by | Nov 4, 2014 | Press Release
Nov 4, 2014 • 9:00 am EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE: SKX) 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 18, 2014, at 10:55 AM ET at the Crown Plaza Times Square in New York, NY.
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 will be accessible on the site for 90 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 via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the Company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
SKECHERS USA, Inc.
David Weinberg, 310-318-3100
Chief Operating Officer/
Chief Financial Officer
or
Addo Communications
Investor Relations:
Andrew Greenebaum, 310-829-5400
by | Oct 29, 2014 | Press Release
Oct 29, 2014 • 8:15 am EDT
Skechers Performance Elite Athletes, Meb and Kara Goucher, Debut as the Face of the New York Campaign that Highlights the Upcoming Launch of Skechers GOrun 4
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Skechers Performance Division announces today the release of a New York inspired advertising campaign and product line to celebrate the upcoming marathon in New York City on November 2, 2014. The advertising campaign highlights the new spring 2015 GOrun 4 shoe and supports the division’s key athletes competing in the race, Meb Keflezighi and Kara Goucher. The launch coincides with the release of the NYC 2014 limited-edition footwear and apparel collection.
Inspired by Manhattan’s cityscape, the campaign pays homage to the Big Apple’s iconic skyline with a large-scale graphic that is featured on the apparel line, print, outdoor and digital advertising, as well as throughout Skechers Performance Division’s on-site activation at the TCS New York City Marathon Health and Fitness Expo. The campaign also includes the hashtag, #haveafastday, to support all runners competing in the marathon.
“Our elite athletes–Meb and Kara Goucher–will be racing in the New York Marathon in Skechers GOmeb Speed 3 footwear, and appearing in their first Skechers Performance campaign together,” began Michael Greenberg, president of SKECHERS. “With an amazing win at the Boston Marathon earlier this year for Meb and a cover-story worthy comeback for Kara, we are proud to recognize their return to New York with our comprehensive city-wide campaign. These two leading marathoners continue to bring great recognition to our award-winning Skechers Performance Division and we’re excited for the world to see them on November 2.”
The limited-edition New York footwear line in orange, gray and black, includes a selection from the Skechers GO line and will offer marathon runners and spectators a first chance to purchase the highly anticipated GOmeb Speed 3—the same shoe that both Meb and Kara Goucher race in and the shoe that took Meb to his Boston win earlier this year. There will also be limited pairs of the new Skechers GOrun 4 available in a similar colorway. Skechers Performance will also have limited-edition GOrun Ride 4 and GOwalk 2 products to round out the NYC 2014 limited-edition line.
Several pieces from the limited-edition apparel line also feature the city’s iconic skyline printed in large scale in the orange, gray and black colorway. The limited-edition New York line includes technical running apparel, including a tech singlet that matches Meb’s racing kit and casual athletic wear ranging from a sweatshirt to lightweight windbreaker, to headwear.
The footwear and apparel collection for men and women will be available for purchase at the Skechers Performance Division Booth (#417) at the TCS New York City Marathon Health and Fitness Expo, Thursday, October 30th – Saturday November 1st, at the Jacob K. Javits Convention Center, Hall 3E. This expo is free and open to the public. The line will also be available for purchase in select SKECHERS retail locations—Times Square, Midtown and SoHo and the footwear will be available for a limited time on skechers.com.
Additionally, Skechers Performance Division will host several activities at the booth including: photos with life-size cutouts of Meb and Kara Goucher, a premium gift with purchase, raffle of Kara Goucher’s race day shoe, giveaways to support runners along the course such as #haveafastday cheer signs and cowbells, as well as #haveafastday stickers that can be personalized with runner’s goals or their fastest time, and placed on the Skechers Performance booth “graffiti wall.” SKECHERS’ three Manhattan retail locations will also host an in-store contest to win a pair of the limited-edition running shoes.
A book signing with Meb and additional activities will be announced via Skechers Performance Division’s social channels.
