Skechers USA Inc.’s stock inched up on Tuesday after the company said it expects to break even for the first half of 2009 and return to profitability in the back half of the year. The stock closed at $9.30, up 1.4 percent for the day’s trading.
David Weinberg, Skechers’ COO, said in a statement released early Tuesday, that the “extremely weak global retail environment remains a factor in our performance, as retailers slowed their orders” in the second quarter. But he added that the Manhattan Beach, Calif.-based company would continue to “liquidate excess inventory and clean up our balance sheet.”
Of the third quarter, Weinberg said, “We have an extremely strong balance sheet, strong liquidity and a significant cash position in excess of $5 per share. We are in a great position to further grow our business around the world and are looking forward to capitalizing on opportunities as they arise.”
Skechers also on Tuesday announced a new $250 million, four-year, syndicated secured credit facility, arranged by Wells Fargo Foothill, part of Wells Fargo & Co. and Bank of America N.A., a subsidiary of Bank of America Co.
In addition, Fred Schneider, Skechers’ CFO, said, “The remaining $95 million of auction rate securities were redeemed, giving us approximately $250 million in cash and investments, which should provide us with sufficient capital for our initiatives and to fund our growth over the next four years.”