by Zach | May 8, 2019 | Press Release
May 8, 2019 • 9:00 am EDT
Skechers® Roadies Return in a Heritage Collection of the Brand’s
Signature Chunky Styles with Skechers® Cleats Retro and Skechers®
Heartbeats Coming Soon
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
Footwear giant Skechers is reviving the brand’s original fashion sneaker
designs from the 1990s to meet demand driven by the massive throwback
trend dominating sneaker markets around the globe. Bridging the gap
between grunge and pop, and now known as the Skechers Heritage
collection, this classic line features a return of Skechers Roadies,
Skechers Cleats Retro and Skechers Heartbeats
styles that were among the hottest sellers in Skechers early history.
Making a comeback from 1994: Skechers Roadies return as part of Skechers Heritage Collection. (Photo: Business Wire)
Making a comeback from 1994: Skechers Roadies return as part of Skechers Heritage Collection. (Photo: Business Wire)
It begins with Skechers Roadies—the first Skechers sneaker
to hit the market back in 1994, this was the original chunky utility
style that started it all. At the time it was like nothing seen before
in a fashion sneaker, featuring a lugged outsole inspired by the brand’s
first style, a Skechers Sport Utility logger boot. Skechers Heartbeats
soon followed and added an iconic heel to the rugged sneaker, for an
extra splash of style that’s a signature of the brand. And in 1996, Skechers
Cleats Retro dropped on the world featuring an even chunkier
platform outsole that takes the retro look to new heights.
“Building off the chunky sneaker trend dominated by our Skechers D’Lites
collection, we felt it was the perfect time to bring back our first
fashion sneakers that started it all—Roadies, Cleats Retro, and
Heartbeats,” began Michael Greenberg, president of Skechers. “We’ve seen
fashionistas gravitating towards ‘80s and ‘90s style. Reintroducing
these three designs as part of this fresh Skechers Heritage revival
collection is sure to create a new generation of fans for our most
iconic Skechers styles.”
Styles from the Skechers Heritage Collection will be available globally
at Skechers retail stores, www.skechers.com,
and select retail partners. Skechers Roadies drop first with initial
colorways in stores now, Skechers Cleats Retro follow in May, and
Skechers Heartbeats arrive in August, with expanded colors for all three
styles landing throughout summer and fall.
About Skechers U.S.A., Inc. Based in
Manhattan Beach, California, Skechers (NYSE:SKX) 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 170 countries and
territories worldwide via department and specialty stores, more than
3,060 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, Israel and Mexico, and wholly-owned subsidiaries in
Canada, Japan, India, and throughout Europe and Latin America. For more
information, please visit about.skechers.com and
follow us on Facebook, Instagram,
and Twitter.
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 challenging consumer
retail markets in the United States; 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, 2018. 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.
Jennifer Clay
SKECHERS USA, Inc.
[email protected]
310.937.1326
Source: Skechers U.S.A., Inc.
by Zach | Apr 30, 2019 | Press Release
Apr 30, 2019 • 9:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
Pet parents and their furry friends can now dress up in BOBS together to
help save shelter pets! Skechers and Petco have launched a new
coordinated line of BOBS from Skechers footwear and Petco-exclusive
collars, leashes and harnesses at more than 600 Petco retail stores and
petco.com. For every purchase of BOBS from Skechers footwear or pet
accessories, Skechers and Petco will make a donation to the Petco
Foundation to help shelter pets across the United States.*
Skechers and Petco have launched a new coordinated line of BOBS footwear and dog accessories at Petco retail stores and petco.com. (Photo: Business Wire)
Skechers and Petco have launched a new coordinated line of BOBS footwear and dog accessories at Petco retail stores and petco.com. (Photo: Business Wire)
“This coordinated line is a natural extension of our BOBS from Skechers
collection,” said Michael Greenberg, president of Skechers. “More
importantly, having BOBS for Dogs and BOBS for Cats products available
in Petco for the first time will introduce BOBS’ philanthropic movement
to a new audience who may not be familiar with our efforts to help
shelter animals. To be in front of pet lovers where they shop is
exciting, both for our brand and for the dogs and cats that will benefit
from our charity partnership with the Petco Foundation.”
“Pet parents are always looking for new ways to express how much they
love their animals, so we’re thrilled to introduce this special new
collection at Petco,” said Alex Tomey, Co-Chief Merchandising Officer
for the national pet specialty retailer. “We’ve never sold human shoes
at Petco before, but we think pet parents will love the ability to
combine their own BOBS from Skechers styles with matching collars,
leashes and harnesses for their beloved pets, plus the feel-good
opportunity to help shelter pets with each purchase.”