Learn more about Skechers Performance Division at SkechersGOrun.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. (NYSE: SKX), based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name. SKECHERS footwear is available in the United States via department and specialty stores, company-owned SKECHERS retail stores and its e-commerce website, and over 100 countries and territories through the company’s global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan and across Europe, as well as through joint ventures in Asia. For more information, please visit www.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 opportunities, its planned opening of new stores, advertising and marketing initiatives, and the expansion and automation 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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; consumer preferences and rapid changes in technology in 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, 2013 and its quarterly report on Form 10-Q for the three months ended June 30, 2014. 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 x4839
[email protected]
by | Oct 28, 2014 | Press Release
Oct 28, 2014 • 3:59 pm EDT
Ellen K, Brooke Burke-Charvet and Tommy Lasorda joined presenting sponsor Nickelodeon to support children with special needs and education
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– The SKECHERS Foundation today announced that the 2014 SKECHERS Pier to Pier Friendship Walk broke records and raised over $1.1 million for children with special needs and education. Co-sponsored by Nickelodeon, the Walk was the largest to date – with more than 11,000 participants rallied by celebrity supporters Ellen K, Brooke Burke-Charvet and Tommy Lasorda.
Millie Thrasher, Celine Polenghi, Summer Reign, Ellen K, Kelly Brook, Michael Greenberg, Brooke Burke-Charvet, Robert Greenberg and Tommy Lasorda attend the SKECHERS Pier to Pier Friendship Walk on October 26, 2014 in Manhattan Beach,California (Desert Rose Photography)
“It’s my fourth time at the Walk, and every year it’s incredible to see thousands of parents, neighbors and friends gathering for our kids,” said Brooke Burke-Charvet, who attended the Walk with husband David Charvet and their four children. “Of all my experiences with SKECHERS, this is one of the most inspiring. This day really makes me feel like we can all turn our hopes and dreams for our kids’ futures into a reality.”
This year’s event also marked the launch of the SKECHERS Foundation’s scholarship program; at the Walk, SKECHERS president Michael Greenberg announced that they are planning to donate more than $250,000 to deserving students across the country in 2015. The SKECHERS Pier to Pier Friendship Walk and sponsor Steel Sports also successfully teamed up for the event’s first-ever #P2PSteelSports Selfie Challenge, which pledged $5 donated to the Walk for each photo posted on Instagram, Facebook or Twitter with the #P2PSteelSports hashtag. The challenge raised an additional $25,000 for The Friendship Circle and education foundations this year, and last year Steel Partners was integral in the Walk reaching the $1 million donation milestone.
“The #P2PSteelSports Selfie Challenge was a great incentive to involve kids and teenagers in a way that’s familiar to them,” said Warren Lichtenstein, chairman and CEO of Steel Partners LLC. “Now we have lasting memories from the Walk that can be shared across social media platforms, and we raised even more money to support children with special needs and education.”
“As a father and a friend, I firmly believe that every child deserves to live his or her life to the fullest, regardless of circumstance. And I’m thrilled to see that our kids now have more opportunities to learn, thrive and make lifelong friendships because of this event,” added Michael Greenberg. “Organizations like The Friendship Circle, which transforms the lives of children with special needs, and nurtures their friendships with teen volunteers – these kinds of memories last a lifetime. The extent of all their activities – from the programs at school, at home, fieldtrips to sporting events, and across the community – they’re unparalleled. They’re giving these wonderful children a strong sense of self-worth and belonging that has been long needed.”
Mr. Greenberg continued: “Supporting The Friendship Circle and directly funding much-needed education programs sends a clear message – we’re all committed to investing in our most important and beloved asset: our children. And with this largest-ever donation to date, I’m thankful and thrilled by all the great ways that we’ll be able to support The Friendship Circle and our schools in the coming years.”
Many celebrities turned out to support the SKECHERS Pier to Pier Friendship Walk including Ellen K of the globally syndicated On Air with Ryan Seacrest radio show; Brooke Burke-Charvet, actress, model and long-time supporter of SKECHERS; Hall of Fame baseball manager Tommy Lasorda, a member of the Pier to Pier Walk’s Board of Directors who has appeared every year of the Walk’s history; and The X-Factor Season 3 trio Sweet Suspense, who made their first appearance at the Walk to perform the national anthem.
