by | May 15, 2013 | Press Release
May 15, 2013 • 4:00 pm EDT
- Net Sales Increase 28.6 Percent to $451.6 Million
- Earnings from Operations of $15.3 Million
- Net Earnings of $6.7 Million
- Diluted Earnings Per Share of $0.13
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in footwear, today announced financial results for the first quarter 2013. The Company’s newly appointed registered public accounting firm – BDO USA, LLP – has completed its review of the Company’s condensed consolidated financial statements for the quarter ended March 31, 2013 for inclusion in the filing of the corresponding Quarterly Report on Form 10-Q in accordance with Public Company Accounting Oversight Board (PCAOB) Statement on Auditing Standards AU 722, Interim Financial Information.
First quarter 2013 net sales were $451.6 million compared to $351.3 million in the first quarter of 2012.Gross profit for the first quarter of 2013 was $192.7 million or 42.7 percent of net sales compared to $155.7 million or 44.3 percent of net sales in the first quarter of last year. Earnings from operations for the first quarter of 2013 were $15.3 million versus a loss from operations of $4.4 million for the first quarter of 2012.
“We believe the first quarter 2013 sales increase of more than 28 percent over the same period last year is an indication of the increased demand for our brand and our diverse product offering, which now includes the growing Skechers Performance Division. Additional indicators of the strength of our business are the 47 percent increase in pairs sold in our domestic wholesale channel and the 12.2 percent increase in comparable sales in our domestic and international SKECHERS stores, which are the first to receive our new product,”stated David Weinberg, chief operating officer and chief financial officer. “Further, the sales growth was the result of double digit improvements in each of our business channels: domestic wholesale, international wholesale, company-owned retail stores, and e-commerce.”
Net earnings in the first quarter of 2013 were $6.7 million compared to a net loss of $3.7 million for the first quarter of 2012. Diluted net earnings per share were $0.13 based on 50,492,000 weighted average shares outstanding compared to a diluted loss per share of $0.07 based on 49,265,000 weighted average shares outstanding. It is important to note that the combination of two items negatively impacted earnings per share by $0.08 during the three month period ended March 31, 2013. First, a foreign currency translation pre-tax loss of $3.0 million occurred when the Company’s short-term intercompany investments in its foreign subsidiaries were translated into U.S. dollars. Also during the first quarter, the Company agreed to a pre-tax $2.5 million credit to an account that had purchased a significant portion of its excess toning inventory in 2011. The Company determined this was appropriate due to various issues relating to market conditions, pricing and the amount of toning inventory in the market place.
Robert Greenberg, SKECHERS chief executive officer, commented: “SKECHERS’ strong sales are the result of the efforts of the many talented individuals from all sides of our business – product, marketing, sales, retail, international and logistics. Each year we strive to bring more innovation to our product offering, and be more efficient in delivering it to the right partners around the world. I believe that now, more than ever before, we have a well-balanced collection of product with relevant styles in each of our 15 showrooms. We offer consumers choices unlike any other footwear company: we are an award-winning performance brand, an in-demand kids brand, a brand for occupational service professionals, and a lifestyle brand with winter boots, summer sandals, memory foam sneakers and everyday casuals. Our consistent marketing efforts also sets us apart and drives sales. Along with a much-talked about Super Bowl commercial for Skechers GOrun 2, we aired 17 unique commercials for Spring during the first quarter, and backed it up with print, online, outdoor and in-store campaigns. Many of these same campaigns are translated and air in countries around the world – from Japan to Germany, from Panama to Russia to support our growing international business. We see the success of these campaigns with dedicated SKECHERS window displays – from Australia to Spain, from Turkey to the U.K. And we see it in our account meetings in our corporate offices in Manhattan Beach and as we visit stores across the U.S. We believe the enthusiasm for our brand is stronger than ever, and based on the growth in each category, we believe this excitement is across our diverse product platform. We are looking forward to the coming back-to-school season and what we believe will be a strong year for SKECHERS.”
Mr. Weinberg continued: “We ended 2012 with a very positive quarter, and we have begun 2013 with another strong quarter. Our expenses and fresh inventory are in line with our current business. While our cash did decline from year end, we believe this is primarily a timing issue, and our cash balance is now over $350 million. With Easter falling in the first quarter (this year) and the potential for back-to-school deliveries shifting into the third quarter, we expect growth to be significantly stronger in the third quarter than in the second quarter 2013. Based on the strong acceptance of the brand and the current demand for our product, we believe we are well positioned for growth.”
