by | Aug 25, 2011 | Press Release
Aug 25, 2011 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry and the number two footwear brand in the United States,* announced that the company is working with McDonald’s® to launch a three-week Happy Meal® promotion with Twinkle Toes® by SKECHERS® starting tomorrow (Friday, August 26) in the United States and Canada.
During the promotion, Happy Meal customers can receive one of 6 clip-on miniature Twinkle Toes by SKECHERS toy shoes, while supplies last. Each toy shoe comes in two different color combinations. Decorated with an image of the popular animated character Twinkle Toes from the best-selling SKECHERS Kids footwear line for girls, the shoe features a button on the sole which lights up the sneaker, a signature feature of the Twinkle Toes collection.
“This is an exciting intersection of two brands that kids enjoy – and a fun way for our companies to merge our strengths,” said Michael Greenberg, president of SKECHERS. “Our kids’ footwear is designed as toys for your feet – and now with miniatures of our Twinkle Toes shoes, they literally are. We are excited to have this extension of our brand, and with a globally recognized partner.”
The promotion will be supported in the United States and Canada by a McDonald’s Happy Meal television commercial featuring Twinkle Toes, as well as banners and online at HappyMeal.com. The Twinkle Toes promotion will also be featured on Happy Meal boxes, drive-thru promotion windows, and in-store at the point of purchase. In the United States, each Happy Meal toy will include a Twinkle Toes sticker sheet as well as a “Mommy & Me” discount coupon valid at SKECHERS retail stores and on Skechers.com.
In addition to McDonald’s, SKECHERS has partnered with numerous global licensees to produce a wide range of products including sporting goods, children’s apparel, bags, electronics, sunglasses, legwear, and luggage.
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, as well as under several uniquely branded names. 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 Canada, Brazil, Chile, 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 McDONALD’S
McDonald’s is the world’s leading global foodservice retailer with more than 32,000 locations serving approximately 64 million customers in 117 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. To learn more about the company, please visit www.aboutmcdonalds.com and follow us on Facebook (https://www.facebook.com/mcdonaldscorp) and Twitter (http://www.twitter.com/mcdonaldscorp). For more information about McDonald’s environmental efforts, please visit (http://www.aboutmcdonalds.com/mcd/csr/about/sustainable_supply.html).
*Sporting Goods Intelligence, July 25, 2011
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 SKECHERS’ Form 10-K for the year ended December 31, 2010 and its Form 10-Q for the quarter ended June 30, 2011. The risks included here are not exhaustive. SKECHERS and McDonald’s operate 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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6840748&lang=en.
SKECHERS USA, Inc.
Jennifer Clay, 310-937-1326
by | Aug 9, 2011 | Press Release
Aug 9, 2011 • 9:05 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry and the number two footwear brand in the United States,* today announced that it has signed a licensing agreement with Sakar International to produce youth electronics and accessories featuring SKECHERS branding and SKECHERS Kids’ animated characters. The line is scheduled to launch in the first quarter of 2012 at retailers across the United States.
Under the agreement, Sakar will design, produce and distribute a wide range of SKECHERS-branded electronics and accessories to include: MP3 players, molded ear buds, speakers, digital cameras, cases, skins, and USB flash drives inspired by SKECHERS Kids’ footwear styles. Products will be designed for boys and girls from elementary through high school with artwork from SKECHERS’ Zevo-3 animated televisionseries, the Twinkle Toes® by SKECHERS® collection, as well as additional SKECHERS Kids’ characters and SKECHERS branding.
“Kids today have a 24-7 connection to their electronics, and the digital items they carry make as much a lifestyle statement as their footwear,” began Michael Greenberg, president of SKECHERS. “Thanks to our extensive television advertising and marketing, kids around the world truly love the SKECHERS characters. By leveraging that with Sakar’s extensive experience working with major brands like Crayola and Kodak, we expect these products to be among our strongest licensed offerings.”
“SKECHERS has all the ingredients for a successful electronics licensing program, from distinctive brands and sub-brands with a large following, to characters who star in their own entertainment content, to effective marketing that can help drive sell-through,” added Liza Abrams, Sakar’s vice president of licensing. “As a licensee, this gives us the foundation we need to develop branded products that will sell themselves.”
