SKX
$21.61
Skechers U.S.A.
($2.13)
(8.97%)
Earnings Details
Quarter December 2019
Thursday, February 6, 2020 4:05:00 PM
Tweet Share Watch
Summary

Skechers U.S.A. Misses

Skechers U.S.A. (SKX) reported Quarter December 2019 earnings of $0.39 per share on revenue of $1.3 billion. The consensus earnings estimate was $0.39 per share on revenue of $1.3 billion. The Earnings Whisper number was $0.41 per share. Revenue grew 23.1% on a year-over-year basis.

The company said it expects first quarter earnings of $0.70 to $0.75 per share on revenue of $1.40 billion to $1.425 billion. The current consensus earnings estimate is $0.77 per share on revenue of $1.41 billion for the quarter ending March 31, 2020.

Skechers USA Inc designs and markets Skechers-branded lifestyle footwear for men, women and children, and performance footwear for men and women under the Skechers GO brand name.

Results
Reported Earnings
$0.39
Earnings Whisper
$0.41
Consensus Estimate
$0.39
Reported Revenue
$1.33 Bil
Revenue Estimate
$1.25 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Skechers Announces Record Fourth Quarter Sales of $1.33 Billion and Record Annual Sales of $5.22 Billion in 2019

MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--SKECHERS USA, Inc. (NYSE:SKX), a global footwear leader, today announced financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter Highlights

  • Record quarterly sales of $1.33 billion, an increase of 23.1 percent
  • Diluted earnings per share of $0.39, an increase of 25.8 percent
  • International sales increased 31.2 percent, or 32.3 percent on a constant currency basis
  • Domestic sales increased 13.0 percent, including an increase of 10.4 percent in domestic wholesale
  • Comparable same store sales increased 9.9 percent, including increases of 10.3 percent domestically and 8.8 percent internationally
  • International sales represented a record 59.3 percent of sales

“2019 was a remarkable year for Skechers as we achieved four quarters of record sales, culminating in annual sales of over $5.2 billion—a significant milestone,” stated Robert Greenberg, chief executive officer of Skechers. “Our mission, as always, is to deliver style, comfort and innovation to the world. Our continued growth along with the 27 product and brand awards we received in 2019 are evidence that we accomplished our goal. 2019 was also the year we saw the resurgence of chunky sneakers—and as an originator in this category, we became a go-to source around the world. We also continued to grow our men’s business, introduced the next generations of our walk, run and golf shoes, and expanded the popular BOBS from Skechers line, helping save the lives of over 345,000 shelter pets in the United States in 2019 alone. We drove recognition of our brand with comprehensive campaigns that included football greats Tony Romo and Howie Long for men, animated commercials for kids, music video style fashion street commercials, and marketing support that highlighted comfort and innovative features of our collections. Our efforts in 2019 resulted in Skechers receiving two 2019 Plus Awards: Company of the Year and Children’s Excellence in Design from industry trade publication Footwear Plus.”

Mr. Greenberg continued: “We are deeply concerned by the health crisis in China, and for the well-being of our employees, partners, vendors and consumers in the region. We continue to monitor this situation and its potential disruption to our global business. The Skechers brand is strong in China, and we remain confident in our long-term prospects in the country.”

“The fourth quarter represented a new annual sales record and the second highest sales quarter in our history, both significant achievements for our brand,” began David Weinberg, chief operating officer of Skechers. “The growth of 23.1 percent in the fourth quarter was due to increases of 31.2 percent in our international sales and 13.0 percent in our domestic sales, with every region growing by double digits and international now representing 59.3 percent of our total business for the quarter. With comparable same store increases of 9.9 percent, including 10.3 percent in the domestic market, our direct-to-consumer channel continues to be a barometer for the strength of our brand. In the quarter, we opened a net 21 wholly owned Skechers stores, and 219 third-party stores, bringing our total Skechers store count to 3,547 worldwide. We have the infrastructure and inventory in place to meet the near-term demand for our brand, and we will continue to invest in our global operations.”