Now the largest event supporting children with special needs and education, the SKECHERS Pier to Pier Friendship Walk has broken fundraising records every year since its 2009 launch. The Walk has raised more than $4 million to support The Friendship Circle, an organization that assists children with special needs and their families through one-on-one peer mentoring and social recreational programming – as well as funding education foundations to retain vital academic programs, maintain smaller class sizes, improve libraries, and upgrade school technology.
The SKECHERS Pier to Pier Friendship Walk thanks presenting sponsor Nickelodeon and many generous sponsors including Steel Sports, The Claudette and Ethan Rickett Care Foundation, Wells Fargo, Shorewood Realtors, Ross, Zappos.com, DIRECTV, Body Glove, Amazon Fashion, Kids Foot Locker, United Legwear, JAKKS Pacific, Marshalls, Cushman & Wakefield, Caskey & Caskey, Siltanen & Partners Advertising, Continental Development, Northrop Grumman, Equinox, Michael Stars, Chevron, and many others who have contributed funds and support to provide a better future for children. To learn more about the SKECHERS Pier to Pier Friendship Walk, please visit skechersfriendshipwalk.com or facebook.com/SKECHERSFriendshipWalk.
ABOUT SKECHERS Foundation
The SKECHERS Foundation was established to provide families around the world with the necessities and skills to succeed in life. In addition to organizing the SKECHERS Pier to Pier Friendship Walk, the SKECHERS Foundation funds tax-exempt, 501(c)(3) nonprofit organizations that provide education and job training, shoes, clothing, fitness and nutrition guidance to communities in need.
ABOUT The Friendship Circle
The Friendship Circle is a non-profit organization that assists children with special needs and their families through one-on-one peer mentoring and social recreational programming (www.gotfriends.com).
About SKECHERS USA, Inc.
SKECHERS USA, Inc. (NYSE:SKX), based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the Company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world. 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, backlogs and its development of new products, future demand for its products and growth opportunities, its planned opening of new stores, advertising and marketing initiatives, and the expansion and automation 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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; 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, 2013, and its Form 10-Q for the quarter ended June 30, 2014. 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.
Stacey Held, 310.318.3100
by | Oct 27, 2014 | Press Release
Oct 27, 2014 • 9:30 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry, today announced that it has been named 2014 Company of the Year by the leading trade publication Footwear News in its annual FN Achievement Awards. This prestigious honor follows Footwear News naming Skechers GO as Brand of the Year at the awards in 2013.
“We are truly honored to be named Company of the Year by Footwear News. When SKECHERS first won this top award in 1998, we felt the Company was in an incredible position with great growth potential as a leader in the lifestyle footwear world,” began Michael Greenberg, president of SKECHERS. “That proved to be true, but 16 years later SKECHERS is a different brand and company. We have redefined our brand with innovative lines that make comfort stylish, and our global sales driven by our in-demand footwear—coupled with this Company of the Year recognition—is a testament to the entire organization that has made this happen, as well as our supportive partners around the world.”
“SKECHERS continues to demonstrate complete mastery of the marketplace by offering the right product at the right price at the right time,” said Michael Atmore, Editorial Director, Footwear News. “A strong management team and powerful numbers reflect a tightly run organization that knows how to mine every opportunity in a rapidly changing retail environment.”
“With three consecutive record quarters, SKECHERS is on track to reach a new annual revenue record for 2014. This is due to our diverse product offering and on-target marketing that has lead to growth in our domestic and international wholesale businesses plus our Company-owned retail business,” said Robert Greenberg, CEO of SKECHERS. “We are designing the most innovative collection of footwear in the Company’s history. We have a respected and recognized group of celebrities that are now supporting our brand – from sports legends like Joe Namath and Meb Keflizighi, to music powerhouses like Demi Lovato and Ringo Starr, among others. We are proud of all that we have achieved, but we believe this is just the beginning. We won’t be resting on the laurels of this success as we plan to continue running full throttle across the board to make 2015 our best year ever.”
SKECHERS offers two distinct footwear categories: a lifestyle division which offers comfort-focused trend-right product for men, women and kids including Relaxed Fit®, Skechers Memory Foam footwear and the philanthropic line BOBS from SKECHERS, and the Skechers Performance Division which includes Skechers GOrun and Skechers GOwalk footwear.
