by | Oct 28, 2010 | Press Release
Oct 28, 2010 • 12:00 pm EDT
More than 4,000 Walkers Participated in the Annual Charity Event Benefiting South Bay Education Foundations and the Friendship Circle Non-Profit Organization
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in footwear, today announced that more than $380,000 in donations were raised to support South Bay schools and children with special needs at the SKECHERS Pier to Pier Friendship Walk presented by Kids Foot Locker on Sunday, October 24, 2010. More than 4,000 participants joined community leaders and special guests at the Manhattan Beach Pier including Tommy Lasorda, Special Advisor to the Chairman of the Los Angeles Dodgers and Hall of Fame Manager; fitness icon Denise Austin; Manhattan Beach Mayor Richard Montgomery; and SKECHERS President Michael Greenberg.
Los Angeles Dodgers Advisor Tommy Lasorda, SKECHERS President Michael Greenberg, and Manhattan Beach Mayor Richard Montgomery at the SKECHERS Pier to Pier Friendship Walk, which raised more than $380,000 for education and children with special needs. (Photo: Business Wire)
“We are awed and inspired by the generous spirit of the South Bay community, which banded together to raise a tremendous amount of funds for education and children with special needs,” said Michael Greenberg, president of SKECHERS. “The 2009 inaugural SKECHERS Pier to Pier Friendship Walk raised more than $220,000 and this year’s event was even more successful, surpassing $380,000, with more donations still coming in. At SKECHERS, we believe anything is possible when individuals join together in the spirit of giving, and we’re proud to be a part of this amazing community.”
“The SKECHERS Pier to Pier Friendship Walk has made such a positive impact in the South Bay, and we’re thrilled that this annual event has grown so much in just one year,” said Richard Montgomery, mayor of Manhattan Beach. “The SKECHERS Pier to Pier Friendship Walk is a prime example of how even a small donation can make a huge impact when the entire community joins together to support a wonderful cause. We’re grateful that a successful local company like SKECHERS has stepped up to raise critical funds for our schools and The Friendship Circle organization; they are the perfect example of a true public/private partnership with the city.”
Baseball legend Tommy Lasorda made a special appearance at the SKECHERS Pier to Pier Friendship Walk opening ceremony to rally the crowd, and commended SKECHERS and the walk participants on their dedication to give back to the community. In addition, fitness pioneer Denise Austin brought her infectious energy to the stage, and performances from the Los Angeles Clippers Spirit dance team, music from school bands, and several local cheerleading squads added to the lively atmosphere.
SKECHERS and event sponsors covered all production costs for the SKECHERS Pier to Pier Friendship Walk, allowing the donations received to directly benefit the education foundations of Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes and Torrance. In addition, donations support The Friendship Circle, a non-profit organization that assists children with special needs and their families through one-on-one peer mentoring and social recreational programming: www.friendshipcirclesb.com.
Businesses that sponsored the 2010 SKECHERS Pier to Pier Friendship Walk include presenting sponsor Kids Foot Locker, Acuprint, Marc Steven Leather, Ross Stores, Waste Management, WSA (World Shoes + Accessories), Equinox, Wells Fargo, Merrill Lynch, Marshalls, Finish Line, Arrowhead, Chevron, Build-A-Bear Workshop, Michael Stars, Shoe Carnival and Shoebuy.com.
The SKECHERS Pier to Pier Friendship Walk is an extension of the SKECHERS Foundation, an organization that was founded to provide families around the world with the necessities and skills to succeed in life. Specifically, the SKECHERS Foundation funds tax-exempt, 501(c)(3) nonprofit organizations that provide education and job training, shoes, clothing, fitness and nutrition guidance to communities in need.
For more information about the SKECHERS Pier to Pier Friendship Walk, including registration details and sponsorship opportunities for the 2011 walk, or to make an online donation, please visit www.Pier2Pierwalk.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6487258&lang=en
by | Oct 27, 2010 | Press Release
Oct 27, 2010 • 4:00 pm EDT
- Net Sales of $554.6 Million
- Income from Operations of $55.6 Million
- Net Earnings of $36.4 Million
- Diluted Earnings Per Share of $0.74
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the third quarter ended September 30, 2010.
