Skechers Usa (NYSE:SKX)
Historical Stock Chart
2 Years : From May 2010 to May 2012
SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear,
today announced financial results for the fourth quarter and fiscal year
ended December 31, 2010.
Net sales for the fourth quarter of 2010 increased 17 percent to $454.6
million as compared to $388.6 million in the fourth quarter of 2009.
Earnings from operations in the fourth quarter of 2010 were $1.4 million
versus income from operations of $41.7 million in the fourth quarter of
2009. Net earnings for the fourth quarter of 2010 were $3.2 million
versus $27.9 million in the fourth quarter of 2009. Net earnings per
diluted share in the fourth quarter of 2010 were $0.07 based on 49.2
million weighted average shares outstanding as compared to net earnings
per diluted share of $0.58 based on 48.3 million weighted average shares
outstanding in the fourth quarter of 2009. Gross profit for the fourth
quarter of 2010 was $184.2 million compared to $189.3 million in the
fourth quarter of 2009. Gross margin in the fourth quarter 2010 was 40.5
percent versus 48.7 percent for the fourth quarter of 2009.
Fiscal year 2010 net sales were $2.006 billion as compared to net sales
of $1.436 billion in 2009. Earnings from operations for 2010 were $196.7
million versus $72.6 million in 2009. Net earnings for 2010 were $136.1
million versus net earnings of $54.7 million in 2009. Diluted earnings
per share for fiscal year 2010 were $2.78 based on 49.0 million weighted
average shares outstanding versus diluted earnings per share of $1.16
based on 47.1 million weighted average shares outstanding in the prior
year. Gross profit for 2010 was $911.9 million compared to $621.0
million in 2009. Gross margin for 2010 was 45.4 percent versus 43.2
percent for 2009.
Robert Greenberg, SKECHERS chief executive officer, commented: “2010 was
truly an amazing year for SKECHERS and our many product initiatives as
we reached $2 billion in annual sales. Earlier this month, we were named
Company of the Year for 2010 by Footwear Plus, and we’re the No. 2
lifestyle footwear brand and the leading source for toning footwear in
the United States*. In 2010, we broadened our product range with
increased kids offerings, fresh fitness styles, and a larger assortment
of boots. Consistent with our approach of supporting our product through
advertising, our kids’ commercials featured our animated characters, and
our toning products incorporated a diverse collection of celebrities,
including TV personality Brooke Burke, football legend Joe Montana and
former basketball star Karl Malone. Our domestic business increased by
48.3 percent, our international wholesale business increased by 32.9
percent and our company-owned retail sales increased by 27.6 percent,
which reflects the combined power of our product and marketing efforts.
We continue to develop new and on target product, which we unveiled to
our key accounts during FFANY in December, as well as meetings at our
new corporate offices last month. We recently enlisted the power of
reality star Kim Kardashian, whose 5 million plus Twitter followers and
constant media attention helped drive her Shape-ups Super Bowl TV spot
to headline news earlier this month. We see numerous opportunities to
continue to strategically grow our business around the world, including
through the addition of retail stores and further expansion of our
international business. We are energized by our record sales, the
enthusiasm for our product by both retailers and consumers, and the many
opportunities we see in the marketplace in 2011 and beyond.”
David Weinberg, SKECHERS chief operating officer and chief financial
officer, stated: “As we look forward, we are assessing all areas of our
business to position ourselves to profitably grow in the future.
Currently, we are carefully reviewing our expenses, which have increased
in part due to significant growth over the past year. Our inventory
increased by $175 million year-over-year, of which approximately $65
million is to support the increases in our international and retail
expansion, and $110 million is related to our domestic wholesale
business. As we aggressively work through our inventory position, we
anticipate our domestic wholesale revenues and margins will be impacted
in the first and second quarters, but we believe they will improve in
the second half of the year. And with a healthy double-digit backlog in
international as well, we believe our growth will continue to accelerate
around the world. Our stores saw positive comps of over 3 percent for
the quarter and over 15 percent for the year, and we are planning to
open another 30 to 35 company-owned SKECHERS stores this year. We expect
improvements to profitability in the latter half of the year when we
anticipate a return to full-price selling with an improved margin
profile from our new product offering. We are confident that the demand
for our brand remains very high globally, and our momentum will continue
in 2011.”
SKECHERS USA, Inc., based in Manhattan Beach, California, designs,
develops and markets a diverse range of footwear for men, women and
children under the SKECHERS name, as well as under several uniquely
branded names. SKECHERS footwear is available in the United States via
department and specialty stores, Company-owned SKECHERS retail stores
and its e-commerce website, as well as in over 100 countries and
territories through the Company’s global network of distributors and
subsidiaries in Canada, Brazil, Chile, and across Europe, as well as
through joint ventures in Asia. For more information, please visit www.skechers.com.
