Skechers is still reeling from a dizzying drop in sales of its toning footwear, which led to a 37.7 percent decline in its turnover for the last quarter, down to $283.2 million. It ended the quarter with a loss of $57.7 million, compared with a profit of $3.2 million for the same quarter in 2010. The result for last year includes a reserve of $5.6 million for Shape-ups inventory that has yet to be cleared, as well as a pre-tax reserve of $45.0 million for potential exposure relating to litigation and regulatory matters. For the full year, sales were down by 20 percent to $1.6 billion and Skechers suffered a net loss of $67.5 million, compared with a profit of $136.1 million in 2010. However, the company's orders are starting to improve again and Skechers is upbeat about the market response to GORun, its performance footwear range (more in Shoe Intelligence).

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