by | Feb 25, 2010 | Press Release
Feb 25, 2010 • 8:55 am EST
Famed Art, Cultural and Shopping Magnet Draws Nearly 45 Million Annual Visitors
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that the Company has opened a flagship store in the heart of Covent Garden, London’s premier destination for culture and leisure. Exclusively located on the Royal Opera House property across from the famed Covent Garden Market, the new SKECHERS location is a central magnet for shoppers worldwide.
“SKECHERS Covent Garden is the ultimate sales and branding tool,” said Michael Greenberg, president of SKECHERS. “Consumers can’t get enough of this world-famous district because it’s known for having it all – shops, restaurants, architecture, entertainment. And now, it’s also got SKECHERS – which means that millions of new customers and fans of the brand can enter our world, try on our styles, buy our product, and take the SKECHERS experience home to their countries.”
Designed to infuse the Opera House’s architectural design with SKECHERS’ sensory retail philosophy, the flagship store showcases sculptured gypsum wall panels and premium solid black oak flooring, as well as signature SKECHERS looks such as blue florescent acrylic wall displays and table tops, LCD screens, color-changing LED lighting, and light box graphics.
A living catalogue, the store features a broad range of SKECHERS athletic, casual and dress styles for men and women, along with a dedicated children’s department illuminated with the brand’s animated characters. The Company’s popular Shape-ups fitness footwear collection also prominently features in its own shop-in-shop, promoted with graphic images and four LCD screens playing Shape-ups instructional videos.
The SKECHERS Covent Garden store at 2/3 James Street is the latest in a growing network of global destinations showcasing the brand. In addition to the SKECHERS retail store on London’s Oxford Street, the Company’s flagship stores include high-profile locations in New York’s Times Square, Los Angeles’ Hollywood & Highland and Universal CityWalk, and San Francisco’s Powell Street, as well as Toronto, Paris, and Shanghai. SKECHERS currently owns and operates more than 280 retail stores in the United States, Canada, Europe and Asia.
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; in over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile, and across Europe; and 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; 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, 2008 and the Company’s Form 10-Q for the quarter ended September 30, 2009. 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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6193282&lang=en
by | Feb 17, 2010 | Press Release
Feb 17, 2010 • 4:00 pm EST
- Record Fourth Quarter 2009 Net Sales of $388.6 Million, an Increase of 30.4 Percent Over 2008, and Net Earnings of $27.9 Million
- Fiscal Year 2009 Net Sales of $1.436 Billion, and Net Earnings of $54.7 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, 2009.
Net sales for the fourth quarter of 2009 increased 30.4 percent to $388.6 million as compared to $298.1 million in the fourth quarter of 2008. Income from operations in the fourth quarter of 2009 was $41.7 million, an increase of $76.8 million over the operating loss of $35.1 million in the fourth quarter of 2008. Net earnings for the fourth quarter of 2009 were $27.9 million versus a net loss of $20.4 million in the fourth quarter of 2008. Net earnings per diluted share in the fourth quarter of 2009 were $0.58 based on 48,344,000 weighted average shares outstanding as compared to a net loss per diluted share of $0.44 based on 46,123,000 weighted average shares outstanding in the fourth quarter of 2008. Gross profit for the fourth quarter of 2009 was $189.3 million compared to $95.0 million in the fourth quarter of 2008. Gross margin in the fourth quarter 2009 was 48.7 percent versus 31.9 percent for the fourth quarter of 2008.
“We ended 2009 with a record fourth quarter – a 30 percent sales increase over the fourth quarter 2008, a significant achievement in a difficult economic environment,” began David Weinberg, chief operating officer and chief financial officer. “Our strong margins are a result of our ability to manage our expenses, the strength of our SKECHERS retail business, more in-line goods selling through and less close-out product, which was primarily liquidated in the first half of the year.”
Fiscal year 2009 net sales were $1.436 billion as compared to net sales of $1.441 billion in 2008. Income from operations for 2009 was $72.6 million versus $57.9 million in 2008. Net earnings for 2009 were $54.7 million versus net earnings of $55.4 million in 2008. For fiscal year 2009, diluted earnings per share were $1.16 based on 47,105,000 weighted average shares outstanding versus diluted earnings per share of $1.19 based on 46,708,000 weighted average shares outstanding in the prior year. Gross profit for 2009 was $621.0 million compared to $595.9 million in 2008. Gross margin for 2009 was 43.2 percent versus 41.4 percent for 2008.
Mr. Weinberg continued: “We also believe that achieving a 25 percent increase in annual operating profit on essentially flat sales is a meaningful accomplishment. While the economy remains a factor, SKECHERS experienced strong momentum in the second half of the year, and saw strong sales and gross margin improvement in the United States and in select countries around the world, with double digit growth in many markets.”
