by | Jun 19, 2013 | Press Release
Jun 19, 2013 • 9:00 am EDT
HOUSTON–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announced a multi-year partnership with the Houston Marathon Committee, Inc. under which the Skechers Performance Division will become the official footwear and apparel sponsor for the Chevron Houston Marathon.
Meb celebrates his win at the finish line of the 2012 U.S. Olympic Marathon Trials in Houston. (Photo: Business Wire)
As part of the agreement, the Skechers Performance Division will have a high-visibility presence at all race events including the annual Houston Marathon EXPO. The Company will also exclusively design, distribute and sell products featuring the Chevron Houston Marathon logo. This includes outfitting course volunteers with branded merchandise and providing the finishers’ shirts for runners.
“This partnership further solidifies our position as a major player in the performance footwear business,” began Michael Greenberg, president of SKECHERS. “Since launching the Skechers Performance Division in 2011, our award-winning innovative footwear has been embraced by the media, elite runners like Meb, and casual fans of the sport. The exposure created via this sponsorship is a huge opportunity to engage with runners as we continue to develop the next generation performance products on our Skechers GO platform.”
As one of the most decorated distance runners in U.S. history, Meb’s career highlights include 2004 Olympic medalist, 2012 U.S. Olympic Trials champion and fastest American marathon runner at the London Olympics. He helped open lottery registration for the 2014 Chevron Houston Marathon during a National Running Day Event held on June 5. Meb, who competes wearing his signature Skechers GOrun speed footwear, led a 3-mile fun run at the event.
“Houston is where I earned a PR and the chance to represent the United States in London,” began Meb, who provides expert insight by testing and consulting on the design of Skechers Performance running shoes. “I ran that race wearing Skechers Performance shoes so it’s perfect that this great footwear company is now partnered with a key city in my career.”
“We’re extremely thrilled to welcome the Skechers Performance Division to our team,” added Steven Karpas, managing director for the Houston Marathon Committee. “Skechers shares our vision and is totally committed to ensuring that Chevron Houston Race Weekend is a can’t miss event on the running circuit for years to come.”
The first Skechers Performance appearance as sponsor will be at the Chevron Houston Marathon’s annual “Run for a Reason” Kickoff Party on Saturday, June 29. The brand will operate a booth at the annual event for visitors to experience its running footwear.
Skechers Performance footwear for men and women is available in sporting goods, department and specialty athletic stores around the world. Learn more at skechersperformance.com and follow the Skechers Performance Division on Facebook (facebook.com/SkechersPerformance) and Twitter (twitter.com/skechersGO).
About the Houston Marathon Committee, Inc.
Established in 1972, the Houston Marathon Committee, Inc. (HMC), a Running USA Founding Member, annually organizes the nation’s premier winter marathon, half-marathon, and 5K. Over 250,000 participants, volunteers and spectators make Chevron Houston Marathon Race Day the largest single day sporting event in Houston. Race Weekend generates over $50 million in economic impact for the region annually. In 2013, the Run For a Reason Charity Program raised $2.2 million and the HMC garnered Gold Certification from the Council of Responsible Sport for industry-leading sustainability initiatives. Host to 12 U.S. Half Marathon Championships since 2005 and the 1992 women’s Olympic Trials Marathon, HMC conducted the nationally-televised 2012 U.S. Olympic Trials Marathon, which featured men and women competing on the same course simultaneously for the first time, vying for the chance to represent Team USA at the 2012 Olympic Games.
For more information, visit www.chevronhoustonmarathon.com or call 713.957.3453.
ABOUT SKECHERS USA, INC.
SKECHERS USA, Inc. (NYSE: SKX), based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
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 includethe resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2012 and its quarterly report on Form 10-Q for the three months ended March 31, 2013. 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 USA, Inc.