Skechers’ partnership with the Petco Foundation is its newest commitment
to improving animals’ lives through BOBS from Skechers. Since 2016,
Skechers has donated more than $3.4 million to support shelter pets,
funds which have helped more than 583,000 shelter pets, including saving
the lives of more than 241,000 rescued animals in the United States.
Now a year-round lifestyle brand, Skechers’ iconic BOBS collection
features popular dog breeds, cartooned animal mosaics, and world-famous
personalities like Garfield, Grumpy Cat, and Scooby-Doo – as well as
apparel from its recently launched animal-themed casual and sleepwear
collections.
To learn more, follow BOBS from Skechers on Facebook,
Twitter,
Instagram
and Pinterest,
or visit www.BOBSfromSKECHERS.com.
* Skechers U.S.A., Inc., 228 Manhattan Beach Blvd., Manhattan Beach, CA
90266, 310-318-3100. Petco Foundation, 654 Richland Hills Drive, San
Antonio, TX 78245, 858-453-7845. During the promotion, twenty-five cents
will be donated to the Petco Foundation per unit of specially marked
BOBS from Skechers footwear and accessories sold in the U.S. to help
save the lives of dogs and cats in America’s shelters. The promotion
runs January 1, 2019 through December 31, 2021.
About Skechers U.S.A., Inc.
Based in Manhattan Beach, California, Skechers (NYSE:SKX) 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 170
countries and territories worldwide via department and specialty stores,
more than 3,060 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, Israel and Mexico, and wholly-owned
subsidiaries in Canada, Japan, India, and throughout Europe and Latin
America. For more information, please visit about.skechers.com and
follow us on Facebook, Instagram,
and Twitter.
About Petco and the Petco Foundation
Petco is a leading pet specialty retailer with more than 50 years of
service to pet parents. Everything we do is guided by our vision for
Healthier Pets. Happier People. Better World. We operate more than 1,500
Petco and Unleashed by Petco locations across the U.S., Mexico and
Puerto Rico; complete pet care services and veterinary advice through PetCoach;
and petco.com.
The Petco
Foundation, an independent nonprofit organization, has invested more
than $250 million since it was created in 1999 to help promote and
improve the welfare of companion animals. In conjunction with the
Foundation, we work with and support thousands of local animal welfare
groups across the country and, through in-store adoption events, help
find homes for more than 400,000 animals every year.
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 challenging consumer
retail markets in the United States; 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, 2018. 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.
Media Contacts: Jennifer Clay
SKECHERS USA, Inc.
[email protected]
Petco
Ventura
Olvera
[email protected]
Petco
Foundation
Lisa Lane
[email protected]
Source: Skechers U.S.A., Inc.
by Zach | Apr 25, 2019 | Press Release
Apr 25, 2019 • 9:00 am EDT
Footwear offering includes Warner Bros. Animated Characters Droopy
Dog, Top Cat, and Southern Huckleberry Hound
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
Ruh-Roh! Global footwear industry leader Skechers today announced that
it has partnered with Warner Bros. Consumer Products to introduce a
collaboration on its BOBS from Skechers footwear that will feature the
world-famous mystery solving canine Scooby-Doo – plus the lovably shrewd
Droopy Dog, streetwise con Top Cat and sweet Southern Huckleberry Hound.
Skechers launches a new charitable BOBS collection starring Scooby-Doo and his friends. (Photo: Business Wire)
Skechers launches a new charitable BOBS collection starring Scooby-Doo and his friends. (Photo: Business Wire)
“We wanted to add animated star power to our successful BOBS from
Skechers collection, and Scooby-Doo and friends really raise the bar,”
said Michael Greenberg, president of Skechers. “We’ve had great success
helping shelter pets over the years with our BOBS collection—and now
with these iconic characters on our team, we’re reaching new fans who
can only help drive awareness for our charity efforts to save even more
dogs and cats.”
First to launch will be Scooby-Doo with other characters following soon
after. With Scooby celebrating his 50th birthday later this
year, the collection is expected to resonate with consumers of all ages.
Skechers has donated more than $3.4 million to support shelter pets
since 2016, and is now partnering with the Petco Foundation to support
the organization’s 4,000-strong charity network: for every pair of BOBS
from Skechers shoes sold at Petco stores, Petco.com, Skechers stores and
other national retail stores and online shopping sites in the United
States, Skechers will donate twenty-five cents to the Petco Foundation
to help animals across the country. Over the past three years, the
Company has helped more than 583,000 shelter pets, including saving the
lives of more than 241,000 rescued animals in the United States.