Celebrity product endorsees for SKECHERS’ collections include legendary drummer Ringo Starr, multi-platinum recording artist Demi Lovato, model and actress Kelly Brook, TV personality Brooke Burke-Charvet, legendary quarterbacks Joe Montana and Joe Namath, baseball stars Pete Rose and Mariano Rivera, as well as The Voice winner Danielle Bradbery. In addition, elite marathon champion and Boston Marathon winner Meb Keflezighi, elite runner Kara Goucher, and pro golfer Matt Kuchar represent the Skechers Performance Division.
About SKECHERS USA, Inc.
SKECHERS USA, Inc. (NYSE:SKX), based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the Company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world. 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, backlogs and its development of new products, future demand for its products and growth opportunities, its planned opening of new stores, advertising and marketing initiatives, and the expansion and automation 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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; 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, 2013, and its Form 10-Q for the quarter ended June 30, 2014. 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 | Oct 22, 2014 | Press Release
Oct 22, 2014 • 4:00 pm EDT
Record Net Sales of $674.3 Million
Earnings from Operations of $74.1 Million
Diluted Earnings per Share of $1.00
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the third quarter ended September 30, 2014.
Third quarter 2014 net sales were $674.3 million compared to $515.8 million for the third quarter of 2013. Gross profit for the third quarter of 2014 was $304.5 million or 45.2 percent of net sales compared to $230.5 million or 44.7 percent of net sales for the third quarter of last year. Earnings from operations for the third quarter of 2014 were $74.1 million versus earnings from operations of $44.0 million in the third quarter of 2013.
“With product and marketing initiatives that continue to resonate with our consumers worldwide, we achieved a 30.7 percent net sales increase over the third quarter last year, and the highestquarterly revenues in the Company’s 22-year history. These results followed record first and second quarter revenues, resulting in a 29.5 percent net sales increase for the first nine months of 2014 as compared to the same period last year,” began David Weinberg, chief operating officer and chief financial officer. “The growth in the quarterly revenue came across our three key distribution channels —we achieved net sales increases of 18.5 percent in our domestic wholesale business, 60.6 percent in our international wholesale business, and 25.0 percent in our Company-owned global retail business, which included an 11.0 percent increase in comparable net sales for the quarter on top of a double-digit increase last year in comparison to the third quarter in 2012.”
Net earnings for the third quarter were $51.1 million compared to net earnings of $26.8 million in the third quarter of 2013. Diluted net earnings per share for the third quarter were $1.00 on 50,984,000 weighted average shares outstanding, compared to diluted net earnings per share of $0.53 on 50,604,000 weighted average shares outstanding for the third quarter of 2013. The Company’s diluted EPS for the third quarter of 2014 was negatively impacted by foreign currency exchange losses of $2.3 million net of tax or $0.05 per diluted share, as well as a $3.8 million net of tax or $0.08 per diluted share attributable to warehousing costs related to completing the first phase of the automation upgrade of the Company’s European Distribution Facility and transitioning from a third-party warehouse to a Company-owned facility in Chile. In total, these expenses reduced diluted EPS by $0.13 during the third quarter of 2014.
For the nine months ended September 30, 2014, net sales were $1.808 billion compared to net sales of $1.396 billion in the first nine months of 2013. Gross profit for the first nine months of 2014 was $814.3 million or 45.0 percent of net sales, compared to $618.1 million or 44.3 percent of net sales for the first nine months of 2013. Earnings from operations for the first nine months of 2014 were $176.1 million, compared to earnings from operations of $76.5 million in the first nine months of 2013. As of September 30, 2014, the Company’s backlog increased more than 50 percent as compared to its backlog of September 30, 2013.
Net earnings for first nine months of 2014 were $116.9 million compared to net earnings of $40.6 million in the same period last year. Diluted net earnings per share in the first nine months of 2014 was $2.30 per share on 50,915,000 weighted average shares, compared to net earnings per share of $0.80 per share on 50,532,000 weighted average shares for the same period last year.