Jennifer Clay, 310-937-1326
by | May 16, 2013 | Press Release
May 16, 2013 • 4:00 pm EDT
LOS ANGELES–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE: SKX) today announced that David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer, will present at the 14th Annual B. Riley Investor Conference on Tuesday, May 21, 2013, at 10:30 a.m. PDT at the Loews Santa Monica Beach Hotel in Santa Monica, California.
The audio portion of the presentation will be available live by visiting the ‘Investor Relations’ section of the Company’s Website at www.skx.com. A replay of the audio will be accessible on the site for 90 days following the live presentation.
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. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
SKECHERS USA, Inc.
David Weinberg, 310-318-3100
Chief Operating Officer/
Chief Financial Officer
or
Investor Relations:
Addo Communications
Andrew Greenebaum, 310-829-5400
by | May 15, 2013 | Press Release
May 15, 2013 • 4:00 pm EDT
- Net Sales Increase 28.6 Percent to $451.6 Million
- Earnings from Operations of $15.3 Million
- Net Earnings of $6.7 Million
- Diluted Earnings Per Share of $0.13
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in footwear, today announced financial results for the first quarter 2013. The Company’s newly appointed registered public accounting firm – BDO USA, LLP – has completed its review of the Company’s condensed consolidated financial statements for the quarter ended March 31, 2013 for inclusion in the filing of the corresponding Quarterly Report on Form 10-Q in accordance with Public Company Accounting Oversight Board (PCAOB) Statement on Auditing Standards AU 722, Interim Financial Information.
First quarter 2013 net sales were $451.6 million compared to $351.3 million in the first quarter of 2012.Gross profit for the first quarter of 2013 was $192.7 million or 42.7 percent of net sales compared to $155.7 million or 44.3 percent of net sales in the first quarter of last year. Earnings from operations for the first quarter of 2013 were $15.3 million versus a loss from operations of $4.4 million for the first quarter of 2012.
“We believe the first quarter 2013 sales increase of more than 28 percent over the same period last year is an indication of the increased demand for our brand and our diverse product offering, which now includes the growing Skechers Performance Division. Additional indicators of the strength of our business are the 47 percent increase in pairs sold in our domestic wholesale channel and the 12.2 percent increase in comparable sales in our domestic and international SKECHERS stores, which are the first to receive our new product,”stated David Weinberg, chief operating officer and chief financial officer. “Further, the sales growth was the result of double digit improvements in each of our business channels: domestic wholesale, international wholesale, company-owned retail stores, and e-commerce.”
Net earnings in the first quarter of 2013 were $6.7 million compared to a net loss of $3.7 million for the first quarter of 2012. Diluted net earnings per share were $0.13 based on 50,492,000 weighted average shares outstanding compared to a diluted loss per share of $0.07 based on 49,265,000 weighted average shares outstanding. It is important to note that the combination of two items negatively impacted earnings per share by $0.08 during the three month period ended March 31, 2013. First, a foreign currency translation pre-tax loss of $3.0 million occurred when the Company’s short-term intercompany investments in its foreign subsidiaries were translated into U.S. dollars. Also during the first quarter, the Company agreed to a pre-tax $2.5 million credit to an account that had purchased a significant portion of its excess toning inventory in 2011. The Company determined this was appropriate due to various issues relating to market conditions, pricing and the amount of toning inventory in the market place.