In addition to Sakar, SKECHERS recently signed a licensing agreement with Li & Fung’s LF USA for SKECHERS Fitness apparel and accessories in the United States, and has partnered with numerous other licensees to produce a wide range of products including sporting goods, safety gear, children’s apparel, bags, sunglasses, socks and medical scrubs. The Company continues to seek partnerships and opportunities that will bring the SKECHERS brand to new product segments around the globe.
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, as well as under several uniquely branded names. 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 global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
About Sakar International
Sakar International Inc. designs and manufactures a wide range of technology, toy, and consumer electronic products. Founded in 1977, the company is the manufacturer of Vivitar camera equipment and accessories, a market leader in youth electronics and rechargeable batteries, and a producer of licensed products for leading consumer brands. Products range from digital cameras and camcorders with related accessories to computer, iPod, GPS and gaming accessories, binoculars, MP3 players, clock radios, gift and toy electronics. The company is privately held and headquartered in Edison, N.J. For more information, please visit www.sakar.com.
*Sporting Goods Intelligence, July 25, 2011
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 SKECHERS’ Form 10-K for the year ended December 31, 2010 and its Form 10-Q for the quarter ended March 31, 2011. The risks included here are not exhaustive. SKECHERS and Sakar International operate 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 | Aug 2, 2011 | Press Release
Aug 2, 2011 • 9:05 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry and the number two athletic footwear brand in the United States*, today announced a two-year extension to its successful marketing campaign with TV personality Brooke Burke that will now continue through June 2013.
Brooke Burke on set at the SKECHERS ProSpeed commercial shoot. (Photo: Business Wire)
The announcement comes as SKECHERS launches a new wave of television spots starring Burke in support of the next generation of SKECHERS Fitness product. This begins with Shape-ups Liv by SKECHERS™—an exciting and innovative new lightweight line with Natural Stride Technology to promote barefoot motion and fluid transitions as you walk, jog or run. The second commercial will feature SKECHERS Resistance ProSpeed™—a groundbreaking ultra-lightweight performance running shoe designed for power, and efficiency.
Burke will be front and center as a worldwide face for these and future SKECHERS and SKECHERS Fitness lines in a campaign spanning print, television, point-of-purchase, online and outdoor.
“I have a long history with SKECHERS and every shared experience with this fantastic company has been incredible,” said Burke who originally worked with SKECHERS as a model back in 1995 and reunited with the brand for its “Nothing Compares to Family” charity campaign in 2009. “As a health-conscious woman with a busy lifestyle, I love that Liv makes it so easy to stay fit. And with ProSpeed, I find I’m making time to run more than ever before!”
“We’re huge Brooke fans and we’re delighted that she’ll be part of the SKECHERS family for another two years,” began Michael Greenberg, president of SKECHERS. “As both the career mom who sometimes wants a casual workout and the athletic enthusiast who at other times needs a serious run, she represents multiple SKECHERS Fitness customers in one complete package.”
Burke gained global recognition as travel guide on the E! series, Wild On. She later went on to host two seasons of the CBS reality show Rock Star before competing on and ultimately winning the 7th season of ABC’s hit series Dancing With The Stars. In 2010 she returned to DWTS as co-host opposite Tom Bergeron for the show’s 10th season that premiered with a record breaking 35 million viewers. She also co-hosted the 90th Annual Miss America Pageant in 2011 and will be back for the 14th season of DWTS in September.
With nearly 2 million Twitter followers, Burke has become a trusted resource for busy moms around the world. She’s taken her passion as a parent into business with her best-selling book (soon-to-release in paperback), The Naked Mom, plus a popular destination website, ModernMom.com, and BabooshBaby—a specialty product line for expectant mothers.
The SKECHERS Fitness Group™ offers athletic footwear that features numerous cutting-edge patented technologies for running, training and walking. With a wide range of styles released under Resistance, Shape-ups® and Tone-ups® lines, SKECHERS Fitness products meet the needs of everyone from the casual enthusiast to the serious athlete. Men’s and Women’s SKECHERS Fitness lines are available in sporting goods, department and specialty athletic stores around the world.
