by | Jul 20, 2017 | Press Release
Jul 20, 2017 • 4:05 pm EDT
Record Second Quarter Net Sales of $1.026 Billion
Record First Six Months Net Sales of $2.099 Billion
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the second quarter and six months ended June 30, 2017.
Second Quarter and Six Month 2017 Highlights
- Record second quarter net sales of $1.026 billion, an increase of 16.9 percent
- Record six month net sales of $2.099 billion, an increase of 13.0 percent
- Gross margins of 47.6 percent for the second quarter and 46.0 percent for the six months
“Second quarter net sales exceeded our expectations setting another record quarter, and making the first half of 2017 a new record with sales surpassing $2 billion,” began David Weinberg, chief operating officer and chief financial officer. “The growth came across our three distribution channels—with double-digit increases in our Company-owned global Skechers retail business, and each of our international distributor, subsidiary and joint venture businesses, as well as a mid-single-digit increase in our domestic wholesale business. Further, in the second quarter of 2017 in our domestic wholesale business, we shipped 11.4 percent more pairs while our average price per pair decreased 4.5 percent.”
Second Quarter Financial Results
Quarterly net sales increased 16.9 percent to $1.026 billion compared to the second quarter 2016. The growth was the result of a 6.4 percent increase in the Company’s domestic wholesale business, an 18.6 percent increase in the Company’s international wholesale business, and a 28.0 percent increase in its Company-owned global retail business, which included comparable same store sales increases of 7.1 percent.
Gross profit for the second quarter was $488.3 million, or 47.6 percent of net sales, compared to $416.3 million, or 47.4 percent of net sales, for the second quarter of last year.
Second quarter selling expenses increased $24.0 million to $100.0 million, or 9.7 percent of sales, compared to $76.0 million, or 8.7 percent of sales, in the second quarter of the prior year. The increase was primarily due to increased domestic advertising of $5.2 million, additional international advertising expenses of $6.4 million, primarily to support the growth in its European subsidiaries as well as increases in Japan and South Korea, and an additional $4.2 million in selling commissions from its joint venture in South Korea.
General and administrativeexpenses for the second quarter increased $62.1 million to $305.3 million, or 29.8 percent of sales, compared to $243.2 million, or 27.7 percent of sales, in the second quarter of the prior year. The year-over-year quarterly increase was primarily due to Skechers’ focus on long-term global growth, including $22.3 million associated with the Company’s 68 additional domestic and international retail stores—31 of which were opened in the second quarter, and $26.2 million to support its international growth, of which $16.9 million was due to increased costs in China, $3.6 million for the transition of its South Korean distributor to a joint venture, and $2.4 million in Japan. Domestic wholesale general and administrative expenses in the second quarter increased $13.5 million year-over-year primarily due to increased headcount in the United States to support its brand worldwide, as well as the expansion into new categories and brands.
Mr. Weinberg added: “Investing in our brand and business is critical for both our short-term and long-term growth initiatives. This is evident in both the expansion of our Company-owned global retail business, which had the highest net sales dollar and percentage gain, followed by our international wholesale business. Given the increases in our international business, which for the first six months represented 48 percent of our total business, we believe the greatest opportunity for expansion is internationally, and we are investing in our infrastructure and marketing to support this progress.”
Earnings from operations were $86.3 million or 8.4 percent of sales, a decrease of 14.0 percent over the second quarter of 2016.
Net earnings decreased 19.7 percent to $59.5 million, and diluted net earnings per share were $0.38. The Company’s quarterly effective tax rate in the second quarter was 16.1 percent compared to 12.7 percent over the second quarter of 2016. The Company expects its effective tax rate to be between 14 percent and 19 percent for fiscal 2017.
Six Month Financial Results
Net sales were $2.099 billion, gross profit was $964.8 million or 46.0 percent of net sales, and earnings from operations were $210.7 million or 10.0 percent of net sales. Net earnings were $153.5 million and diluted net earnings per share were $0.98 per share.