Robert Greenberg, SKECHERS chief executive officer, commented: “SKECHERS’ strong sales are the result of the efforts of the many talented individuals from all sides of our business – product, marketing, sales, retail, international and logistics. Each year we strive to bring more innovation to our product offering, and be more efficient in delivering it to the right partners around the world. I believe that now, more than ever before, we have a well-balanced collection of product with relevant styles in each of our 15 showrooms. We offer consumers choices unlike any other footwear company: we are an award-winning performance brand, an in-demand kids brand, a brand for occupational service professionals, and a lifestyle brand with winter boots, summer sandals, memory foam sneakers and everyday casuals. Our consistent marketing efforts also sets us apart and drives sales. Along with a much-talked about Super Bowl commercial for Skechers GOrun 2, we aired 17 unique commercials for Spring during the first quarter, and backed it up with print, online, outdoor and in-store campaigns. Many of these same campaigns are translated and air in countries around the world – from Japan to Germany, from Panama to Russia to support our growing international business. We see the success of these campaigns with dedicated SKECHERS window displays – from Australia to Spain, from Turkey to the U.K. And we see it in our account meetings in our corporate offices in Manhattan Beach and as we visit stores across the U.S. We believe the enthusiasm for our brand is stronger than ever, and based on the growth in each category, we believe this excitement is across our diverse product platform. We are looking forward to the coming back-to-school season and what we believe will be a strong year for SKECHERS.”
Mr. Weinberg continued: “We ended 2012 with a very positive quarter, and we have begun 2013 with another strong quarter. Our expenses and fresh inventory are in line with our current business. While our cash did decline from year end, we believe this is primarily a timing issue, and our cash balance is now over $350 million. With Easter falling in the first quarter (this year) and the potential for back-to-school deliveries shifting into the third quarter, we expect growth to be significantly stronger in the third quarter than in the second quarter 2013. Based on the strong acceptance of the brand and the current demand for our product, we believe we are well positioned for growth.”
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. 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, Japan, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements; international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2012. 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. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited) |
| (In thousands) |
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
March 31,
2013
|
|
December 31,
2012
|
| ASSETS |
|
|
|
|
| Current Assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
264,661 |
|
$ |
325,826 |
| Trade accounts receivable, net |
|
|
283,442 |
|
|
213,697 |
| Other receivables |
|
|
7,119 |
|
|
7,491 |
| Total receivables |
|
|
290,561 |
|
|
221,188 |
| Inventories |
|
|
253,659 |
|
|
339,012 |
| Prepaid expenses and other current assets |
|
|
26,646 |
|
|
27,755 |
| Deferred tax assets |
|
|
26,532 |
|
|
26,531 |
| Total current assets |
|
|
862,059 |
|
|
940,312 |
| Property, plant and equipment, at cost, less accumulated depreciation and amortization |
|
|
361,400
|
|
|
362,446
|
| Goodwill and other intangible assets, less applicable amortization |
|
|
3,016 |
|
|
3,242 |
| Deferred tax assets |
|
|
15,261 |
|
|
16,387 |
| Other assets, at cost |
|
|
20,316 |
|
|
17,833 |
| Total non-current assets |
|
|
399,993 |
|
|
399,908 |
| TOTAL ASSETS |
|
$ |
1,262,052 |
|
$ |
1,340,220 |
| LIABILITIES AND EQUITY |
|
|
|
|
| Current Liabilities: |
|
|
|
|
| Current installments of long-term borrowings |
|
$ |
11,754 |
|
$ |
11,668 |
| Short-term borrowings |
|
|
3,044 |
|
|
2,425 |
| Accounts payable |
|
|
162,024 |
|
|
241,525 |
| Accrued expenses |
|
|
30,455 |
|
|
36,923 |
| Total current liabilities |