Beyond Brooke Burke, the storied SKECHERS celebrity roster has included Britney Spears, Christina Aguilera, Carrie Underwood, Ashley Simpson, Robert Downey, Jr., Rob Lowe, and former Lakers player (and Dancing With The Stars contestant,) Rick Fox. Additionally, SKECHERS Fitness campaigns have featured Joe Montana, Karl Malone, Wayne Gretzky and, coming soon, New England Patriots running back Danny Woodhead.
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, as well as under several uniquely branded names. 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 Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
*Sporting Goods Intelligence, July 25, 2011
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 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, 2010 and the Company’s quarterly report on Form 10-Q for the three months ended March 31, 2011. 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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6815421&lang=en
SKECHERS USA, Inc.
Jennifer Clay, 310-937-1326
by | Aug 1, 2011 | Press Release
Aug 1, 2011 • 9:05 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry and the number two athletic footwear brand in the United States*, today announced that it has signed an agreement with distance runner Meb Keflezighi to endorse SKECHERS Fitness performance footwear and apparel in a worldwide multiple-medium marketing campaign.
Keflezighi will be running in the World Marathon Majors (including the 2011 ING New York City Marathon), road races, and Olympic Trials through August 2012 exclusively in SKECHERS Fitness performance footwear featuring the Company’s innovative SmartShoe™ mid-foot strike technology for serious athletes and active enthusiasts. Keflezighi will also be consulting on the development of performance product and SKECHERS expects to coordinate the launches of exciting new competition-ready running lines with his professional racing appearances.
“SKECHERS’ new performance shoes change the way I run for the better,” said Keflezighi. “I’ve been a heel strike runner my entire life, but I am now wearing SKECHERS to maximize the efficiency of my foot strike. My shoes are my most essential piece of equipment and right now SKECHERS has the footwear I need to succeed. I’m excited to be partnering with this groundbreaking company.”
“Meb is a rock star in the running world and the fact that he trusts our revolutionary running product to carry him across the finish line is a huge win for our position in the performance arena,” added SKECHERS president Michael Greenberg. “As an Olympian and professional athlete, Meb brings real gravitas to SKECHERS performance footwear that will inspire runners around the world to experience our mid-foot strike technologies for themselves.”
Meb Keflezighi gained international attention when he beat the odds to win a silver medal in the marathon after a dramatic race at the 2004 Summer Olympics in Athens. Seventy days later, he placed second in the prestigious 2004 ING New York City Marathon. Despite a potentially career-ending injury during the 2008 Olympic Trials, Meb surprised the track and field world again by winning the 2009 ING New York City Marathon—the first American to do so in 27 years. Currently the most decorated United States distance runner, Meb is the former American record holder in the 10,000 meters, a 20-time national champion, and the greatest distance runner in UCLA history.
In 2010, Meb released his inspiring autobiography, “Run To Overcome” (Tyndale House Publishers). He’s also the founder of the MEB Foundation—an organization that promotes “Maintaining Excellent Balance” through healthy action and positive lifestyle choices to school-aged children.
SKECHERS Fitness’ campaign with Meb Keflezighi is planned for a Holiday 2011 launch, and will include print, television, outdoor, in-store and online marketing as well as event appearances for SKECHERS fitness footwear and apparel.
The SKECHERS Fitness Group™ offers athletic footwear that features numerous cutting-edge patented technologies for running, training and walking. With a wide range of styles released under Resistance, Shape-ups® and Tone-ups® lines, SKECHERS Fitness products meet the needs of everyone from the casual enthusiast to the serious athlete. Currently in development, the new performance running and training footwear will debut for Holiday 2011. Men’s and Women’s SKECHERS Fitness lines are available in sporting goods, department and specialty athletic stores around the world.
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, as well as under several uniquely branded names. 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 Canada, Brazil, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
*Sporting Goods Intelligence, July 25, 2011
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 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, 2010 and the Company’s quarterly report on Form 10-Q for the three months ended March 31, 2011. 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 | Jul 28, 2011 | Press Release
Jul 28, 2011 • 9:05 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry and the number two athletic footwear brand in the United States*, today announced that it has been named 2010 Supplier of the Year by jcpenney in the Family Footwear category.
