by | Dec 3, 2015 | Press Release
Dec 3, 2015 • 10:00 am EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle and performance footwear industry, today announced that the leading trade publication Footwear News has honored SKECHERS Chairman and CEO Robert Greenberg with the Manolo Blahnik Lifetime Achievement Award.
Robert Greenberg, Sugar Ray Leonard and Michael Greenberg (Photo: Business Wire)
The official award presentation took place on December 2 at the 29th annual FN Achievement Awards in New York City. Outstanding leaders from the footwear industry and celebrity guests were in attendance, including boxing legend and SKECHERS brand ambassador Sugar Ray Leonard, who introduced Mr. Greenberg on stage to receive his award.
“I want to thank Footwear News for their tremendous support through the years and for honoring me with the Lifetime Achievement Award,” said Robert Greenberg. “Building this company has been a dream come true, and all of this would not be possible without the support of my family and the wonderful team I get to work with every day. As I look ahead and think about this amazing company—my Picasso, I believe the brand has never looked better and the best is yet to come. I’m excited to see the Company cross the $3 billion mark this year, and we look forward to achieving a projected $6 billion in sales by 2020.”
Previous recipients for the Footwear News Lifetime Achievement Award include Stuart Weitzman, Vince Camuto and Manolo Blahnik.
“How many people can say they’ve created an enormous powerhouse footwear brand? In the shoe biz Robert Greenberg is a true legend, the likes of which we may not see again,” said Michael Atmore, Editorial Director, Footwear News. “His hands-on, street-smart style has informed a legion of admirers while pushing Skechers to record heights.”
“I am so proud of this company and the legacy that Robert has built,” said SKECHERS president Michael Greenberg. “My father is a true visionary and his passion inspires all of us to work harder, innovate and shoot for the moon. His intuition for identifying the next big idea and creating footwear that consumers can’t get enough of is truly remarkable. SKECHERS has grown into a global powerhouse with a presence in 120 countries around the world, and none of this would be possible without Robert’s leadership, product development and marketing genius. Thank you Footwear News for recognizing his remarkable achievements.”
SKECHERS offers two distinct footwear categories: a lifestyle division with comfort-focused trend-right product for men, women and kids, and an award-winning Skechers Performance Division.
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.comand 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, advertising and marketing initiatives, and the conclusion of legal matters. 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
by | Nov 19, 2015 | Press Release
Nov 19, 2015 • 12:21 pm EST
The Chief Administrative Law Judge of the International Trade Commission Ruled that Skechers’ Famous Twinkle Toes and BOBS Product Lines Do Not Infringe Converse’s Chuck Taylor Design
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 that it has won an important ruling over Nike, Inc.’s wholly-owned subsidiary Converse Inc. relating to the Converse Chuck Taylor shoe.
In October 2014, Converse sued Skechers in federal district court and before the International Trade Commission (“ITC”) alleging that the Company’s famous Twinkle Toes and BOBS product lines infringed its Chuck Taylor midsole common law and registered trademarks. The case went to trial before the ITC in August 2015.
In a November 17, 2015 opinion, the Chief Administrative Law Judge of the ITC, the Honorable Charles E. Bullock, ruled that Skechers’ Twinkle Toes and BOBS product lines do not infringe Converse’s registered trademark for the Chuck Taylor midsole. In making his ruling, the Judge noted that both of the Skechers product lines feature prominent branding and that the Twinkle Toes line contains design features that “create enough differences that the shoes bearing them cannot be said to be similar to [the Chuck Taylor].” The Judge also stated that the survey evidence concluded that there was no likelihood that consumers would confuse the Skechers designs with those of Converse’s Chuck Taylor designs.