Robert Greenberg, SKECHERS chief executive officer, commented: “We are all aware of the global economic challenges in 2009, but for SKECHERS, the year was a particularly exciting one as we successfully took advantage of new opportunities to grow our business with fresh styles and product lines that brought our brand into new stores and increased our shelf space in many others. We believe our record third and fourth quarters in such difficult economic times is a true testament to the strength of our brand and our product. Consumers embraced our 2009 product offering, and retailers are energized about our Spring and Fall 2010 collections. We continue to develop more unique and compelling product, and support our brands with our integrated approach to marketing. We are keenly focused on growing our international business, and believe our newly added international subsidiaries in South America and distributors in Mexico and India have strong potential as we have only scratched the surface in these countries. We will also build on our meaningful retail base with more new stores in the United States and markets in Europe, and we are taking a proactive approach to our e-commerce business through redesign and an increased presence on social media sites. We believe we are in a strong position from a product, marketing, distribution and financial standpoint as we begin the new year, and we are confident that we will continue to grow in 2010.”
“For SKECHERS, all indicators are pointing to growth in 2010,” stated Mr. Weinberg. “Our backlog is up 40 percent as of December 31, 2009 over the prior year; combined domestic and international store comps increased 17.4 percent for the fourth quarter; and we are just completing five weeks of pre-lines with key accounts, which reacted very positively to our new product. Our infrastructure is already in place in Europe to support our continued growth, and we will be breaking ground for our new 1.8 million square foot distribution center in Rancho Belago, California, in the first or second quarter of 2010 – creating a much more efficient distribution operation. With a cash and short-term investment position of $296 million, clean inventory, strong product that is checking well at retail and marketing to support it, we believe we are especially well-positioned to grow in 2010.”
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; 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, 2008 and the Company’s Form 10-Q for the quarter ended September 30, 2009. 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)
December 31, December 31,
2009 2008
ASSETS
Current Assets:
Cash and cash equivalents $ 265,675 $ 114,941
Short-term investments 30,000 -
Trade accounts receivable, net 219,924 175,064
Other receivables 12,177 7,816
Total receivables 232,101 182,880
Inventories 224,050 261,209
Prepaid expenses and other current assets 28,233 31,022
Deferred tax assets 8,950 11,955
Total current assets 789,009 602,007
Property and equipment, at cost less accumulated 171,667 157,757
depreciation and amortization
Intangible assets, less applicable amortization 9,011 5,407
Deferred tax assets 13,660 18,158
Long-term investments - 81,925
Other assets, at cost 12,205 11,062
TOTAL ASSETS $ 995,552 $ 876,316
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings $ 529 $ 572
Short-term borrowings 2,006 -
Accounts payable 196,163 164,643
Accrued expenses 31,843 23,021
Total current liabilities 230,541 188,236
Long-term borrowings, excluding current 15,641 16,188
installments
Total liabilities 246,182 204,424
Equity:
Skechers U.S.A., Inc. equity 745,922 668,693
Noncontrolling interest 3,448 3,199
Total equity 749,370 671,892
TOTAL LIABILITIES AND EQUITY $ 995,552 $ 876,316
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended December Twelve Months Ended December 31,
31,
2009 2008 2009 2008
Net sales $ 388,620 $ 298,088 $ 1,436,440 $ 1,440,743
Cost of sales 199,368 203,062 815,430 844,821
Gross profit 189,252 95,026 621,010 595,922
Royalty income 633 800 1,655 2,461
189,885 95,826 622,665 598,383
Operating
expenses:
Selling 31,421 21,853 128,989 126,890
General and 116,754 109,060 421,094 413,601
administrative
148,175 130,913 550,083 540,491
Income (loss)
from 41,710 (35,087 ) 72,582 57,892
operations
Other income
(expense):
Interest, net (643 ) 436 (975 ) 2,731
Other, net (2,700 ) 200 (497 ) 120
(3,343 ) 636 (1,472 ) 2,851
Earnings
(loss) before 38,367 (34,451 ) 71,110 60,743
income taxes
Income tax
expense 11,992 (12,917 ) 20,228 7,258
(benefit from)
Net income 26,375 (21,534 ) 50,882 53,485
(loss)
Less: Net
income (loss)
attributable (1,571 ) (1,156 ) (3,817 ) (1,911 )
to
noncontrolling
interest
Net earnings
(loss)
attributable $ 27,946 $ (20,378 ) $ 54,699 $ 55,396
to Skechers
U.S.A., Inc.
Net earnings
(loss) per
share
attributable
to Skechers
U.S.A., Inc.:
Basic $ 0.60 $ (0.44 ) $ 1.18 $ 1.20
Diluted $ 0.58 $ (0.44 ) $ 1.16 $ 1.19
Weighted
average shares
used in
calculating
earnings per
share
attributable
to Skechers
U.S.A., Inc.:
Basic 46,448 46,123 46,341 46,031
Diluted 48,344 46,123 47,105 46,708
by | Feb 8, 2010 | Press Release
Feb 8, 2010 • 9:00 am EST
LOS ANGELES–(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 2009 fourth quarter and full year financial results on Wednesday, February 17, 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 February 17, 2010 at 7:30 p.m. ET, through March 3, 2010 at 12:00 a.m. ET. To access the replay, dial 800-406-7325 (U.S.), and use passcode: 4201621.
