Skechers U.S.A. Stock

Skechers U.S.A., Inc. designs and markets Skechers-branded lifestyle footwear for men, women and children, performance footwear for men and women under the Skechers Performance brand name, and work footwear for men and women under Skechers Work brand name.

The company designs and markets Skechers branded lifestyle apparel and license the Skechers brand to others for accessories, pet accessories, leather goods, eyewear and medical scrubs, among other categories. Skechers footwear reflects a combination of style, quality, comfort, innovation and value that appeals to a broad range of consumers. The company’s product offering is sold through wholesale distribution to department and specialty stores, athletic and independent retailers, and e-commerce retailers, and directly to consumers through Skechers brick and mortar and digital stores.

The company aggressively markets its brands through comprehensive marketing campaigns for men, women and children. The Skechers brand is supported by print, television, digital, radio, outdoor and press campaigns, as well as donation events for BOBS from Skechers. To further drive recognition, the company enlists numerous celebrities, former and athletes, and influencers to appear in its campaigns. In 2022, the company’s brand ambassadors included television personalities and entertainers Martha Stewart, Amanda Kloots, Brooke Burke, Willie Nelson and Chesca, athlete Clayton Kershaw, and former athletes Sugar Ray Leonard, Tony Romo, Howie Long, Cris Carter, Meb Keflezighi, and Rusty Wallace. More recently, culture and entertainment icon Snoop Dogg joined the company’s stable of brand ambassadors. Additionally, athletes supporting its performance footwear included runner Edward Cheserek, elite golfers Matt Fitzpatrick, Brooke Henderson and Colin Montgomerie, and pro pickleball players Tyson McGuffin and Catherine Parenteau.

The company’s men’s, women’s and children’s product lines benefit from the Skechers reputation for style, quality, comfort, and innovation all at a reasonable price.

Skechers Lines

The company offers a wide array of Skechers-branded footwear lines, many of which have collections that have developed into well-known names. Most of these collections are marketed and packaged with unique shoe boxes, hangtags and in-store support.

From fashion styles to lifestyle product and performance shoes for sport enthusiasts, the company’s offering is enhanced with its signature comfort innovations—including its Skechers Arch Fit Technology, Skechers Max Cushioning Technology, Skechers Air-Cooled Memory Foam, Skechers Relaxed Fit Technology, Skechers Stretch Fit Technology, Skechers Hands Free Slip-ins Technology, Skechers Hyper Burst Technology, and Massage Fit Technology.

Lifestyle Brands: The company’s lifestyle offering includes categories, such as Skechers USA, Skechers Sport, Skechers Active, Modern Comfort, Skechers Street, Foamies, Mark Nason, the charity-minded BOBS from Skechers collection, and the recycled materials line Our Planet Matters, among others. Types of footwear sold under this division include casual, casual athletic, sport athletic, trail, sandals, boots, and fashion, and also include the well-known Skechers Uno, Skechers Arch Fit, and new in 2022, Skechers Hands Free Slip-ins. Innovation is also important within the company’s lifestyle offering and select styles include patented designs, including podiatrist-certified arch support and outsoles for enhanced traction, stability and durability.

Within its lifestyle collections are collaborations with known brands and properties—including street artists like James Goldcrown and well-known animated characters like tokidoki.

Performance Brands: Skechers Performance encompasses several technical footwear lines, each designed for specific activities to maximize performance and promote comfort. The Skechers Performance division designs footwear to utilize the latest advancements in materials and innovative design, including lightweight Ultra GO and Hyper Burst midsole compounds for comfort and responsive feedback. Skechers Performance includes the lines Skechers GOrun, Skechers GOwalk, Skechers GOtrain, Skechers GOtrail, and Skechers GO Golf as well as Skechers Viper Court for pickleball.

Skechers Kids: Skechers Kids consists of a wide range of sneakers, casuals, boots, and sandals for boys and girls of all ages – pairing the latest trends with innovative comfort technology. The Skechers Kids offering includes its namesake collection, S-Lights, Skech-Air, Foamies, Twinkle Toes, Skechers Stretch Fit, and Skechers Street.

Skechers Work: Skechers Work offers a complete line of men’s and women’s slip-resistant and safety-toe casuals, boots, hikers and athletic shoes for professionals who use protective footwear in their work environments. Skechers Work styles include Skechers comfort technologies along with safety and durability features such as steel, composite and lightweight safety toes; high-abrasion soles; puncture resistance; waterproofing and electrostatic-dissipative technology.

Skechers Apparel: Skechers designs and markets a collection of lifestyle apparel for men, women and kids. The collection features Skechers characteristics that consumers around the world have come to expect from the brand. The activewear garments are designed to directly coordinate with the brand’s footwear products. The Skechers apparel collection is sold at Skechers retail stores, on the company’s websites and through wholesale customers.

Product Design and Development

The company’s performance products are for professional and recreational athletes who want a technical shoe that performs under the demands of competition. The company’s occupational footwear is designed to meet the specifications and demands of the service, medical and construction industries while also meeting testing specifications in the markets where the product is sold.

