SKECHERS USA ANNOUNCES RECORD SECOND QUARTER 2005 REVENUES

For Immediate Release

Integrated Corporate Relations

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SKECHERS USA ANNOUNCES RECORD SECOND QUARTER 2005 REVENUES
— Net Sales Increase 12.5 Percent to $263.9 Million;
— Diluted Earnings Per Share Rise 81.0 Percent to $0.38

MANHATTAN BEACH, CA. – July 27, 2005 – SKECHERS USA, Inc. (NYSE: SKX), a global leader in lifestyle footwear, today announced financial results for the second quarter ended June 30, 2005.

Net sales for the second quarter of 2005 rose 12.5 percent to $263.9 million compared to $234.7 million in the second quarter of 2004. Net earnings for the quarter were $15.9 million versus net earnings of $8.3 million in the second quarter of 2004. Net earnings per diluted share were $0.38 on 44,120,000 diluted shares outstanding, above First Call consensus of $0.25 per diluted share, and 81.0% higher than net earnings per diluted share of $0.21 in the second quarter of 2004.

“Much like our record first quarter 2005 sales, our reported second quarter net sales of $263.9 million represent our highest second quarter revenues in the Company’s history,” began David Weinberg, chief financial officer of SKECHERS USA, Inc. “This marks the sixth consecutive quarter of year-over-year top-line quarterly increases, a clear testament to the continued strength of our brands.”

For the six-month period ended June 30, 2005, net sales were $510.1 million compared to net sales of $456.2 million in the first six months of 2004. Net earnings were $26.2 million, compared to net earnings of $15.4 million in the first six months of 2004. Net earnings per diluted share in the first six months of 2005 were $0.62 versus net earnings per share of $0.39 for the same period last year.

Gross profit for the second quarter of 2005 was $111.5 million compared to $95.2 million in the second quarter of 2004. Gross margin was 42.3 percent compared to 40.6 percent in the second quarter of 2004. Gross profit for the first six months of 2005 reached $212.0 million, or 41.6 percent of sales versus $184.9 million, or 40.5 percent of sales in the first six months of 2004.

Weinberg continued: “Our record second quarter net sales were the result of growth in key SKECHERS men’s, women’s and children’s lines, and our new fashion brands, including 310 Motoring and Red by Marc Ecko – both of which experienced their first full year of shipping. With our product on target and in demand, we saw double-digit sales increases in our domestic wholesale and retail businesses, as well as growth in our international wholesale business and Company-owned international retail stores. Due to this increased demand of our in-line product and strong sell-throughs, we also experienced very strong margins. The growth from all our key divisions and our improved margins give us continued confidence as we head into the second half of the year.”

Robert Greenberg, SKECHERS’ chief executive officer, said: “We are very pleased with our consecutive quarters of record growth and see this as a strong indicator for the remainder of the year as we continue to build on the strength and success of both SKECHERS and our newer lifestyle brands. We believe that signing both Carrie Underwood, the new American Idol winner and rising star, for SKECHERS and the multi-platinum hip-hop artist The Game for 310 Motoring will help increase awareness of both brands when consumers see the advertising in the second half of 2005. During our pre-line meetings with major accounts earlier this month, we consistently heard enthusiastic feedback as we shared preliminary images of our new marketing campaigns as well as Holiday 2005 and Spring 2006 product. Given our new marketing plans, new products and early response from retailers, we are excited abo