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. It is also available in over 100 countries and territories throughout the Company’s global network of distributors and subsidiaries in Canada, Brazil, Chile and across Europe, as well as through joint ventures in Asia. Please visit www.skechers.com for more information.
by | Feb 2, 2010 | Press Release
Feb 2, 2010 • 9:00 am EST
LOS ANGELES–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced that it has been named 2009 Company of the Year by Footwear Plus, a leading footwear trade publication. This Plus Award for Design Excellence marks the fourth time in five years that SKECHERS has claimed the top prize.
“It is a great honor to be named Company of the Year by our industry for the second consecutive year,” began Michael Greenberg, president of SKECHERS. “Considering the strong brands also nominated – including Nike – and the challenging economy of 2009, we are particularly proud of this award. We believe it is a testament to the strength of our brand, our determination to deliver fresh, innovative product, and the hard work of the entire SKECHERS team.”
“For the second straight year, SKECHERS has taken home the Plus Award in the prestigious ‘Company of the Year’ category,” stated Greg Dutter, Editorial Director of Footwear Plus magazine. “Amid a difficult retail climate, SKECHERS adapted and thrived, turning in record-setting third quarter sales and has projections for a record fourth quarter as well. The Company continues to deliver on-target and affordable fashions across a wide range of footwear segments. Collectively, SKECHERS hits on America’s sweet spot when it comes to its everyday footwear needs.”
SKECHERS was also nominated for Design Excellence awards in the Wellness and Children’s categories. Nominees for the Plus Awards are selected and voted on annually by footwear retailers nationwide, and recognize design excellence for the year.
SKECHERS has been previously recognized by Footwear Plus as Company of the Year in 2005, 2006 and 2008. Additionally, SKECHERS received Plus Awards for Design Excellence in 2000 for Young Women’s Fashion, in 2001 for Women’s Streetwear, and in 2002 for Kids’ Fashion. SKECHERS’ fashion brand, Marc Ecko, won Plus Awards for Design Excellence in Men’s Streetwear for 2005 and again in 2006.
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; 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, 2008 and the Company’s Form 10-Q for the quarter ended September 30, 2009. 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.
by | Jan 28, 2010 | Press Release
Jan 28, 2010 • 5:01 pm EST
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that the Company is donating $100,000 to Haiti earthquake relief efforts as well as 5,000 pairs of shoes to the people of Haiti. SKECHERS employees also are raising funds for various charities operating on relief efforts for victims of the tragic earthquake in Haiti.
Specifically, SKECHERS donated $50,000 each to Doctors without Borders and Save the Children – two charities deeply involved in delivering aid to the devastated nation. And the Company has also delivered 5,000 pairs of shoes to Soles 4 Souls, a charity that distributes new and lightly worn footwear to those who need it most.
“SKECHERS has become a brand known around the world, and as a member of the global community, it’s essential that we assist those in need in times of great tragedy,” began Michael Greenberg, president of SKECHERS. “The level of devastation in Haiti is beyond comprehension. We hope that our contribution of money and footwear will make a difference, and we encourage individuals and companies to join in the efforts to help the people of Haiti by giving, giving, giving.”
Greenberg continued: “The SKECHERS team of employees acts very much like a family, always willing to lend a hand to a colleague. I am proud that so many members of our team came together to raise money – in the United States and abroad. Thousands of dollars have also been donated by our employees for several charities working on relief efforts in Haiti.”
SKECHERS carries a strong record when it comes to charity response to major natural disasters. The Company donated and raised cash for victims of the Indian Ocean Tsunami in 2004 and Hurricane Katrina in 2005. And SKECHERS contributes product when appropriate, most notably to victims of the 2007 California Wildfires.
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.
ABOUT DOCTORS WITHOUT BORDERS
Doctors Without Borders / Medecins Sans Frontieres (MSF) is an international independent medical humanitarian organization that delivers emergency aid to people affected by armed conflict, epidemics, natural and man-made disasters, and exclusion from health care in nearly 70 countries. A private, non-profit organization, Doctors Without Borders was founded in 1971 as the first non-governmental organization to both provide emergency medical assistance and bear witness publicly to the plight of people it assists.
ABOUT SAVE THE CHILDREN
Save the Children is the leading, independent organization that creates lasting change for children in need in the United States and around the world. Save the Children USA is a member of the International Save the Children Alliance, a global network of 29 independent Save the Children organizations working to ensure the well-being and protection of children in more than 120 countries.
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; 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, 2008 and the Company’s Form 10-Q for the quarter ended September 30, 2009. 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.