The company’s products’ success is related to its ability to recognize trends in the footwear markets and to design products that anticipates and accommodate consumers’ ever-evolving preferences. Lifestyle trend information is compiled and analyzed by the company’s designers in various ways, including reviewing and analyzing pop culture, clothing, and trend-setting media; consulting with its customers for information on retail selling trends; participating in major footwear trade shows to stay abreast of popular brands, fashions and styles; and subscribing to various fashion and color information services.

Product Distribution

The company has two segments: Wholesale and Direct-to-Consumer. The company’s collections are available in approximately 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and approximately 4,540 company- and third-party-owned physical retail stores. The company manages its international business through a network of wholly-owned subsidiaries, joint venture partners, and distributors.

The company’s subsidiaries and joint ventures merchandise, market and distribute Skechers product to generate sales in their countries. The company’s joint venture interests include China, Malaysia and Singapore (50%), Thailand and Israel (51%), Mexico (60%), and South Korea (65%).

Wholesale: The company’s Wholesale segment primarily comprises sales to a vast network of partners. These include department stores, family shoe stores, specialty running and sporting goods retailers, and big box club stores; franchisee and licensee third-party store operators representing approximately 3,100 Skechers branded stores worldwide; dedicated e-commerce retailers; and international distributors.

Direct-to-Consumer: The company’s Direct-to-Consumer segment primarily comprises sales by Skechers directly to consumers through a combination of channels. These include approximately 1,450 company-owned retail stores in formats consisting of concept, factory outlet and big box; digital commerce sites and mobile applications; and hosted direct-to-consumer sales through marketplaces in select international markets

The company pursues its direct-to-consumer strategy through its integrated retail formats, which enable it to promote the full Skechers product offering in an attractive environment that appeals to a broad group of consumers.

E-commerce – The company-owned e-commerce business enables consumers to shop, browse, find store locations, socially interact, post reviews, and immerse themselves in the company’s brands.

Concept Stores – The company’s concept stores are located at high street locations, major tourist areas or in key shopping malls in metropolitan cities. The company’s concept stores serve as a showcase for a wide range of its product offering. Retail locations are generally chosen to generate maximum marketing value for the Skechers brand name through signage, store front presentation and interior design. These stores also serve as product testing venues.

Factory Outlet Stores – The company’s factory outlet stores are generally located in manufacturers’ direct outlet centers in the U.S. and in select international markets. The company’s factory outlet stores provide opportunities for it to sell discontinued and excess merchandise.

Big Box Stores – The company’s free-standing and attached big box stores, which are primarily located throughout the U.S. and Canada, enable it to liquidate excess merchandise, discontinued lines and odd-size inventory.

Licensing

The company’s multiple product lines plus additional subcategories present many potential licensing opportunities on terms. As of December 31, 2022, the company had 27 active licensing agreements in which it is the licensor. The company licenses a variety of Skechers-branded products, including apparel, accessories, socks and eyewear; medical scrubs; fitness and yoga accessories, and cold weather products. Additional category-specific collections include Skechers Sport apparel, bags, backpacks and headwear; Twinkle Toes backpacks and lunchboxes; BOBS from Skechers socks and backpacks; and Skechers Work socks. The company also has BOBS from Skechers pet accessories in Petco.

Distribution Facilities and Operations

The company’s distribution network includes an approximately 2.6 million square-foot North American distribution center located in California; an approximately 2.2 million square-foot European distribution center located in Belgium; an approximately 1.6 million square foot China distribution center; an approximately 0.3 million square foot United Kingdom distribution center; company-operated distribution centers or third-party distribution centers in Central America, South America and Asia; and third-party manufacturers and other international third-party distribution centers.

Intellectual Property Rights

The company owns and utilizes a variety of trademarks, including the Skechers trademark. The company has a significant number of both registrations and pending applications for its U.S. trademarks. In addition, the company has trademark registrations and trademark applications in 162 foreign countries. The company has design patents and pending design and utility patent applications in both the U.S. and 39 foreign countries.

The company considers its Skechers, Skechers Slip-ins Skechers Hands Free Slip-ins, Skechers Performance, Skechers GOrun, Skechers GOwalk, Skechers GO golf, Skechers GOtrain, Skechers on-the-GO, Skechers Cali, Skechers Street, Skechers USA, Skechers Active, Skechers Sport Active, Skechers Work, Max Cushioning, Massage Fit, Mark Nason, D’Lites, DLT-A, BOBS, Glide Step, Skech-Air, Skechers Kids, Twinkle Toes, S Lights, Relaxed Fit, Arch Fit, Ultra GO, Hyper Burst, Skechers Memory Foam, and Air-cooled Memory Foam trademarks to be among its most valuable assets.

History

Skechers U.S.A., Inc. was founded in 1992. The company was incorporated in California in 1992 and reincorporated in Delaware in 1999.