SKECHERS Expands in Mexico with New Distribution Deal
Global Footwear Company Signs Agreement with Leading Footwear Distributor, Grupo Charly
LOS ANGELES--(BUSINESS WIRE)-- SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has signed a deal with Grupo Charly, a leading footwear company in Mexico, to exclusively license and distribute SKECHERS footwear in Mexico. With this agreement, SKECHERS footwear is now available to consumers across North America.
Grupo Charly will begin distribution to accounts this year with select styles from SKECHERS men's and women's lines. SKECHERS Kids' styles will be added to the collection in 2010. Experienced retailers, the company plans to open SKECHERS retail stores beginning in 2010, with a minimum of 10 stores expected by the end of 2014.
"Many consumers in Mexico know the SKECHERS brand. Through Grupo Charly, we will be able to expand our brand awareness and more directly reach the 100 million people in Mexico," began Michael Greenberg, president of SKECHERS. "As a family-friendly brand with affordable product, we expect to be well-leveraged to serve this market, and believe Grupo Charly, with 50 years of experience in production and distribution of footwear in the region, is the company to do it."
Grupo Charly will utilize its production and manufacturing pipeline in Vietnam to produce, distribute and market SKECHERS footwear throughout Mexico.
"The people of Mexico have been waiting for a proper introduction to SKECHERS," said Agustin Gonzalez, CEO of Grupo Charly. "It's the perfect brand for us and we can't wait to get this product to shoppers throughout the country. They're going to be very impressed by the style and the price."
"There is great potential and opportunity here for SKECHERS," said Marvin Bernstein, managing partner for SKECHERS, S.a.r.l. "With Grupo Charly's expertise in this marketplace, SKECHERS will become a dominant brand throughout Mexico, and we expect it to positively impact our international business within the next two to three years."
SKECHERS' recent international expansion includes a distribution and licensing agreement in India, subsidiaries in Brazil and Chile, and joint ventures in China, Hong Kong and Malaysia.
ABOUT GRUPO CHARLY
Grupo Charly, based in Leon, Guanajuato, Mexico, began as a family business in 1949. After success manufacturing kids' shoes under the "Campanita" brand, the group eventually expanded to the sport shoe market. By focusing on design, manufacture and distribution of sport-inspired casual footwear, the company's CHARLY brand became the top-selling brand in Mexico for the last 20 years. In 2001, Grupo Charly expanded its portfolio with additional brands, including licensed footwear for Fila, Disney and Marvel Heroes. Grupo Charly also operates 47 CHARLY stores throughout Mexico.
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 SKECHERS' Form 10-K for the year ended December 31, 2008 and 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 8, 2009 • 9:05 am EDT