Skech's Second Quarter Earnings Performance Net Profit Rose 66%

On the morning of July 19, 2019 in Beijing, American sports leisure brand Cage SKECHERS (hereinafter referred to as "Si Cage") announced the second quarter 2019 earnings report (data as of June 30, 2019). Skech's global sales in the second quarter amounted to US $1 billion 259 million, up 10.9% over the same period last year.

Skech's second quarter earnings summary:

Skech's global sales in the second quarter amounted to US $1 billion 259 million, up 10.9% from the same period last year (by 13.7% at fixed exchange rates).

International market sales grew by 19.8% over the same period (25.2% by fixed exchange rate).

Skech could grow 4.9% over the same store, including 6.7% year-on-year growth in the international market.

International sales account for 55.7% of the total.

Diluted earnings per share of $0.49, an increase of 69% over the same period

"With the breakthrough of digital high-tech means, the whole world is no longer limited by space distance, and communication becomes more and more closely." When you tell brand stories, talk about recent events, focus on the global market instead of a single local market. Skech CEO Robert Greenberg said Cage will continue to make strategic deployment in a global perspective, which is also the driving force behind Cage's rapid growth. In particular, many of our trump card products will be listed around the world at the same time, so that we can effectively respond globally. From the second quarter sales performance, consumers widely accepted our sports and street clothing series, and GOwalk series and brand new Skech-Air are widely praised. Maintaining product comfort, continuous innovation, shaping diversified styles, and strictly managing product quality is still the top priority of our work. We are very happy to win many awards in this quarter. GO Run Maxroad 4 Hyper won the best outdoor running shoes award of "Shape" magazine and the "runner world" magazine editor's choice of outdoor running shoes award. GO Run 7 Hyper won the award of "OUTSIDE" magazine's best road running equipment. Cage's efforts have also been recognized by consumers. Sales in the second quarter increased by 10.9% compared with the same period last year, while international business grew by 19.8% over the same period last year, and the US business grew 1.5%. We will continue our efforts in the third quarter, and we will be able to reach more core customers and promote sales growth in the autumn, when new products and back-to-school return season products are available. At the same time, Skech will strongly launch the limited edition selection of shoes and clothing styles, which will create more hot topics for the brand and stimulate the consumer market. Let's wait and see.

Skech global chief operating officer David Weinberg stressed: "in the second quarter, we experienced the fluctuation of the US dollar exchange rate in India, the Middle East and China, and the transformation of Mexico's joint venture business model. Looking back at our sales performance, the rapid growth is enough to prove the demand of the market and the strength of Cage. In the direct sales channel of the brand, sales continued to rise in the second quarter. According to the feedback from recent channels, the growth trend of wholesale business in the US in June and July increased steadily, and the sales performance in the second half of the year is worth looking forward to. In order to deal with the growth of business volume in an orderly way, the global infrastructure we are investing in -- Cage e-commerce platform and distribution center, and the design and development of new products in 2020 are in full swing. We are very much looking forward to the results of the sales season and the holiday season, believing that this growth trend will spread all over the world.

In the second quarter, Cage's global quarterly sales amounted to US $1 billion 259 million, an increase of 10.9% to 13.7% over the same period, a net income of 75 million US dollars, and a year-on-year increase in net profit of 66%. International market sales increased by 19.8% over the same period last year; international wholesale business grew by 18.2%, the company's direct business grew by 14.4%, and the same store sales of the outlets and electronic business platforms grew 4.9% on the straight line (including the US business and international business).

As one of the most important strategic markets, Skech's performance in the second quarter is also commendable. Following the opening of the largest Skech super store (Superstore) in Asia Pacific since the beginning of the year, 8 super stores have been located in Shenyang. In 2019, the creative camp 2019 sponsored by Skech, because of its innovative emotional implantation mode, strongly promoted the sales performance of Skech's clothing products. The "B.I.S X Skechers World Wars" world dance competition recently launched will lead to another wave of Persian Cage culture.