“While we expected this result, we are still very pleased with the Judge’s ruling on Twinkle Toes and BOBS,” stated Michael Greenberg, president of Skechers. “Skechers is an ardent brander that spends more than $100 million a year in advertising for the very purpose of distinguishing its brands and products from those of its competitors. Our investment in our distinctive designs and brand identity has helped build Twinkle Toes into the number one shoe line for young girls and both Twinkle Toes and BOBS into household names synonymous with Skechers – not with Converse or any other brand. The Judge’s ruling recognizes this.”
In addition, the Judge ruled that Converse has no common law trademark rights in the Chuck Taylor midsole because the design is not distinctive, not famous and has failed to acquire secondary meaning.
Skechers was represented in the matter by Morgan Chu, Samuel Lu, Lindsay Kelly, Melissa Rabbani and Jad Mills of Irell & Manella; Jeffrey Barker of O’Melveny & Myers; and Barbara Murphy of Foster, Murphy, Altman & Nickel.
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, advertising and marketing initiatives, and the conclusion of legal matters. 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
VP of Corporate Communications
310-937-1326
by | Nov 4, 2015 | Press Release
Nov 4, 2015 • 4:00 pm EST
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 that David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer, will present at the Morgan Stanley Global Consumer & Retail Conference on Tuesday, November 17, 2015, at 11:20 AM PST / 2:20 PM EST at the Crown Plaza Times Square in New York.
The audio portion of the presentation will be available live by visiting the ‘Investor Relations’ section of the Company’s Website at www.skx.com. A replay of the audio webcast will be accessible on the site for 60 days following the live presentation.
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).
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 | Nov 4, 2015 | Press Release
Nov 4, 2015 • 8:15 am EST
BOBS from Skechers Partners with Best Friends Animal Society to Save the Lives of Shelter Pets across the Country
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– BOBS from Skechers, a division of leading lifestyle footwear company, Skechers USA, Inc. (NYSE:SKX), is thrilled to announce a multi-year partnership with Best Friends Animal Society, the only national animal welfare organization dedicated exclusively to ending the killing of dogs and cats in America’s shelters. To support the non-profit, BOBS from Skechers has committed $3 million to further Best Friends Animal Society’s lifesaving initiatives. The partnership with Best Friends Animal Society is part of BOBS from Skechers’ ongoing charitable initiatives, which includes donating shoes to children in need around the globe.
BOBS from Skechers partners with Best Friends Animal Society. (Photo: Business Wire)
For every purchase of BOBS, Skechers will make a donation to support Best Friends’ programs that reduce the number of companion animals entering shelters and increase the number who get placed into loving homes. This is Best Friends’ biggest cause marketing partnership to date.
“BOBS from Skechers has been rooted in giving back since the launch of the line and we wanted to expand the philanthropic reach by giving in new ways,” said Robert Greenberg, Chairman and CEO, Skechers. “To date, the current charitable model has allowed all of our BOBS customers to give free shoes to children in need, with over 12 million pairs donated. We are now building upon the giving message by partnering with Best Friends to save pets. With around four million shelter pets being killed each year, we want to help Best Friends bring that number to zero and we are excited that our partnership will help play a part in reaching that goal.”
Commencing in spring 2016, a multi-tiered marketing campaign will support the partnership and include co-branded shoe box packaging, national TV, print and digital marketing, PR, POP and other in-store collateral at domestic Skechers retail locations and participating retail partners. As part of the partnership, BOBS from Skechers will serve as the presenting sponsor for the animal welfare organization’s major national events including Strut Your Mutt and Super Adoptions, and participate in additional year round initiatives. The partnership will also include a limited edition BOBS footwear collection that will launch in spring 2016.
“We are thrilled to partner with BOBS from Skechers on their charitable initiative,” said Gregory Castle, co-founder and CEO, Best Friends Animal Society. “Not only will the shoes look great, but each box will carry a message of support for our mission to get pets out of shelters and into forever homes. With every step taken in BOBS, we help ‘Save Them All’.”
