Skechers Swings to Profit as Sales Rise

Skechers USA Inc., whose popular shoes are advertised by singer Christina Aguilera, said Tuesday that it had a profit in the fourth quarter as sales climbed 18% and the company recorded a $4-million tax benefit.

Net income was $2.13 million, or 5 cents a share, contrasted with a loss of $12.3 million, or 33 cents, a year earlier, the Manhattan Beach-based company said. Sales rose to $206.5 million from $175.3 million a year earlier.

Fewer markdowns and returns along with better-than-expected sales of new lines -- including brands endorsed by Aguilera -- boosted revenue. The company said its tax rate was 39.2%, less than expected.

Skechers said this month that it would beat its forecast. The company said in October that it would have a loss of 7 cents to 12 cents a share in the quarter. Skechers was expected to report a net loss of 1 cent a share, the average estimate of five analysts surveyed by Thomson First Call, on sales of $202.8 million.

Shares climbed as much as 24 cents to $14.99 in trading after the official close of markets. In regular trading on the New York Stock Exchange, Skechers shares fell 74 cents to $14.75.

The company also said Tuesday that growth of Skechers divisions such as men’s and women’s Sport, strong sales of its new Rhino Unlimited, Rhino Red and 310 Motoring fashion lines along with solid international growth put the company in good position for 2005.