Skechers Claims Shareholder Lawsuit and Allegations Without Merit
September 11 2018 - 9:00AM
Business Wire
Footwear Company Plans to Vigorously Defend
Lawsuit
Skechers USA, Inc. (NYSE:SKX), a global footwear leader, denies
the allegations in the recent alleged shareholder class actions
filed by Laborers Local 235 Benefit Fund as frivolous and without
merit, and plans on defending them vigorously.
David Weinberg, Skechers chief operating officer, commented:
“This shareholder lawsuit (Laborers Local 235 Benefit Fund) is
without merit. Between October 2017 and July 2018, the Company
announced four consecutive quarters of record net sales, including
our highest quarterly net sales in the first quarter of 2018, and
record annual sales for the full-year 2017. (See referenced
earnings announcements.) During that time, the Company was—and
still is—focused on efficiently and strategically growing our
business on a global scale. This includes investing in our
infrastructure, diligently managing our balance sheet and bringing
expenses in line with growth. The lawsuit at best shows a complete
misunderstanding of the challenges facing both the international
footwear industry and our growth-oriented global business. We will
vigorously defend the Company and our officers against this
frivolous lawsuit in court.”
On September 4, 2018, Laborers Local 235 Benefit Fund filed a
securities class action against the Company and certain of its
officers, in the United States District Court for the Southern
District of New York, case 1:18-cv-08039. The lawsuit alleges that
between October 20, 2017 and July 19, 2018, the Company
made materially false statements or omissions of material
facts to investors about its operations and prospects.
Skechers will be represented in the lawsuit by Seth Aronson and
Abby Rudzin of O’Melveny & Myers in New York and Los
Angeles.
About Skechers USA, Inc.
SKECHERS USA, Inc., based in Manhattan Beach, California,
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, 2,715 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,
throughout Europe and Latin America. For more information, please
visit www.skechers.com and follow us on Facebook
(facebook.com/SKECHERS), Instagram (Instagram.com/SKECHERS) and
Twitter (twitter.com/SKECHERSUSA).
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 June 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180911005297/en/
SKECHERS USAJennifer Clay, 310-937-1326jennc@skechers.com
Skechers USA (NYSE:SKX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Skechers USA (NYSE:SKX)
Historical Stock Chart
From Apr 2023 to Apr 2024