SKECHERS Announces Fourth Quarter and Fiscal Year 2013 Financial Result

SKECHERS Announces Fourth Quarter and Fiscal Year 2013 Financial Result

SKECHERS USA, Inc. (NYSE:SKX) today announced financial results for the fourth quarter and fiscal year ended December 31, 2013.

Net sales for the fourth quarter of 2013 were $450.7 million compared to $395.6 million in the fourth quarter of 2012. Gross profit for the fourth quarter of 2013 was $200.6 million or 44.5 percent of net sales compared to $168.5 million or 42.6 percent of net sales in the fourth quarter of 2012. Earnings from operations in the fourth quarter of 2013 were $17.1 million compared to earnings from operations of $8.0 million in the fourth quarter of 2012. The Company’s effective tax rate for the year-ended December 31, 2013, was 26.0 percent, which was down from the forecasted rate of 31.9 percent at the close of the third quarter 2013. This was due to increased international and slightly decreased domestic profitability. The Company expects improved international sales and profitability to continue to have a positive impact on its 2014 effective tax rate, which is expected to be between 25 percent and 30 percent.

“The momentum we experienced in the first nine months of 2013 continued in the fourth quarter, which resulted in the second highest fourth quarter sales in the Company’s history and a 13.9 percent net sales increase for the period on top of last year’s fourth quarter net sales gain of 39.7 percent,” began David Weinberg, SKECHERS chief operating officer and chief financial officer. “The growth is related to the strong product successes we are experiencing across our men’s, women’s, and kids’ categories, which resulted in double-digit increases in our Company-owned retail and domestic wholesale businesses, and single-digit increases in our international and e-commerce businesses. Further indication of the strength of our product is the 12.8 percent comp store sales increases in our worldwide Company-owned retail stores during the fourth quarter.”

Net earnings for the fourth quarter of 2013 were $14.2 million compared to net earnings of $4.0 million in the fourth quarter of 2012. Net earnings per diluted share in the fourth quarter of 2013 were $0.28 based on 50.7 million weighted average shares outstanding compared to $0.08 based on 50.3 million weighted average shares outstanding in the fourth quarter of 2012.

Fiscal year 2013 net sales were $1.846 billion compared to net sales of $1.560 billion in 2012. Gross profit for 2013 was $818.8 million or 44.4 percent of net sales compared to $683.3 million or 43.8 percent of net sales in 2012. Earnings from operations for 2013 were $93.6 million compared to $22.3 million in 2012.

Net earnings for 2013 were $54.8 million compared to $9.5 million in 2012. Net earnings per diluted share for fiscal year 2013 were $1.08 based on 50.6 million weighted average shares outstanding versus $0.19 based on 49.9 million weighted average shares outstanding in the prior year.