Safe Harbor Reference in this presentation to Sales refers to - PowerPoint PPT Presentation

Safe Harbor Reference in this presentation to “Sales” refers to Skechers’ net sales reported under generally accepted accounting principles in the United States. This presentation also contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, Skechers’ future domestic and international growth, financial results and operations including expected net sales and earnings, its development of new products, future demand for its products, its planned domestic and international expansion, opening of new stores and additional expenditures, and advertising and marketing initiatives. Forward-looking statements 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 economic, political and market conditions including the challenging consumer retail markets in the United States; the disruption of business and operations due to the coronavirus; 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, especially in the highly competitive performance footwear market; 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 Skechers’ annual report on Form 10-K for the year ended December 31, 2019. More specifically, the COVID-19 pandemic has had and is currently having a significant impact on Skechers’ business, financial conditions, cash flow and results of operations. Forward-looking statements with respect to the COVID-19 pandemic include, without limitation, Skechers’ plans in response to this pandemic. At this time, there is significant uncertainty about the COVID-19 pandemic, including without limitation, (i) the duration and extent of the impact of the pandemic, (ii) governmental responses to the pandemic, including how such responses could impact Skechers’ business and operations, as well as the operations of its contract manufacturers and other business partners, (iii) the effectiveness of Skechers’ actions taken in response to these risks, and (iv) Skechers’ ability to effectively and timely adjust its plans in response to the rapidly changing retail and economic environment. Taking these and other risk factors associated with COVID-19 into consideration, the dynamic nature of these circumstances means that what is stated in this press release could change at any time, and as a result, actual results could differ materially from those contemplated by such forward-looking statements. The risks included here are not exhaustive. Skechers operates 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 our 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. 2

Skechers’ Differentiated Model Consumer-driven, product-focused organization with a highly agile • and responsive product development model Global brand with established international infrastructure, industry- • leading growth, and significant opportunity for worldwide expansion Direct-to-consumer business with an extensive global retail network • and growing e-commerce presence U.S. brand ranked among the top three footwear companies and a • leader in multiple categories 3

Skechers Q2 at a Glance Styles Brands Countries Skechers Stores Worldwide Sales Of Sales are Company-owned E- China Sales Growth International Commerce Sales Growth Gross Margin International Decline Domestic Decline Pairs Shipped in 2019 Note: Unless otherwise noted, data represents the three-months ended June 30, 2020 4

Consumer-Driven, Product-Focused Agile Model We provide our consumers with stylish, high- • quality, and comfortable products at a reasonable price We have a diverse product offering of 31 brands • across all genders, age ranges and categories We are focused on innovation and have the ability • to quickly adapt products in response to trends 5

International Wholesale (All $ amounts in millions) $2,463 22.5% Compound Annual Sales Growth (‘15 – ’19) $550 $2,055 $1,730 -29.9% Sales Decline $385 $1,391 $1,094 46.8% Gross Margin 2,797 Third-Party Owned Stores 2015 2016 2017 2018 2019 2019 2020 2 nd Quarter Full Year Note: Unless otherwise noted, data for the period ended June 30, 2020. 6

Growing Direct-to-Consumer Business We have a large and expanding global retail base • of over 3,500 Skechers stores worldwide in over 170 countries Direct-to-consumer complements our wholesale • business and enhances Skechers’ financial profile We gain valuable insight into consumer trends • from our in-store and online test-and-react programs We are making meaningful investments in digital • infrastructure, consumer loyalty and e-commerce to deliver a consumer-centric, omni-channel offering 7

Global Direct-to-Consumer (All $ amounts in millions) 16.0% Compound Annual $1,510 Sales Growth (‘15 – ’19) $404 $1,328 $1,185 -47.1% Sales Decline $972 $833 $214 64.5% Gross Margin 818 Company-Owned 2015 2016 2017 2018 2019 2019 2020 Stores Worldwide 2 nd Quarter Full Year Note: Unless otherwise noted, data for the period ended June 30, 2020. 8

Domestic Wholesale (All $ amounts in millions) 0.6% Compound Annual Sales Growth (‘15 – ’19) $1,260 $1,249 $1,248 $1,220 $1,200 $305 -57.2% Sales Decline $131 38.6% Gross Margin 1.6% Increase in 2015 2016 2017 2018 2019 2019 2020 Average Price Per Unit 2 nd Quarter Full Year Note: Unless otherwise noted, data for the period ended June 30, 2020. 9

Brand Ambassadors Clayton Kershaw Howie Long Sugar Ray Leonard Tony Romo Brooke Burke Los Angeles Dodgers Pitcher Pro Football Hall of Famer Former Boxing Legend and Former Dallas Cowboys Quarterback Spokesperson and actor and Sportscaster Olympic Gold Medalist and Sportscaster Brooke Henderson Colin Montgomerie Russel Knox Matt Kuchar Ed Chesereck Pro Golfer with All-time Most Scottish Pro Golfer with Most Scottish Pro Golfer American Pro Golfer and Elite Runner and 17-time Wins by a Canadian European Tour Wins by a Brit Olympic Bronze Medalist NCAA National Champion 10

Financials

. Company History and Growth (All $ amounts in millions, except per share data) Net Sales in Billions $5.2 Billion in Annual Sales Surpasses $5.0 $4 Billion in Annual Sales 1,000 th Retail Surpasses $4.0 $2 Billion in Store Opens Annual Sales Surpasses $1 Billion in New 1.8M ft ² Annual Sales $3.0 US European Distribution Established Distribution Center Opens Initial 100 th Retail China JV Center First retail Public Opens store opens Store $2.0 Offering on Opens NYSE Established in $1.0 Manhattan Beach $- '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 12

. Historical Financials (All $ amounts in millions, except per share data) Sales Gross Profit Margin 50.5% $5,220 $1,259 48.5% 47.9% 47.7% $4,642 $4,164 46.6% $3,563 $3,147 $729 45.9% 45.2% 2015 2016 2017 2018 2019 Q2-19 Q2-20 Q2-19 Q2-20 2015 2016 2017 2018 2019 Operating Income EPS $2.25 $518 $111 $0.49 $1.92 $1.78 (1) $438 $1.57 $1.50 $383 $371 $351 $1.14 -$0.44 -$61 2015 2016 2017 2018 2019 Q2-19 Q2-20 2015 2016 2017 2018 2019 Q2-19 Q2-20 Tax Impact (1) During the fourth quarter of 2017, the Company recorded a net tax expense of $99.9 million, or $0.64 per share, related to the enactment of the Tax Cuts and Jobs Act. For the twelve months ended December 31, 2017, earnings per share were $1.14; adjusted for the tax impact, earnings per share were $1.78. 13 Note: Second quarter data represents the three-months ended June 30, 2020 and June 30, 2019 respectively.

Q2 2020 Segment Snapshot Domestic Global Direct- International Wholesale to-Consumer Wholesale $385M $214M $131M Net sales -29.9% -47.1% -57.2% YOY Change 46.8% 64.5% 38.6% Gross margin Note: Second quarter data represents the three-months ended June 30, 2020 14