*Respectively: In revenues, Sporting Goods Intelligence, June 21, 2010;
2010 SportsOneSource in Review
This announcement may contain forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include,
without limitation, any statement that may predict, forecast, indicate
or simply state future results, performance or achievements, and can be
identified by the use of forward looking language such as "believe,"
"anticipate," "expect," "estimate," "intend," "plan," "project," "will
be," "will continue," "will result," "could," "may," "might," or any
variations of such words with similar meanings. Any such statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those projected in forward-looking statements.
Factors that might cause or contribute to such differences include
international, national and local general economic, political and market
conditions including the global economic slowdown and market
instability; entry into the highly competitive performance footwear
market; sustaining, managing and forecasting costs and proper inventory
levels; losing any significant customers, decreased demand by industry
retailers and cancellation of order commitments due to the lack of
popularity of particular designs and/or categories of products;
maintaining brand image and intense competition among sellers of
footwear for consumers; anticipating, identifying, interpreting or
forecasting changes in fashion trends, consumer demand for the products
and the various market factors described above; sales levels during the
spring, back-to-school and holiday selling seasons; and other factors
referenced or incorporated by reference in the Company’s Form 10-K for
the year ended December 31, 2009 and the Company’s Form 10-Q for the
quarter ended September 30, 2010. The risks included here are not
exhaustive. The Company operates in a very competitive and rapidly
changing environment. New risks emerge from time to time and the
companies cannot predict all such risk factors, nor can the companies
assess the impact of all such risk factors on their respective
businesses or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in
any forward-looking statements. Given these risks and uncertainties, you
should not place undue reliance on forward-looking statements as a
prediction of actual results. Moreover, reported results should not be
considered an indication of future performance.
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31,
December 31,
2010
2009
ASSETS
Current Assets:
Cash and cash equivalents
$
233,558
$
265,675
Short-term investments
-
30,000
Trade accounts receivable, net
266,057
219,924
Other receivables
9,650
12,177
Total receivables
275,707
232,101
Inventories
398,588
224,050
Prepaid expenses and other current assets
53,791
28,233
Deferred tax assets
11,720
8,950
Total current assets
973,364
789,009
Property and equipment, at cost less accumulated depreciation and
amortization
293,802
171,667
Intangible assets, less applicable amortization
7,367
9,011
Deferred tax assets
12,323
13,660
Other assets, at cost
17,938
12,205
TOTAL ASSETS
$
1,304,794
$
995,552
LIABILITIES AND EQUITY
Current Liabilities:
Current installments of long-term borrowings
$
11,984
$
529
Short-term borrowings
18,346
2,006
Accounts payable
246,595
196,163
Accrued expenses
30,385
31,843
Total current liabilities
307,310
230,541
Long-term borrowings, excluding current installments
51,650
15,641
Total liabilities
358,960
246,182
Equity:
Skechers U.S.A., Inc. equity
908,203
745,922
Noncontrolling interests
37,631
3,448
Total equity
945,834
749,370
TOTAL LIABILITIES AND EQUITY
$
1,304,794
$
995,552
SKECHERS U.S.A., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2010
2009
2010
2009
Net sales
$
454,619
$
388,620
$
2,006,868
$
1,436,440
Cost of sales
270,427
199,368
1,094,962
815,430
Gross profit
184,192
189,252
911,906
621,010
Royalty income
1,420
633
4,568
1,655
185,612
189,885
916,474
622,665
Operating expenses:
Selling
40,476
31,421
186,738
128,989
General and administrative
143,755
116,754
532,996
421,094
184,231
148,175
719,734
550,083
Income from operations
1,381
41,710
196,740
72,582
Other income (expense):
Interest, net
(1,735
)
(643
)
(220
)
(975
)
Other, net
1,406
(2,700
)
83
(497
)
(329
)
(3,343
)
(137
)
(1,472
)
Earnings before income taxes
1,052
38,367
196,603
71,110
Income tax expense (benefit)
(2,334
)
11,992
60,198
20,228
Net income
3,386
26,375
136,405
50,882
Less: Net income (loss) attributable to noncontrolling interest
149
(1,571
)
257
(3,817
)
Net earnings attributable to Skechers U.S.A., Inc.
$
3,237
$
27,946
$
136,148
$
54,699
Net earnings per share attributable to Skechers U.S.A., Inc.:
Basic
$
0.07
$
0.60
$
2.87
$
1.18
Diluted
$
0.07
$
0.58
$
2.78
$
1.16
Weighted average shares used in calculating earnings per share
attributable to Skechers U.S.A., Inc.:
Basic
47,913
46,448
47,433
46,341
Diluted
49,152
48,344
49,050
47,105
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