The official award was presented by jcpenney executives at the SKECHERS world headquarters in Manhattan Beach, California. SKECHERS was recognized for outstanding design and innovation in fitness footwear, as well as the longstanding quality of SKECHERS‘ men’s, women’s and kids lifestyle footwear collections.
“We’re incredibly honored to be named Supplier of the Year by jcpenney. They have been one of our key accounts for years, and their business has played a vital role in the growth of the SKECHERS brand,” said Michael Greenberg, president of SKECHERS. “Receiving this award is both humbling and exciting.”
“Throughout the years, SKECHERS has consistently delivered high-quality lifestyle footwear that makes jcpenney a first choice shopping destination for the entire family,” said Lorraine Hitch, General Merchandise Manager of jcpenney. “With popular products, such as Shape-ups and the SKECHERS Fitness collection, SKECHERS continues to deliver fresh, on-trend lifestyle collections for men, women and kids. In recognition of its innovative merchandise and collaborative partnership, we’re pleased to recognize them as our footwear Supplier of the Year.
SKECHERS footwear is currently available in all jcpenney locations and online throughout the United States.
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, as well as under several uniquely branded names. 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, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
*Sporting Goods Intelligence, July 25, 2011
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 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 SKECHERS’ annual report on Form 10-K for the year ended December 31, 2010 and its quarterly report on Form 10-Q for the three months ended March 31, 2011 and in jcpenny’s annual report on Form 10-K for the year ended January 29, 2011 and its quarterly report on Form 10-Q for the three months ended April 30, 2011. The risks included here are not exhaustive. SKECHERS and jcpenny operate 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.
by | Jul 27, 2011 | Press Release
Jul 27, 2011 • 4:00 pm EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the second quarter ended June 30, 2011.
Second quarter 2011 net sales were $434.4 million compared to $504.9 million for the second quarter of 2010. Second quarter 2011 net loss was $29.9 million or a loss of $0.62 per diluted share based on 48,341,000 weighted average common shares outstanding compared to net earnings of $40.2 million or earnings of $0.82 per diluted share based on 49,130,000 weighted average common shares outstanding for the second quarter of 2010.
“Second quarter results were impacted by several factors,” began David Weinberg, chief operating officer and chief financial officer. “First, we were up against a record second quarter in 2010, and we aggressively reduced our excess toning inventory during the second quarter by selling two million pairs of our original Shape-ups for a loss of $21.0 million. We also recorded a $4.4 million reserve for additional product, which we believe reflects net realizable value. We made a decision to accelerate the clearance on early generation Shape-ups product in order to eliminate the overhang of excess inventory. We believe this will expand the sales of our new toning and performance product, which are showing positive results at retail. The impact of these two transactions was a loss of $0.31 per diluted share and a reduction of gross margin to 33 percent, which otherwise would have been 41.5 percent. We feel this was a big step in reaching our goals for the year, which include right-sizing our inventory, bringing new product to market, and getting our overhead in line with anticipated sales for 2012.”
For the six months ended June 30, 2011, net sales were $910.6 million compared to net sales of $997.6 million in the first six months of 2010. Net loss was $18.1 million or a loss of $0.38 per diluted share based on 48,292,000 weighted average common shares outstanding as compared to net earnings of $96.5 million or earnings of $1.97 per diluted share based on 48,955,000 weighted average common shares outstanding for the first six months of 2010.
Gross profit for the second quarter of 2011 was $143.3 million or 33.0 percent of net sales compared to $237.6 million or 47.1 percent of net sales in the second quarter of last year. Gross profit for the first six months of 2011 was $335.9 million or 36.9 percent of net sales versus $475.1 million or 47.6 percent of net sales in the first six months of 2010.