Net sales for the third quarter of 2010 were $554.6 million, compared to $405.4 million in the third quarter of 2009, an increase of 36.8 percent, and income from operations was $55.6 million, compared to $32.4 million in the third quarter of 2009, an increase of 71.3 percent. Net earnings for the quarter were $36.4 million versus net earnings of $24.5 million in the third quarter of 2009. Net earnings per diluted share were $0.74 on 49.2 million diluted shares outstanding, versus net earnings per diluted share of $0.52 on 47.1 million diluted shares outstanding for the third quarter of 2009.
“Our third quarter net sales of over $550 million represent a new quarterly record and come on the heels of record sales for the first and second quarters. The continued demand for our diverse product offering resulted in growth across our domestic and international wholesale and retail channels,” began David Weinberg, chief operating officer and chief financial officer. “While the demand for our product remains high and we continue to experience growth in many categories, including toning, several accounts over-booked for back to school and cancelled orders, resulting in more inventory than initially planned. We expect to strategically work through this newer inventory at reasonable margins over the next six months or so.”
Mr. Weinberg added: “We continued to see strong results in operating income, net earnings and earnings per diluted share for the quarter, and our combined net sales over the first nine months exceeded total net sales for 2009, which is a result of our continued dedication to developing and growing new footwear categories, and then delivering innovative and fresh products, which are supported by comprehensive marketing campaigns worldwide.”
Gross profit for the third quarter of 2010 was $252.7 million, compared to $183.7 million in the third quarter of 2009. Gross margin was 45.6 percent for the third quarter of 2010, compared to 45.3 percent in the third quarter of 2009. Gross profit for the first nine months of 2010 was $727.7 million, or 46.9 percent of net sales, versus $431.8 million, or 41.2 percent of net sales, in the first nine months of 2009.
For the nine months ended September 30, 2010, net sales were $1.552 billion compared to net sales of $1.048 billion in the first nine months of 2009. Net earnings for the first nine months of 2010 were $132.9 million, compared to net earnings of $26.8 million in the first nine months of 2009. Net earnings per diluted share in the first nine months of 2010 were $2.71 per share on 49.0 million diluted shares outstanding, versus $0.57 per share on 46.6 million diluted shares outstanding for the same period last year.
Robert Greenberg, SKECHERS chief executive officer, commented: “We just finished our biggest sales quarter in the Company’s 18-year history, and our best back-to-school season. Our kids’ business continued to grow strongly, supported by commercials featuring our well-known cast of animated characters, and we continued to dominate the toning category with a 55 percent share of the U.S. market, according to SportsOneSource in September. The growth we experienced in the toning category also came at a time when sales in this segment are not as robust as they are during other times of the year. The enthusiasm for our recently launched lines has spread around the world, where we experienced double digit improvements in many key countries, which we believe are still poised for growth. We are supporting our product and growth with more print, outdoor and TV, including campaigns featuring football legend Joe Montana, basketball great Karl Malone, fitness celebrity Denise Austin, and ‘Dancing with the Stars’ co-host Brooke Burke. Our marketing has never been more exciting, and we have so much more coming down the line. In addition, we continue to make significant strides in product development for men, women and kids, and are excited about the delivery of fresh styles and our new lines for Holiday 2010 and Spring 2011. We are in a very strong position in the market with a steady buzz from consumers, the media and our retail partners. We have had accounts in our showrooms over the past week and a half and are pleased with their reaction to our new offerings. It has been a record first nine months this year, and we look forward to a great year-end for 2010 and new challenges and records in 2011.”
