Skechers USA Inc. swung into the red in the fourth quarter.
For the period ended Dec. 31, the Manhattan Beach, Calif.-based firm lost $57.7 million, or $1.18 a share. It had earned a net income of $3.2 million, or 7 cents, the same period a year ago.
Fourth-quarter net sales fell 37.7 percent to $283.2 million, which the firm attributed to a difficult comparison against a fourth-quarter 2010 that benefited from higher priced toning footwear. The company also experienced lower-than-expected sales across many other footwear lines, primarily in the domestic wholesale business.
“Our international business was also impacted by the slowing of toning sales, as well as economic difficulties in many markets. Our retail business held up the best, in part due to the increased number of stores as well as our ability to quickly turn product,” said David Weinberg, CFO and COO of Skechers.
“We will be working toward reducing our operating expenses relative to top-line revenues in the back half of the year and believe the only planned spending increases this year will be for the opening of 18 to 20 company-owned stores and the launch of our subsidiary in Japan as we look to build this market to be our largest subsidiary,” he added.
Robert Greenberg, Skechers’ CEO, also said in a statement, “We believe that many of the challenges we faced in the back half of 2011 are behind us, and we are eager to move ahead with our fresh product, effective marketing and targeted distribution.”
For the full year, Skechers lost $67.5 million, or $1.39 a share, compared with a net income of $136.1 million, or $2.87 a share, in 2010. Full-year revenue fell 20 percent to $1.61 billion.
The firm’s cash balance stood at $351.1 million at the end of 2011, down from $2.3 billion at the end of 2010.