To learn more about the partnerships follow BOBS from Skechers on Facebook (facebook.com/BOBSfromSkechers), Twitter (twitter.com/BOBS_Skechers, Instagram (Instagram.com/BOBS_Skechers) and Pinterest (pinterest.com/BOBSSkechers).
About Best Friends Animal Society
Best Friends Animal Society is the only national animal welfare organization dedicated exclusively to ending the killing of dogs and cats in America’s shelters. A leader in the no-kill movement, Best Friends runs the nation’s largest no-kill sanctuary for companion animals, adoption centers and spay and neuter facilities in Los Angeles and Salt Lake City as well as lifesaving programs in partnership with more than 1,300 rescue groups and shelters across the country. Since its founding in 1984, Best Friends has helped reduce the number of animals killed in American shelters from 17 million per year to an estimated 4 million. By continuing to build effective initiatives that reduce the number of animals entering shelters and increase the number who find homes, Best Friends and its nationwide network of members and partners are working to Save Them All®.
To become a fan of Best Friends Animal Society on Facebook go to: https://www.facebook.com/bestfriendsanimalsociety.
Follow Best Friends on Twitter: https://twitter.com/bestfriends.
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 1,210 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, advertising and marketing initiatives, and the expansion plans for the Company’s European Distribution Center. 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
Jolene Abbott, 310-318-3100 x4839
[email protected]
by | Oct 28, 2015 | Press Release
Oct 28, 2015 • 9:00 am EDT
The Company Capitalizes on One of the World’s Most High-Traffic Destinations with its Revolutionary New Store Design
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle and performance footwear industry, today announced that the Company has opened a flagship store at the front of Times Square, New York City’s most highly visited destination. Located on the famed Bow Tie in the heart of Times Square, the new location will welcome more than 300,000 passersby daily.
The new SKECHERS flagship store in Times Square (Photo: Business Wire)
“This amazing new store is a perfect reflection of our brand’s incredible year,” said Michael Greenberg, president of SKECHERS. “We recently announced our biggest quarter ever, during which our Company-owned store sales increased by more than 20 percent in the third quarter of 2015 as compared to the same period last year. SKECHERS now has more than 1,210 stores worldwide, with more than 500 being Company-owned, and we will continue to expand our retail network to satisfy the increasing number of consumers who are demanding our product.”
Greenberg continued: “As an international brand, we felt we could increase the Company’s success and growth with two SKECHERS retail locations in Times Square – one of the highest-traffic destinations on the planet. This store is a terrific opportunity to double our presence among the hundreds of thousands of tourists and residents who visit this iconic New York destination every day.”
Generously sized with a 2453-square-foot sales floor, the store will be the first of its kind, pairing SKECHERS’ iconic colorful branding with a sleek, modern look. The new modern design includes black granite tiled floors, large-scaled graphics, state-of-the-art audio/video presentations and LED-lit shelves, fixtures and storefront displays. The store will also offer mobile pay options, enabling customers to purchase product throughout the store. And shoppers will find a SKECHERS Performance shop and SKECHERS Kids fun zone as well as a showcase of the full SKECHERS assortment of lifestyle and performance footwear for men, women and children, apparel and accessories.
In addition to SKECHERS’ New York destinations on 5th Avenue and 34th Street, the Company’s retail stores are located in prime tourist locations worldwide, such as Los Angeles’ Hollywood & Highland and Universal CityWalk; San Francisco’s Powell Street; Belfast; Tokyo; Shanghai; and dozens of cities around the world. Currently the second largest athletic footwear company and the #1 kids brand in the world, SKECHERS owns and operates more than 500 retail stores in the United States, Canada, Europe and Asia, with a total store count surpassing 1,210 destinations worldwide.
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 1,210 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, advertising and marketing initiatives, and the expansion plans for the Company’s European Distribution Center. 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.