“SKECHERS’ sales continue to be strong and consistent across our wholesale and retail businesses in the United States and overseas with margins in line with our business model and our product offering the best it has ever been,” Mr. Weinberg added. “We are now evaluating our expense structure to ensure our expenditures will be in line with the current sales trend. Based on our double-digit backlogs, strong sell-throughs and positive comps in our retail stores, along with a cash position of approximately $248 million, we believe our momentum will continue.”
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 recent global economic slowdown and financial crisis; 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 June 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 Company cannot predict all such risk factors, nor can the Company assess the impact of all such risk factors on the business 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)
September 30, December 31,
2010 2009
ASSETS
Current Assets:
Cash and cash equivalents $ 248,828 $ 265,675
Short-term investments - 30,000
Trade accounts receivable, net 286,085 219,924
Other receivables 4,497 12,177
Total receivables 290,582 232,101
Inventories 326,651 224,050
Prepaid expenses and other current assets 46,987 28,233
Deferred tax assets 8,950 8,950
Total current assets 921,998 789,009
Property and equipment, at cost less accumulated 268,642 171,667
depreciation and amortization
Intangible assets, less applicable amortization 7,762 9,011
Deferred tax assets 13,678 13,660
Other assets, at cost 18,196 12,205
TOTAL ASSETS $ 1,230,276 $ 995,552
LIABILITIES AND EQUITY
Current Liabilities:
Short-term borrowings $ 2,329 $ 2,006
Current installments of long-term borrowings 15,767 529
Accounts payable 231,533 196,163
Accrued expenses 22,206 31,843
Total current liabilities 271,835 230,541
Long-term borrowings, excluding current 15,802 15,641
installments
Total liabilities 287,637 246,182
Equity:
Skechers U.S.A., Inc. equity 907,842 745,922
Noncontrolling interests 34,797 3,448
Total equity 942,639 749,370
TOTAL LIABILITIES AND EQUITY $ 1,230,276 $ 995,552
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended September Nine Months Ended September 30,
30,
2010 2009 2010 2009
Net sales $ 554,626 $ 405,374 $ 1,552,249 $ 1,047,820
Cost of sales 301,975 221,648 824,535 616,062
Gross profit 252,651 183,726 727,714 431,758
Royalty income 1,888 418 3,148 1,022
254,539 184,144 730,862 432,780
Operating
expenses:
Selling 59,516 41,245 146,262 97,568
General and 139,455 110,454 389,241 304,340
administrative
198,971 151,699 535,503 401,908
Income from 55,568 32,445 195,359 30,872
operations
Other income
(expense):
Interest, net 484 (665 ) 1,515 (332 )
Other, net (3,143 ) 2,176 (1,323 ) 2,203
(2,659 ) 1,511 192 1,871
Earnings
before income 52,909 33,956 195,551 32,743
taxes
Income tax 16,330 10,175 62,532 8,236
expense
Net income 36,579 23,781 133,019 24,507
Less: Net
income (loss)
attributable 201 (679 ) 108 (2,246 )
to
noncontrolling
interest
Net earnings
attributable $ 36,378 $ 24,460 $ 132,911 $ 26,753
to Skechers
U.S.A., Inc.
Net earnings
per share
attributable
to Skechers
U.S.A., Inc.:
Basic $ 0.76 $ 0.53 $ 2.81 $ 0.58
Diluted $ 0.74 $ 0.52 $ 2.71 $ 0.57
Weighted
average shares
used in
calculating
earnings per
share
attributable
to Skechers
U.S.A., Inc.:
Basic 47,586 46,405 47,268 46,304
Diluted 49,176 47,095 49,017 46,649
by | Oct 25, 2010 | Press Release
Oct 25, 2010 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA (NYSE:SKX), a global leader in the lifestyle footwear industry, today announces that Philip G. Paccione, SKECHERS General Counsel, has been awarded Corporate Counsel of the Year by the Los Angeles Business Journal.
