SKECHERS USA Inc, a global leader in lifestyle footwear, announced financial results for the first quarter ended March 31, 2009.
First quarter 2009 net sales were $343.5 million compared to $384.9 million in the first quarter of 2008. Net earnings for the first quarter of 2009 were $8.2 million versus net earnings of $32.8 million in the first quarter of 2008. Diluted earnings per share were $0.18 based on 46,467,000 weighted average shares outstanding as compared to net earnings per diluted share of $0.70 based on 46,664,000 weighted average shares outstanding in the first quarter of 2008.
“In the first quarter, our focus was on reducing our inventory and expenses while maintaining our strong position in the domestic and international footwear markets with the goal of returning to profitability in the second half of the year,” stated David Weinberg, chief operating officer of SKECHERS.
“We have made significant improvements in our inventory, shown growth in several key international markets, and had a profitable quarter. We consider these positive achievements to be an indication of the focus of our global team and the strength of our brand. With more opportunities to grow our international business and a portfolio of well-recognized brands, we believe that we will continue to fare well in this difficult environment and that SKECHERS is well-positioned for long-term profitability and growth.”
Gross profit for the first quarter of 2009 was $125.4 million or 36.5 percent of net sales compared to $172.2 million or 44.7 percent of net sales in the first quarter of last year. Included in its diluted earnings per share is a $1.9 million reduction in income tax expense or $0.04 per share adjustment recorded in the first quarter that relates to the prior year. Without this item, the effective tax rate would be approximately 18 percent.
Robert Greenberg, SKECHERS chief executive officer, commented: "SKECHERS continues to be a global leader in making incredible looking, great feeling and reasonably priced shoes for men, women and kids. Both our SKECHERS footwear and fashion street brands are relevant, and our many accounts around the world know that we will support our brands with a multiple approach to marketing and deliver product that consumers want. We are focusing on maintaining our position in the domestic and international markets by offering stylish product at a good value.
We are also continuing to invest in our business globally with the launch of a new subsidiary in Chile; further establishing our brand in Brazil, a relatively new market for SKECHERS; continuing to open new points of sale in China and Hong Kong through our joint ventures; and selectively opening SKECHERS stores in the United States and other countries where we directly handle our distribution.
We are a company with compelling products, talented people, and dedicated partners, and we are committed to meeting the footwear needs of our accounts and consumers. With an extremely strong balance sheet, strong liquidity, a significant cash position, and a portfolio of diverse, globally recognized brands, we believe we will emerge an even stronger company when the global economy begins to turn.”
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