Beach Acquisition Co Parent, LLC

We lease most of our international administrative offices and showrooms located in the Americas, Europe and Asia Pacific. The property leases expire on various dates through October 2034. Corporate offices, administrative offices, and showrooms are included within our Wholesale segment.

DISTRIBUTION FACILITIES

We believe that strong distribution is critical to our operations. Our distribution facilities include highly automated solutions to support our future growth in our Company. We regularly evaluate our distribution infrastructure and consolidate or expand our capacity as we believe appropriate for our operations. Our distribution facilities are included within our Wholesale segment. Our principal distribution facilities are as follows:

Americas. Our North America Distribution Center occupies approximately 3.5 million square feet on the main campus in Southern California, which is leased from a joint venture. In 2024, Skechers entered into an agreement with a new joint venture for the expansion of this distribution center, which was substantially completed at the end of December 2025. In addition, we lease 2.4 million square feet of distribution center space from third parties. The main campus leases expire at various dates through December 2040, and the leases for the remaining space expire at various dates through May 2028. Additionally, our Canada Distribution Center occupies approximately 0.4 million square feet in British Colombia and the lease is set to expire in December 2032.

Europe, Middle East and Africa. Our European Distribution Center occupies approximately 2.4 million square feet in Liege, Belgium. The leases comprising this Distribution Center provide for original terms of 3 to 15 years. The property leases expire on various dates through December 2030. We are in the process of expanding further in Europe with the construction of a larger distribution center in Liege, with an estimated relocation in 2028.

Asia Pacific. Our China Distribution Center occupies approximately 1.6 million square feet in Taicang, China. We plan to further expand in this market with the construction of a second distribution center in China, which is expected to be an approximately 2.3 million square foot facility. Our Japan Distribution Center is approximately 0.9 million square feet, with a lease that is set to expire in October 2031. Our India Distribution Center occupies approximately 0.8 million square feet outside of Mumbai, with a lease that is set to expire in October 2043.

We have additional Company-operated distribution centers as well as third-party distribution centers serving regional markets in the Americas, Europe and Asia Pacific.

COMPANY OWNED AND THIRD-PARTY STORES

As of December 31, 2025, we had 5,293 Skechers-branded retail stores in 128 countries. The network of stores includes 2,004 Company-owned and 3,289 third-party locations. These third-party stores are distributor, licensed and franchise owned and are included in our Wholesale segment.

Store count, openings and closings for our domestic, international, and third-party stores are as follows:

Number of locations

December 31, 2024 · Opened(1) · Closed(1) · December 31, 2025

Domestic stores · 610 · 62 · (9 · 663

International stores · 1,177 · 256 · (92 · 1,341

Distributor, licensee and franchise stores · 3,509 · 286 · (506 · 3,289

Total Skechers stores · 5,296 · 604 · (607 · 5,293

Includes the conversion of 58 third-party stores to International stores previously included in Franchise stores.

We pursue our direct-to-consumer strategy through our integrated retail formats, which enable us to promote the full Skechers product offering in an attractive environment that appeals to a broad group of consumers. Our retail stores are included in our Direct-to-Consumer segment. Our physical retail formats are as follows:

Concept Stores. Our concept stores serve as a showcase for a wide range of our product offering. Retail locations are generally chosen to generate maximum marketing value for the Skechers brand name through signage, store front presentation and interior design. These stores also serve as product testing venues.

Factory Outlet Stores. Our factory outlet stores provide opportunities for us to sell discontinued and excess merchandise as well as feature key inline product.

Big Box Stores. Our free-standing and attached big box stores provide opportunities to sell new product while also allowing us to liquidate excess merchandise, discontinued lines and odd-size inventory.

Substantially all of our retail stores are leased, with terms that expire on various dates through February 2044. The leases provide for rent escalations tied to either increases in the lessor’s operating expenses, fluctuations in the consumer price index in the relevant geographical area, or a percentage of the store’s gross sales in excess of the base annual rent.

