by | Jul 20, 2011 | Press Release
Jul 20, 2011 • 4:00 pm EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE: SKX), a global leader in lifestyle footwear, announced today that the Company’s conference call to review its fiscal 2011 second quarter financial results will be broadcast live over the internet on Wednesday, July 27, 2011 at 1:30 p.m. PDT / 4:30 p.m. EDT. Participating on the call will be David Weinberg, Chief Operating Officer and Chief Financial Officer.
The call will be broadcast live over the Internet and can be accessed on the Investor Relations section of the Company’s website at www.skx.com. The call will be archived for two weeks. For those unable to participate during the live broadcast, a replay will be available beginning July 27, 2011 at 7:30 p.m. EDT, through August 11, 2011 at 11:59 p.m. EDT. To access the replay, dial 877-870-5176 (U.S.) or 858-384-5517 (International) and use passcode: 4457030.
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.
by | Jul 7, 2011 | Press Release
Jul 7, 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 athletic footwear brand in the United States*, today announced that it has signed a two-year marketing agreement with New England Patriots running back Danny Woodhead to endorse the SKECHERS Fitness footwear collection. The football star will represent the Company’s high performance footwear and apparel lines in worldwide multiple-medium marketing campaign.
New England Patriots running back Danny Woodhead endorsing new SKECHERS Fitness footwear. (Photo: Business Wire)
Woodhead’s endorsement will include two product lines that he will use to prepare for the upcoming NFL season: SKECHERS Resistance ProSpeed running shoes and ProTR training shoes, SKECHERS Fitness styles designed with the ground-breaking SmartShoe mid-foot strike technology for serious athletes and active enthusiasts.
“From the moment I tried the new SKECHERS Resistance products, I could feel a difference in the way my body responded during training,” said Woodhead. “The new Resistance footwear is lightweight, yet continues to challenge your muscles, and provide support and cushioning. I’m excited to wear SKECHERS and enhance my training regimen with this revolutionary new footwear.”
“Danny’s athleticism and dedication are truly inspiring, and we’re thrilled to have an elite NFL athlete training in the new SKECHERS Resistance products,” said SKECHERS president Michael Greenberg. “SKECHERS has truly evolved into a performance footwear brand, and Danny’s presence in our upcoming marketing campaign is a testament to the success our fitness products.”
Woodhead’s NFL “Cinderella Story” began at Chadron State College in Nebraska, where he set several NCAA records, including single season rushing and all-time rushing. He won two consecutive Harlon Hill Trophies, awarded to the best player in NCAA Division II; tied for first place in Division II career scoring; and is the second player in collegiate history to score more than 100 touchdowns. In 2008, Woodhead began his NFL career with the New York Jets and signed with the New England Patriots in 2010. His contract with the Patriots currently extends through the 2012 season.
SKECHERS Fitness’ campaign with Woodhead is planned for a Holiday 2011 launch, and will include print, television, outdoor, in-store and online marketing for SKECHERS lifestyle and fitness footwear.
Launched by the SKECHERS Fitness Group(TM), the SKECHERS Resistance collection includes lightweight running and training footwear that utilizes Shape-ups patented technology. From the explosive and efficient ProSpeed to the maximized support and cushioning of ProResistance to the lateral protection and hybrid performance of Pro-TR, many SKECHERS Resistance styles include a Kinetic Return System to deflect impact forces and convert energy into forward motion. SKECHERS Fitness footwear for men and women is available in sporting goods, department and specialty athletic stores worldwide.
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, June 21, 2010
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=6785355&lang=en
by | Jun 13, 2011 | Press Release
Jun 13, 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,* today announced that it has signed a multi-year licensing agreement with LF USA, a subsidiary of Hong Kong-headquartered multinational Li & Fung Limited, to produce a SKECHERS Fitness apparel and accessories collection for men and women. The offering will include Shape-ups, Tone-ups and SKECHERS Resistance-branded activewear; outerwear and performance-related accessories.
The SKECHERS Fitness Apparel collection will build on the success of SKECHERS Fitness Footwear, which now includes technical running collections as well as styles designed for training and all-day wear. LF USA’s Regatta division will design, produce, distribute and market the collection, which is planned for a 2012 launch in department store, sporting goods and independent retailers in the United States.
