MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–Skechers U.S.A., Inc. (NYSE: SKX), a global leader in the footwear
industry, today announced that the Company has purchased the minority
share of its joint venture in India, transitioning the business to a new
wholly-owned subsidiary of Skechers U.S.A., Inc.

Already one of the fastest growing and largest international markets for
Skechers, the Company believes that combining the experienced team and
Skechers’ proven sales and marketing capabilities will allow it to grow
the brand and its presence in a faster, more efficient manner,
ultimately meeting its fullest potential.

“Skechers is still a relatively young brand in this country, having been
in India for less than a decade, yet in the last five years, we have
seen significant growth through our joint venture,” began Michael
Greenberg, president of Skechers. “The substantial existing retail
network of over 200 stores, a strong wholesale business and a recently
launched e-commerce site is a solid foundation that we can build upon.
These accomplishments, as well as opportunities we see to increase the
brand’s exposure and drive sales, give us great optimism and confidence
for the growth of Skechers in India.”

“Skechers in India has achieved great success over the past few years,”
said Rahul Vira, CEO, Skechers South Asia Pvt. Ltd. “As we look into the
future, we are delighted to be a wholly-owned subsidiary of Skechers.
This development will enable us to amplify our growth plans, accelerate
expansion of our operations and build a stronger network to further gain
market share in India.”

“Few markets match the potential for growth of India, which is why we
entered the market initially, and why we recently decided to purchase
the minority stake in our joint venture,” said David Weinberg, chief
operating officer of Skechers. “The effort of our team has resulted in
significant growth as illustrated in our year-over-year numbers—2018 saw
double digit increases in wholesale and retail sales and an 80 percent
increase in pairs sold, reaching 2.7 million. We believe the strength of
our diverse product and our marketing insight will help expand our
product offering in India. As a subsidiary, we will be able to leverage
our capital, product, logistics and business model to better maximize
our brand exposure to the 1.3 billion consumers in this country. We
expect this change to be accretive to our earnings.”

The network of Skechers retail locations in India currently includes 223
retail stores—61 of which will be Skechers owned and operated while the
remaining are third-party owned. An additional 80 to 100 stores are
planned for 2019—of which approximately 20 will be company-owned,
company-operated. Consumers can also find the brand’s lifestyle and
performance footwear and apparel for men, women and kids online at
as well as in major retailers throughout India. The Skechers India
subsidiary will continue operating under its existing structure and from
its existing headquarters location in Mumbai.

About Skechers U.S.A., Inc.

Based in Manhattan Beach, California, Skechers designs, develops and
markets a diverse range of lifestyle footwear for men, women and
children, as well as performance footwear for men and women. Skechers
footwear is available in the United States and over 170 countries and
territories worldwide via department and specialty stores, more than
2,990 Skechers Company-owned and third-party-owned retail stores, and
the Company’s e-commerce websites. The Company manages its international
business through a network of global distributors, joint venture
partners in Asia and the Middle East, and wholly-owned subsidiaries in
Canada, Japan, India, throughout Europe and Latin America. For more
information, please visit
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This announcement contains forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include,
without limitation, Skechers’ future domestic and international growth,
financial results and operations including expected net sales and
earnings, its development of new products, future demand for its
products, its planned domestic and international expansion, opening of
new stores and additional expenditures, and advertising and marketing
initiatives. Forward-looking statements can be identified by the use of
forward-looking language such as “believe,” “anticipate,” “expect,”
“estimate,” “intend,” “plan,” “project,” “will be,” “will continue,”
“will result,” “could,” “may,” “might,” or any variations of such words
with similar meanings. Any such statements are subject to risks and
uncertainties that could cause actual results to differ materially from
those projected in forward-looking statements. Factors that might cause
or contribute to such differences include international economic,
political and market conditions including the challenging consumer
retail markets in the United States; sustaining, managing and
forecasting costs and proper inventory levels; losing any significant
customers; decreased demand by industry retailers and cancellation of
order commitments due to the lack of popularity of particular designs
and/or categories of products; maintaining brand image and intense
competition among sellers of footwear for consumers, especially in the
highly competitive performance footwear market; anticipating,
identifying, interpreting or forecasting changes in fashion trends,
consumer demand for the products and the various market factors
described above; sales levels during the spring, back-to-school and
holiday selling seasons; and other factors referenced or incorporated by
reference in the Company’s annual report on Form 10-K for the year ended
December 31, 2017, and its quarterly report on Form 10-Q for the three
months ended September 30, 2018. The risks included here are not
exhaustive. Skechers operates in a very competitive and rapidly changing
environment. New risks emerge from time to time and the companies cannot
predict all such risk factors, nor can the companies assess the impact
of all such risk factors on their respective businesses or the extent to
which any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, you should not place
undue reliance on forward-looking statements as a prediction of actual
results. Moreover, reported results should not be considered an
indication of future performance.

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