Robert Greenberg, SKECHERS chief executive officer, commented: “We are extremely proud of our three consecutive quarters of record revenues and increasing sales around the world. Our product focus is on target and we are providing consumers of all ages what they want—from both a fashion and comfort standpoint. Importantly, we are also engaging with our wide demographic by creating marketing that speaks to Gen X, Y, Z as well as the baby boomers. We have achieved this by developing marketing campaigns as diverse as animated characters for kids, to legendary sports figures such as Pete Rose and Joe Namath for the older male, and Brooke Burke-Charvet for moms. Further, in the third quarter we signed multi-platinum recording artist Demi Lovato, who speaks to millions of teens every day through her social media platforms, and recently retired New York Yankees closer Mariano Rivera to reach the younger male consumer. To broaden our reach with men around the globe, we recently announced the signing of the world’s most famous drummer, Ringo Starr, who we believe will have a positive impact on our men’s business in 2015. We believe our success is an opportunity to further capitalize on our strength. We are continuing to invest in product, marketing and infrastructure to advance our brand and drive momentum around the globe. We are looking forward to the holiday season and the breaking of the Demi Lovato television campaign, and Spring 2015 when we will have several new key lines launching in both the lifestyle sport and performance running and walking categories. Based on feedback from our domestic and international accounts, we are confident the momentum will continue into next year.”
Mr. Weinberg continued: “The continuous record revenue quarters in 2014 and the strong growth in all of our key business segments is evidence of the relevancy and demand for Skechers footwear worldwide. The more than 50 percent increase in our backlogs at the end of September and the strong sales during the first few weeks of October give us confidence that the momentum we are experiencing now will continue for the remainder of the year and into 2015. We are continuing our retail expansion and plan to open an additional 10 to 15 Company-owned Skechers stores before the end of the year, in addition to the 22 that opened in the third quarter and the five that have already opened this month. We also plan to open another 35 to 45 Skechers stores through our international distributor and franchise partners before the end of the year—which will bring us to the 1,000 store milestone. We are also improving our international efficiencies with the opening of a new distribution facility in Chile in the third quarter and the completion of phase one of the automation of our European Distribution Center in Belgium in the fourth quarter. With our relevant product and advertising, market share gain, and solid financial position, including, $440.8 million in cash, the Company is well positioned for continued growth. Though the fourth quarter is historically our smallest sales quarter for our international division, we remain comfortable with the analysts’ current consensus for both revenue and earnings. Given the strength of our backlogs for the first quarter of 2015, we anticipate top-line growth to be 15 to 20 percent.”
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 via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the Company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world. For more information, please visit www.skechers.com, and follow us on Facebook (www.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, backlogs and future demand for its products and growth opportunities, its planned opening of new stores, advertising and marketing initiatives, and the expansion and automation 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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; 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, 2013, and its Form 10-Q for the quarter ended June 30, 2014. 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,
2014
|
|
December 31,
2013
|
| ASSETS |
|
|
|
| Current Assets: |
|
|
|
| Cash and cash equivalents |