The BOBS x Warner Bros. collection from Skechers for women will be
available in Skechers retail stores, Skechers.com
and select department and specialty stores across the United States and
worldwide. Availability will expand to additional retail partners
globally for the back-to-school season.
To learn more, follow BOBS from Skechers on Facebook,
Twitter,
Instagram
and Pinterest,
or visit www.BOBSfromSKECHERS.com.
About Skechers U.S.A., Inc.
Based in Manhattan Beach, California, Skechers (NYSE:SKX) 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 170
countries and territories worldwide via department and specialty stores,
more than 3,060 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, Israel and Mexico, and wholly-owned
subsidiaries in Canada, Japan, India, and throughout Europe and Latin
America. For more information, please visit about.skechers.com and
follow us on Facebook, Instagram,
and Twitter.
About Warner Bros. Consumer Products
Warner Bros. Consumer Products (WBCP), a Warner Bros. Entertainment
Company, extends the Studio’s powerful portfolio of entertainment brands
and franchises into the lives of fans around the world. WBCP partners
with best-in-class licensees globally on an award-winning range of toys,
fashion, home décor, and publishing inspired by franchises and
properties such as DC, Wizarding World, Looney Tunes and Hanna-Barbera.
The division’s successful global themed entertainment business includes
groundbreaking experiences such as The Wizarding World of Harry Potter
and Warner Bros. World Abu Dhabi. With innovative global licensing and
merchandising programs, retail initiatives, promotional partnerships and
themed experiences, WBCP is one of the leading licensing and retail
merchandising organizations in the world.
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 challenging consumer
retail markets in the United States; 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, 2018. 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.
Jennifer Clay
SKECHERS USA
[email protected]
(310)
937-1326
Source: Skechers U.S.A., Inc.
by Zach | Apr 22, 2019 | Press Release
Apr 22, 2019 • 5:18 pm EDT
Henderson’s 8th LPGA Title
Ties Record for Most Ever by a Canadian
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–
Skechers elite golfer Brooke Henderson swung her way to victory at the
Lotte Championship on Saturday, winning for the second straight year at
the Ko Olina Golf Club in Kapolei, Hawaii. Competing in Skechers GO
GOLF, Henderson won by four shots, finishing sixteen under par to
achieve her eighth LPGA title, tying for the most wins by a Canadian in
the LPGA or PGA Tours.
Skechers Performance elite golfer Brooke Henderson wins the Lotte Championship two years running in Skechers GO GOLF, tying Canada’s all-time greats. (Photo: Business Wire)
Skechers Performance elite golfer Brooke Henderson wins the Lotte Championship two years running in Skechers GO GOLF, tying Canada’s all-time greats. (Photo: Business Wire)
“It’s thrilling to reach this amazing milestone and defend my title here
at Lotte – and it’s an unbelievable honor to be in the same conversation
with Sandra Post, Mike Weir and George Knudson; they’ve set the standard
for golfing in Canada,” said Brooke Henderson of her legendary fellow
Canadians – all eight-time winners. “It is so surreal, and I’m
incredibly proud to accomplish this honor at this point in my career.
The conditions were tough, but I felt good out there, and I was thankful
to Skechers for again supporting me with a stable shoe in Skechers GO
GOLF Elite.”
“We continue to be extremely proud of Brooke, and that she’s earned her
eighth victory and has tied for the most LPGA or PGA wins by Canadian
golfers,” said Michael Greenberg, president of Skechers. “Brooke’s
extensive fanbase loves watching her determination and focus through
each match, so having her on our team competing in Skechers GO GOLF is a
major asset to the collection and the entire Skechers brand.”
Henderson has become a prominent face in women’s golf since turning
professional in December 2014. She won her first LPGA Tour event in 2015
at the Cambria Portland Classic, a title she would defend with her
second career win in 2016. She then went on to become the second
youngest player to capture a major championship with her win at the 2016
KPMG Women’s PGA Championship. In 2016, Brooke also represented Canada
at the 2016 Olympic games in Brazil, where she tied for seventh place.
In 2018, she was the first Canadian to win the Lotte Championship, and
she also became the first Canadian in 45 years to win the national
championship at the CP Women’s Open. Henderson’s 2019 win at Lotte
Championship marks her eighth LPGA title, and puts her in the record
books with eight-time champions Sandra Post (LPGA), Mike Weir (PGA) and
George Knudson (PGA).
