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.
by | Feb 16, 2011 | Press Release
Feb 16, 2011 • 4:00 pm EST
-- Fourth Quarter 2010 Net Sales of $454.6 Million, an Increase of 17
Percent Over 2009, and Net Earnings of $3.2 Million
-- Fiscal Year 2010 Net Sales of $2.006 Billion, and Net Earnings of $136.1
Million
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced financial results for the fourth quarter and fiscal year ended December 31, 2010.
Net sales for the fourth quarter of 2010 increased 17 percent to $454.6 million as compared to $388.6 million in the fourth quarter of 2009. Earnings from operations in the fourth quarter of 2010 were $1.4 million versus income from operations of $41.7 million in the fourth quarter of 2009. Net earnings for the fourth quarter of 2010 were $3.2 million versus $27.9 million in the fourth quarter of 2009. Net earnings per diluted share in the fourth quarter of 2010 were $0.07 based on 49.2 million weighted average shares outstanding as compared to net earnings per diluted share of $0.58 based on 48.3 million weighted average shares outstanding in the fourth quarter of 2009. Gross profit for the fourth quarter of 2010 was $184.2 million compared to $189.3 million in the fourth quarter of 2009. Gross margin in the fourth quarter 2010 was 40.5 percent versus 48.7 percent for the fourth quarter of 2009.
Fiscal year 2010 net sales were $2.006 billion as compared to net sales of $1.436 billion in 2009. Earnings from operations for 2010 were $196.7 million versus $72.6 million in 2009. Net earnings for 2010 were $136.1 million versus net earnings of $54.7 million in 2009. Diluted earnings per share for fiscal year 2010 were $2.78 based on 49.0 million weighted average shares outstanding versus diluted earnings per share of $1.16 based on 47.1 million weighted average shares outstanding in the prior year. Gross profit for 2010 was $911.9 million compared to $621.0 million in 2009. Gross margin for 2010 was 45.4 percent versus 43.2 percent for 2009.
Robert Greenberg, SKECHERS chief executive officer, commented: “2010 was truly an amazing year for SKECHERS and our many product initiatives as we reached $2 billion in annual sales. Earlier this month, we were named Company of the Year for 2010 by Footwear Plus, and we’re the No. 2 lifestyle footwear brand and the leading source for toning footwear in the United States*. In 2010, we broadened our product range with increased kids offerings, fresh fitness styles, and a larger assortment of boots. Consistent with our approach of supporting our product through advertising, our kids’ commercials featured our animated characters, and our toning products incorporated a diverse collection of celebrities, including TV personality Brooke Burke, football legend Joe Montana and former basketball star Karl Malone. Our domestic business increased by 48.3 percent, our international wholesale business increased by 32.9 percent and our company-owned retail sales increased by 27.6 percent, which reflects the combined power of our product and marketing efforts. We continue to develop new and on target product, which we unveiled to our key accounts during FFANY in December, as well as meetings at our new corporate offices last month. We recently enlisted the power of reality star Kim Kardashian, whose 5 million plus Twitter followers and constant media attention helped drive her Shape-ups Super Bowl TV spot to headline news earlier this month. We see numerous opportunities to continue to strategically grow our business around the world, including through the addition of retail stores and further expansion of our international business. We are energized by our record sales, the enthusiasm for our product by both retailers and consumers, and the many opportunities we see in the marketplace in 2011 and beyond.”
David Weinberg, SKECHERS chief operating officer and chief financial officer, stated: “As we look forward, we are assessing all areas of our business to position ourselves to profitably grow in the future. Currently, we are carefully reviewing our expenses, which have increased in part due to significant growth over the past year. Our inventory increased by $175 million year-over-year, of which approximately $65 million is to support the increases in our international and retail expansion, and $110 million is related to our domestic wholesale business. As we aggressively work through our inventory position, we anticipate our domestic wholesale revenues and margins will be impacted in the first and second quarters, but we believe they will improve in the second half of the year. And with a healthy double-digit backlog in international as well, we believe our growth will continue to accelerate around the world. Our stores saw positive comps of over 3 percent for the quarter and over 15 percent for the year, and we are planning to open another 30 to 35 company-owned SKECHERS stores this year. We expect improvements to profitability in the latter half of the year when we anticipate a return to full-price selling with an improved margin profile from our new product offering. We are confident that the demand for our brand remains very high globally, and our momentum will continue in 2011.”
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.