Fourth Quarter 2019 Financial Results

($ in millions, except per share data)

 

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Change

 

 

 

2019

 

 

2018

 

 

$

 

 

%

 

Sales

 

$

1,330.7

 

 

$

1,080.8

 

 

$

249.9

 

 

 

23.1

%

Gross Profit

 

 

637.7

 

 

 

515.7

 

 

 

122.0

 

 

 

23.7

%

Gross Margin

 

 

47.9

 

%

 

47.7

 

%

 

 

 

 

 

 

 

SG&A Expenses

 

 

548.3

 

 

 

436.8

 

 

 

111.5

 

 

 

25.5

%

As a % of Sales

 

 

41.2

 

%

 

40.4

 

%

 

 

 

 

 

 

 

Earnings from Operations

 

 

94.1

 

 

 

83.7

 

 

 

10.4

 

 

 

12.4

%

Operating Margin

 

 

7.1

 

%

 

7.7

 

%

 

 

 

 

 

 

 

Net Earnings

 

 

59.5

 

 

 

47.4

 

 

 

12.1

 

 

 

25.5

%

Diluted Earnings per Share

 

$

0.39

 

 

$

0.31

 

 

$

0.08

 

 

 

25.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales grew 23.1 percent as a result of a 31.2 percent increase in the Company’s international business, or 32.3 percent on a constant currency basis, and a 13.0 percent increase in its domestic business. On a constant currency basis, the Company’s total sales increased 23.8 percent. By segments, the Company’s international wholesale business increased 32.8 percent, its Company-owned direct-to-consumer business increased 19.4 percent, and the Company’s domestic wholesale business increased 10.4 percent. Comparable same store sales in Company-owned stores and e-commerce increased 9.9 percent, including 10.3 percent in the United States and 8.8 percent internationally.

Gross margins increased by 20 basis points as a result of improved average selling price per unit, partially offset by an increase in the average cost per unit driven, in part, by higher duties in its domestic wholesale business.

SG&A expenses increased 25.5 percent in the quarter and were modestly higher as a percentage of sales. Selling expenses increased by $26.8 million primarily due to higher advertising expenditures. General and administrative expenses increased by $84.7 million and remained flat as a percentage of sales. The increase is primarily reflective of additional spending of $32.7 million associated with its direct-to-consumer business and 47 net additional Company-owned Skechers stores, including 21 that opened in the fourth quarter, and $28.2 million to support the growth of its joint venture business, including in China and the addition of operations in Mexico.

Earnings from operations increased $10.4 million, or 12.4 percent, to $94.1 million.

Net earnings were $59.5 million and diluted earnings per share were $0.39.

In the fourth quarter, the Company’s effective income tax rate was 14.0 percent.

Year Ended 2019 Financial Results

($ in millions, except per share data)

 

 

Years ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Change

 

 

 

2019

 

 

2018

 

 

$

 

 

%

 

Sales

 

$

5,220.1

 

 

$

4,642.1

 

 

$

578.0

 

 

 

12.5

%

Gross profit

 

 

2,491.2

 

 

 

2,223.6

 

 

 

267.6

 

 

 

12.0

%

Gross Margin

 

 

47.7

 

%

 

47.9

 

%

 

 

 

 

 

 

 

SG&A Expenses

 

 

1,995.2

 

 

 

1,806.4

 

 

 

188.8

 

 

 

10.5

%

As a % of Sales

 

 

38.2

 

%

 

38.9

 

%

 

 

 

 

 

 

 

Earnings from Operations

 

 

518.4

 

 

 

437.8

 

 

 

80.6

 

 

 

18.4

%

Operating Margin

 

 

9.9

 

%

 

9.4

 

%

 

 

 

 

 

 

 

Net Earnings

 

 

346.6

 

 

 

301.0

 

 

 

45.6

 

 

 

15.1

%

Diluted Earnings per Share

 

$

2.25

 

 

$

1.92

 

 

$

0.33

 

 

 

17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the full year, sales grew 12.5 percent, the result of a 20.2 percent increase in the Company’s international business, or 24.3 percent on a constant currency basis, and a 3.3 percent increase in its domestic business.

Gross margins decreased slightly as a result of promotional efforts to clear seasonal inventory during the year and an increase in the average cost per unit in select international markets, partially offset by an increase in the average selling price in the Company’s direct-to-consumer business.

For the full-year period, SG&A expenses increased by 10.5 percent or $188.8 million. Selling expenses decreased as a percentage of sales but increased by $19.5 million. General and administrative expenses increased $169.3 million but improved as a percentage of sales. The increase is mainly due to 47 additional Company-owned stores and investments to grow its operations internationally.

Earnings from operations increased $80.6 million, or 18.4 percent, to $518.4 million.

Net earnings were $346.6 million and diluted earnings per share were $2.25.

Balance Sheet

At year-end, cash, cash equivalents and investments totaled $1.03 billion, a decrease of $34.5 million, or 3.2 percent from December 31, 2018. The decrease in cash as compared to December 31, 2018 is mainly attributable to investments the Company made to acquire the minority interest in its India joint venture and to form a new joint venture in Mexico.