$ |
440,790 |
|
$ |
372,011 |
| Trade accounts receivable, net |
|
333,531 |
|
|
225,941 |
| Other receivables |
|
12,862 |
|
|
10,599 |
| Total receivables |
|
346,393 |
|
|
236,540 |
| Inventories |
|
363,006 |
|
|
358,168 |
| Prepaid expenses and other current assets |
|
44,733 |
|
|
26,094 |
| Deferred tax assets |
|
22,115 |
|
|
22,115 |
| Total current assets |
|
1,217,037 |
|
|
1,014,928 |
| Property, plant and equipment, at cost, less accumulated depreciation and amortization |
|
371,445
|
|
|
361,755
|
| Goodwill and other intangible assets, less accumulated amortization |
|
1,677 |
|
|
2,377 |
| Deferred tax assets |
|
1,624 |
|
|
9,950 |
| Other assets, at cost |
|
17,554 |
|
|
19,560 |
| Total non-current assets |
|
392,300 |
|
|
393,642 |
| TOTAL ASSETS |
$ |
1,609,337 |
|
$ |
1,408,570 |
| LIABILITIES AND EQUITY |
|
|
|
| Current Liabilities: |
|
|
|
| Current installments of long-term borrowings |
$ |
12,314 |
|
$ |
12,028 |
| Short-term borrowings |
|
90 |
|
|
87 |
| Accounts payable |
|
311,736 |
|
|
258,183 |
| Accrued expenses |
|
51,118 |
|
|
40,124 |
| Total current liabilities |
|
375,258 |
|
|
310,422 |
| Long-term borrowings, net of current installments |
|
107,216 |
|
|
116,488 |
| Other long-term liabilities |
|
20,415 |
|
|
1,740 |
| Total non-current liabilities |
|
127,631 |
|
|
118,228 |
| Total liabilities |
|
502,889 |
|
|
428,650 |
| Stockholders’ equity: |
|
|
|
| Skechers U.S.A., Inc. equity |
|
1,050,705 |
|
|
930,322 |
| Noncontrolling interests |
|
55,743 |
|
|
49,598 |
| Total equity |
|
1,106,448 |
|
|
979,920 |
| TOTAL LIABILITIES AND EQUITY |
$ |
1,609,337 |
|
$ |
1,408,570 |
|
|
|
|
|
|
|
|
|
|
| SKECHERS U.S.A., INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| (In thousands, except per share data) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
| Net sales |
$ |
674,270 |
|
$ |
515,756 |
|
|
$ |
1,807,839 |
|
$ |
1,395,624 |
|
| Cost of sales |
|
369,772 |
|
|
285,235 |
|
|
|
993,563 |
|
|
777,477 |
|
| Gross profit |
|
304,498 |
|
|
230,521 |
|
|
|
814,276 |
|
|
618,147 |
|
| Royalty income |
|
2,070 |
|
|
1,649 |
|
|
|
6,928 |
|
|
4,844 |
|
|
|
306,568 |
|
|
232,170 |
|
|
|
821,204 |
|
|
622,991 |
|
| Operating expenses: |
|
|
|
|
|
| Selling |
|
50,239 |
|
|
40,211 |
|
|
|
140,820 |
|
|
119,995 |
|
| General and administrative |
|
182,186 |
|
|
147,916 |
|
|
|
504,325 |
|
|
426,450 |
|
|
|
232,425 |
|
|
188,127 |
|
|
|
645,145 |
|
|
546,445 |
|
| Income from operations |
|
74,143 |
|
|
44,043 |
|
|
|
176,059 |
|
|
76,546 |
|
| Other income (expense): |
|
|
|
|
|
| Interest, net |
|
(2,484 |
) |
|
(2,813 |
) |
|
|
(8,536 |
) |
|
(8,353 |
) |
| Other, net |
|
(3,898 |
) |
|
1,162 |
|
|
|
(4,832 |
) |
|
(2,456 |
) |
|
|
(6,382 |
) |
|
(1,651 |
) |
|
|
(13,368 |
) |
|
(10,809 |
) |
| Earnings before income tax expense |
|
67,761 |
|
|
42,392 |
|
|
|
162,691 |
|
|
65,737 |
|
| Income tax expense |
|
12,682 |
|
|
14,059 |
|
|
|
36,351 |
|
|
20,970 |
|
| Net earnings |
|
55,079 |
|
|
28,333 |
|
|
|
126,340 |
|
|
44,767 |
|
| Less: Net earnings attributable to noncontrolling interests |
|
3,956 |
|
|
1,484 |
|
|
|
9,450 |
|
|
4,144 |
|
| Net earnings attributable to Skechers U.S.A., Inc. |
$ |
51,123 |
|
$ |
26,849 |
|
|
$ |
116,890 |
|
$ |
40,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
| Basic |
$ |
1.01 |
|
$ |
0.53 |
|
|
$ |
2.31 |
|
$ |
0.81 |
|
| Diluted |
$ |
1.00 |
|
$ |
0.53 |
|
|
$ |
2.30 |
|
$ |
0.80 |
|
|
|
|
|
|
|
| Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
| Basic |
|
50,627 |
|
|
50,393 |
|
|
|
50,584 |
|
|
50,329 |
|
| Diluted |
|
50,984 |
|
|
50,604 |
|
|
|
50,915 |
|
|
50,532 |
|
Company Contact:
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
by | Oct 20, 2014 | Press Release
Oct 20, 2014 • 9:00 am EDT
Legendary Drummer and Recording Artist Turned Style Icon Set to Appear in Relaxed Fit® Footwear Campaign
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– The world’s most famous drummer—Ringo Starr—will be bringing his legendary talents and style to SKECHERS where he’s set to appear in the footwear company’s global marketing campaign for SKECHERS Relaxed Fit footwear. The new multimedia campaign featuring Ringo will begin in Spring 2015.
