SKECHERS Grows Its Operations in Hong Kong Through Joint Venture
Global Footwear Company Continues Expansion in Asia; First SKECHERS Concept Store Opens in Hong Kong
MANHATTAN BEACH, Calif.--(BUSINESS WIRE)--
SKECHERS USA, Inc. (NYSE:SKX), a global leader in the lifestyle footwear industry, today announced that it has expanded its operations in Hong Kong and Macau through a joint venture (known as SKECHERS Hong Kong Limited) with the Onwel Group, a leading fashion company in the region. The new joint venture in Hong Kong follows on the heels of SKECHERS China Limited, a joint venture with Luen Thai Enterprises established earlier this year.
SKECHERS Hong Kong has already started to deliver a full-range of men's, women's and children's SKECHERS footwear by establishing its own retail stores. It will also deliver SKECHERS products through a vast network of wholesale accounts starting from the Spring 2009 season. SKECHERS Hong Kong expects to improve its wholesale distribution with 200 new doors in the next two years and plans to triple its sales within three years.
"There is a tremendous opportunity for SKECHERS to grow in Hong Kong," stated Michael Leung, CEO of SKECHERS Hong Kong. "SKECHERS is a fantastic, strong, global brand and this market is filled with brand-loving consumers who are ready for more of the stylish lifestyle footwear SKECHERS has to offer. We expect SKECHERS to experience new success in Hong Kong thanks to the full line of styles now available."
"We're excited to be managing our operations and selling directly in Hong Kong thanks to this new joint venture and the dedicated and experienced team Michael Leung and his son Vincent have in place," began Michael Greenberg, president of SKECHERS. "We had a foothold in the region through a distribution partner, and now we have an opportunity to take our business in the Hong Kong region to the next level. A densely populated territory of approximately seven million, Hong Kong offers many opportunities for SKECHERS given its educated and savvy consumers, and growing open and dynamic economy."
The first SKECHERS concept store in Hong Kong opened in Olympian City 2, West Kowloon, and a celebrity attended grand opening was held on August 16, 2008. This is the first of eight retail stores scheduled to open in 2008. Another 20 SKECHERS retail store locations are planned to open in the next two years. As in the United States and around the world, the retail stores in Hong Kong should be profitable marketing vehicles. Stepping into a SKECHERS store in Hong Kong, consumers will be enveloped by the SKECHERS lifestyle - from images to a complete picture of SKECHERS' diverse products, making it a living catalog.
"The people of Hong Kong are avid, brand-conscious consumers," began Vincent Leung, Senior Vice President of SKECHERS Hong Kong Limited. "The economy is thriving and given the opportunity to buy a great brand, Hong Kong people will take it. We experienced this enthusiasm with the opening of our first retail store in Olympian City 2 shopping mall last month. Our expectation for sales was modest given this was a soft opening; but from opening day, sales have been exceptional -- an outstanding achievement especially given SKECHERS men's footwear was not available in Hong Kong until now. We believe this is a testament to the power of the global brand and the perceptive Hong Kong consumer."
Similar to SKECHERS corporate marketing methodology, SKECHERS Hong Kong will launch a complete marketing campaign to support its expanding business. This will cross multiple mediums, with the first objective of educating the Hong Kong consumers on SKECHERS lifestyle and its products.
SKECHERS Hong Kong is supporting its expansion plans by opening an office and showroom modeled after the recently completed offices in Guangzhou, China. This dual-function facility, which also includes warehouse space, will provide SKECHERS Hong Kong with a home base that centralizes and streamlines operations, marketing, sales and support needs for the joint venture.
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, Asia, and across Europe. Please visit www.skechers.com or call the company's information line at 877-INFO-SKX.
About Onwel
Onwel Sales Limited is the retail arm of Onwel Group of Companies ("Onwel Group"). Onwel Group was formed in 1981 as a reorganization to streamline finance, administration and control of a diverse group of associate and affiliate companies owned and/or controlled by Mr Michael K H Leung and his family since 1969. Onwel Group now consists of 20 subsidiaries and associated companies in China, Hong Kong, Saipan, Thailand and the United States of America. The core businesses of Onwel Group are garment manufacturing, trading and retailing, telecommunications, logistics and investments in restaurants and properties.
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 SKECHERS' Form 10-K for the year ended December 31, 2007 and SKECHERS' 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.
Released Sep 2, 2008 • 8:58 am EDT