Total inventory, including inventory in transit, was $1.07 billion, a $206.6 million increase from December 31, 2018. The majority of the year-over-year inventory increase is to support growth in its international wholesale business and expansion of its direct-to-consumer business globally.

Working capital was $1.58 billion, a $40.5 million decrease over December 31, 2018, partially attributable to the inclusion of current operating lease liabilities totaling $191.1 million arising from the adoption of ASU 842 as of January 2019.

“Skechers record setting fourth quarter and full year 2019 results reflect the strength of our brand, product offerings and global execution capabilities,” said John Vandemore, chief financial officer of Skechers. “We continue to make investments globally to build on those strengths and to support our strategy to expand internationally and to deepen our direct to consumer relationships in store and online.”

Outlook

For the first quarter of 2020, the Company believes it will achieve sales in the range of $1.400 billion to $1.425 billion, and diluted earnings per share of $0.70 to $0.75. This guidance reflects continued growth in each of the Company’s three reportable segments, and a full-year effective tax rate of 16 to 18 percent. It also incorporates an initial estimate of the impact to the Company of current events in China, including a significant number of temporary store closures and below average comparable store sales. This estimate could materially change if the situation in China worsens considerably and effects the Company’s business outside of China or its supply chain.

Store Count

 

 

Number of Store Locations as of

 

 

 

 

 

 

 

 

 

 

Number of Store Locations as of

 

 

September 30, 2019

 

 

Opened

 

 

Closed

 

 

December 31, 2019

Company-owned domestic stores

 

 

488

 

 

 

9

 

 

 

-

 

 

 

497

Company-owned international stores

 

 

291

 

 

 

12

 

 

 

-

 

 

 

303

Joint-venture stores

 

 

318

 

 

 

41

 

 

 

(5

)

 

 

354

Distributor, licensee and franchise stores

 

 

2,210

 

 

 

218

 

 

 

(35

)

 

 

2,393

Total Skechers stores

 

 

3,307

 

 

 

280

 

 

 

(40

)

 

 

3,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter and Full-Year 2019 Conference Call

The Company will host a conference call today at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to discuss its fourth quarter and full year 2019 financial results. The call can be accessed on the Investor Relations section of the Company’s website at investors.skechers.com. For those unable to participate during the live broadcast, a replay will be available beginning February 6, 2020 at 7:30 p.m. ET, through February 20, 2020, at 11:59 p.m. ET. To access the replay, dial 844-512-2921 (U.S.) or 412-317-6671 (International) and use passcode: 13698318.

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 3,547 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; the disruption of business and operations due to the coronavirus; 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, and its quarterly report on Form 10-Q for the three months ended September 30, 2019. 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 we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on our business 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)

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

2019

 

 

2018

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

824,876

 

 

$

872,237

Short-term investments

 

 

112,037

 

 

 

100,029

Trade accounts receivable, net

 

 

645,303

 

 

 

501,913

Other receivables

 

 

53,932

 

 

 

55,683

Total receivables

 

 

699,235

 

 

 

557,596

Inventories

 

 

1,069,863

 

 

 

863,260

Prepaid expenses and other current assets

 

 

113,580

 

 

 

79,018

Total current assets

 

 

2,819,591

 

 

 

2,472,140

Property, plant and equipment, net

 

 

738,925

 

 

 

585,457

Operating lease right-of-use assets

 

 

1,073,660

 

 

 

Deferred tax assets

 

 

49,088

 

 

 

39,431

Long-term investments

 

 

94,589

 

 

 

93,745

Other assets, net

 

 

117,090

 

 

 

37,482

Total non-current assets

 

 

2,073,352

 

 

 

756,115

TOTAL ASSETS

 

$

4,892,943

 

 

$

3,228,255

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current installments of long-term borrowings

 

$

66,234

 

 

$

1,666

Short-term borrowings

 

 

5,789

 

 

 

7,222

Accounts payable

 

 

764,844

 

 

 

679,553

Operating lease liabilities

 

 

191,129

 

 

 

Accrued expenses

 

 

210,235

 

 

 

161,781

Total current liabilities

 

 

1,238,231

 

 

 

850,222

Long-term borrowings, excluding current installments

 

 

49,183

 

 

 

88,119

Long-term operating lease liabilities

 

 

966,011

 

 

 

Deferred tax liabilities

 

 

322

 

 

 

451

Other long-term liabilities

 

 

103,089

 

 

 

100,188

Total non-current liabilities

 

 

1,118,605

 

 

 

188,758

Total liabilities

 

 

2,356,836

 

 

 

1,038,980

Stockholders’ equity:

 

 

 

 

 

 

 

Skechers U.S.A., Inc. equity

 

 

