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, 2012.
Net sales for the fourth quarter of 2012 were $395.6 million compared to
$283.2 million in the fourth quarter of 2011. Earnings from operations
in the fourth quarter of 2012 were $8.0 million compared to a loss from
operations of $103.1 million in the fourth quarter of 2011. Net earnings
for the fourth quarter of 2012 were $4.0 million compared to a net loss
of $57.7 million in the fourth quarter of 2011. Net earnings per diluted
share in the fourth quarter of 2012 were $0.08 based on 50.3 million
weighted average shares outstanding compared to net loss per diluted
share of $1.18 based on 48.9 million weighted average shares outstanding
in the fourth quarter of 2011. Gross profit for the fourth quarter of
2012 was $168.5 million compared to $112.6 million in the fourth quarter
of 2011. Gross margin in the fourth quarter 2012 was 42.6 percent versus
39.8 percent for the fourth quarter of 2011. Income tax expense was $3.0
million or 44.7 percent for the fourth quarter of 2012.
“For the 2012 fourth quarter, sales increased more than 39 percent over
the same period in 2011 as we saw improvements across all of our revenue
channels, including a 72 percent increase in our domestic wholesale
business,” began David Weinberg, chief operating officer and chief
financial officer. “This strong domestic wholesale growth plus low
double-digit positive comp store sales in our company-owned SKECHERS
retail stores and a 30 percent increase in our international business
are evidence of the broad acceptance of our new product offerings. With
each of our new and established lines driving sales, domestically, both
our men's and kids’ divisions experienced double-digit growth, while our
women's division saw triple-digit growth.”
Fiscal year 2012 net sales were $1.560 billion compared to net sales of
$1.606 billion in 2011. Earnings from operations for 2012 were $22.3
million compared to a loss from operations of $133.8 million in 2011.
Net earnings for 2012 were $9.5 million compared to a net loss of $67.5
million in 2011. Net earnings per diluted share for fiscal year 2012
were $0.19 based on 49.9 million weighted average shares outstanding
versus a diluted loss per share of $1.39 based on 48.5 million weighted
average shares outstanding in the prior year. Gross profit for 2012 was
$683.3 million compared to $623.7 million in 2011. Gross margin for 2012
was 43.8 percent versus 38.8 percent for 2011.
Robert Greenberg, SKECHERS chief executive officer, commented, “2012 was
a remarkable year for SKECHERS. We grew our existing product divisions,
broadened our offering to consumers with several new product lines,
established an award-winning performance division and further grew our
heritage business. We have taken a more focused approach to growing our
product offering, added features and technologies that consumers desire,
and supported these efforts with effective marketing. In the fourth
quarter alone, we supported our Skechers GOwalk, Daddy’s Money and
SKCH+3 product lines with new commercials, as well as commercials for
our Bobs from Skechers line with Brooke Burke, and our Relaxed Fit by
Skechers styles with three spots featuring sports icons Mark Cuban, Joe
Montana and Tommy Lasorda. To date in this quarter, we aired a new
Skechers GOrun2 commercial during the Super Bowl, as well as a new
Relaxed Fit Joe Montana spot. The recent highlights for our product and
marketing are many, including receiving eight awards from noted running
and fitness publications for our performance footwear, and elite runner
Meb achieving his personal best in Skechers GOrun, becoming the fastest
American marathon runner and placing fourth at the 2012 Olympics. Our
focus and execution have translated into a strong fourth quarter, and as
we continue to grow our businesses around the world, we believe this
positive momentum will continue and we will experience a strong first
half of 2013.”
Mr. Weinberg added, “2012 marked a return to profitability with growth
in all of our revenue channels in the fourth quarter. With backlogs up
double digits for our combined domestic and international wholesale
businesses, and a strong start to the first quarter, we are confident
that our growth trend will continue in 2013. We are looking forward to
our Fall/Winter 2013 domestic and international trade shows later this
month, delivering fresh Spring product around the world, and opening 30
to 35 new Company-owned SKECHERS retail stores this year. With a cash
position of $325.8 million and inventory levels in line with our
projected growth, we believe we are well positioned for growth across
all our platforms.”
ABOUT SKECHERS USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California, designs,
develops and markets a diverse range of footwear for men, women and
children under the SKECHERS name, as well as under several uniquely
branded names. SKECHERS footwear is available in the United States via
department and specialty stores, Company-owned SKECHERS retail stores
and its e-commerce website, and 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
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 SKECHERS’ Form 10-K for the
year ended December 31, 2011 and its Form 10-Q for the quarter ended
September 30, 2012. 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.