“SKECHERS Fitness has grown from a single style into a performance running line, training line, and an everyday toning line,” said Michael Greenberg, president of SKECHERS. “With our partner as LF USA, part of the world’s largest sourcing company, we look forward to coming together as two industry leaders and capitalizing on the great potential that we believe the SKECHERS Fitness brand has for our consumers.”
“SKECHERS Fitness is an innovative, athletic lifestyle brand with strong consumer appeal,” said Rick Darling, president of LF USA. “With its unique performance features, SKECHERS Fitness is changing the athletic footwear landscape and the way people incorporate fitness into their daily lives. We see tremendous opportunities to build on the brand’s solid foundation as we bring consumers a new, differentiated performance apparel collection.”
The agreement is the latest in a diverse range of partnerships that SKECHERS has established to produce SKECHERS-branded products, which include children’s apparel, bags, sunglasses, legwear, medical scrubs and luggage. The Company is currently negotiating with additional licensees, both domestic and abroad, and 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 LF USA
LF USA is a subsidiary of Li & Fung Limited (SEHK:494), the Hong Kong-headquartered multinational group; and is recognized as the world’s leader in consumer goods design, development, sourcing and distribution. It manages the supply chain for retailers and brands worldwide from about 240 offices and distribution centers in more than 40 economies spanning across the Americas, Europe, Africa and Asia. Through its three interconnected business networks — trading, logistics and distribution — the Group offers a spectrum of services that covers the entire end-to-end supply chain. Corporate website: www.lifung.com
*Sporting Goods Intelligence, June 21, 2010
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 SKECHERS’ Form 10-Q for the quarter ended March 31, 2011. The risks included here are not exhaustive. SKECHERS and LF USA 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 | Jun 1, 2011 | Press Release
Jun 1, 2011 • 1:00 pm EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– Please replace the release with the following corrected version due to multiple revisions.
The corrected release reads:
SKECHERS SIGNS LICENSING AGREEMENT FOR SPORTING GOODS AND SAFETY GEAR
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 Street Flyers, LLC to produce sporting goods and safety gear collections for children and young adults. Both collections are planned to launch in toy and mass market retailers throughout the U.S. and Canada in Spring 2012.
Under the agreement, Street Flyers will design, produce and distribute SKECHERS-branded bicycles, skateboards, scooters, skates and safety gear. The children’s collection will incorporate designs and images from SKECHERS’ Zevo-3 animated television series and SKECHERS Kids characters, which are well known globally due to extensive television advertising and marketing campaigns. Each character represents a uniquely branded SKECHERS Kids footwear collection, including Twinkle Toes by SKECHERS, Sporty Shorty by SKECHERS, HyDee HyTop(TM) by SKECHERS, The Incredible Elastika Bungees(TM), Punkie Rose(TM) by SKECHERS, and Bella Ballerina(TM) by SKECHERS for girls; and Z-Strap(R), Kewl Breeze(R), Hot Lights by SKECHERS and Luminators by SKECHERS for boys. In addition, SKECHERS footwear branding will be utilized for the young adult collections.
“We have found phenomenal success in the performance fitness arena, developing high performance athletic footwear for adults. Sporting goods are a great way to reach children and a natural extension of our athletic offering,” said Michael Greenberg, president of SKECHERS. “We are thrilled to launch SKECHERS-branded sports equipment with a well respected company like Street Flyers. SKECHERS is the number one children’s footwear brand in the United States, and Street Flyers is one of the largest wheeled sporting goods companies in North America, so the partnership is a natural fit.”
“SKECHERS is one of the most recognized footwear brands in the world, which is an ideal platform to launch sporting goods under the SKECHERS name,” said Ike Tawil, CEO of Street Flyers. “The SKECHERS Kids character collections offer compelling design inspirations for children’s bikes and skateboards, among other wheeled products. We’re confident that the young adult sporting goods collections will also be a successful new addition to the SKECHERS brand.”