Ringo Starr (Image courtesy of Rob Shanahan)
Ringo’s campaign will kick off with a new television spot that follows the humorous tone that has become a signature of the Relaxed Fit footwear commercials. Up until now, the series has focused on celebrities from the sports world including Joe Montana, Mark Cuban, Joe Namath, Pete Rose, as well as Mariano Rivera in ads coming early next year. The campaign starring Ringo Starr will extend across all media with the musician also appearing in print, outdoor, online and point-of-sale materials through June 2016.
“We are incredibly excited to be working with such an amazing world-renowned artist as Ringo Starr,” said Michael Greenberg, president of SKECHERS. “Ringo possesses the charm, cool charisma and instant global recognition that will elevate awareness for our popular Relaxed Fit footwear collection both in the United States and especially around the world. And his recent modeling gig with a high-end designer shows Ringo is not only a music icon, but also a style icon. As we move from the sports world to the music world with this campaign, Ringo is the perfect ambassador to illustrate how our comfortable footwear helps keep you relaxed in any situation.”
After more than a half century in the music industry, Ringo has released 17 solo albums and continues to tour the globe with his All Starr Band. Beyond his acclaim in the recording industry, this year the artist released a children’s book—Octopus’s Garden—adapted from the whimsical song he wrote 46 years ago. Ringo is also known for his philanthropy and his involvement with the anti-violence #peacerocks campaign through the David Lynch Foundation being one recent example that led to his winning at the GQ Men of the Year Awards for his humanitarian work.
Relaxed Fit from SKECHERS footwear offers fashionable appeal with a spacious design that features a roomier fit, a unique Skechers Memory Foam footbed and instant comfort. The men’s footwear line is available in SKECHERS retail stores as well as department and footwear stores worldwide.
ABOUT RINGO STARR
In January 2014, Ringo Starr’s musical legacy was celebrated when The David Lynch Foundation honored him with the ‘Lifetime of Peace & Love Award.’ The event included star-studded tributes to Ringo’s extensive catalog that was broadcast on AXS July 13, 2014. Participating artists included Joe Walsh, Ben Harper, Ben Folds, Brendan Benson, Bettye LaVette, The Head & The Heart and Jesse Elliot and Lindsey McWilliams of Ark Life, with an equally stellar backing band featuring Don Was, Benmont Tench, Peter Frampton, Steve Lukather and Kenny Arnoff.
Also in January, Ringo performed his song “Photograph” on the GRAMMYS, by him jumping on the kit during his old band mate, Paul McCartney’s performance. Ringo & Paul then performed together again the following evening, this time playing several songs for the Emmy Award-nominated taping of CBS’ “The Beatles, A Grammy Salute; The Night That Changed America,” celebrating the 50th Anniversary of their first U.S. visit and appearance on the Ed Sullivan Show.
In February, “Octopus’s Garden,” a children’s book based on Ringo’s lyrics, was published. This book arrived on the heels of December’s PHOTOGRAPH limited-edition book, a personal collection of rare and previously unseen photographs.
About SKECHERS USA, Inc.
SKECHERS USA, Inc. (NYSE:SKX), based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and in over 100 countries and territories through the Company’s international network of subsidiaries in Canada, Brazil, Chile, Japan, and across Europe, as well as through joint ventures in Asia and distributors around the world. 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 opportunities, its planned opening of new stores, advertising and marketing initiatives, and the expansion and automation 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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; 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, 2013, and its Form 10-Q for the quarter ended June 30, 2014. 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