Robert Greenberg, SKECHERS chief executive officer, commented: “Every business faces challenges as they grow and at this time last year we were experiencing record growth and were the leaders in an explosive new category of footwear. Recently we have leveraged our experience and learning in the toning category to develop new footwear in both our core lifestyle lines and in our rapidly evolving performance division. This product was delivered to our own SKECHERS retail stores in the second quarter and began reaching our key accounts in June and July. The initial sell throughs have been strong, and we believe will accelerate as the marketing begins for back to school. Dancing with the Stars host Brooke Burke is the face of our women’s lightweight toning and running product, and we have several new commercials for our kids lines. We also recently signed Danny Woodhead, the New England Patriots exciting young running back, to appear in a multi-level marketing campaign for our SKECHERS Resistance footwear. Kim Kardashian is appearing in SKECHERS broadcast, print and outdoor advertising globally. We are pleased with our international sales, which grew by double digits, and our retail business, which remains steady with new stores opening in the United States and around the world. We believe SKECHERS continues to be a brand in demand globally, and there are many opportunities to grow our business in the coming years.”
Mr. Weinberg added: “We believe that while the second half of 2011 will pose more challenges, we also see growth opportunities in both the international and retail businesses. We are pleased with the reception of our new product offerings for men, women and kids delivering in our stores and to accounts now. With our Holiday 2011 and Spring 2012 product being reviewed by our customers this month during prelines, we believe we are well-positioned for the future.”
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, as well as under several uniquely branded names. 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, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.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 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, 2010 and its quarterly report on Form 10-Q for the three months ended March 31, 2011. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
2011 2010
ASSETS
Current Assets:
Cash and cash equivalents $ 250,782 $ 233,558
Trade accounts receivable, net 275,958 266,057
Other receivables 10,375 9,650
Total receivables 286,333 275,707
Inventories 325,815 398,588
Prepaid expenses and other current assets 70,072 53,791
Deferred tax assets 11,720 11,720
Total current assets 944,722 973,364
Property and equipment, at cost less accumulated 367,152 293,802
depreciation and amortization
Intangible assets, less applicable amortization 6,587 7,367
Deferred tax assets 12,323 12,323
Other assets, at cost 17,679 17,938
TOTAL ASSETS $ 1,348,463 $ 1,304,794
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings $ 9,893 $ 11,984
Short-term borrowings 46,096 18,346
Accounts payable 245,185 246,595
Accrued expenses 19,259 30,385
Total current liabilities 320,433 307,310
Long-term borrowings, excluding current 81,075 51,650
installments
Deferred tax liabilities 77 -
Total liabilities 401,585 358,960
Equity:
Skechers U.S.A., Inc. equity 908,542 908,203
Noncontrolling interests 38,336 37,631
Total equity 946,878 945,834
TOTAL LIABILITIES AND EQUITY $ 1,348,463 $ 1,304,794
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
2011 2010 2011 2010
Net sales $ 434,351 $ 504,859 $ 910,585 $ 997,623
Cost of sales 291,021 267,214 574,645 522,560
Gross profit 143,330 237,645 335,940 475,063
Royalty income 1,376 875 3,024 1,260
144,706 238,520 338,964 476,323
Operating expenses:
Selling 53,099 52,437 90,659 86,746
General and 139,965 127,299 281,948 249,786
administrative
193,064 179,736 372,607 336,532
Income (loss) from (48,358 ) 58,784 (33,643 ) 139,791
operations
Other income (expense):
Interest, net (1,596 ) 318 (2,974 ) 1,031
Other, net (944 ) 1,611 (595 ) 1,820
(2,540 ) 1,929 (3,569 ) 2,851
Earnings (loss) before (50,898 ) 60,713 (37,212 ) 142,642
income taxes
Income tax expense (20,846 ) 20,396 (19,313 ) 46,202
(benefit)
Net income (loss) (30,052 ) 40,317 (17,899 ) 96,440
Less: Net income (loss)
attributable to (136 ) 80 209 (93 )
noncontrolling interest
Net earnings (loss)
attributable to $ (29,916 ) $ 40,237 $ (18,108 ) $ 96,533
Skechers U.S.A., Inc.
Net earnings (loss) per
share attributable to
Skechers U.S.A., Inc.:
Basic $ (0.62 ) $ 0.85 $ (0.38 ) $ 2.05
Diluted $ (0.62 ) $ 0.82 $ (0.38 ) $ 1.97
Weighted average shares
used in calculating
earnings (loss)
per share attributable
to Skechers U.S.A.,
Inc.:
Basic 48,341 47,422 48,292 47,107
Diluted 48,341 49,130 48,292 48,955
