Pomerantz Law Firm Announces the Filing of a Class Action against Skechers USA, Inc. and Certain Officers – SKX

NEW YORK, Oct. 17, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Skechers USA, Inc. (“Skechers or the “Company”) (NYSE:  SKX) and certain of its officers.   The class action, filed in United States District Court, Southern District of New York, and indexed under 18-cv-09510, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise acquired Skechers securities between October 20, 2017 and July 19, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Skechers securities between October 20, 2017, and July 19, 2018, both dates inclusive, you have until November 5, 2018, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here to join this class action]

Skechers designs and markets branded footwear for men, women, and children. In recent years, Skechers has experienced rapid sales growth, particularly in the Company’s international markets driven largely by unsustainable increases in the Company’s Selling, General & Administrative expenses (“SG&A”).

Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:  (i) Skechers’ sales growth was heavily reliant upon unsustainable increases in the Company’s SG&A expenses, including expensive, third-party operational solutions; (ii) SG&A expenses would exceed sales growth for the foreseeable future; (iii) the Company did not have the operational infrastructure needed to meet the demand for its products in China and other international markets; and (iv) as a result, Skechers’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on April 18, 2018, when Skechers reported its first quarter 2018 financial results. Contrary to Defendants’ previous and repeated assurances of “leveraged” SG&A expenses, Skechers’ reported SG&A expense growth of 23.4%, drastically outgrowing the Company’s 16.5% sales growth for the same quarter. Even still, David Weinberg, Skechers’ Chief Operating Officer (“COO”), continued to reassure investors that the Company would return to leverage on SG&A expenses the very next quarter.

On this news, Skechers’ stock price declined $11.38 per share, or 27%, to close at $30.70 per share on April 20, 2018.

On July 19, 2018, the full truth emerged when Skechers announced its second quarter 2018 financial results. The Company disclosed that SG&A expenses increased 19.7%, far greater than the reported 10.6% sales growth for the same quarter.  As a result, earnings from operations decreased by 5.7%, and net earnings declined by almost 24%.

On this news, Skechers’ stock price dropped $6.98 per share, or 20.1%, from a closing price of $33.25 per share on July 19, 2018, to $26.27 per share on April 20, 2018, wiping out an additional $947 million in market cap.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 9980