SKECHERS USA, Inc., 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, as well as in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, 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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 2012. 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) |
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
March 31,
2013
|
|
December 31,
2012
|
| ASSETS |
|
|
|
|
| Current Assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
264,661 |
|
$ |
325,826 |
| Trade accounts receivable, net |
|
|
283,442 |
|
|
213,697 |
| Other receivables |
|
|
7,119 |
|
|
7,491 |
| Total receivables |
|
|
290,561 |
|
|
221,188 |
| Inventories |
|
|
253,659 |
|
|
339,012 |
| Prepaid expenses and other current assets |
|
|
26,646 |
|
|
27,755 |
| Deferred tax assets |
|
|
26,532 |
|
|
26,531 |
| Total current assets |
|
|
862,059 |
|
|
940,312 |
| Property, plant and equipment, at cost, less accumulated depreciation and amortization |
|
|
361,400
|
|
|
362,446
|
| Goodwill and other intangible assets, less applicable amortization |
|
|
3,016 |
|
|
3,242 |
| Deferred tax assets |
|
|
15,261 |
|
|
16,387 |
| Other assets, at cost |
|
|
20,316 |
|
|
17,833 |
| Total non-current assets |
|
|
399,993 |
|
|
399,908 |
| TOTAL ASSETS |
|
$ |
1,262,052 |
|
$ |
1,340,220 |
| LIABILITIES AND EQUITY |
|
|
|
|
| Current Liabilities: |
|
|
|
|
| Current installments of long-term borrowings |
|
$ |
11,754 |
|
$ |
11,668 |
| Short-term borrowings |
|
|
3,044 |
|
|
2,425 |
| Accounts payable |
|
|
162,024 |
|
|
241,525 |
| Accrued expenses |
|
|
30,455 |
|
|
36,923 |
| Total current liabilities |
|
|
207,277 |
|
|
292,541 |
| Long-term borrowings, excluding current installments |
|
|
125,545 |
|
|
128,517 |
| Deferred tax liabilities |
|
|
72 |
|
|
73 |
| Total non-current liabilities |
|
|
125,617 |
|
|
128,590 |
| Total liabilities |
|
|
332,894 |
|
|
421,131 |
| Stockholders’ equity: |
|
|
|
|
| Skechers U.S.A., Inc. equity |
|
|
883,093 |
|
|
875,969 |
| Noncontrolling interests |
|
|
46,065 |
|
|
43,120 |
| Total equity |
|
|
929,158 |
|
|
919,089 |
| TOTAL LIABILITIES AND EQUITY |
|
$ |
1,262,052 |
|
$ |
1,340,220 |
|
|
|
|
|
|
|
| SKECHERS U.S.A., INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| (In thousands, except per share data) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2013 |
|
2012 |
| Net sales |
|
$ |
451,621 |
|
|
$ |
351,274 |
|
| Cost of sales |
|
|
258,889 |
|
|
|
195,578 |
|
| Gross profit |
|
|
192,732 |
|
|
|
155,696 |
|
| Royalty income, net |
|
|
1,770 |
|
|
|
1,136 |
|
|
|
|
194,502 |
|
|
|
156,832 |
|
| Operating expenses: |
|
|
|
|
| Selling |
|
|
37,696 |
|
|
|
30,349 |
|
| General and administrative |
|
|
141,468 |
|
|
|
130,877 |
|
|
|
|
179,164 |
|
|
|
161,226 |
|
| Earnings (loss) from operations |
|
|
15,338 |
|
|
|
(4,394 |
) |
| Other income (expense): |
|
|
|
|
| Interest, net |
|
|
(2,549 |
) |
|
|
(2,721 |
) |
| Other, net |
|
|
(2,923 |
) |
|
|
(140 |
) |
| Total other income (expense) |
|
|
(5,472 |
) |
|
|
(2,861 |
) |
| Earnings (loss) before income tax expense (benefit) |
|
|
9,866 |
|
|
|
(7,255 |
) |
| Income tax expense (benefit) |
|
|
2,278 |
|
|
|
(3,845 |
) |
| Net earnings (loss) |
|
|
7,588 |
|
|
|
(3,410 |
) |
| Less: Net earnings attributable to noncontrolling interests |
|
|
908 |
|
|
|
256 |
|
| Net earnings (loss) attributable to Skechers U.S.A., Inc. |
|
$ |
6,680 |
|
|
$ |
(3,666 |
) |
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
| Basic |
|
$ |
0.13 |
|
|
$ |
(0.07 |
) |
| Diluted |
|
$ |
0.13 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
| Weighted average shares used in calculating earnings (loss) per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
| Basic |
|
|
50,295 |
|
|
|
49,265 |
|
| Diluted |
|
|
50,492 |
|
|
|
49,265 |
|
Company Contact:
SKECHERS USA, Inc.