Henderson joined the Skechers Performance team in 2016. She wears
Skechers GO GOLF footwear and apparel on tour and has been featured in
ongoing marketing campaigns for the brand.
Known for its lightweight, high-quality, stable and comfortable designs,
Skechers Performance GO GOLF has achieved prominence within the golf
category alongside the brand’s award-winning running, walking and
training collections. The Skechers Performance GO GOLF apparel line
offers athletes comfort and freedom of movement through a wide
assortment of styles constructed with innovative moisture-wicking
fabrics in a variety of colors for both men and women.
Skechers Performance GO GOLF is available at Skechers retail stores and
skechers.com as well as select retail partners, including specialty golf
pro shops.
About SKECHERS USA, Inc.
Based in Manhattan Beach, California, Skechers (NYSE:SKX) 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 170
countries and territories worldwide via department and specialty stores,
more than 3,060 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, Israel and Mexico, and wholly-owned
subsidiaries in Canada, Japan, India, and throughout Europe and Latin
America. For more information, please visit about.skechers.com and
follow us on Facebook, Instagram,
and Twitter.
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 challenging consumer
retail markets in the United States; 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, 2018. 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.
Jennifer Clay
Skechers
[email protected]
Source: SKECHERS USA, Inc.
by Zach | Apr 18, 2019 | Press Release
Apr 18, 2019 • 8:00 am EDT
MANHATTAN BEACH, Calif.–(BUSINESS WIRE)– SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the first quarter ended March 31, 2019.
First Quarter Highlights
“The momentum we experienced in 2018 is continuing as we again achieved a new quarterly sales record in the first quarter of 2019,” began Robert Greenberg, chief executive officer of Skechers. “Our focus has been on designing and delivering relevant product across all genders and categories and supporting it with targeted marketing for our diverse consumer base. In the first quarter, Skechers GOrun Razor 3 Hyper received the Editor’s Choice award by Runner’s World, we were on fashion week runways in Berlin and London, launched both a new men’s campaign during the Super Bowl with football legend and broadcaster Tony Romo, and a fresh women’s campaign with pop superstar Camila Cabello, who appeared in Skechers D’Lites in store windows, magazines, and on television and billboards around the world. We also sponsored the Skechers Performance Los Angeles Marathon and several Skechers elite golfers and runners recorded victories. We are continuing to capitalize on the chunky trend we developed with our heritage styles across both men and women—with new styles shipping around the world throughout 2019. We are already seeing a positive impact in sales with the launch of our television campaigns for Spring, and we believe our momentum will continue into the second quarter. Further, we’re looking forward to meeting with our domestic and international accounts and partners over the next two months, presenting our new styles and marketing.”
“Achieving a new quarterly sales record, especially given our record first quarter last year, which also had the benefit of Easter and positive currency, is a noteworthy accomplishment,” stated David Weinberg, chief operating officer of Skechers. “Driving our first quarter 2019 growth was our international wholesale and global retail businesses. On a constant currency basis, our international sales growth was 15.0 percent and our total sales growth was 5.2 percent for the quarter. In the quarter, we also shipped a record number of pairs from our distribution centers in Japan and Europe, and we saw strong growth within our international distributors and joint ventures, including China. With a focus on building our global business, we converted our joint venture in India to a wholly owned subsidiary, and we finalized a joint venture agreement with our distribution partner in Mexico earlier this month. We expect these investments to be accretive in 2019, and for international, which now stands at 57.8 percent of our total business, to continue to drive growth.”
First Quarter 2019 Financial Results
($ in millions, except per share data)
2019
2018
$
%
Sales grew 2.1 percent as a result of a 9.3 percent increase in the Company’s international business, partially offset by a 6.3 percent decrease in its domestic business. On a constant currency basis, the Company’s international business increased 15.0 percent. By segments, the Company’s international wholesale business increased 8.7 percent, its Company-owned global retail business increased 6.7 percent, and the Company’s domestic wholesale business decreased 10.9 percent. Comparable same store sales in Company-owned stores and e-commerce increased 0.7 percent, including 0.2 percent in the United States and 2.3 percent internationally—excluding 61 stores in India that recently transitioned from third-party to company-owned.
Gross margins were slightly lower as improved margins in its Company-owned domestic retail business were offset by lower international margins from higher discounts and negative foreign exchange impacts.