|
|
207,277 |
|
|
292,541 |
| Long-term borrowings, excluding current installments |
|
|
125,545 |
|
|
128,517 |
| Deferred tax liabilities |
|
|
72 |
|
|
73 |
| Total non-current liabilities |
|
|
125,617 |
|
|
128,590 |
| Total liabilities |
|
|
332,894 |
|
|
421,131 |
| Stockholders’ equity: |
|
|
|
|
| Skechers U.S.A., Inc. equity |
|
|
883,093 |
|
|
875,969 |
| Noncontrolling interests |
|
|
46,065 |
|
|
43,120 |
| Total equity |
|
|
929,158 |
|
|
919,089 |
| TOTAL LIABILITIES AND EQUITY |
|
$ |
1,262,052 |
|
$ |
1,340,220 |
|
|
|
|
|
|
|
| SKECHERS U.S.A., INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| (In thousands, except per share data) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2013 |
|
2012 |
| Net sales |
|
$ |
451,621 |
|
|
$ |
351,274 |
|
| Cost of sales |
|
|
258,889 |
|
|
|
195,578 |
|
| Gross profit |
|
|
192,732 |
|
|
|
155,696 |
|
| Royalty income, net |
|
|
1,770 |
|
|
|
1,136 |
|
|
|
|
194,502 |
|
|
|
156,832 |
|
| Operating expenses: |
|
|
|
|
| Selling |
|
|
37,696 |
|
|
|
30,349 |
|
| General and administrative |
|
|
141,468 |
|
|
|
130,877 |
|
|
|
|
179,164 |
|
|
|
161,226 |
|
| Earnings (loss) from operations |
|
|
15,338 |
|
|
|
(4,394 |
) |
| Other income (expense): |
|
|
|
|
| Interest, net |
|
|
(2,549 |
) |
|
|
(2,721 |
) |
| Other, net |
|
|
(2,923 |
) |
|
|
(140 |
) |
| Total other income (expense) |
|
|
(5,472 |
) |
|
|
(2,861 |
) |
| Earnings (loss) before income tax expense (benefit) |
|
|
9,866 |
|
|
|
(7,255 |
) |
| Income tax expense (benefit) |
|
|
2,278 |
|
|
|
(3,845 |
) |
| Net earnings (loss) |
|
|
7,588 |
|
|
|
(3,410 |
) |
| Less: Net earnings attributable to noncontrolling interests |
|
|
908 |
|
|
|
256 |
|
| Net earnings (loss) attributable to Skechers U.S.A., Inc. |
|
$ |
6,680 |
|
|
$ |
(3,666 |
) |
|
|
|
|
|
|
|
|
|
|
| Net earnings (loss) per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
| Basic |
|
$ |
0.13 |
|
|
$ |
(0.07 |
) |
| Diluted |
|
$ |
0.13 |
|
|
$ |
(0.07 |
) |
|
|
|
|
|
| Weighted average shares used in calculating earnings (loss) per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
| Basic |
|
|
50,295 |
|
|
|
49,265 |
|
| Diluted |
|
|
50,492 |
|
|
|
49,265 |
|
Company Contact:
SKECHERS USA, Inc.
David Weinberg
Chief Operating Officer
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Andrew Greenebaum
(310) 829-5400
by | May 9, 2013 | Press Release
May 9, 2013 • 4:33 pm EDT
- Announces Filing of Notice of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission on May 10, 2013
- Expects to File its Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2013 on May 15, 2013
- First Quarter 2013 Conference Call Scheduled for 1:30 p.m. PT / 4:30 p.m. ET May 15, 2013
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in footwear, today announced that it will file tomorrow, May 10, 2013, a Notification of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission with regard to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. The Company will file the Form 12b-25 in order to enable its newly appointed independent auditor, BDO USA, LLP, sufficient time to complete its review of the Company’s condensed consolidated financial statements for the quarter ended March 31, 2013 prior to the filing of the corresponding Form 10-Q in accordance with Public Company Accounting Oversight Board (PCAOB) Statement on Auditing Standards AU 722,Interim Financial Information.
The Company expects to file its Form 10-Q for the quarter ended March 31, 2013 with the SEC and to communicate its first quarter 2013 financial results after the financial markets close on Wednesday, May 15, 2013. A conference call is scheduled the same day at 1:30 p.m. PT / 4:30 p.m. ET. Participating in the call will be David Weinberg, the Company’s Chief Operating Officer and Chief Financial Officer.
The call can be accessed on the Investor Relations section of the Company’s website at www.skx.com. For those unable to participate during the live broadcast, a replay will be available beginning May 15, 2013, at 7:30 p.m. ET, through May 29, 2013, at 11:59 p.m. ET. To access the replay, dial 877-870-5176 (U.S.) or 858-384-5517 (International) and use passcode: 412019.
