SKECHERS Announces Resignation of KPMG as Lead Auditor

Tue Apr 9, 2013 12:29pm EDT

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130409:nBw096374a

* SKECHERS Eager to Hire New Audit Firm as the Footwear Company Prepares to
Announce Positive Q1 2013 Financial Results

MANHATTAN BEACH, Calif.--(Business Wire)--
SKECHERS USA, Inc. (NYSE:SKX), today announced that KPMG, LLP resigned
yesterday, April 8, 2013, as independent auditor of Skechers due to misconduct
by KPMG`s lead Audit Engagement Partner on the Skechers account. In connection
with its resignation, KPMG has publicly stated that it has "no reason to believe
that the financial statements of Skechers have been materially misstated." 

David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer,
stated, "KPMG has advised us that that they have no reason to believe that there
were any misstatements in our financial statements, and we firmly believe that
there has been no misstatements of our results or financial condition.
Nonetheless, it is an unfortunate development at a time when we are preparing to
release earnings for the First Quarter of 2013, a quarter which, like the Fourth
Quarter of 2012, we believe will show significant growth and the continuing
strength and viability of our business. We are working diligently to replace
KPMG as quickly and efficiently as possible as we look forward to releasing
positive results for the first quarter of 2013 later this month." 

Upon resignation, Skechers was informed by KPMG that KPMG`s lead Audit
Engagement Partner on the Skechers account is under federal investigation for
providing non-public information of his clients to a third party in exchange for
money. The third party then used that information to trade stocks of several
West Coast companies. KPMG told Skechers that the KPMG audit partner under
investigation is cooperating with the authorities and admitted that Skechers was
one of its clients whose non-public information was provided to a third party in
exchange for money. KPMG further advised Skechers that, as a result of these
developments, KPMG has determined that its independence has been impaired and it
must resign as Skechers auditors immediately and withdraw its auditors` reports
for the fiscal years 2011 and 2012. 

KPMG advised the Company it resigned as Skechers` independent accountant solely
due to the impairment of KPMG's independence resulting from its now former
partner's alleged unlawful activities and not for any reason related to
Skechers` financial statements, its accounting practices, the integrity of
Skechers' management or for any other reason. 

None of KPMG's audit reports on Skechers` financial statements for the fiscal
years ended December 31, 2011 and 2012 or KPMG's audit reports on the
effectiveness of internal control over financial reporting as of December 31,
2011 and 2012 contained an adverse opinion or a disclaimer of opinion, nor was
any such report qualified or modified as to uncertainty, audit scope or
accounting principles. In addition, at no point during the two fiscal years
ended December 31, 2012 and the subsequent interim period through April 8, 2013
were there any (1) disagreements with KPMG on any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedures, which disagreement(s), if not resolved to the satisfaction of KPMG,
would have caused it to make reference to the subject matter of the
disagreement(s) in connection with its reports, or (2) "reportable events" as
such term is defined in Item 304(a)(1)(v) of Regulation S-K. 

Skechers has immediately started to search for replacement auditors in an effort
to have them in place as soon as possible. Skechers is unable to provide an
estimate of when the re-audit of fiscal years 2011 and 2012 will be completed. 

ABOUT SKECHERS USA, INC.

SKECHERS USA, Inc. (SKX), based in Manhattan Beach, California, designs,
develops and markets a diverse range of footwear for men, women and children
under the SKECHERS name. SKECHERS footwear is available in the United States via
department and specialty stores, Company-owned SKECHERS retail stores and its
e-commerce website, and over 100 countries and territories through the Company`s
global network of distributors and subsidiaries in Brazil, Canada, Chile, Japan,
and across Europe, as well as through joint ventures in Asia. For more
information, please visit www.skechers.com, and follow us on Facebook
(www.facebook.com/SKECHERS) and Twitter (twitter.com/SKECHERSUSA). 

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 ongoing global economic
slowdown and market instability; entry into the highly competitive performance
footwear market; sustaining, managing and forecasting costs and proper inventory
levels; losing any significant customers, decreased demand by industry retailers
and cancellation of order commitments due to the lack of popularity of
particular designs and/or categories of products; maintaining brand image and
intense competition among sellers of footwear for consumers; anticipating,
identifying, interpreting or forecasting changes in fashion trends, consumer
demand for the products and the various market factors described above; sales
levels during the spring, back-to-school and holiday selling seasons; and other
factors referenced or incorporated by reference in the Company`s annual report
on Form 10-K for the year ended December 31, 2012. The risks included here are
not exhaustive.The Company operates in a very competitive and rapidly changing
environment. New risks emerge from time to time and the companies cannot predict
all such risk factors, nor can the companies assess the impact of all such risk
factors on their respective businesses 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.

Company Contact:
SKECHERS USA, Inc.
Jennifer Clay, 310-318-3100
or
Investor Relations:
Andrew Greenebaum, 310-829-5400 



Copyright Business Wire 2013