David Weinberg
Chief Operating Officer
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Andrew Greenebaum
(310) 829-5400
by | May 9, 2013 | Press Release
May 9, 2013 • 4:33 pm EDT
- Announces Filing of Notice of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission on May 10, 2013
- Expects to File its Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2013 on May 15, 2013
- First Quarter 2013 Conference Call Scheduled for 1:30 p.m. PT / 4:30 p.m. ET May 15, 2013
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in footwear, today announced that it will file tomorrow, May 10, 2013, a Notification of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission with regard to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. The Company will file the Form 12b-25 in order to enable its newly appointed independent auditor, BDO USA, LLP, sufficient time to complete its review of the Company’s condensed consolidated financial statements for the quarter ended March 31, 2013 prior to the filing of the corresponding Form 10-Q in accordance with Public Company Accounting Oversight Board (PCAOB) Statement on Auditing Standards AU 722,Interim Financial Information.
The Company expects to file its Form 10-Q for the quarter ended March 31, 2013 with the SEC and to communicate its first quarter 2013 financial results after the financial markets close on Wednesday, May 15, 2013. A conference call is scheduled the same day at 1:30 p.m. PT / 4:30 p.m. ET. Participating in the call will be David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer.
The call can be accessed on the Investor Relations section of the Company’s website at www.skx.com. For those unable to participate during the live broadcast, a replay will be available beginning May 15, 2013, at 7:30 p.m. ET, through May 29, 2013, at 11:59 p.m. ET. To access the replay, dial 877-870-5176 (U.S.) or 858-384-5517 (International) and use passcode: 412019.
ABOUT SKECHERS USA, INC.
SKECHERS USA, Inc., 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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 2012. 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.
David Weinberg
Chief Operating Officer
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Andrew Greenebaum
(310) 829-5400
by | Apr 24, 2013 | Press Release
Apr 24, 2013 • 4:05 pm EDT
- Expects to File Its 10-Q on May 10
- Preliminary First Quarter 2013 Net Sales between $440 to $450 Million and EPS between $0.08 to $0.12
- Two one-time items negatively impacted EPS by $0.07
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), today announced that the Audit Committee of its Board of Directors has appointed BDO USA, LLP (“BDO”) as the Company’s independent auditors. BDO will commence work immediately with the re-audit of the Company’s financial statements for the fiscal years ended December 31, 2011 and 2012, as well as reviewing the financial statements for the first quarter of 2013. The appointment of BDO was made after an extensive evaluation process by the Company’s Audit Committee.
As previously announced, the change in auditors was the result of KPMG LLP’s (“KPMG”) resignation as Skechers’ independent auditors, due to the impairment of KPMG’s independence resulting from to its now former partner’s alleged unlawful activities. The resignation of KPMG was not related to Skechers’ financial statements, its accounting practices, the integrity of Skechers’ management, or for any other reason.
“Skechers’ focus during this transition period has been on finding new auditors, preparing to report our first quarter 2013 earnings, and managing our global footwear business,” began David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer. “With BDO now in place, we believe that they will efficiently audit the last two fiscal years of our consolidated financial statements and expertly handle our future audit needs.”
Mr. Weinberg continued: “We look forward to our first quarter earnings announcement and expect to report net sales between $440 million to $450 million versus first quarter 2012 net sales of $351.3 million, and earnings per share between $0.08 to $0.12. It is important to note that the combination of two one-time items which negatively impacted our earnings per share by $0.07. First, due to a stronger dollar when our short-term intercompany investments in our foreign subsidiaries were translated into U.S. dollars it resulted in a foreign currency translation loss of $3.0 million in our consolidated financial statements during the first quarter of 2013. In addition, during the first quarter we agreed to a $2.5 million credit to an account that had purchased a significant portion of our excess toning inventory in 2011. We determined this was appropriate due to various issues relating to market conditions, pricing and the amount of toning inventory in the market place.”
The Company also announced that it will schedule its conference call discussing financial results for the first quarter of 2013 on the same day that its quarterly report on Form 10-Q is filed. The Company expects to timely file its Form 10-Q for the first quarter of 2013 on May 10, 2013, or, if necessary, no later than May 15, 2013 with the required notice being filed in accordance with SEC rules. Participating on the call will be David Weinberg, Chief Operating Officer and Chief Financial Officer.
ABOUT SKECHERS USA, INC.
SKECHERS USA, Inc., 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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
ABOUT BDO USA, LLP
BDO is the brand name for BDO USA, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For more than 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. The firm serves clients through 45 offices and more than 400 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multi-national clients through a global network of 1,204 offices in 138 countries.
