NEW YORK, Nov. 16, 2017 — Pomerantz LLP announces that a class action lawsuit has been filed against Skechers U.S.A., Inc. (“Skechers” or the “Company”) (NYSE: SKX) and certain of its officers. The class action, filed in United States District Court, for the Southern District of New York, and docketed under 17-cv-08305, is on behalf of a class consisting of investors who purchased or otherwise acquired Skechers securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Skechers securities between April 23, 2015 and October 22, 2015, both dates inclusive, you have until December 22, 2017, 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 [email protected] 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.
Skechers designs, develops, and markets footwear for men, women, and children. The Company's primary reporting segments are: (1) Domestic Wholesale; (2) International Wholesale; and (3) Retail (which includes both domestic and international Company stores). From 2013 through 2015, Domestic Wholesale was the Company's primary driver of growth and accounted for higher net sales as compared to the other two segments. The Domestic Wholesale segment accounted for approximately 39 percent of Skechers' 2015 total net sales. The Company's Domestic Wholesale customers include department stores, athletic footwear retailers, and specialty shoe stores. During the Class Period, Skechers repeatedly touted the strength of customer demand within the Domestic Wholesale segment, which the Company claimed would spur continued sales growth. Skechers frequently emphasized that its Domestic Wholesale segment growth would continue into the second half of 2015 based on pending orders and meetings with key customers.
The Complaint alleges that 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) the Company's Domestic Wholesale customers took early receipt of fall 2015 inventory, causing them to delay receipt of and, in some cases, cancel pending orders scheduled for delivery in the second half of 2015; (ii) as a result of the foregoing, the Company's Domestic Wholesale growth rate was unsustainable; and (iii) as a result of the foregoing, Skechers' public statements were materially false and misleading at all relevant times.
The Company's slowing sales growth was revealed on October 22, 2015 after the market closed, when Skechers issued a press release announcing financial results for the third quarter ended September 30, 2015, which included disappointing net sales that fell short of analysts' consensus estimates. According to Defendants, $20 million in net sales were shifted from third quarter 2015 into second quarter 2015 due to early customer deliveries. Defendants blamed the sales miss on the Company's inability to make up this shortfall in third quarter 2015 due to a weaker-than-expected retail environment.
On news of the Company's disappointing net sales and diluted earnings per share, Skechers common stock fell $14.55 per share, or 31.50 percent, to close on October 23, 2015 at $31.64 per share.
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
Robert S. Willoughby
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SOURCE Pomerantz LLP
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