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. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
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 the resignation of the Company’s former independent registered public accounting firm, and its withdrawal of its audit reports with respect to certain of the Company’s historical financial statements, international, national and local general economic, political and market conditions including the ongoing global economic slowdown and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2012. 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 USA, Inc.
David Weinberg
Chief Operating Officer
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Andrew Greenebaum
(310) 829-5400
by | Apr 24, 2013 | Press Release
Apr 24, 2013 • 4:05 pm EDT
- Expects to File Its 10-Q on May 10
- Preliminary First Quarter 2013 Net Sales between $440 to $450 Million and EPS between $0.08 to $0.12
- Two one-time items negatively impacted EPS by $0.07
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), today announced that the Audit Committee of its Board of Directors has appointed BDO USA, LLP (“BDO”) as the Company’s independent auditors. BDO will commence work immediately with the re-audit of the Company’s financial statements for the fiscal years ended December 31, 2011 and 2012, as well as reviewing the financial statements for the first quarter of 2013. The appointment of BDO was made after an extensive evaluation process by the Company’s Audit Committee.
As previously announced, the change in auditors was the result of KPMG LLP’s (“KPMG”) resignation as Skechers’ independent auditors, due to the impairment of KPMG’s independence resulting from to its now former partner’s alleged unlawful activities. The resignation of KPMG was not related to Skechers’ financial statements, its accounting practices, the integrity of Skechers’ management, or for any other reason.
“Skechers’ focus during this transition period has been on finding new auditors, preparing to report our first quarter 2013 earnings, and managing our global footwear business,” began David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer. “With BDO now in place, we believe that they will efficiently audit the last two fiscal years of our consolidated financial statements and expertly handle our future audit needs.”
Mr. Weinberg continued: “We look forward to our first quarter earnings announcement and expect to report net sales between $440 million to $450 million versus first quarter 2012 net sales of $351.3 million, and earnings per share between $0.08 to $0.12. It is important to note that the combination of two one-time items which negatively impacted our earnings per share by $0.07. First, due to a stronger dollar when our short-term intercompany investments in our foreign subsidiaries were translated into U.S. dollars it resulted in a foreign currency translation loss of $3.0 million in our consolidated financial statements during the first quarter of 2013. In addition, during the first quarter we agreed to a $2.5 million credit to an account that had purchased a significant portion of our excess toning inventory in 2011. We determined this was appropriate due to various issues relating to market conditions, pricing and the amount of toning inventory in the market place.”
The Company also announced that it will schedule its conference call discussing financial results for the first quarter of 2013 on the same day that its quarterly report on Form 10-Q is filed. The Company expects to timely file its Form 10-Q for the first quarter of 2013 on May 10, 2013, or, if necessary, no later than May 15, 2013 with the required notice being filed in accordance with SEC rules. Participating on the call will be David Weinberg, Chief Operating Officer and Chief Financial Officer.
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. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, and over 100 countries and territories through the Company’s global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com, and follow us on Facebook (www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
ABOUT BDO USA, LLP
BDO is the brand name for BDO USA, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For more than 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. The firm serves clients through 45 offices and more than 400 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multi-national clients through a global network of 1,204 offices in 138 countries.
BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information please visit: www.bdo.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 ongoing global economic slowdown and market instability; entry into the highly competitive performance footwear market; sustaining, managing and forecasting costs and proper inventory levels; losing any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the lack of popularity of particular designs and/or categories of products; maintaining brand image and intense competition among sellers of footwear for consumers; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in the Company’s annual report on Form 10-K for the year ended December 31, 2012. 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 USA, Inc.
Jennifer Clay, (310) 937-1326
or
Investor Relations:
Andrew Greenebaum, (310) 829-5400
