SKECHERS Footwear Opens Flagship Store in San Francisco

Nov 4, 2008 • 11:01 am EST

High-Profile Location Debuts Innovative New Store Design at Company's Largest Concept Store


SKECHERS USA, Inc. (NYSE:SKX), a global leader in lifestyle footwear, today announced the opening of a high-profile flagship store in the heart of San Francisco's premier shopping area - just off the Powell and Market streets' cable car stop and bordering Union Square. The three-floor SKECHERS location is also the Company's largest concept store at 7,500 square feet. The store features 800 unique styles and is capable of housing 20,000 units of footwear and apparel.

Located in a historic building on the corner of Powell and O'Farrell streets, SKECHERS' new store design both reflects the Company's image as well as the Art Deco architecture of the building, which was constructed in 1933. The store features modern curved fixtures, two 12-foot by 4-foot LED screens, seven plasma screens, thermo clear panels on the 16-foot ceiling, and a three-dimensional "super block wall" constructed from Styrofoam and plaster. SKECHERS also restored the original green terra cotta tiles and copper pipes on the upper exterior walls surrounding 18-foot bay windows and the original black granite at the street level.

"Our new Powell Street flagship store has everything we require in a retail location and more," began Michael Greenberg, SKECHERS president. "It is in one of the premier tourist and shopping locations in San Francisco with tens of millions of visitors annually. It is in an unbelievably beautiful building that both reflects the brand's image and furthers its reputation. The consumers that shop for our footwear and apparel in this store will be in for an incredible experience."

In a highly trafficked area within a block of H&M and Macy's, the SKECHERS store at 200 Powell Street includes one level of men's and women's footwear, and a second level of children's footwear and SKECHERS men's and women's apparel.

Designed as brand-building tools and living catalogs, SKECHERS retail stores are in prime tourist locations worldwide, including flagship stores in New York's Times Square, Los Angeles' Hollywood & Highland and Universal City Walk, Toronto, London, Paris, and Shanghai. SKECHERS currently owns and operates more than 215 retail stores in the United States, Canada, Europe and Asia.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs, develops and markets a diverse range of footwear for men, women and children under the SKECHERS name, as well as under several uniquely branded names. SKECHERS footwear is available in the United States via department and specialty stores, Company-owned SKECHERS retail stores and its e-commerce website, as well as in over 100 countries and territories through the Company's global network of distributors and subsidiaries in Canada, Brazil, and across Europe, as well as through joint ventures in China and Hong Kong. Please visit or call the Company's information line at 877-INFO-SKX.

This announcement may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or simply state future results, performance or achievements, and 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, national and local general economic, political and market conditions; intense competition among sellers of footwear for consumers; changes in fashion trends and consumer demands; popularity of particular designs and categories of products; the level of sales during the spring, back-to-school and holiday selling seasons; the ability to anticipate, identify, interpret or forecast changes in fashion trends, consumer demand for the products and the various market factors described above; the ability to maintain brand image; the ability to sustain, manage and forecast growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments; potential disruptions in manufacturing related to overseas sourcing and concentration of production in China, including, without limitation, difficulties associated with political instability in China, the occurrence of a natural disaster or outbreak of a pandemic disease in China, or electrical shortages, labor shortages or work stoppages that may lead to higher production costs and/or production delays; changes in monetary controls and valuations of the Yuan by the Chinese government; increased costs of freight and transportation to meet delivery deadlines; violation of labor or other laws by independent contract manufacturers, suppliers or licensees; potential imposition of additional duties, tariffs or other trade restrictions; business disruptions resulting from natural disasters such as an earthquake due to the location of domestic warehouse, headquarters and a substantial number of retail stores in California; changes in business strategy or development plans; changes in economic conditions that could affect the ability to open retail stores in new markets and/or the sales performance of existing stores; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; and other factors referenced or incorporated by reference in the Company's Form 10-K for the year ended December 31, 2007 and the Company's Form 10-Q for the quarter ended June 30, 2008. The risks included here are not exhaustive. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time and we cannot predict all such risk factors, nor can we assess the impact of all such risk factors on the business 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.

Source: SKECHERS USA, Inc.