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
by | Apr 20, 2011 | Press Release
Apr 20, 2011 • 8:00 am 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 first quarter financial results will be broadcast live over the internet on Wednesday, April 27, 2011 at 1:30 pm Pacific Time/4:30 pm Eastern Time. 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 April 27, 2011 at 7:30 p.m. ET, through May 11, 2011 at 11:59 p.m. ET. To access the replay, dial 877-870-5176 (U.S.) or 858-384-5517 (International) and use passcode: 4435599.
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 | Mar 14, 2011 | Press Release
Mar 14, 2011 • 12:00 pm 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 the Company has partnered with After-School All-Stars (ASAS) to launch a shoe design program for students in schools across the United States beginning in March 2011.
“The SKECHERS Foundation is proud to provide funding and support to organizations like After-School All-Stars, which are committed to helping disadvantaged youth,” said SKECHERS president Michael Greenberg. “By offering children free academic, health and fitness programs and unique opportunities like shoe design classes, we’re finding new ways to connect with children across the nation – and are seeing that even smaller companies with limited budgets can find new, innovative ways to excite and engage our kids.”
In February 2011, the inaugural SKECHERS shoe design program brought 25 ASAS students from Griffith Middle School in East Los Angeles to the SKECHERS corporate headquarters in Manhattan Beach, California. During the four-week program, students attended classes led by SKECHERS footwear designers, with the goal of producing an actual prototype shoe at the end of the course. The initial design program was so successful, it will now launch in schools nationwide.
Students participating in the national program will learn about the creative process and mechanics of footwear design through a curriculum developed by the SKECHERS Fitness Group design team. Students will submit their final shoe artwork to SKECHERS’ corporate headquarters and five top finalists will be selected. The winning shoe design will then be chosen through a vote on SKECHERS’ and After-School All-Stars’ Facebook pages, with the possibility of being manufactured into an actual SKECHERS shoe.
“This new partnership with SKECHERS is a fantastic example of how businesses can give back to the community and make a meaningful difference to kids,” said former Governor Arnold Schwarzenegger, founder of After-School All-Stars. “It’s so important to inspire our youth by exposing them to new, exciting opportunities. A creative career like footwear design is something most kids don’t even know about. The kids in our programs get really excited when they learn about jobs like this. Through hands-on experiences made possible by our partnership with SKECHERS, we’re giving children a huge head start in their academic and professional lives.”
ASAS is one of several children’s programs and charities that SKECHERS supports; others include the BOBS footwear collection and the annual SKECHERS Pier to Pier Friendship Walk through the SKECHERS Foundation. The Foundation also seeks to help neighborhoods, villages and cities around the world, from donating shoes to Hurricane Katrina victims to funds for those affected by the 2010 Haiti earthquake.
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 AFTER-SCHOOL ALL-STARS
Founded by former Governor Arnold Schwarzenegger in 1992, After-School All-Stars is a leading national provider of year-round, school-based, comprehensive after-school programs that equip children with the skills and experiences needed to become productive members of the 21st century workforce. Every day, children participate in free programs that include academic support, enrichment opportunities, and health/fitness activities. The organization’s mission is to keep children safe and help them succeed in school and in life. Over 81,000 children from families of poverty benefit in 12 U.S. areas: Atlanta, Chicago, Columbus, Hawaii, Las Vegas, Los Angeles, New York, Orlando, San Antonio, San Diego, San Francisco Bay Area and South Florida. To learn more, visit www.as-as.org or follow www.twitter.com/ASASafterschool.
*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 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 Company cannot predict all such risk factors, nor can the Company 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 | Mar 8, 2011 | Press Release
Mar 8, 2011 • 1:30 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA (NYSE:SKX), a global leader in the lifestyle footwear industry and the number two footwear brand in the United States*, today announced that it filed a lawsuit against Sears Holding Corporation for selling footwear that infringes on SKECHERS’ popular Shape-ups by SKECHERS, Twinkle Toes by SKECHERS and SKECHERS Z-Strap product lines.
The suit, filed in the United States District Court for the Central District of California, seeks compensatory and punitive damages as well as injunctive relief for infringing on SKECHERS’ patents, trademark, and trade dress rights, for dilution and for unfair competition. The suit states that Sears Holding Corporation is selling the infringing products at Sears and KMart’s retail stores and websites under the TheraShoe, Melrose Avenue, Paris Blues and Athletech labels.
“SKECHERS has invested tremendous resources into designing, developing and marketing our SKECHERS Shape-ups, Twinkle Toes and Z-Strap product lines. We have obtained more than 150 patents and trademarks on these lines, and have built them into brand names universally recognized around the world as synonymous with SKECHERS,” stated Philip Paccione, General Counsel of SKECHERS. “While we value our relationship with Sears, their actions are causing us tremendous damage, and we simply cannot let any company, let alone a company the size of Sears, infringe on our most valuable intellectual property.”
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, 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.
* In revenues, 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 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 Company cannot predict all such risk factors, nor can the Company 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.