Robert Greenberg, SKECHERS chief executive officer, commented: “Twenty-five years ago in May, we founded Skechers with a single line of men’s bootsavailable in the United States. Within a year, we were shipping to several international markets, and planning expansion into women’s and kids. We’ve come a very long way in a relatively short period of time—including our present position in the United States as the leader in walking, work, casual and comfort footwear, and second in all of footwear combined, and a leading brand in numerous countries around the world. Our domestic and international growth in the quarter and in recent years was the result of our continued focus on developing innovative, comfortable and stylish footwear; determination to build the brand through marketing; investment in operations and logistics for the present and future; and the dedication of our highly talented and creative team.”
Mr. Greenberg continued: “Domestically in the second quarter, we introduced a key new product, You by Skechers, delivered more of our heritage footwear collections, experienced strong sales in our sandal business, and saw continued strength in our kids’ lighted footwear. In the international markets, we achieved double-digit growth in many countries worldwide—including Germany, Chile, India, China, and Australia.Along with delivering strong product for men, women and kids to our wholesale partners, our international success was due to the expansion of Skechers retail stores around the world, which now includes 1,870 international stores of which 1,691 are third-party-owned locations. At quarter end, our total Skechers retail store count was 2,305, and included the opening of several key locations—Tokyo’s popular Shibuya district, the new Century City Mall in Los Angeles, a super store in Ontario Mills in Southern California, a store in New York’s SoHo, among others—and the relocation of our store on San Francisco’s Powell Street, which now has a much larger sales floor and better visibility. Based on our global meetings in May and June, and our on-going domestic key account meetings at our corporate offices, plus our July sell-throughs,we believe that the record sales we experienced in the first six months will continue in the second half.”
Balance Sheet
At June 30, 2017, cash and cash equivalents was $751.6 million, an increase of $122.8 million, or 19.5 percent over June 30, 2016.
Total inventory, including inventory in transit, was $669.7 million, an increase of $79.0 million or 13.4 percent over June 30, 2016, and a decrease of $30.8 million or 4.4 percent over December 31, 2016. The increase over last year was primarily due to the Company’s growth worldwide and is in line with the Company’s backlogs, and growing retail and international wholesale business.
Working capital was $1.359 billion at June 30, 2017 versus $1.155 billion at June 30, 2016.
Mr. Weinberg continued: “We ended the quarter with our three business channels showing continued growth, and low double-digit increases in backlog on a worldwide basis. With the investments we have made in our business globally, and our strong cash and inventory position as well as new product initiatives we are delivering, we believe we are well positioned for continued growth in the second half, and in the coming year.”
Outlook
Based on these key indicators, the Company believes it will achieve net sales in the third quarter in the range of $1.050 billion to $1.075 billion, which would represent a third quarter sales record, and earnings per share of $0.42 to $0.47. This projection includes flat sales increases in the Company’s domestic wholesale business, and double-digit increases in its international wholesale business, and its global Company-owned retail stores.
The Company expects its capital expenditures for the remainder of 2017 to be approximately $35.0 million to $40.0 million, which includes corporate office upgrades and an additional 35 to 40 Company-owned retail store openings and several store remodels.
Second Quarter 2017 Conference Call
The Company will host a conference call today at 1:30 p.m. PT / 4:30 p.m. Eastern Time to discuss its second quarter 2017 financial results. The call can be accessed on the Investor Relations section of the Company’s the website at www.skx.com. For those unable to participate during the live broadcast, a replay will be available beginning July 20, 2017, at 7:30 p.m. ET, through August 3, 2017, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13666029.
About SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States and over 160 countries and territories worldwide via department and specialty stores, more than 2,305 SKECHERS Company-owned and third-party-owned retail stores, and the Company’s e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit skechers.com and follow us on Facebook (facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements 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 economic, political and market conditions including the uncertainty of sustained recovery in Europe; 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, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2016 and its quarterly report on Form 10-Q for the three months ended March 31, 2017. The risks included here are not exhaustive. Skechers 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) |
| |
|
|
June 30, |
|
December 31, |
|
|
2017 |
|
2016 |
| ASSETS |
|
|
|
|
|
|
|
|
|
| Current Assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
751,581 |
|
$ |
718,536 |
| Trade accounts receivable, net |
|
|
494,683 |
|
|
326,844 |
| Other receivables |
|
|
24,884 |
|
|
19,191 |
| Total receivables |
|
|
519,567 |
|
|
346,035 |
| Inventories |
|
|
669,741 |
|
|
700,515 |
| Prepaid expenses and other current assets |
|
|
54,119 |
|
|
62,680 |
| Total current assets |
|
|
1,995,008 |
|
|
1,827,766 |
| Property, plant and equipment, net |
|
|
527,441 |
|
|
494,473 |
| Deferred tax assets |
|
|
33,517 |
|
|
26,043 |
| Other assets |
|
|
53,324 |
|
|
45,388 |
| Total non-current assets |
|
|
614,282 |
|
|
565,904 |
| TOTAL ASSETS |
|
$ |
2,609,290 |
|
$ |
2,393,670 |
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
| Current Liabilities: |
|
|
|
|
| Current installments of long-term borrowings |
|
$ |
1,792 |
|
$ |
1,783 |
| Accounts payable |
|
|
528,251 |
|
|
520,437 |
| Short-term borrowings |
|
|
4,049 |
|
|
6,086 |
| Accrued expenses |
|
|
101,518 |
|
|
93,424 |
| Total current liabilities |
|
|
635,610 |
|
|
621,730 |
| Long-term borrowings, net of current installments |
|
|
68,271 |
|
|
67,159 |
| Deferred tax liabilities |
|
|
417 |
|
|
412 |
| Other long-term liabilities |
|
|
21,734 |
|
|
18,855 |
| Total non-current liabilities |
|
|
90,422 |
|
|
86,426 |
| Total liabilities |
|
|
726,032 |
|
|
708,156 |
| Stockholders’ equity: |
|
|
|
|
| Skechers U.S.A., Inc. equity |
|
|
1,779,097 |
|
|
1,603,633 |
| Noncontrolling interests |
|
|
104,161 |
|
|
81,881 |
| Total equity |
|
|
1,883,258 |
|
|
1,685,514 |
| TOTAL LIABILITIES AND EQUITY |
|
$ |
2,609,290 |
|
$ |
2,393,670 |
| |
| SKECHERS U.S.A., INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
| (Unaudited) |
| (In thousands, except per share data) |
| |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
| Net sales |
|
$ |
1,025,934 |
|
|
$ |
877,810 |
|
|
$ |
2,098,742 |
|
|
$ |
1,856,604 |
|
| Cost of sales |
|
|
537,613 |
|
|
|
461,556 |
|
|
|
1,133,923 |
|
|
|
1,008,198 |
|
| Gross profit |
|
|
488,321 |
|
|
|
416,254 |
|
|
|
964,819 |
|
|
|
848,406 |
|
| Royalty income |
|
|
3,221 |
|
|
|
3,307 |
|
|
|
7,451 |
|
|
|
5,932 |
|
|
|
|
491,542 |
|
|
|
419,561 |
|
|
|
972,270 |
|
|
|
854,338 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Selling |
|
|
99,950 |
|
|
|
75,966 |
|
|
|
173,759 |
|
|
|
129,844 |
|
| General and administrative |
|
|
305,283 |
|
|
|
243,240 |
|
|
|
587,779 |
|
|
|
485,589 |
|
|
|
|
405,233 |
|
|
|
319,206 |
|
|
|
761,538 |
|
|
|
615,433 |
|
| Earnings from operations |
|
|
86,309 |
|
|
|
100,355 |
|
|
|
210,732 |
|
|
|
238,905 |
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| Interest, net |
|
|
(1,464 |
) |
|
|
(1,542 |
) |
|
|
(2,540 |
) |
|
|
(2,664 |
) |
| Other, net |
|
|
2,664 |
|
|
|
(2,604 |
) |
|
|
3,359 |
|
|
|
175 |
|
|
|
|
1,200 |
|
|
|
(4,146 |
) |
|
|
819 |
|
|
|
(2,489 |
) |
| Earnings before income tax expense |
|
|
87,509 |
|
|
|
96,209 |
|
|
|
211,551 |
|
|
|
236,416 |
|
| Income tax expense |
|
|
14,109 |
|
|
|
12,200 |
|
|
|
31,516 |
|
|
|
42,768 |
|
| Net earnings |
|
|
73,400 |
|
|
|
84,009 |
|
|
|
180,035 |
|
|
|
193,648 |
|
| Less: Net earnings attributable to noncontrolling interests |
|
|
13,865 |
|
|
|
9,902 |
|
|
|
26,505 |
|
|
|
21,929 |
|
| Net earnings attributable to Skechers U.S.A., Inc. |
|
$ |
59,535 |
|
|
$ |
74,107 |
|
|
$ |
153,530 |
|
|
$ |
171,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.38 |
|
|
$ |
0.48 |
|
|
$ |
0.99 |
|
|
$ |
1.12 |
|
| Diluted |
|
$ |
0.38 |
|
|
$ |
0.48 |
|
|
$ |
0.98 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares used in calculating earnings per share attributable to Skechers U.S.A., Inc.: |
|
|
|
|
|
|
|
|
| Basic |
|
|
155,579 |
|
|
|
154,049 |
|
|
|
155,340 |
|
|
|
153,901 |
|
| Diluted |
|
|
156,174 |
|
|
|
155,023 |
|
|
|
156,016 |
|
|
|
154,912 |
|
Company Contact:
SKECHERS USA, Inc.