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.com.
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 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, 2012. 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
or
Investor Relations:
Andrew Greenebaum, (310) 829-5400
by | Apr 9, 2013 | Press Release
Apr 9, 2013 • 12:29 pm EDT
- SKECHERS Eager to Hire New Audit Firm as the Footwear Company Prepares to Announce Positive Q1 2013 Financial Results
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), today announced that KPMG, LLP resigned yesterday, April 8, 2013, as independent auditor of Skechers due to misconduct by KPMG’s lead Audit Engagement Partner on the Skechers account. In connection with its resignation, KPMG has publicly stated that it has “no reason to believe that the financial statements of Skechers have been materially misstated.”
David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer, stated, “KPMG has advised us that that they have no reason to believe that there were any misstatements in our financial statements, and we firmly believe that there has been no misstatements of our results or financial condition. Nonetheless, it is an unfortunate development at a time when we are preparing to release earnings for the First Quarter of 2013, a quarter which, like the Fourth Quarter of 2012, we believe will show significant growth and the continuing strength and viability of our business. We are working diligently to replace KPMG as quickly and efficiently as possible as we look forward to releasing positive results for the first quarter of 2013 later this month.”
Upon resignation, Skechers was informed by KPMG that KPMG’s lead Audit Engagement Partner on the Skechers account is under federal investigation for providing non-public information of his clients to a third party in exchange for money. The third party then used that information to trade stocks of several West Coast companies. KPMG told Skechers that the KPMG audit partner under investigation is cooperating with the authorities and admitted that Skechers was one of its clients whose non-public information was provided to a third party in exchange for money. KPMG further advised Skechers that, as a result of these developments, KPMG has determined that its independence has been impaired and it must resign as Skechers auditors immediately and withdraw its auditors’ reports for the fiscal years 2011 and 2012.
KPMG advised the Company it resigned as Skechers’ independent accountant solely due to the impairment of KPMG’s independence resulting from its now former partner’s alleged unlawful activities and not for any reason related to Skechers’ financial statements, its accounting practices, the integrity of Skechers’ management or for any other reason.
None of KPMG’s audit reports on Skechers’ financial statements for the fiscal years ended December 31, 2011 and 2012 or KPMG’s audit reports on the effectiveness of internal control over financial reporting as of December 31, 2011 and 2012 contained an adverse opinion or a disclaimer of opinion, nor was any such report qualified or modified as to uncertainty, audit scope or accounting principles. In addition, at no point during the two fiscal years ended December 31, 2012 and the subsequent interim period through April 8, 2013 were there any (1) disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreement(s), if not resolved to the satisfaction of KPMG, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its reports, or (2) “reportable events” as such term is defined in Item 304(a)(1)(v) of Regulation S-K.
Skechers has immediately started to search for replacement auditors in an effort to have them in place as soon as possible. Skechers is unable to provide an estimate of when the re-audit of fiscal years 2011 and 2012 will be completed.
ABOUT SKECHERS USA, INC.
SKECHERS USA, Inc. (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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 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, 2012. 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.
Company Contact:
SKECHERS USA, Inc.
Jennifer Clay, 310-318-3100
or
Investor Relations:
Andrew Greenebaum, 310-829-5400
by | Mar 6, 2013 | Press Release
Mar 6, 2013 • 12:05 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announces that the Skechers Performance Division was named the Sports Footwear Brand of the Year at The Footwear Industry Awards in the United Kingdom. This achievement follows a year when Skechers Performance received eight awards from major international running and fitness publications recognizing its innovative footwear product.
The prestigious annual event, held on February 17, 2013 during the Moda Footwear Show, was organized by Datateam Business Media with support from industry players including British Footwear Association (BFA), Independent Footwear Retailers Association (IFRA), the Society of Shoe Fitters (SSF) and Footwear Today. The group recognizes excellence at every level and SKECHERS won over a strong competitive field that included Nike, Hi-Tec, Clarks and Vibram. SKECHERS was also an overall nominee for Men’s Footwear Brand of the Year.
“It’s always a great feeling to be recognized by our peers,” began Michael Greenberg, president of SKECHERS, “especially when the recognition comes for a challenging field and our steps into the performance world began in 2011 with the launch of the Skechers Performance Division. We’re extremely proud that our pioneering performance technology is being embraced by critics in the media, elite runners like Meb, and casual enthusiasts for the sport. We hope that as we leverage our innovations into a wider collection of performance product, more and more people around the globe will turn to SKECHERS for performance footwear built for running, walking, golfing, hiking and more.”
