Skechers Finds New Auditor, Previews Q1 Results

Skechers USA Inc. has hired a new independent audit firm.

The move comes two weeks after the company’s former auditor, Scott London of KPMG, was charged by federal prosecutors for leaking tips leading to insider trading.

The Manhattan Beach, Calif.-based firm said it has appointed BDO USA, with immediate effect, to re-audit the company’s financial statements for the fiscal years ended Dec. 31, 2011, and Dec. 31, 2012.

Skechers also announced that its preliminary first-quarter net sales should come in between $440 million and $450 million, representing a roughly 28 percent surge over $351.3 million in the same quarter a year ago.

Income is expected to come in between 8 cents and 12 cents a share, reversing its loss of 7 cents last year. Analysts, however, have been expecting earnings per share of 19 cents.

“It is important to note that the combination of two one-time items negatively impacted our EPS by 7 cents,” said David Weinberg, Skechers’ COO and CFO, accounting for the gap in estimates.

The two items are a foreign currency translation loss of $3 million for the quarter, and a previously agreed-upon $2.5 million credit to the unnamed retailer that had purchased a significant portion of its excess toning inventory in 2011.

The company plans to discuss its financial results in a conference call on May 10.

“Skechers’ focus during this transition period has been on finding new auditors, preparing to
report our first-quarter 2013 earnings and managing our global footwear business,” said Weinberg. “With BDO now in place, we believe they will efficiently audit the last two fiscal years of our consolidated financial statements and expertly handle our future audit needs.”

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