Skechers U.S.A., Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings (Loss) Per Share

Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Earnings (Loss) Per Share [Abstract]

(5) EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share represents net earnings (loss) divided by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share represents the weighted average number of common shares and potential common shares, if dilutive, that would arise from the exercise of stock options and nonvested shares using the treasury stock method.

The following is a reconciliation of net earnings (loss) and weighted average common shares outstanding for purposes of calculating basic earnings (loss) per share (in thousands, except per share amounts):


	Three-Months Ended September 30,				Nine-Months Ended September 30,
Basic earnings (loss) per share	2011		2010		2011			2010
Net earnings (loss) attributable to Skechers U.S.A., Inc.	$	8,285	$	36,378	$	(9,823	)	$	132,911
Weighted average common shares outstanding		48,445		47,586		48,344			47,268
Basic earnings (loss) per share attributable to Skechers U.S.A., Inc.	$	0.17	$	0.76	$	(0.20	)	$	2.81

The following is a reconciliation of net earnings (loss) and weighted average common shares outstanding for purposes of calculating diluted earnings (loss) per share (in thousands, except per share amounts):


	Three-Months Ended September 30,				Nine-Months Ended September 30,
Diluted earnings (loss) per share	2011		2010		2011			2010
Net earnings (loss) attributable to Skechers U.S.A., Inc.	$	8,285	$	36,378	$	(9,823	)	$	132,911
Weighted average common shares outstanding		48,445		47,586		48,344			47,268
Dilutive effect of stock options		954		1,590		0			1,749

Weighted average common shares outstanding		49,399		49,176		48,344			49,017

Diluted earnings (loss) per share attributable to Skechers U.S.A., Inc.	$	0.17	$	0.74	$	(0.20	)	$	2.71

There were no options excluded from the computation of diluted earnings per share for the three months ended September 30, 2011. Options to purchase 25,816 shares of Class A common stock were not included in the computation of diluted earnings (loss) per share for the nine months ended September 30, 2011, because their effect would have been anti-dilutive. There were no options excluded from the computation of diluted earnings per share for the three months and nine months ended September 30, 2010, respectively.