• Skechers (Hainan) Enterprise Management Co., Ltd. China³
• Skechers (Hainan) Trading Co., Ltd. China³
• Skechers (Quanzhou) Enterprise Management Co., Ltd. China³
• Skechers (Shanghai) Commercial Co., Ltd. China³
• Skechers (Taicang) Supply Chain Co., Ltd. China³
• Skechers (Thailand) Limited Thailand³
• Skechers (Tianjin) Supply Chain Management Co. LTD. China³
• Skechers 10 Holdings Limited Malta³
• Skechers 10% Holdings, LLC California³
• Skechers BH d.o.o. Bosnia and Herzegovina³
• Skechers Beijing I Co.,Ltd. China³
• Skechers Beijing II Co.,Ltd. China³
• Skechers Beijing III Co.,Ltd. China³
• Skechers By Mail, Inc. Delaware³
• Skechers CEE Kft. Hungary³
• Skechers Card Services, LLC Virginia³
• Skechers Chengdu Co.,Ltd. China³
• Skechers China Business Trust Jersey³
• Skechers China E-Commerce Co., Ltd. China³
• Skechers China Hengqin Co., Ltd. China³
• Skechers China Limited Hong Kong³
• Skechers Collection, LLC California³
• Skechers Colombia S.A.S. Colombia³
• Skechers Czech Republic S.R.O. Czech Republic³
• Skechers Do Brasil Calcados LTDA Brazil³
• Skechers EDC SPRL Belgium³
• Skechers Food Spot, LLC California³
• Skechers Footwear (Dongguan) Co., Ltd. China³
• Skechers Footwear Hong Kong Limited Hong Kong³
• Skechers Footwear Ltd. Israel³
• Skechers Guangzhou Co., Ltd. China³
• Skechers Holdings International Limited Jersey³
• Skechers Holdings International, Inc. Delaware³
• Skechers Holdings Jersey Limited Jersey³
• Skechers Holdings Switzerland, LLC California³
• Skechers Holdings USA 1, LLC California³
• Skechers Holdings USA 2, LLC California³
• Skechers Hong Kong Limited Hong Kong³
• Skechers International Jersey³
• Skechers International II Jersey³
• Skechers Japan GK Japan³
• Skechers Korea Co., Ltd. South Korea³
• Skechers Latin America, LLC Panama³
• Skechers Macau Limited Macau³
• Skechers Malaysia Sdn Bhd. Malaysia³
• Skechers Malta Finance Co Limited Malta³
• Skechers Malta Holdings 1 Limited Malta³
• Skechers Malta Holdings 2 Limited Malta³
• Skechers Malta Holdings 3 Limited Malta³
• Skechers Malta Holdings 4 Limited Malta³
• Skechers Panama, LLC Panama³
• Skechers Peru, S.R.L. Peru³
• Skechers Poland Sp. z o.o. Poland³
• Skechers Qushui Trading Co., Ltd. China³
• Skechers R.B., LLC Delaware³
• Skechers Retail Danmark ApS Denmark³
• Skechers Retail Norge AS Norway³
• Skechers S.a.r.l. Switzerland³
• Skechers Services India Private Limited India³
• Skechers Singapore Pte. Limited Singapore³
• Skechers Slovakia s.r.o. Slovakia³
• Skechers Sourcing International, LLC California³
• Skechers Sourcing USA, LLC California³
• Skechers South Asia Private Limited India³
• Skechers Southeast Asia Limited Hong Kong³
• Skechers Sport, LLC California³
• Skechers Taicang Trading & Logistics Company China³
• Skechers Trading (Shanghai) Co. Ltd. China³
• Skechers U.S.A., Inc. Delaware³
• Skechers UKDC Limited United Kingdom³
• Skechers USA Belgium B.V. Belgium³
• Skechers USA Benelux B.V. Netherlands³
• Skechers USA Canada, Inc. Canada³
• Skechers USA Deutschland GmbH Germany³
• Skechers USA France S.A.S. France³
• Skechers USA Iberia, S.L. Spain³
• Skechers USA Italia S.r.l. Italy³
• Skechers USA Philippines, Inc. Philippines³
• Skechers USA Portugal Unipessoal Limitada Portugal³
• Skechers USA Retail, LLC California³
• Skechers USA Romania S.R.L. Romania³
• Skechers USA, Inc. II Virginia³
• Skechers USA, Ltd. United Kingdom³
• Skechers Vietnam Co. Ltd. Vietnam³
• Skechers Vietnam Trading Limited Vietnam³
• Sports C. Sverige AB Sweden³
• Sports Connection ApS Denmark³
• Sports Connection Finland OY Finland³
• Sports Connection Holding ApS Denmark³
• Sports Connection Norge AS Norway³
• Sports Connection Retail Germany GmbH Germany³
• Tennyson Estates, LLC California³