SG&A expenses decreased 2.3 percent in the quarter. Selling expenses decreased by $14.2 million primarily due to lower domestic advertising levels. General and administrative expenses increased by $4.2 million but decreased as a percentage of sales. The increase reflects additional spending of $7.8 million to support operations in China and $8.0 million associated with operating 40 additional Company-owned Skechers stores, including 12 that opened in the first quarter. These expenses were partially offset by the receipt of a performance-based government rebate in China of $15.8 million.
Earnings from operations increased to $165.9 million, or 11.5 percent.
Net earnings were $108.8 million and diluted earnings per share were $0.71. In the first quarter, the Company’s effective income tax rate was 19.5 percent, reflecting the negative impact of several discrete items, totaling $0.02 per diluted share. In the prior year, the Company’s effective income tax rate was 9.6 percent, reflecting the positive impact of a discrete item associated with the Tax Cuts and Jobs Act, totaling $0.07 per diluted share.
Balance Sheet
At quarter-end, cash, cash equivalents and investments were $879.8 million, a decrease of $186.1 million, or 17.5 percent, from December 31, 2018, and an increase of $161.2 million, or 22.4 percent, over March 31, 2018.
Total inventory was $740.9 million, a $122.4 million or 14.2 percent decrease over December 31, 2018, and a $59.5 million or 7.4 percent decrease over March 31, 2018, reflecting reductions in both domestic and international markets.
Working capital was $1.66 billion at March 31, 2019, a $57.1 million decrease over December 31, 2018, and a $20.9 million increase over March 31, 2018.
At the beginning of the fiscal year, the Company adopted Accounting Standards Codification Topic 842, Leases (ASC 842), the new accounting standard impacting the treatment of operating leases. The effect of adopting ASC 842 was an increase to the Company’s assets and liabilities to reflect the right-of-use of leased properties as well as operating lease liabilities, respectively.
“Given the fairly challenging conditions of the quarter, we are quite pleased to have successfully executed against our strategy by continuing to grow sales and to profitably invest in our operations,” said John Vandemore, chief financial officer of Skechers. “We believe the underlying momentum in our business is strong, as evidenced by our backlog and current booking trends, as well as continued growth in our direct-to-consumer channels. We continue to invest in our infrastructure and operational capabilities across the globe, including development of our new China distribution center, breaking ground on the expansion of our corporate offices, and development of direct-to-consumer offerings both in our Company-owned e-commerce channels and in our retail stores.”
Share Repurchase
During the three months ended March 31, 2019, the Company repurchased approximately 458,000 shares of its Class A common stock at a cost of $15.0 million under its existing share repurchase program. At March 31, 2019, approximately $35.0 million remained available under the Company’s share repurchase program.
Outlook
For the second quarter of 2019, the Company believes it will achieve sales in the range of $1.200 billion to $1.225 billion, and diluted earnings per share of $0.30 to $0.35. This guidance takes into account the impact of existing foreign exchange headwinds and the commencement of joint venture operations in Mexico. Based on current expectations, the Company anticipates that its 2019 annual tax rate will be in the range of 17 percent to 20 percent.
First Quarter 2019 Conference Call
The Company will host a conference call today at 5:30 a.m. Pacific Time / 8:30 a.m. Eastern Time to discuss its first quarter 2019 financial results. The call can be accessed on the Investor Relations section of the Company’s website at www.investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning April 18, 2019, at 12:30 p.m. ET, through May 2, 2019, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13689240.
About SKECHERS USA, Inc.
Based in Manhattan Beach, California, Skechers 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 170 countries and territories worldwide via department and specialty stores, more than 3,060 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, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, and throughout Europe and Latin America. For more information, please visit about.skechers.com and follow us on Facebook, Instagram, and Twitter.
Reference in this press release to “Sales” refers to Skechers’ net sales reported under generally accepted accounting principles in the United States. This announcement also 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 challenging consumer retail markets in the United States; 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, 2018. 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)
March 31,
2019
December 31,
2018
4,127,413
3,228,255
SKECHERS U.S.A., INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
2019
2018
Company Contact:
David Weinberg
Chief Operating Officer
John Vandemore
Chief Financial Officer
SKECHERS USA, Inc.
(310) 318-3100
Investor Relations:
Andrew Greenebaum
Addo Investor Relations
(310) 829-5400
Press:
Jennifer Clay
Vice President,
Corporate Communications
(310) 318-3100
Source: SKECHERS USA, Inc.