*Respectively: In revenues, Sporting Goods Intelligence, June 21, 2010; 2010 SportsOneSource in Review
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, 2009 and the Company’s Form 10-Q for the quarter ended September 30, 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)
December 31, December 31,
2010 2009
ASSETS
Current Assets:
Cash and cash equivalents $ 233,558 $ 265,675
Short-term investments - 30,000
Trade accounts receivable, net 266,057 219,924
Other receivables 9,650 12,177
Total receivables 275,707 232,101
Inventories 398,588 224,050
Prepaid expenses and other current assets 53,791 28,233
Deferred tax assets 11,720 8,950
Total current assets 973,364 789,009
Property and equipment, at cost less accumulated 293,802 171,667
depreciation and amortization
Intangible assets, less applicable amortization 7,367 9,011
Deferred tax assets 12,323 13,660
Other assets, at cost 17,938 12,205
TOTAL ASSETS $ 1,304,794 $ 995,552
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings $ 11,984 $ 529
Short-term borrowings 18,346 2,006
Accounts payable 246,595 196,163
Accrued expenses 30,385 31,843
Total current liabilities 307,310 230,541
Long-term borrowings, excluding current installments 51,650 15,641
Total liabilities 358,960 246,182
Equity:
Skechers U.S.A., Inc. equity 908,203 745,922
Noncontrolling interests 37,631 3,448
Total equity 945,834 749,370
TOTAL LIABILITIES AND EQUITY $ 1,304,794 $ 995,552
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2010 2009 2010 2009
Net sales $ 454,619 $ 388,620 $ 2,006,868 $ 1,436,440
Cost of sales 270,427 199,368 1,094,962 815,430
Gross profit 184,192 189,252 911,906 621,010
Royalty income 1,420 633 4,568 1,655
185,612 189,885 916,474 622,665
Operating expenses:
Selling 40,476 31,421 186,738 128,989
General and 143,755 116,754 532,996 421,094
administrative
184,231 148,175 719,734 550,083
Income from operations 1,381 41,710 196,740 72,582
Other income (expense):
Interest, net (1,735 ) (643 ) (220 ) (975 )
Other, net 1,406 (2,700 ) 83 (497 )
(329 ) (3,343 ) (137 ) (1,472 )
Earnings before income 1,052 38,367 196,603 71,110
taxes
Income tax expense (2,334 ) 11,992 60,198 20,228
(benefit)
Net income 3,386 26,375 136,405 50,882
Less: Net income (loss)
attributable to 149 (1,571 ) 257 (3,817 )
noncontrolling interest
Net earnings
attributable to Skechers $ 3,237 $ 27,946 $ 136,148 $ 54,699
U.S.A., Inc.
Net earnings per share
attributable to Skechers
U.S.A., Inc.:
Basic $ 0.07 $ 0.60 $ 2.87 $ 1.18
Diluted $ 0.07 $ 0.58 $ 2.78 $ 1.16
Weighted average shares
used in calculating
earnings per share
attributable to Skechers
U.S.A., Inc.:
Basic 47,913 46,448 47,433 46,341
Diluted 49,152 48,344 49,050 47,105
by | Feb 4, 2011 | Press Release
Feb 4, 2011 • 6:07 pm EST
Company Responds to Massive Demand for Hugely Anticipated Kim Kardashian Spot
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 added a second Super Bowl spot after the enormous media attention and public awareness generated by its “must see” Kim Kardashian Shape-ups commercial. The Kardashian Shape-ups spot will air at the 2-minute warning in the fourth quarter of the game on Sunday, February 6, 2011.
“Everyone is buzzing about SKECHERS Shape-ups much anticipated Kim Kardashian Super Bowl commercial,” said Leonard Armato, president of SKECHERS Fitness Group. “People can’t stop talking about who Kim’s going to break up with – and once they see how hot it is, we’re sure they’ll want another great commercial from SKECHERS. They may even root for overtime just to see what SKECHERS has in store.”
News of Kardashian’s yet-fully-unveiled commercial has blanketed the press, from CNN and MTV to Good Morning America and the TODAY show; repeat articles in USA Today and The Washington Post; and celebrity news shows Access Hollywood, Entertainment Tonight, and Extra.
Shape-ups from SKECHERS are an innovative patented fitness tool designed to promote weight loss, tone muscles and improve posture. Shape-ups feature a unique soft Resamax(TM) kinetic wedge insert and rolling bottom that simulates walking on soft sand, providing natural instability that causes the wearer to use more energy with every step. The men’s and women’s fitness footwear line is 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, 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, 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 the ongoing financial crisis 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, 2009 and the Company’s Form 10-Q for the quarter ended September 30, 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.