2,314,665

 

 

 

2,034,958

Non-controlling interests

 

 

221,442

 

 

 

154,317

Total stockholders' equity

 

 

2,536,107

 

 

 

2,189,275

TOTAL LIABILITIES AND EQUITY

 

$

4,892,943

 

 

$

3,228,255

SKECHERS U.S.A., INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Years Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net sales

 

$

1,330,732

 

 

$

1,080,798

 

 

$

5,220,051

 

 

$

4,642,068

 

Cost of sales

 

 

692,983

 

 

 

565,119

 

 

 

2,728,894

 

 

 

2,418,463

 

Gross profit

 

 

637,749

 

 

 

515,679

 

 

 

2,491,157

 

 

 

2,223,605

 

Royalty income

 

 

4,666

 

 

 

4,850

 

 

 

22,493

 

 

 

20,582

 

 

 

 

642,415

 

 

 

520,529

 

 

 

2,513,650

 

 

 

2,244,187

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling

 

 

88,664

 

 

 

61,829

 

 

 

369,901

 

 

 

350,435

 

General and administrative

 

 

459,669

 

 

 

375,003

 

 

 

1,625,306

 

 

 

1,455,987

 

 

 

 

548,333

 

 

 

436,832

 

 

 

1,995,207

 

 

 

1,806,422

 

Earnings from operations

 

 

94,082

 

 

 

83,697

 

 

 

518,443

 

 

 

437,765

 

Other income / (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

2,282

 

 

 

3,848

 

 

 

11,782

 

 

 

10,128

 

Interest expense

 

 

(2,315

)

 

 

(2,107

)

 

 

(7,509

)

 

 

(5,847

)

Other, net

 

 

1,917

 

 

 

(3,243

)

 

 

(6,711

)

 

 

(10,162

)

Total other income / (expense)

 

 

1,884

 

 

 

(1,502

)

 

 

(2,438

)

 

 

(5,881

)

Earnings before income tax expense

 

 

95,966

 

 

 

82,195

 

 

 

516,005

 

 

 

431,884

 

Income tax expense

 

 

13,465

 

 

 

15,090

 

 

 

88,753

 

 

 

60,611

 

Net earnings

 

 

82,501

 

 

 

67,105

 

 

 

427,252

 

 

 

371,273

 

Less: Net earnings attributable to non-controlling interests

 

 

22,969

 

 

 

19,728

 

 

 

80,692

 

 

 

70,232

 

Net earnings attributable to Skechers U.S.A., Inc.

 

$

59,532

 

 

$

47,377

 

 

$

346,560

 

 

$

301,041

 

Net earnings per share attributable to Skechers U.S.A., Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.39

 

 

$

0.31

 

 

$

2.26

 

 

$

1.93

 

Diluted

 

$

0.39

 

 

$

0.31

 

 

$

2.25

 

 

$

1.92

 

Weighted average shares used in calculating net earnings per share attributable to Skechers U.S.A, Inc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

153,379

 

 

 

154,553

 

 

 

153,392

 

 

 

155,815

 

Diluted

 

 

154,630

 

 

 

154,980

 

 

 

154,151

 

 

 

156,450

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In thousands)

 

 

 

Three months ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Change

 

 

 

2019

 

 

 

2018

 

 

 

$

 

 

%

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

295,915

 

 

 

$

267,957

 

 

 

$

27,958

 

 

 

10.4

%

International wholesale

 

 

638,418

 

 

 

 

480,816

 

 

 

 

157,602

 

 

 

32.8

%

Direct-to-consumer

 

 

396,399

 

 

 

 

332,025

 

 

 

 

64,374

 

 

 

19.4

%

Total

 

$

1,330,732

 

 

 

$

1,080,798

 

 

 

$

249,934

 

 

 

23.1

%

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

103,646

 

 

 

$

96,174

 

 

 

$

7,472

 

 

 

7.8

%

International wholesale

 

 

296,106

 

 

 

 

224,403

 

 

 

 

71,703

 

 

 

32.0

%

Direct-to-consumer

 

 

237,997

 

 

 

 

195,102

 

 

 

 

42,895

 

 

 

22.0

%

Total

 

$

637,749

 

 

 

$

515,679

 

 

 

$

122,070

 

 

 

23.7

%

Gross margin percentage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

35.0

%

 

 

35.9

%

 

 

 

 

 

 

 

 

 

International wholesale

 

46.4

%

 

 

46.7

%

 

 

 

 

 

 

 

 

 

Direct-to-consumer

 

60.0

%

 

 

58.8

%

 

 

 

 

 

 

 

 

 

Total gross margin percentage

 