Jennifer Clay, 310-318-3100
by | Oct 22, 2015 | Press Release
Oct 22, 2015 • 4:05 pm EDT
Record Net Sales of $856.2 Million, an Increase of 27.0 Percent
Earnings from Operations of $95.6 Million
Net Earnings of $66.6 Million
Diluted Earnings per Share of $0.43
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 third quarter ended September 30, 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.
Third quarter 2015 net sales were $856.2 million compared to $674.3 million for the third quarter of 2014. Gross profit for the third quarter of 2015 was $387.0 million or 45.2 percent of net sales compared to $304.5 million or 45.2 percent of net sales for the third quarter of last year. Earnings from operations for the third quarter of 2015 were $95.6 million as compared to earnings from operations of $74.1 million in the third quarter of 2014.
“With product and marketing initiatives that continue to resonate with our consumers worldwide, we achieved a new quarterly sales record of $856.2 million in the third quarter of 2015. These results followed record first and second quarter revenues, resulting in a 34.1 percent net sales increase for the first nine months of 2015 as compared to the same period last year,” began David Weinberg, chief operating officer and chief financial officer. “Driving the quarterly revenue were net sales increases of 11.8 percent in our domestic wholesale business, 52.9 percent in our international wholesale business, and 20.9 percent in our Company-owned global retail business, which includes a 10.4 percent increase in comparable sales for the quarter. Of note, the gains in our business came despite the impact of negative foreign currency exchange rates in Brazil, Canada and Chile, and a rather sluggish domestic retail environment where we still achieved an increase in average price per pair of 6.8 percent during the third quarter in our domestic wholesale business.”
Net earnings for the third quarter were $66.6 million compared to net earnings of $51.1 million in the third quarter of 2014, an increase of 30.3 percent. Diluted net earnings per share for the third quarter were $0.43 on 154.5 million weighted average shares outstanding, compared to diluted net earnings per share of $0.33 on 153.0 million weighted average shares outstanding for the third quarter of 2014. The Company’s diluted earnings per share for the third quarter of 2015 was negatively impacted by several factors including foreign currency translation and exchange losses of $13.5 million, and increased deferred rent expenses of $3.5 million related to the new Fifth Avenue Skechers retail store, which opened during the third quarter, and a second Skechers location in Times Square, which just opened. Additionally, during the third quarter of 2015 diluted earnings per share were impacted by increased legal expenses of $5.0 million related to the settlement of personal injury lawsuits from the Company’s toning footwear business; and $5.9 million in higher legal fees and associated costs primarily related to intellectual property litigation, which included the matter of Converse, Inc. v. Skechers U.S.A., Inc., which went to trial before the International Trade Commission in August of this year. The Company believes that most, if not all, of these legal matters will come to a conclusion by early next year. During the third quarter of 2015, these additional expenses reduced diluted earnings per share by $0.15.
For the nine months ended September 30, 2015, net sales were $2.425 billion compared to net sales of $1.808 billion in the first nine months of 2014. Gross profit for the first nine months of 2015 was $1.094 billion or 45.1 percent of net sales, compared to $814.3 million or 45.0 percent of net sales for the first nine months of 2014. Earnings from operations for the first nine months of 2015 were $296.1 million, compared to earnings from operations of $176.1 million in the first nine months of 2014.
Net earnings for first nine months of 2015 were $202.5 million compared to net earnings of $116.9 million in the same period last year, an increase of 73.2 percent. Diluted net earnings per share in the first nine months of 2015 was $1.31 per share on 154.1 million weighted average shares, compared to net earnings per share of $0.77 per share on 152.7 million weighted average shares for the same period last year. As of September 30, 2015, the Company’s backlog increased 28 percent as compared to September 30, 2014.
