Case
Supplementary Resources
Abstract
Skechers USA Inc. is one of the largest brands in the global footwear market. The company has 3,000 different shoe styles for men, women and children as well as offerings in diverse categories like lifestyle and performance footwear and branded apparel, bags, eyewear, toys. They have introduced their product to a niche demographic audience and worked with different successful pop stars for their branding. Despite Skechers’ success, the company has faced a number challenges from its competitors such as Converse, Kenneth Cole, and Timberland. This case outlines the challenges that Skechers USA faces at it continues to try to grow in a crowded market where four companies control 75% of the market.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: Income Statement and Balance Sheet
(In thousands, except net earnings (loss) per share)
| STATEMENT OF OPERATIONS DATA: | YEARS ENDED DECEMBER 31 | ||||
| 2015 | 2014 | 2013 | 2012 | 2011 | |
| Net sales | $3,147,323 | $2,377,561 | $1,846,361 | $1,560,321 | $1,606,016 |
| Gross profit | 1,424,008 | 1,071,905 | 818,792 | 683,326 | 623,748 |
| Earnings (loss) from operations | 350,824 | 209,071 | 93,609 | 22,319 | (133,793) |
| Earnings (loss) before income taxes (benefit) | 333,497 | 191,380 | 82,215 | 10,473 | (131,047) |
| Net earnings (loss) attributable to Skechers USA., Inc. | 231,912 | 138,811 | 54,788 | 9,512 | (67,484) |
| Net earnings (loss) per share:(l) | |||||
| Basic | 1.52 | 0.91 | 0.36 | 0.06 | (0.46) |
| Diluted | 1.50 | 0.91 | 0.36 | 0.06 | (0.46) |
| Weighted average shares:(l) | |||||
| Basic | 152,847 | 151,839 | 151,090 | 148,485 | 145,473 |
| Diluted | 154,200 | 153,079 | 151,690 | 149,826 | 145,473 |
| BALANCE SHEET DATA: | AS OF DECEMBER 31. | ||||
| 2015 | 2014 | 2013 | 2012 | 2011 | |
| Working capital | $993,454 | $779,277 | $704,506 | $647,771 | $578,885 |
| Total assets | 2,047,408 | 1,674,918 | 1,408,570 | 1,340,220 | 1,281,888 |
| Long-term borrowings, excluding current installments | 68,942 | 15,081 | 116,488 | 128,517 | 76,531 |
| Skechers U.S.A., Inc. equity | 1,327,556 | 1,075,249 | 930,322 | 875,969 | 852,561 |
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