In addition to Street Flyers, SKECHERS has partnered with numerous licensees to produce a wide range of products including children’s apparel, bags, sunglasses, legwear, medical scrubs and leather accessories. The Company is currently negotiating with additional licensees, both domestic and abroad, and 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 Street Flyers, LLC
Founded in 1999, Street Flyers is a global trading company that designs and markets a wide range of products including bicycles, skateboards, scooters, skates, battery-powered ride-ons, safety gear and summer seasonal pool and back yard products. Street Flyers holds licenses in various categories with many notable brands including Spider-Man, Iron Man, Captain America, The Avengers, SpongeBob SquarePants, Dora the Explorer, Go Diego Go, Lalaloopsie and Cadillac. With headquarters in New York City and offices in Minneapolis, Bentonville and various locations in China, Street Flyers is a global leader in the wheeled sporting goods industry.
*Sporting Goods Intelligence, June 21, 2010
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 SKECHERS’ Form 10-Q for the quarter ended March 31, 2011. The risks included here are not exhaustive. SKECHERS and Street Flyers 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 | May 25, 2011 | Press Release
May 25, 2011 • 9:05 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced that it has developed the SKECHERS Fitness Group sales force to support the Company’s increasing focus on technical athletic footwear. With this change, the Company created two distinct sales organizations — one to focus on its performance footwear and the other on its lifestyle footwear. In so doing, SKECHERS is capitalizing on its growing technical lines while utilizing the talents of its veteran team in order to better meet the needs of its accounts.
“Since we began in 1992, lifestyle footwear has been at the core of our business and allowed us to grow from a small company to a globally recognized two billion-dollar brand,” began Michael Greenberg, president of SKECHERS. “Over the last year, we have grown our offering of technical athletic footwear to encompass numerous cutting-edge running, training and walking shoes under our Resistance, Shape-ups and Tone-ups lines, transitioning from a pure lifestyle brand to a lifestyle and high-performance company. The changes in our sales organization reflect this natural evolution of our brand. With new technical product launching throughout this year and next, we felt it imperative to build an expert athletic sales force to more effectively sell and market our growing SKECHERS Fitness Group offering.”
As part of the restructuring, SKECHERS has appointed Gary Stern, former Vice President of Sales, Men’s Sport, to the position of Vice President of Sales, SKECHERS Fitness Group. The Company has assigned several highly experienced athletic industry veterans for the SKECHERS Fitness Group, which encompasses SKECHERS Resistance, Shape-ups and Tone-ups lines.
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.
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.
by | Apr 27, 2011 | Press Release
Apr 27, 2011 • 4:00 pm EDT
- Net Sales of $476.2 Million
- Net Earnings of $11.8 Million
- Diluted Earnings Per Share of $0.24
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the first quarter ended March 31, 2011.
First quarter 2011 net sales were $476.2 million compared to $492.8 million in the first quarter of 2010. Operating income for the first quarter of 2011 was $14.7 million compared to $81.0 million in the first quarter of 2010. Net earnings for the first quarter of 2011 were $11.8 million versus net earnings of $56.3 million in the first quarter of 2010. Diluted earnings per share were $0.24 based on 49,280,000 weighted average shares outstanding as compared to net earnings per diluted share of $1.15 based on 48,742,000 weighted average shares outstanding.
“We view our first quarter 2011 sales of more than $475 million as a solid accomplishment and a testament to the strength of our core business. However, the difficult comparison against a record first quarter 2010, which benefitted from strong toning sales, resulted in a 3.4 percent decrease in our first quarter 2011 sales. International wholesale and retail sales improved in the first quarter 2011 by 37 percent and 51 percent respectively, but were offset by weak domestic wholesale and retail sales,” stated David Weinberg, chief operating officer and chief financial officer. “We believe the toning market is stabilizing as we continue to clear inventory and deliver fresh fitness styles. We do expect a difficult comparison to continue as we are again against a record second quarter 2010 especially given international sales are historically stronger in the first quarter.”
Gross profit for the first quarter of 2011 was $192.6 million or 40.4 percent of net sales compared to $237.4 million or 48.2 percent of net sales in the first quarter of last year.
