Skechers said it is growing through its own retail stores and in its new performance division. However, its total revenues went down to $384.0 million the second quarter from $434.0 million in the year-ago period. As the cleanup of its inventories of toning shoes is now substantially completed, the net loss was reduced to $1.8 million from $29.9 million. U.S. revenues declined by 18 percent at wholesale in the quarter, but the management is optimistic for the balance of this year. Foreign subsidiaries saw their sales decline by 5 percent, and sales to international distributors fell by 21 percent. The outlook is not good in Europe for the third quarter, although some sales gains should come from Eastern Europe in the second half of this year. In the region, only the company's U.K. subsidiary is expected to be profitable this year. Except for Brazil and Mexico, South American markets are performing better than those in South Korea and other parts of Asia for Skechers (more in Shoe Intelligence).

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