Even Skechers isn’t immune to the recession.
As expected, The Manhattan Beach, Calif.-based company reported a fourth-quarter loss yesterday.
Skechers finished the quarter ended Dec. 31, 2008, with a net loss of $20.4 million, or 44 cents per diluted share, compared with a profit of $12.1 million, or 26 cents, in the fourth quarter in 2007. For the year, the brand saw overall earnings drop 27 percent to $55.4 million, or $1.19 per share, from $75.7 million, or $1.63, in 2007.
Sales in the fourth quarter fell 1 percent to $298.1 million from $302 million, which Skechers attributed to the weak global retail climate. For the year, sales rose 3 percent to $1.44 billion from $1.39 billion.
The results were in line with a revised forecast issued by the company earlier this month. At the time, Skechers said sales were negatively impacted by the poor performance at many U.S. retailers, in addition to store closings and bankruptcies. And looking ahead, it expected 2009 buying plans for many key retail partners to be down anywhere from 7 percent to 20 percent across all merchandise categories.
CEO Robert Greenberg said in a statement yesterday that Skechers was looking toward opportunities overseas and growth in the company’s Punk Rose, Bebe Sport and Tapout brands. “Our product remains affordable, fashionable and relevant, offering great value in the current marketplace. While the macroeconomic environment remains challenging, we believe we will continue to be an increasingly important brand around the world, given our on-target product, diversified distribution and team of talented people and dedicated partners.”