47.9

%

 

 

47.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Change

 

 

 

2019

 

 

 

2018

 

 

 

$

 

 

%

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

1,247,550

 

 

 

$

1,259,615

 

 

 

$

(12,065

)

 

 

-1.0

%

International wholesale

 

 

2,462,632

 

 

 

 

2,054,770

 

 

 

 

407,862

 

 

 

19.8

%

Direct-to-consumer

 

 

1,509,869

 

 

 

 

1,327,683

 

 

 

 

182,186

 

 

 

13.7

%

Total

 

$

5,220,051

 

 

 

$

4,642,068

 

 

 

$

577,983

 

 

 

12.5

%

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

$

457,944

 

 

 

$

468,340

 

 

 

$

(10,396

)

 

 

-2.2

%

International wholesale

 

 

1,133,573

 

 

 

 

976,739

 

 

 

 

156,834

 

 

 

16.1

%

Direct-to-consumer

 

 

899,640

 

 

 

 

778,526

 

 

 

 

121,114

 

 

 

15.6

%

Total

 

$

2,491,157

 

 

 

$

2,223,605

 

 

 

$

267,552

 

 

 

12.0

%

Gross margin percentage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic wholesale

 

36.7

%

 

 

37.2

%

 

 

 

 

 

 

 

 

 

International wholesale

 

46.0

%

 

 

47.5

%

 

 

 

 

 

 

 

 

 

Direct-to-consumer

 

59.6

%

 

 

58.6

%

 

 

 

 

 

 

 

 

 

Total gross margin percentage

 

47.7

%

 

 

47.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SKECHERS U.S.A., INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

NON-GAAP MEASURES

(Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

Three months ended December 31,

 

 

 

2019

 

 

2018

 

 

Change

 

 

 

Reported GAAP Measure

 

 

Constant Currency Adjustment (1)

 

 

Adjusted for Non-GAAP Measure

 

 

Reported GAAP Measure

 

 

$

 

 

%

 

Total domestic sales

 

$

541,978

 

 

$

-

 

 

$

541,978

 

 

$

479,458

 

 

$

62,520

 

 

 

13.0

%

Total international sales

 

 

788,754

 

 

 

7,019

 

 

 

795,773

 

 

 

601,340

 

 

 

194,433

 

 

 

32.3

%

Net sales

 

$

1,330,732

 

 

$

7,019

 

 

$

1,337,751

 

 

$

1,080,798

 

 

$

256,953

 

 

 

23.8

%

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

Change

 

 

 

Reported GAAP Measure

 

 

Constant Currency Adjustment (1)

 

 

Adjusted for Non-GAAP Measure

 

 

Reported GAAP Measure

 

 

$

 

 

%

 

Total domestic sales

 

$

2,197,391

 

 

$

-

 

 

$

2,197,391

 

 

$

2,128,100

 

 

$

69,291

 

 

 

3.3

%

Total international sales

 

 

3,022,660

 

 

 

102,700

 

 

 

3,125,360

 

 

 

2,513,968

 

 

 

611,392

 

 

 

24.3

%

Net sales

 

$

5,220,051

 

 

$

102,700

 

 

$

5,322,751

 

 

$

4,642,068

 

 

$

680,683

 

 

 

14.7

%

Constant Currency Adjustment (1)

We evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of period-over-period fluctuations in foreign currency exchange rates. We believe providing constant currency information provides valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the company’s performance. We calculate constant currency percentages by converting our current period local currency financial results using the prior-period exchange rates and comparing these adjusted amounts to our prior period reported results.

Certain Non-GAAP Measures

We use the non-GAAP financial measures presented above to evaluate our results of operations, financial condition, liquidity and indebtedness. We believe that these non-GAAP measures provides useful information to investors regarding financial and business trends related to our results of operations, cash flows and indebtedness and that when this non-GAAP financial information is viewed with our GAAP financial information, investors are provided with valuable supplemental information regarding our results of operations, thereby facilitating period-to-period comparisons of our business performance and is consistent with how management evaluates the company’s operating performance and liquidity. In addition, these non-GAAP measures address questions the company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data the company has determined that it is appropriate to make this data available to all investors. None of the non-GAAP measures presented should be considered as an alternative to net income or loss, operating income, cash flows from operating activities, total indebtedness or any other measures of operating performance and financial condition, liquidity or indebtedness derived in accordance with GAAP. These non-GAAP measures have important limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under GAAP. Our use of these terms may vary from the use of similarly-titled measures by others in our industry due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation.

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
SKECHERS USA, Inc.
(310) 318-3100

Source: SKECHERS USA, Inc.