STOCK BUY: SKX ----- beat by 4 cents, rev up 24% to $214M vs. consensus 190.6M; company raises guidance. Year high $40 --- stock has pulled back near LOD after rising above $17.
SKECHERS USA Announces Fourth-Quarter and Record Full-Year Financial Results Annual Sales Top $960 Million,
MANHATTAN BEACH, Ca., Feb 14, 2002 (BUSINESS WIRE) --
Diluted Earnings Per Share of $0.05 and $1.24
SKECHERS USA, INC. (NYSE: SKX chart, msgs), a global leader in lifestyle footwear, today announced financial results for the fourth quarter and fiscal year ended December 31, 2001.
In fiscal 2001, the Company:
-- Increased net sales 42.3 percent to $960.4 million;
-- Increased international sales more than 75 percent;
-- Implemented key cost-cutting initiatives designed to lower
general and administrative expenses going forward;
-- Began direct wholesale distribution in key international
markets, including U.K., France, Germany and Switzerland;
-- Opened flagship retail stores in key tourist cities in Europe
and Asia; and
-- Introduced several new product lines, including 4 Wheelers by
SKECHERS(TM), the Company's hip, technical and fashionable
roller skates.
Additionally, in 2001 and early 2002, the Company continued its brand-building strategy through celebrity endorsements, including signing a worldwide celebrity endorsement agreement with L.A. Lakers basketball player, NBA champion, and film and television actor Rick Fox to represent the SKECHERS men's footwear lines in a series of ads; an expansion of its relationship with mega-star Britney Spears and an exclusive three-year worldwide licensing agreement for signature Britney 4 WheelersTM; and a global endorsement deal with award-winning actor Robert Downey Jr., who will appear in print advertisements for its men's footwear lines.
Fiscal year 2001 net sales reached $960.4 million, a 42.3 percent increase compared to net sales of $675.0 million in 2000. Net earnings for 2001 rose 8.0 percent to $47.3 million versus net earnings of $43.8 million in 2000. At year-end 2001, diluted earnings per share reached $1.24 on 38,059,000 diluted weighted average shares outstanding versus diluted earnings per share of $1.20 on 36,563,000 diluted weighted average shares outstanding in 2000.
"With a 42.3 percent increase in sales over 2000 and annual sales at nearly a billion dollars, we believe 2001 was an impressive year for SKECHERS. We are delighted that we continued to build the brand in 2001 - across all channels of distribution and within each of the categories that we offer, and we increased market share both domestically and internationally," stated Robert Greenberg, SKECHERS chief executive officer and chairman of the board. "While these accomplishments in growth are noteworthy on their own, we are particularly pleased to have achieved such success in a weak retail environment, a powerful testament to our continuing ability to deliver a diversified product offering that appeals to a broad consumer base."
Net sales for the fourth quarter of 2001 rose 24.4 percent to $214.1 million compared to $172.0 million in the fourth quarter of 2000. Net earnings for the quarter were $2.0 million versus net earnings of $9.7 million in the comparable period of 2000. Diluted earnings per share in the fourth quarter were $0.05 on 37,476,000 diluted weighted average shares outstanding compared to $0.26 per diluted share on 37,243,000 diluted weighted average shares outstanding in the fourth quarter of 2000.
Gross profit in 2001 rose 42.9 percent to $406.2 million, or 42.3 percent of sales, compared to $284.2 million, or 42.1 percent of sales in 2000. Gross profit for the fourth quarter of 2001 increased 14.2 percent to $85.1 million compared to $74.5 million in the fourth quarter of 2000. Gross margin in the quarter was 39.7 percent versus 43.3 percent in the fourth quarter of 2000.
Michael Greenberg, president of SKECHERS, stated: "The moves we implemented following the changes that developed at retail during the second half of 2001 enabled us to end the year solidly. As we begin the 2002-year, our priorities are to enhance shareholder value by directing our resources to the areas of our business that offer the most growth and profit potential and to continue our efforts to build cost and operational efficiencies into our organization.
"Our long-term plans remain unchanged - to capitalize on our top brand status by continuing to capture an increased share of the global footwear market, which is estimated at more than $43 billion," continued Michael Greenberg. "We took specific measures in 2001 to achieve this goal: we assumed direct control of our international business in parts of Europe and opened international retail stores in key locations; introduced three new lines, Somethin' Else from SKECHERSTM, SKECHERS by Michelle KTM and 4 Wheelers by SKECHERSTM; and broadened the styles we offer within our existing lines of SKECHERS Sport, SKECHERS Collection, SKECHERS USA and SKECHERS Kids. We also, strengthened our management team and increased our infrastructure to provide for the Company's future growth. We believe that our celebrity relationships, coupled with our cutting edge product advertising, will help us increase brand recognition and further grow our market share."
Robert Greenberg concluded: "SKECHERS is a leader in its industry with tremendous growth opportunities. Our unique ability to consistently offer consumers stylish footwear for all of their needs separates us from others. This diversity provides a stellar platform to grow in the current year and beyond." |