Robert Greenberg, SKECHERS chief executive officer, commented: “The continued quarterly sales records, including our highestquarterly sales in the Company’s 23-year history in the third quarter, is a testament to the strength of our brand and the innovative product we continue to develop and deliver. We are pleased that Skechers has grown to be the second largest athletic footwear brand in the United States, and that we are expanding into new doors and opening more Company-owned stores in key locations, including a Skechers store on Fifth Avenue in New York and our second in Times Square. At the close of the quarter, there were 1,210 Skechers stores worldwide, including just over 830 outside the United States. The Company continued its positive sales trend in the third quarter with double-digit gains in our international subsidiary, distributor and joint venture operations, including a triple-digit increase in China. To build our brand during the period, we aired numerous commercials for kids with our animated characters, as well as a new Sugar Ray Leonard Skechers Sport spot, a BOBS from Skechers spot featuring the No. 1 song ‘Riptide’ from Vance Joy, and our Demi Lovato commercial during the excitement over her new single ‘Cool for the Summer,’ among others. Also in the quarter, we signed pop singer Meghan Trainor as our latest global ambassador, and entered a multi-year agreement for the title sponsorship of the Los Angeles Marathon under the Skechers Performance Division. We are looking forward to the holiday season with new commercials starring Demi Lovato, Brooke Burke-Charvet and Kelly Brook, as well as several new Skechers Kids spots. Our marketing and product are on target, and we are continuing to invest in our infrastructure and develop new product innovations to advance our brand and drive momentum around the globe. We believe that this positive momentum will continue to grow across our three main business channels in 2016. We continue to invest in our global business to further gain market share and monetize what we see as a significant long-term opportunity for Skechers.”
Mr. Weinberg added: “Though we believe the sluggish macro domestic retail environment and declining currency in several key markets had an impact on our net sales, the third quarter was still a sales record. We are continuing our retail expansion and plan to open an additional 12 to 17 Company-owned Skechers stores before the end of the year, in addition to the five that have already during October 2015. Along with the 12 Skechers stores already opened through our international distributor and franchise partners this month, another 45 to 55 Skechers stores are also planned through the remainder of the year—which will bring us to more than 1,280 stores by year-end. Given our double digit retail comps, increase in backlogs of approximately 28 percent and market share gains, we believe consumer demand remains strong for our footwear categories worldwide. With the improved efficiencies in our distribution centers and our solid financial position, including, $510.7 million in cash and cash equivalents, the Company is well positioned for continued growth. While we are comfortable with the analysts’ current consensus for fourth quarter revenue and earnings, we see the significant potential in the first quarter of 2016 and the entire year by investing in our product, marketing and infrastructure.”
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, advertising and marketing initiatives, and the conclusion of legal matters. 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 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 U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