David Weinberg
Chief Operating Officer
Chief Financial Officer
(310) 318-3100
or
Investor Relations:
Addo Investor Relations
Andrew Greenebaum
(310) 829-5400
by | Jul 13, 2017 | Press Release
Jul 13, 2017 • 12:35 pm EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE: SKX), a global leader in lifestyle and performance footwear, today announced that it will release its second quarter 2017 financial results after market close on Thursday, July 20, 2017. A conference call will be held the same day at 1:30 p.m. PT / 4:30 p.m. ET. Participating on the call will be David Weinberg, 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 July 20, 2017, at 7:30 p.m. ET, through August 3, 2017, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13666029.
About SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States and over 160 countries and territories worldwide via department and specialty stores, more than 2,055 SKECHERS Company-owned and third-party-owned retail stores, and the Company’s e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit skechers.com and follow us on Facebook (facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
Addo Investor Relations
Andrew Greenebaum
310-829-5400
[email protected]
by | Jul 11, 2017 | Press Release
Jul 11, 2017 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX) today announced the planned Back-to-School launch of a SKECHERS Kids footwear collection for girls featuring the popular Shopkins characters.
SPK by SKECHERS (Photo: Business Wire)
“We’re excited to expand our award-winning SKECHERS Kids line with styles featuring Shopkins characters, which are in demand by kids across the country,” said Michael Greenberg, president of SKECHERS. “Building on the success of our kids’ collection, we feel that adding Shopkins-branded shoes will be a perfect fit for the countless girls who already love wearing our playful, colorful and comfortable footwear.”
“It’s a thrill for us to welcome SKECHERS to the Shopkins-licensed consumer products program,” added Paul Solomon, Co-CEO of Moose Toys. “We want to bring our fans quality product extensions that best capture Shopkins’ fun and fashionable aesthetic. This deal is the beginning of a great partnership between two outstanding in-demand brands.”
Born two decades ago, the SKECHERS Kids collection offers great products for toddlers to tweens with fun, bright and lightweight designs that kids everywhere love for school and play. Popular characters like Twinkle Toes and Z-Strap have helped build awareness for the line which has expanded to include innovative lighted footwear styles. Additionally, SKECHERS Kids won the Excellence in Children’s Design awards from Footwear Plus in 2002 and 2013 and was named the Best Children’s Footwear Collection by Earnshaw’s in 2016.
Since launching in 2014, Shopkins has become a global phenomenon, offering over 100 different Shopkins characters each season, an animated webisode series with over 1 billion views on YouTube alone, and the Shopkins 12-Pack, which was the top-selling toy in the US in 2015, according to The NPD Group. In 2016, Shopkins finished the year with over $1 billion in retail sales as the No. 1 girls’ brand in nine categories in the United States, including apparel (basics and sleep), bedding, party, stationery, accessories, seasonal and home. Shopkins now has over 210 licensees and 18 agents globally supporting the growth of the brand.
The co-branded SPK by SKECHERS footwear collection will be available in young girls’ sizes at SKECHERS retail stores and online at www.skechers.com. Products in the line will be designed, developed and marketed through a multi-year licensing partnership between SKECHERS and Moose Toys.
About SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States and over 160 countries and territories worldwide via department and specialty stores, more than 2,055 SKECHERS Company-owned and third-party-owned retail stores, and the Company’s e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit skechers.com and follow us on Facebook (facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
About Moose Toys
Moose Toys has a simple mission – to make children happy! Over the last 15 years, the business has earned a solid reputation as a leader in innovation. Time and time again, Moose has shown an innate ability to respond to emerging trends and create brands that dominate the market.
Most recently this was proven with the success of the global phenomenon Shopkins! The brand continues to break all records in the collectable category; and with 900 million units sold to date, these pint size inanimate objects have reinvigorated how kids collect and play.
This family run business has seen tremendous growth over the past four years solidifying its position as the 5th biggest toy manufacturer in the US by year-end 2016. Success extends to the recent development of content, entertainment and global licensing deals for Shopkins and partnerships with Disney and Universal to co-create collectable lines.
Moose creates, manufactures and markets brands across the collectable, arts, activity, action figure, dolls and youth electronics categories featuring much-loved brands such as: Shopkins, Little Live Pets, Beados, Happy Places, The Grossery Gang, The Trash Pack and Mighty Beanz.
Moose Toys calls Australia home and has teams across Los Angeles, Hong Kong, China, London, Paris and Vietnam, employing more than 350 staff and distributing to over 100 countries.
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements 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 economic, political and market conditions including the uncertainty of sustained recovery in Europe; 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, especially in the highly competitive performance footwear market; anticipating, identifying, interpreting or forecasting changes in fashion trends, consumer demand for the products and the various market factors described above; sales levels during the spring, back-to-school and holiday selling seasons; and other factors referenced or incorporated by reference in Skechers’ annual report on Form 10-K for the year ended December 31, 2016 and its quarterly report on Form 10-Q for the three months ended March 31, 2017. The risks included here are not exhaustive. Skechers 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
Jennifer Clay, 310-937-1326
[email protected]
by | Jun 27, 2017 | Press Release
Jun 27, 2017 • 12:00 pm EDT
New 24,000-Square-Foot Location is Footwear Brand’s Largest in a Mall
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle and performance footwear industry, has opened its largest SKECHERS mall-based factory outlet store. At approximately 24,000 square feet, the massive superstore in Ontario, California, features dedicated shops for the various SKECHERS lifestyle and performance collections for Men and Women, an exciting Kids’ area complete with theater, as well as a shop dedicated to the brand’s growing apparel collection.
SKECHERS premium superstore at Ontario Mills (Photo: Business Wire)
“This amazing new store is a perfect reflection of the incredible position of our brand within the marketplace,” said Michael Greenberg, president of SKECHERS. “With footwear, accessories and apparel—we’re delivering SKECHERS products from head to toe, so we built a store that showcases our collection to customers in the finest retail experience possible. We look forward to introducing features debuting here in more stores throughout our retail network through the second half of this year and into 2018 to meet the needs of the consumers who are demanding our products worldwide.”
“We are thrilled that SKECHERS chose Ontario Mills for their supersize store,” added Marc Smith, vice president and general manager at Ontario Mills. “Ontario Mills prides itself on providing variety, value and great experiences for our shoppers and is confident that the SKECHERS superstore will be a huge attraction for the center.”
Located at California’s largest outlet destination—Ontario Mills—the SKECHERS superstore houses approximately 50,000 pairs, offering one of the widest assortments of SKECHERS lifestyle and performance products available under one roof. And unique to this location is a 5,000-square-foot apparel and accessories shop-in-shop that features a customer experience tailored to those shopping for clothing.
The store is segmented into departments including Women’s lifestyle and performance, Men’s lifestyle and performance, WORK footwear, the BOBS from SKECHERS charity collection, the premium Mark Nason collection for men, and a fun Kids’ area features a candy shop plus a theater space screening SKECHERS cartoons and characters to keep kids engaged while mom or dad shop. The new store format and design with state-of-the-art lighting and effects entices shoppers to enter and explore the collection.
The Ontario Mills SKECHERS superstore joins a retail portfolio that includes large format stores in Las Vegas and Gardena, CA, plus flagship stores in prime locations such as Los Angeles’ Hollywood & Highland, Times Square in New York, San Francisco’s Powell Street, London, Tokyo, Shanghai and countless cities around the world. At the end of the second quarter of 2017, SKECHERS had 2,055 stores worldwide, with 584 being Company owned.
About SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. SKECHERS footwear is available in the United States and over 160 countries and territories worldwide via department and specialty stores, more than 2,055 SKECHERS Company-owned and third-party-owned retail stores, and the Company’s e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit skechers.com and follow us on Facebook (facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements 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 economic, political and market conditions including the uncertainty of sustained recovery in Europe; 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, especially in the highly competitive performance footwear market; 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, 2016 and its quarterly report on Form 10-Q for the three months ended March 31, 2017. 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
Jennifer Clay, 310-937-1326
[email protected]
by | Jun 15, 2017 | Press Release
Jun 15, 2017 • 9:10 am EDT
-Court Denies adidas’ Motion for a Preliminary Injunction
-Court Dismisses adidas’ Claim for Willful Infringement Against Skechers
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, INC. (NYSE: SKX), a global lifestyle and performance footwear brand, today announced that in two separate rulings the United States District Court for the District of Oregon denied adidas’ motion for a preliminary injunction seeking to prevent Skechers from selling its Mega-Blade series of children’s shoes, and dismissed adidas’ claim against Skechers for willful infringement of two patents allegedly covering adidas’ Springblade shoes.
In July 2016, adidas sued Skechers in U.S. District Court of Oregon alleging that Skechers’ Mega-Blade series of children’s shoes infringed two separate adidas patents covering the “leaf spring” sole for its Springblade shoe style. adidas’ complaint also alleged that Skechers intentionally and willfully infringed both patents and sought enhanced damages. adidas also moved for a preliminary injunction that same month seeking to prohibit Skechers, among other things, from selling the Mega-Blade shoes.
In denying adidas’ motion for a preliminary injunction, the Court found that adidas was unable to show that it is likely to win the case at trial, referring to a ruling in a related proceeding before the U.S. Patent Trial and Appeal Board (“PTAB”) where Skechers produced evidence that adidas’ patents were invalid and convinced the PTAB to institute an inter partes review of the patents. The Court stated that adidas “cannot, at this time, show a likelihood of success on the merits” because “81 percent of [PTAB review proceedings] result in invalidation of at least some of the challenged claims, and 65 percent invalidated all of the challenged claims.”
adidas also argued that the sale of the Mega-Blade shoes causes adidas irreparable harm by having an adverse effect on the reputation, sales, pricing and market share of the adidas Springblade model. The Court disagreed with adidas, citing the complete absence of any evidence and stating, that “adidas’ evidence of irreparable injury is too conclusory and speculative to meet adidas’ burden for a preliminary injunction.”
In a separate ruling the same day, the Court dismissed adidas’ claim for willful and intentional infringement against Skechers, stating that adidas failed to plead any “facts from which the Court may draw the reasonable inference that [Skechers] knew of the patents-in-suit either when they issued or any time before [adidas] filed this lawsuit. Thus, [adidas’] allegations are insufficient to state a claim for willful infringement based on [Skechers’ conduct] before the lawsuit was filed.”
“The Court’s ruling inherently recognizes the weak and speculative nature of adidas’ allegations against Skechers,” stated Michael Greenberg, president of Skechers. “As owners of a vast worldwide portfolio of trademarks, patents and copyrights, Skechers respects the intellectual property rights of other companies and has invested tremendous resources into building a brand identity by developing its own distinctive designs, not by copying others. We are pleased with both of the Court’s rulings.”
Skechers is represented in the matter by Daniel Petrocelli, Mark Samuels, Jeffrey Barker and Brian Berliner of O’Melveny & Myers LLP.
About Skechers USA, Inc.
Skechers USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of lifestyle footwear for men, women and children, as well as performance footwear for men and women. Skechers footwear is available in the United States and over 160 countries and territories worldwide via department and specialty stores, more than 2,055 Skechers Company-owned and third-party-owned retail stores, and the Company’s e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia and the Middle East, and wholly-owned subsidiaries in Canada, Japan, throughout Europe and Latin America. For more information, please visit skechers.com and follow us on Facebook (facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA).
This announcement contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company’s future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements 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 economic, political and market conditions including the uncertainty of sustained recovery in Europe; 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, especially in the highly competitive performance footwear market; 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, 2016 and its quarterly report on Form 10-Q for the three months ended March 31, 2017. 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
Jennifer Clay, 310-937-1326
[email protected]