Skechers tries urban strategy to get shoes into new stores.SKECHERS USA Inc. is trying on new shoes. The Manhattan Beach-based company, which four years ago was the darling of Wall Street with its hot, skateboard-inspired footwear, is offering up a slew of product lines in an effort to rev up Verb 1. rev up - speed up; "let's rev up production" step up increase - make bigger or more; "The boss finally increased her salary"; "The university increased the number of students it admitted" 2. sales and investor interest. Its stock was trading at $40 a share in 2001. But in the shoe business, customers' fickle preferences can quickly make or break a company. By 2003, the stock had skidded toward $5. Since then, the company has updated the look of its shoes to make them more appealing to its core customers of teenagers and young adults. Skechers, which is now trading above $13 a share, recently inked a deal with Robertson Boulevard Robertson Boulevard is a street in Los Angeles. The northern part of the street in West Hollywood is a trendy tree-lined shopping district. Robertson is best known as a recent celebrity hangout. boutique Kitson to sell that store's branded shoes. The company is also rolling out urban brands 310 Motoring, Unlimited by Marc Ecko Marc Ecko (born Marc Milecofsky[1] on 1972 in Lakewood, New Jersey) is a fashion designer and entrepreneur. He started selling T-shirts in the mid 1980s, and founded his clothing brand eckō in 1993. and Red by Marc Ecko to more stores nationwide. The newest brands have the potential to extend Skechers' reach into boutiques and high-end department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. , where Kitson shoes will be sold, as well as mass footwear retailers such as Foot Locker Foot Locker, Inc. (NYSE: FL) is a major American sportswear and footwear retailer, with its headquarters in New York City, and operating in approximately 20 countries worldwide. It is the successor corporation to the F.W. Woolworth Company (“Woolworth’s”). Inc. and Finish Line Inc., where Skechers has little presence. The company is marketing Hurricane by 310, an athletic shoe An athletic shoe is a generic name for a shoe designed for sporting and physical activities, and is different in style and build than a dress shoe. Originally known as sporting apparel, today they are known as casual footwear. under the 310 Motoring label, exclusively to Foot Locker for the holiday season. "As each of these brands gain market share and consumer acceptance, Skechers believes they will continue to positively impact its domestic sales," David Weinberg, the company's chief financial officer, said during the third-quarter conference call. Questionable moves Some of the troubles have been self-inflicted. The company dabbled dab·ble v. dab·bled, dab·bling, dab·bles v.tr. To splash or spatter with or as if with a liquid: "The moon hung over the harbor dabbling the waves with gold" in Britney Spears products that got mired mire n. 1. An area of wet, soggy, muddy ground; a bog. 2. Deep slimy soil or mud. 3. A disadvantageous or difficult condition or situation: the mire of poverty. v. in litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and it peddled designer footwear brands Michelle K and Mark Nason that saw a sales pickup in the third quarter--but only after two years of slow growth. Investors remain wary, especially after the company's disappointing fourth-quarter outlook, in which it anticipates earnings of 2 cents to 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Analyst expectations are 6 cents per share. Despite investor reaction, Skechers' business appears basically healthy. Four out of six analysts covering the company have a "buy" or "strong buy" rating. Some of the newer brands are off to good starts. In its third-quarter conference call, the company attributed a jump of more than 5 percent in domestic wholesale revenue partly to 310 Motoring, Unlimited by Marc Ecko and Red by Marc Ecko. Deena Friedman, an analyst with Brean Murray & Co. Inc., forecasts that the new brands will generate $50 million in revenues this year. That's only a fraction of the $926 million racked up last year, but Skechers is still widening the urban brands' store base and building consumer awareness. "The non-Skechers brands are significant growth opportunities as they gain additional distribution," Friedman wrote in a research note. The stylized styl·ize tr.v. styl·ized, styl·iz·ing, styl·iz·es 1. To restrict or make conform to a particular style. 2. To represent conventionally; conventionalize. , car-inspired look of 310 Motoring shoes is aimed at young African-American and Hispanic males. The suggested retail price is $95 to $150. To make the shoes credible to these customers, Skechers has signed on hip-hop artist The Game to market his own 310 Motoring line. (Skechers' frequently taps celebrities in its ads, and "American Idol American Idol is an annual American televised singing competition, which began its first season on June 11, 2002. Part of the Idol franchise, it originated from the British reality program Pop Idol. " winner Carrie Underwood hawks Skechers-brand shoes.) "If you can capture those particular consumers, they have a tendency to be leading edge and other kids mimic whatever the fashion that those particular shoppers are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a season or two down the road," said John Shanley, an analyst with Susquehanna Financial Group. Shanley noted that the new brand could be big sellers at mass retailer Foot Locker. "There wasn't much of a relationship between Skechers and the world's largest footwear retailer. That is where it has been very crucial for them," he said. "If you can capture those particular consumers, they have a tendency to be leading edge." The Kitson shoes, which are expected to hit shelves this quarter in the $85-$95 price range, are designed to appeal to young women shoppers who follow fashion magazines and celebrity trends. The buzz factor may draw customers to Skechers that previously wouldn't consider picking up the company's shoes. "As these brands gain traction, it could mean additional exposure for the core Skechers brand," Friedman wrote. Skechers USA Inc. YEAR (Dec. 31) 2004 2003 Revenue (millions) $920.3 $835 Total Expenses (millions) 871.1 836.3 Operating Income (millions) 49.3 (1.4) Net Income (millions) 23.6 (11.9) Loss Per Share (0.59) (0.31) SUMMARY Business: Manufacturer of athletic shoes Headquarters: Manhattan Beach CEO: Robert Greenberg Market Cap: $549.7 million Dividend Yield: NA Total Liabilities: $216.9 million P/E Ratio: 14.45 Long-Term Debt: $107.6 million |
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