September 30,
2015
|
|
December 31,
2014
|
| ASSETS |
|
|
|
| Current Assets: |
|
|
|
| Cash and cash equivalents |
$ |
510,679 |
|
$ |
466,685 |
| Trade accounts receivable, net |
|
396,428 |
|
|
272,103 |
| Other receivables |
|
15,642 |
|
|
16,510 |
| Total receivables |
|
412,070 |
|
|
288,613 |
| Inventories |
|
500,201 |
|
|
453,837 |
| Prepaid expenses and other current assets |
|
70,865 |
|
|
57,015 |
| Deferred tax assets |
|
18,866 |
|
|
18,864 |
| Total current assets |
|
1,512,681 |
|
|
1,285,014 |
| Property, plant and equipment, net |
|
388,842 |
|
|
373,183 |
| Other assets |
|
39,131 |
|
|
16,721 |
| Total non-current assets |
|
427,973 |
|
|
389,904 |
| TOTAL ASSETS |
$ |
1,940,654 |
|
$ |
1,674,918 |
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
| Current Liabilities: |
|
|
|
| Current installments of long-term borrowings |
$ |
30,565 |
|
$ |
101,407 |
| Accounts payable |
|
407,612 |
|
|
352,815 |
| Short-term borrowings |
|
57 |
|
|
1,810 |
| Accrued expenses |
|
79,881 |
|
|
49,705 |
| Total current liabilities |
|
518,115 |
|
|
505,737 |
| Long-term borrowings, net of current installments |
|
70,147 |
|
|
15,081 |
| Other long-term liabilities |
|
26,901 |
|
|
19,993 |
| Total non-current liabilities |
|
97,048 |
|
|
35,074 |
| Total liabilities |
|
615,163 |
|
|
540,811 |
| Stockholders’ equity: |
|
|
|
| Skechers U.S.A., Inc. equity |
|
1,285,468 |
|
|
1,075,249 |
| Noncontrolling interests |
|
40,023 |
|
|
58,858 |
| Total equity |
|
1,325,491 |
|
|
1,134,107 |
| TOTAL LIABILITIES AND EQUITY |
$ |
1,940,654 |
|
$ |
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 September 30, |
|
Nine Months Ended September 30, |
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
| Net sales |
$ |
856,179 |
|
$ |
674,270 |
|
|
$ |
2,424,640 |
|
$ |
1,807,839 |
|
| Cost of sales |
|
469,173 |
|
|
369,772 |
|
|
|
1,330,486 |
|
|
993,563 |
|
| Gross profit |
|
387,006 |
|
|
304,498 |
|
|
|
1,094,154 |
|
|
814,276 |
|
| Royalty income |
|
2,312 |
|
|
2,070 |
|
|
|
7,824 |
|
|
6,928 |
|
|
|
389,318 |
|
|
306,568 |
|
|
|
1,101,978 |
|
|
821,204 |
|
| Operating expenses: |
|
|
|
|
|
| Selling |
|
63,685 |
|
|
50,239 |
|
|
|
177,652 |
|
|
140,820 |
|
| General and administrative |
|
230,048 |
|
|
182,186 |
|
|
|
628,210 |
|
|
504,325 |
|
|
|
293,733 |
|
|
232,425 |
|
|
|
805,862 |
|
|
645,145 |
|
| Earnings from operations |
|
95,585 |
|
|
74,143 |
|
|
|
296,116 |
|
|
176,059 |
|
| Other income (expense): |
|
|
|
|
|
| Interest, net |
|
(2,503 |
) |
|
(2,484 |
) |
|
|
(8,037 |
) |
|
(8,536 |
) |
| Other, net |
|
(3,409 |
) |
|
(3,898 |
) |
|
|
(5,180 |
) |
|
(4,832 |
) |
|
|
(5,912 |
) |
|
(6,382 |
) |
|
|
(13,217 |
) |
|
(13,368 |
) |
| Earnings before income tax expense |
|
89,673 |
|
|
67,761 |
|
|
|
282,899 |
|
|
162,691 |
|
| Income tax expense |
|
15,839 |
|
|
12,682 |
|
|
|
60,342 |
|
|
36,351 |
|
| Net earnings |
|
73,834 |
|
|
55,079 |
|
|
|
222,557 |
|
|
126,340 |
|
| Less: Net earnings attributable to noncontrolling interests |
|
7,232 |
|
|
3,956 |
|
|
|
20,093 |
|
|
9,450 |
|
| Net earnings attributable to Skechers U.S.A., Inc. |
$ |
66,602 |
|
$ |
51,123 |
|
|
$ |
202,464 |
|
$ |
116,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
| Basic |
$ |
0.44 |
|
$ |
0.34 |
|
|
$ |
1.33 |
|
$ |
0.77 |
|
| Diluted |
$ |
0.43 |
|
$ |
0.33 |
|
|
$ |
1.31 |
|
$ |
0.77 |
|
|
|
|
|
|
|
| Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
| Basic |
|
152,895 |
|
|
151,882 |
|
|
|
152,677 |
|
|
151,753 |
|
| Diluted |
|
154,477 |
|
|
152,954 |
|
|
|
154,073 |
|
|
152,746 |
|
SKECHERS USA, Inc.
David Weinberg
Chief Operating Officer,
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Addo Communications, Inc.
Andrew Greenebaum, (310) 829-5400