SKECHERS Wins Favorable Ruling in Nike Lawsuit

The Chief Administrative Law Judge of the International Trade
Commission Ruled that Skechers’ Famous Twinkle Toes and BOBS Product
Lines Do Not Infringe Converse’s Chuck Taylor Design

MANHATTAN BEACH, Calif.–(BUSINESS WIRE)–SKECHERS USA, Inc. (NYSE:SKX),
a global footwear leader and the second largest athletic footwear brand
in the United States, today announced that it has won an important
ruling over Nike, Inc.’s wholly-owned subsidiary Converse Inc. relating
to the Converse Chuck Taylor shoe.

In October 2014, Converse sued Skechers in federal district court and
before the International Trade Commission (“ITC”) alleging that the
Company’s famous Twinkle Toes and BOBS product lines infringed its Chuck
Taylor midsole common law and registered trademarks. The case went to
trial before the ITC in August 2015.

In a November 17, 2015 opinion, the Chief Administrative Law Judge of
the ITC, the Honorable Charles E. Bullock, ruled that Skechers’ Twinkle
Toes and BOBS product lines do not infringe Converse’s registered
trademark for the Chuck Taylor midsole. In making his ruling, the Judge
noted that both of the Skechers product lines feature prominent branding
and that the Twinkle Toes line contains design features that “create
enough differences that the shoes bearing them cannot be said to be
similar to [the Chuck Taylor].” The Judge also stated that the survey
evidence concluded that there was no likelihood that consumers would
confuse the Skechers designs with those of Converse’s Chuck Taylor
designs.

“While we expected this result, we are still very pleased with the
Judge’s ruling on Twinkle Toes and BOBS,” stated Michael Greenberg,
president of Skechers. “Skechers is an ardent brander that spends more
than $100 million a year in advertising for the very purpose of
distinguishing its brands and products from those of its competitors.
Our investment in our distinctive designs and brand identity has helped
build Twinkle Toes into the number one shoe line for young girls and
both Twinkle Toes and BOBS into household names synonymous with Skechers
– not with Converse or any other brand. The Judge’s ruling recognizes
this.”

In addition, the Judge ruled that Converse has no common law trademark
rights in the Chuck Taylor midsole because the design is not
distinctive, not famous and has failed to acquire secondary meaning.

Skechers was represented in the matter by Morgan Chu, Samuel Lu, Lindsay
Kelly, Melissa Rabbani and Jad Mills of Irell & Manella; Jeffrey Barker
of O’Melveny & Myers; and Barbara Murphy of Foster, Murphy, Altman &
Nickel.

About SKECHERS USA, Inc.

SKECHERS USA, Inc., based in Manhattan Beach, California, designs,
develops and markets a diverse range of lifestyle footwear for men,
women and children, as well as performance footwear for men and women.
SKECHERS footwear is available in the United States and over 120
countries and territories worldwide via department and specialty stores,
more than 1,200 SKECHERS retail stores, and the Company’s e-commerce
website. The Company manages its international business through a
network of global distributors, joint venture partners in Asia, and 13
wholly-owned subsidiaries in Brazil, Canada, Chile, Japan, Latin America
and throughout Europe. For more information, please visit skechers.com
and follow us on Facebook (facebook.com/SKECHERS)
and Twitter (twitter.com/SKECHERSUSA).

This announcement 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, the Company’s future growth, financial results and
operations, its development of new products, future demand for its
products and growth across the Company’s three main business channels
and globally, its planned expansion and opening of new stores,
advertising and marketing initiatives, and the conclusion of legal
matters. 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 uncertainty of sustained
recovery in Europe; 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, 2014 and its quarterly
report on Form 10-Q for the quarter ended September 30, 2015. 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.

Contacts

Skechers USA, Inc.
Jennifer Clay
VP of Corporate Communications
310-937-1326