Skechers GOrun is a lightweight running line featuring revolutionary technology that promotes a midfoot strike and GOimpulse sensors for a responsive experience. Elite marathon runner Meb provides the Skechers Performance Division with ongoing expert insight by testing and consulting on the design of shoes like the all-new Skechers GOrun 2, the pro-level Skechers GOrun speed racing line, and other high-performance product currently in development. Plus, on the more casual side, Skechers GOwalk is the foundation for a collection of performance walking shoes and Skechers on-the-GO fuses performance technologies with iconic design and style.
In an effort to build the brand across the United Kingdom, Skechers Performance is the Official Footwear Sponsor of both the London and Blenheim triathlons and the Headline Sponsor of the Milton Keynes Marathon. In addition, Meb returns to competition at the upcoming New York City Half Marathon followed by the Boston Marathon in April, and the Skechers Performance Division continues to appear at marathon expos from New York to Paris to Tokyo.
Skechers Performance footwear for men and women is available in sporting goods, department and specialty athletic stores around the world. Learn more at skechersperformance.com and follow the Skechers Performance Division on Facebook (facebook.com/SkechersPerformance) and Twitter (twitter.com/skechersGO).
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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 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, 2012. 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 | Feb 19, 2013 | Press Release
Feb 19, 2013 • 6:36 pm EST
1.82 million-square-foot Highland Fairview-SKECHERS facility in California’s Inland Empire is recognized for environmentally-friendly design
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announced that its North American distribution center in Rancho Belago, California has been officially certified LEED Gold by the U.S. Green Building Council. Designed and built by developer Highland Fairview to the highest environmental standards, the 1.82 million-square-foot SKECHERS facility is the largest LEED certified building in the United States to have received this honor.
SKECHERS North American distribution center in Rancho Belago, California. (Photo: Business Wire)
“SKECHERS is committed to growing its business in a way that conserves natural resources, protects the environment and reduces waste,” said David Weinberg, SKECHERS Chief Operating Officer and Chief Financial Officer. “In addition to efficiently distributing our product across North America, the SKECHERS Rancho Belago facility is an outstanding example of how large corporations can grow their business while also promoting Earth-friendly practices. We’re proud of the design innovation and ‘green’ features that can be found throughout the facility.”
“We are honored to receive this unique recognition. A LEED Gold designation is a tremendous achievement for any size project and to be recognized for the largest most advanced sustainable development of its kind in the U.S. is especially rewarding,” said Highland Fairview President and Chief Executive Officer Iddo Benzeevi.
LEED (Leadership in Energy and Environmental Design) certification for commercial buildings involves a scorecard that evaluates several categories: sustainability, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation. The SKECHERS distribution center, which received its certification on December 28, 2012, earned 41 points from this scorecard to secure LEED Gold certification. Key features include:
- 280,000 square-feet of solar power generation systems on the roof.
- Lighting that operates as needed, regulated by motion sensors and powered in part by solar panels.
- A warehouse ventilation system that utilizes outside air drawn through louvers facing the prevailing winds, plus energy efficient heating and cooling systems.
- A solar reflective white “cool roof” and light colored on-site pavement to help reduce heat and global warming.
- Water efficient and drought tolerant landscaping that reduces irrigation by 50 percent.
- A Water Pollution Prevention Program that captures and treats storm water runoff from 90 percent of annual rainfall.
- Low-emitting paints, coatings, glues, and sealants that comply with LEED standards were used during construction.
- Recycled and regional building materials were sourced within 500 miles of the construction site. The majority of on-site construction waste materials were recycled as well.
Weinberg added: “With the capacity to annually ship 100-million pairs of shoes, this state-of-the-art automated facility will allow us to efficiently grow our business with reduced impact to the environment. And, with the addition of a SKECHERS retail store at the site, we can service the local community.”
The official groundbreaking ceremony for the SKECHERS distribution center took place in March 2010, and was attended by then governor Arnold Schwarzenegger, and the building opened for operation in November 2011. In addition to the warehouse operations – which can process 18,000 to 20,000 pairs of shoes for distribution in one hour – the structure includes 20,000 square-feet of office space and a SKECHERS retail store.
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 (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
ABOUT Highland Fairview
Highland Fairview is a privately held real estate development company specializing in the development of large scale, industrial, commercial and residential projects. Highland Fairview and its affiliate companies currently own approximately five square miles of properties within Southern California which are in various stages of development. Highland Fairview’s is committed to sustainable development through its Full-Life-Cycle approach to development
This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, 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, 2011 and its quarterly report on Form 10-Q for the three months ended September 30, 2012. 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
