Skechers USA, Inc. now expects fourth quarter 2006 revenues to be in the range of $295 million to $300 million, which is above the high-end of the Company's previous guidance of $255 million to $265 million, and 32.0% to 34.2% higher than fourth quarter 2005 revenues of $223.5 million. The Company now expects diluted earnings per share for the fourth quarter to be 28 cents to 31 cents, exceeding the Company's previous guidance for the fourth quarter of 22 cents to 27 cents.

The Company now expects revenue for fiscal year 2006 to be in the range of $1.196 to $1.201 billion, above its previous guidance of $1.156 to $1.166 billion, and diluted earnings per share for the full year are expected to be between $1.55 and $1.58, exceeding the Company's previous guidance of $1.49 to $1.54.

“We are very pleased with our continued strong sales performance in the fourth quarter, which represents a strong end to a record year, and more than a 30 percent increase over the fourth quarter 2005,” said Robert Greenberg, Chairman and Chief Executive Officer of SKECHERS. “With our commitment to delivering fresh product supported by focused and creative advertising, all ten of our brands are performing well. The strong reception to our brands drove sales across all of our business channels — wholesale, retail, international and e-commerce – and enabled us to generate record fourth quarter and full year 2006 results. We look forward to further building on this momentum as we enter the Spring 2007 selling season.”

“The fourth quarter was an exceptional end to what we believe was a stellar year for us in terms of both sales and brand strength,” began Michael Greenberg, President of SKECHERS, “and we believe the positive sales trend will continue into 2007. Through our indicators – 29 percent year-end increase in backlog worldwide, and, for the fourth quarter, continued high single-digit comp store sales and strong sell-throughs at retail – we believe the first quarter of 2007 will again be a record quarter.”