Mr. Paccione was recognized Wednesday, October 20 at the Corporate Counsel Awards in Los Angeles, California where he was named Corporate Counsel of the Year of a Public Company (with more than one billion dollars in annual revenue) from a group of six finalists. Candidates were selected for exceptional legal skill and achievement across the full spectrum of in-house responsibility, exemplary leadership as evidenced by the highest professional and ethical standards, and for contributions to the Los Angeles community at large. Mr. Paccione will also be recognized in the October 25, 2010 issue of the Los Angeles Business Journal.
“We’ve always felt fortunate to have the professionalism, leadership and counsel that Phil brings to SKECHERS every single day,” began Michael Greenberg, president of SKECHERS. “All of us at SKECHERS stand proud to see Phil recognized externally for the exceptional role he’s played in our success for more than a decade.”
“This award from the Los Angeles Business Journal leaves me both humbled and grateful,” stated Mr. Paccione. “I have had tremendous support from executive management and this great company as well as from talented inside and outside counsel. These last 12 and a half years have been a pleasure and I look forward to the challenges ahead as SKECHERS continues to grow around the globe.”
Mr. Paccione has served as the SKECHERS Executive Vice President, Business Affairs since February 2000. Additionally, he has been the Company’s Corporate Secretary since July 1998 and General Counsel since May 1998.
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.
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 June 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.
by | Oct 20, 2010 | Press Release
Oct 20, 2010 • 2:30 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 2010 third quarter financial results will be broadcast live over the internet on Wednesday, October 27, 2010 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 October 27, 2010 at 7:30 p.m. ET, through November 10, 2010 at 12:00 a.m. ET. To access the replay, dial 877-870-5176 (U.S.) or 858-384-5517 (International) and use passcode: 4374787.
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 | Oct 19, 2010 | Press Release
Oct 19, 2010 • 9:00 am EDT
New Shape-ups “Comeback” Spots to Feature Kareem Abdul-Jabbar Cameos and Follow Joe Montana’s Successful Campaign
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the footwear industry, today announced that the Company is launching a series of Shape-ups fitness footwear television spots starring NBA basketball legend Karl Malone along with guest star Kareem Abdul-Jabbar. The spots will spearhead a worldwide Shape-ups “Comeback” campaign for Malone, who will appear in the Company’s print advertisements, visuals and marketing collateral through 2011.
“To everyone who’s too busy to work out, you’re out of excuses,” said Karl Malone. “Shape-ups are easy and they really make your muscles work. I’ve got more strength in my legs and core, and my energy level is up. They’re even easier on my joints than other shoes. I’m excited to stand behind this shoe because it delivers.”
“We’re so proud to see Shape-ups embraced by the greatest sports icons – and the incredible reactions that so many consumers are having to our product,” said Michael Greenberg, president of SKECHERS. “To have not one but two basketball legends endorsing Shape-ups is a tremendous honor – and, we believe, a terrific way to expose more sports fans, fitness-minded consumers, and new customers to the benefits of Shape-ups.”
The “Comeback” spots, which show Malone sharing the benefits of Shape-ups, will air nationwide on major networks beginning tonight, October 19, during the Major League Baseball NLCS (National League Championship Series).
An NBA two-time MVP and one of the sport’s greatest power forwards, Malone scored the second most points (36,928) in NBA history as a star player for Utah Jazz and the Los Angeles Lakers. He trails only fellow Lakers player Abdul-Jabbar, who is regarded as one of the best players of all time with 38,387 points and six NBA championship titles.
The Malone/Abdul-Jabbar launch follows the Company’s successful Shape-ups “Comeback” multimedia campaign featuring Pro Football Hall of Fame quarterback Joe Montana, which is appearing worldwide through 2010.
Launched by the SKECHERS Fitness Group(TM), Shape-ups are technical walking shoes designed to strengthen muscles, promote weight loss, and improve posture. Featuring a rocker-bottom outsole and Resamax(TM) kinetic wedge that together simulate walking on soft sand, Shape-ups provide a constant natural instability, activating muscles with every step. The Shape-ups fitness footwear collection for men and women is available in sporting goods and 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, 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 http://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 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 apparel, accessories, footwear and other merchandise 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 June 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 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.
