovations and is the most technologically advanced performance footwear from Skechers Performance to date.
Skechers Performance products are available in select specialty run stores, Skechers retail stores and on Skechers.com. Learn more at GOSkechers.com and follow us on Facebook (facebook.com/SkechersPerformance), Twitter (twitter.com/skechersGO) and Instagram (instagram.com/skechersperformance).
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 120 countries and territories worldwide via department and specialty stores, more than 1,200 SKECHERS retail stores, and the Company’s e-commerce website. The Company manages its international business through a network of global distributors, joint venture partners in Asia, and 13 wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America and throughout Europe. For more information, please visit skechers.com and follow us on Facebook (facebook.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, the Company’s future growth, financial results and operations, its development of new products, future demand for its products and growth across the Company’s three main business channels and globally, its planned expansion and opening of new stores, 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 uncertainty of sustained recovery in Europe; entry into the highly competitive performance footwear market; 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; 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, 2014 and its quarterly report on Form 10-Q for the quarter ended September 30, 2015. The risks included here are not exhaustive. The Company 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, Inc.
Jolene Abbott
310.318.3100 x 4839
[email protected]
