SKECHERS Expands to the Massive Market of India
Global Footwear Company Signs Distribution Deal with Leading Partner in World's Second Most Populated Country
MANHATTAN BEACH, Calif.--(BUSINESS WIRE)-- SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has signed a deal with Winner Sports Pvt. Ltd. to license and distribute SKECHERS footwear and apparel in India.
Winner Sports is a wholly-owned subsidiary of Pantaloon Retail India Ltd., part of Future Group. Future Group is an Indian business house that operates the country's leading retail and distribution chains along with allied businesses in the consumption space. This deal unites SKECHERS with a partner who has the experience and infrastructure to reach a wide cross-section of the billion-plus consumers within this fast-growing nation.
"We're very excited to grow SKECHERS in India, a mega-market filled with mega potential," began Michael Greenberg, president of SKECHERS. "Our partnership with Winner Sports will be a key factor in reaching that potential, and we believe India will contribute to international growth and positively impact our business in the next two to three years."
Over the last three years, SKECHERS has solidified the brand in some of the largest markets around the world by launching a subsidiary in Brazil and establishing a successful joint venture in China. Along with current distribution in Indonesia and the Company's powerhouse brand status in the United States, the India deal will elevate SKECHERS as a footwear leader in the top five most populated countries and around the world.
"SKECHERS is the perfect brand for India," said Ravdeep Singh, CEO of Winner Sports. "Indian consumers desire fashionable product at an attractive price and SKECHERS meets both of those demands. We look forward to leveraging our lifestyle and retail experience to make the brand a great success here."
Winner Sports will launch SKECHERS in India in November with select styles from SKECHERS men's and women's lines. SKECHERS Kids will be added to the collection in 2010. Additionally, licensed apparel will be produced within India and is expected to debut in Spring 2010.
Future Group operates India's leading retail chains like Big Bazaar, Pantaloons, Central and Planet Sports that are present in 73 cities and 65 rural locations throughout the country. Leveraging this robust and deep Group penetration, Winner Sports plans to aggressively roll out SKECHERS product to more than 75 retail stores and key accounts within two years.
"We've been waiting for the right time and partner to properly grow the brand in India," said Marvin Bernstein, managing partner for SKECHERS, S.a.r.l. "The current political landscape, combined with the retail capabilities of Winner Sports, has now opened the door for SKECHERS to find new opportunity and success in this exploding market."
ABOUT WINNER SPORTS Pvt. Ltd.
Winner Sports, a fully-owned subsidiary of Pantaloon Retail India Limited, operates Planet Sports, the country's leading multi-brand sports lifestyle retail chain with over 65 specialty stores. The Company also has a distribution presence in additional Future Group formats like Pantaloon, Central and Brand Factory in over 40 cities across India. As a licensee, distributor and retailer, Planet Sports carries India's largest collection of international sports and lifestyle brands including Speedo, Converse, Wilson, Mitre, Callaway, Spalding, Prince, Etonic, Reebok, Nike, Adidas, and Puma, to name a few. The Planet Sports stores have an extensive offering of lifestyle products, sportswear and equipment across all categories.
ABOUT SKECHERS USA, Inc.
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, Chile, and across Europe, as well as through joint ventures in Asia. For more information, please visit www.skechers.com.
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 including the recent global economic slowdown and financial crisis; the ability to sustain, manage and forecast costs and proper inventory levels; the loss of any significant customers, decreased demand by industry retailers and cancellation of order commitments due to the credit crisis in the global financial markets or other difficulties in their businesses; changes in fashion trends and consumer demands; 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; new standards regarding lead content in children's products including footwear under the Consumer Product Safety Improvement Act of 2008; the ability to maintain brand image; intense competition among sellers of footwear for consumers; further changes to the global economic slowdown that could affect the ability to open retail stores in new markets and/or the sales performance of existing stores; 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; potential imposition of additional duties, tariffs or other trade restrictions; violation of labor or other laws by independent contract manufacturers, suppliers or licensees; popularity of particular designs and categories of products; changes in business strategy or development plans; the ability to attract and retain qualified personnel; the disruption, expense and potential liability associated with existing or unanticipated future litigation; the ability to secure and protect trademarks, patents and other intellectual property; 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; and other factors referenced or incorporated by reference in the Company's Form 10-K for the year ended December 31, 2008 and the Company's Form 10-Q for the quarter ended June 30, 2009. 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.
Released Oct 6, 2009 • 9:05 am EDT