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SKECHERS U.S.A., INC.
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(Unaudited)
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(In thousands)
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December 31,
2012
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December 31,
2011
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$
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325,826
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$
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351,144
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Trade accounts receivable, net
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213,697
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176,018
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Other receivables
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7,491
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6,636
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Total receivables
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221,188
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182,654
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Inventories
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339,012
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226,407
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Prepaid expenses and other current assets
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27,755
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88,005
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Deferred tax assets
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26,531
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39,141
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Total current assets
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940,312
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887,351
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Property and equipment, at cost less accumulated depreciation and
amortization
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362,446
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376,446
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Intangible assets, less applicable amortization
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3,242
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4,148
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Deferred tax assets
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16,387
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530
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Other assets, at cost
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17,833
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13,413
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Total non-current assets
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399,908
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394,537
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TOTAL ASSETS
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$
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1,340,220
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$
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1,281,888
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LIABILITIES AND EQUITY
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Current Liabilities:
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Current installments of long-term borrowings
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$
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11,668
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$
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10,059
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Short-term borrowings
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2,425
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50,413
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Accounts payable
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241,525
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231,000
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Accrued expenses
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36,923
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16,994
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Total current liabilities
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292,541
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308,466
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Long-term borrowings, excluding current installments
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128,517
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76,531
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Deferred tax liabilities
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73
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4,364
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Total non-current liabilities
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128,590
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80,895
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Total liabilities
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421,131
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389,361
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Equity:
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Skechers U.S.A., Inc. equity
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875,969
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852,561
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Noncontrolling interests
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43,120
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39,966
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Total equity
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919,089
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892,527
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TOTAL LIABILITIES AND EQUITY
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$
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1,340,220
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$
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1,281,888
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SKECHERS U.S.A., INC.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(Unaudited)
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(In thousands, except per share data)
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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2012
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2011
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2012
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2011
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Net sales
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$
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395,617
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$
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283,248
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$
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1,560,321
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$
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1,606,016
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Cost of sales
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227,153
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170,635
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876,995
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982,268
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Gross profit
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168,464
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112,613
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683,326
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623,748
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Royalty income
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2,601
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3,128
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7,104
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7,558
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171,065
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115,741
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690,430
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631,306
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Operating expenses:
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Selling
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31,086
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23,398
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134,920
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152,000
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General and administrative
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132,142
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150,851
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532,373
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569,164
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Legal settlements (recoveries)
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(123
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)
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44,581
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818
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43,935
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|
|
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163,105
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218,830
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668,111
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765,099
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Income (loss) from operations
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7,960
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(103,089
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)
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22,319
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(133,793
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)
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Other income (expense):
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Interest, net
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(3,450
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)
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(2,042
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(12,765
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)
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(6,002
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)
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Gain (loss) on disposal of assets
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(14
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)
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9,893
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(216
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)
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9,632
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Other, net
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2,138
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(299
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)
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1,135
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(884
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)
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(1,326
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)
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7,552
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(11,846
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)
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2,746
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Earnings (loss) before income taxes
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6,634
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(95,537
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)
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10,473
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(131,047
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)
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Income tax expense (benefit)
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2,968
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(37,500
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)
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(39
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(63,467
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)
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Net income (loss)
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3,666
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(58,037
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)
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10,512
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(67,580
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)
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Less: Net income (loss) attributable to noncontrolling interest
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(290
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)
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(376
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)
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1,000
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(96
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)
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Net earnings (loss) attributable to Skechers U.S.A., Inc.
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$
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3,956
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$
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(57,661
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)
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$
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9,512
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$
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(67,484
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)
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Net earnings (loss) per share attributable to Skechers U.S.A., Inc.:
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Basic
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$
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0.08
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$
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(1.18
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)
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$
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0.19
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$
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(1.39
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)
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Diluted
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$
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0.08
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$
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(1.18
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)
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$
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0.19
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$
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(1.39
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)
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Weighted average shares used in calculating earnings (loss) per
share attributable to Skechers U.S.A., Inc.:
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Basic
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49,980
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48,931
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49,495
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48,491
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Diluted
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50,271
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48,931
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|
|
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49,942
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48,491
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