Robert Greenberg, SKECHERS chief executive officer, commented: “As always, we continue to innovate and develop new product with exciting marketing campaigns to support our efforts for men, women and kids. During this year’s Super Bowl, we aired one of our most-talked about television campaigns, which featured Kim Kardashian working out in SKECHERS. We also launched new television and print campaigns with Brooke Burke and Wayne Gretzky, and this month we saw these celebrities along with Ms. Kardashian and Karl Malone appear in print and mall advertisements across America and around the world. We recently shot several new commercials with our female celebrities, which will launch in the second quarter, capitalizing on the power of these stars, who will be appearing in our newest lines. Early reads on our new product is very positive, and we are eager to deliver fresh product for men and women. We also introduced two new lines for girls, and will be supporting them with animated commercials later this quarter. In addition, key accounts are visiting our offices this week and are viewing product that we will launch in Holiday 2011 and Spring 2012. We believe the enthusiasm for our product by both retailers and consumers remains strong, and we are looking forward to the second half of 2011.”
David Weinberg, SKECHERS chief operating officer and chief financial officer, stated: “Our first quarter 2011 sales and margins are in line with our expectations given the current retail environment, changes in trends and our excess inventory position, which we are continuing to work through. Our inventory increased by approximately $187 million since first quarter 2010, but decreased by $22 million since year-end 2010. We believe both our sales and margins will improve in the second half of the year as we continue to realize the benefits of reducing older inventory and delivering exciting new styles. We are also carefully reviewing our expense structure and expect to reduce costs and achieve significant operating economies over the next several quarters, positioning the Company for greater profitability in the future. We plan to strategically open another 25 to 30 company-owned SKECHERS stores this year, believe international will continue to grow and our brand remains strong, and we expect improvements to profitability in the latter half of the year.”
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 Form 10-K for the year ended December 31, 2010. 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)
March 31, December 31,
2011 2010
ASSETS
Current Assets:
Cash and cash equivalents $ 197,898 $ 233,558
Trade accounts receivable, net 320,177 266,057
Other receivables 10,427 9,650
Total receivables 330,604 275,707
Inventories 376,189 398,588
Prepaid expenses and other current assets 48,650 53,791
Deferred tax assets 11,720 11,720
Total current assets 965,061 973,364
Property and equipment, at cost less accumulated 329,699 293,802
depreciation and amortization
Intangible assets, less applicable amortization 6,982 7,367
Deferred tax assets 12,323 12,323
Other assets, at cost 18,000 17,938
TOTAL ASSETS $ 1,332,065 $ 1,304,794
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings $ 5,130 $ 11,984
Short-term borrowings 34,390 18,346
Accounts payable 250,230 246,595
Accrued expenses 24,429 30,385
Total current liabilities 314,179 307,310
Long-term borrowings, excluding current installments 50,396 51,650
Total liabilities 364,575 358,960
Equity:
Skechers U.S.A., Inc. equity 929,128 908,203
Noncontrolling interests 38,362 37,631
Total equity 967,490 945,834
TOTAL LIABILITIES AND EQUITY $ 1,332,065 $ 1,304,794
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended March 31,
2011 2010
Net sales $ 476,234 $ 492,764
Cost of sales 283,624 255,346
Gross profit 192,610 237,418
Royalty income 1,648 385
194,258 237,803
Operating expenses:
Selling 37,560 34,309
General and administrative 141,983 122,487
179,543 156,796
Income from operations 14,715 81,007
Other income (expense):
Interest, net (1,378 ) 713
Other, net 349 209
(1,029 ) 922
Earnings before income taxes 13,686 81,929
Income tax expense 1,533 25,806
Net income 12,153 56,123
Less: Net income (loss) attributable to 345 (173 )
noncontrolling interest
Net earnings attributable to Skechers U.S.A., Inc. $ 11,808 $ 56,296
Net earnings per share attributable to Skechers
U.S.A., Inc.:
Basic $ 0.24 $ 1.20
Diluted $ 0.24 $ 1.15
Weighted average shares used in calculating
earnings per share attributable to Skechers
U.S.A., Inc.:
Basic 48,243 46,781
Diluted 49,280 48,742
