SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

Press Release: Skechers Announces Fourth Quarter -4-

· 02/04/2021 16:05
CONTACT: Investor Relations:Three Months Ended December 31, ------------------------------------------------------------------------------------ 2020 2019 Change --------------------------------------------------------- -------- -------------- Adjusted (in millions, Reported Adjusted Constant for Non- Reported except per GAAP Tax for Tax Currency GAAP GAAP share data) Measure Adjustment Adjustment Adjustment Measures Measure $ % --------------- -------- ---------- ---------- ---------- -------- -------- ----- ------ Sales $1,324.7 $ - $ 1,324.7 $ (27.5) $1,297.2 $1,330.7 (33.5) (2.5) Cost of sales 676.3 - 676.3 (13.0) 663.3 693.0 (29.7) (4.3) ---------------- ------- --------- --------- --------- ------- ------- ----- ------ Gross profit $ 648.4 $ - $ 648.4 $ (14.5) $ 633.9 $ 637.7 (3.8) (0.6) Royalty income 5.0 - 5.0 (0.3) 4.7 4.7 - - SG&A expenses 595.7 - 595.7 (12.1) 583.6 548.3 35.3 6.4 ---------------- ------- --------- --------- --------- ------- ------- ----- ------ Earnings from operations $ 57.7 $ - $ 57.7 $ (2.7) $ 55.0 $ 94.1 (39.1) (41.6) Other income (expense) 10.9 - 10.9 (16.9) (6.0) 1.9 (7.9) (415.8) Income tax (benefit) expense (9.6) 15.9 6.3 (0.6) 5.7 13.5 (7.8) (57.8) Less: Noncontrolling interests 24.9 - 24.9 (1.3) 23.6 23.0 0.6 2.6 ---------------- ------- --------- --------- --------- ------- ------- ----- ------ Net earnings $ 53.3 $ (15.9) $ 37.4 $ (17.7) $ 19.7 $ 59.5 (39.8) (66.9) ================ ======= ========= ========= ========= ======= ======= ===== Diluted earnings per share $ 0.34 $ (0.10) $ 0.24 $ (0.11) $ 0.13 $ 0.39 (0.26) (66.7) ================ ======= ========= ========= ========= ======= ======= ===== Year Ended December 31, ---------------------------------------------------------------------------------------- 2020 2019 Change ------------------------------------------------------------ -------- --------------- Tax and Restricted Adjusted Adjusted (in millions, Reported Share for Non- Constant for Non- Reported except per GAAP Cancellation GAAP Currency GAAP GAAP share data) Measure Adjustments(1) Items Adjustment Measures Measure $ % --------------- -------- ---------------- -------- ---------- -------- -------- ------ ------ Sales $4,597.4 $ - $4,597.4 $ (7.5) $4,589.9 $5,220.1 (630.2) (12.1) Cost of sales 2,407.6 - 2,407.6 (1.3) 2,406.3 2,728.9 (322.6) (11.8) ---------------- ------- ------------ ------- --------- ------- ------- ------ ------ Gross profit $2,189.8 $ - $2,189.8 $ (6.2) $2,183.6 $2,491.2 (307.6) (12.3) Royalty income 16.0 - 16.0 (0.5) 15.5 22.5 (7.0) (31.1) SG&A expenses 2,072.1 (18.2) 2,053.9 (0.3) 2,053.6 1,995.2 58.4 2.9 ---------------- ------- ------------ ------- --------- ------- ------- ------ ------ Earnings from operations $ 133.7 $ 18.2 $ 151.9 $ (6.4) $ 145.5 $ 518.4 (372.9) (71.9) Other income (expense) 21.1 - 21.1 (20.6) 0.5 (2.4) 2.9 (120.8) Income tax expense 8.5 15.7 24.2 (0.5) 23.7 88.8 (65.1) (73.3) Less: Noncontrolling interests 47.7 - 47.7 (2.2) 45.5 80.7 (35.2) (43.6) ---------------- ------- ------------ ------- --------- ------- ------- ------ ------ Net earnings $ 98.6 $ 2.5 $ 101.1 $ (24.3) $ 76.8 $ 346.6 (269.8) (77.8) ================ ======= ============ ======= ========= ======= ======= ====== Diluted earnings per share $ 0.64 $ 0.01 $ 0.65 $ (0.15) $ 0.50 $ 2.25 (1.75) (77.8) ================ ======= ============ ======= ========= ======= ======= ====== (1) The effect of taxes on the restricted share cancellation adjustments used to arrive net earnings adjusted for non-GAAP measures was zero and it was not deductible. The additional tax expense related to the write-off of deferred tax assets associated with the cancelled shares.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006023/en/

Andrew Greenebaum

Addo Investor Relations

investors@skx.com

Press:

Jennifer Clay

Vice President,

Corporate Communications

SKECHERS U.S.A., Inc.

(310) 318-3100

(END) Dow Jones Newswires

February 04, 2021 16:05 ET (21:05 GMT)