• Our Global Retail Business Has Required, And Will Continue To Require, A Substantial Investment And Commitment Of Resources And Is Subject To Numerous Risks And Uncertainties.
• Our Strategies Will Involve A Number Of Risks That Could Prevent Or Delay The Successful Opening Of New Stores As Well As Negatively Impact The Performance Of Existing Stores.
• Our Retail Stores Depend On The Customer Traffic Generated By Shopping And Factory Outlet Malls Or By Tourism.
• We Depend On Key Personnel To Manage Our Business Effectively In A Rapidly Changing Market, And If We Are Unable To Retain Key Personnel, Our Business Could Be Harmed.
• We Have A Significant Work Force And Are Subject To Risks Related To Human Capital Management.
• Our Business Could Be Harmed If We Fail To Maintain Appropriate Inventory Levels.
• Our International Sales And Manufacturing Operations Are Subject To The Risks Of Doing Business Abroad, Particularly In China And Vietnam, Which Could Affect Our Ability To Manufacture Or Sell Our Products, Obtain Products From Foreign Suppliers Or Control The Costs Of Our Products.
• We Rely On Independent Contract Manufacturers And, As A Result, Are Exposed To Disruptions In Product Supply.
• Our Ability To Deliver Our Products To The Market Could Be Disrupted If We Encounter Problems Affecting Our Logistics And Distribution Systems.
• The Uncertainty Of Global Market Conditions May Have A Negative Impact On Our Business, Results Of Operations Or Financial Conditions.
• Our Business Could Be Adversely Affected By Changes In The Business Or Financial Condition Of Our Customers Due To Global Economic Conditions.
• Our Sales Are Influenced By Economic Conditions And Uncertainty That Impact Consumer Spending And Consumer Confidence.
• Foreign Currency Exchange Rate Fluctuations May Negatively Impact Us.
• Threatened Or Enacted Tariffs On Products Imported To The U.S., Retaliatory Trade Actions Taken By Other Countries And Resulting Trade Wars May Have A Material Adverse Impact On Our Business.
• Natural Disasters, The Effects Of Climate Change, Pandemics, And Other Events Out Of Our Control May Have A Material Adverse Impact On Our Business.
• A Decline In Economic Condition, Adverse Regulatory Conditions Or Natural Disasters In California Could Increase Our Operating Expenses Or Adversely Affect Our Sales.
• Our Substantial Indebtedness Could Adversely Affect Our Financial Health And Our Ability To Execute Our Business Strategy.
• The Instruments And Other Documents Governing Our Indebtedness Contain, And Any Agreements Governing Future Indebtedness May Contain, Restrictions That Limit Our Ability To Access Sufficient Capital And Flexibility In Operating Our Business.
• Our Failure To Comply With The Covenants In The Documents Governing The Terms Of Our Indebtedness Could Be An Event Of Default. We Cannot Guarantee That We Will Be Able To Obtain Waivers From Lenders Or Investors And/Or Amend The Covenants In The Event Of Any Such Failure.
• Our Foreign Currency Indebtedness May Subject Us To Foreign Currency Exchange Risk, Which Could Cause Our Indebtedness Service Obligations To Increase Significantly.
• Our Business Relationships May Be Subject To Disruption Due To Uncertainty Associated With The Merger, Which Could Have An Adverse Effect On Our Results Of Operations, Cash Flows And Financial Position.
• Uncertainties Associated With The Merger May Cause A Loss Of Our Employees.
• Legal Proceedings Against Us Related To The Merger Could Result In Substantial Costs And/Or A Judgment Resulting In The Payment Of Damages.
• We May Face Changes In Tax Laws Or The Potential Imposition Of Additional Duties, Quotas, Tariffs And Other Trade Restrictions.
• Our Business Could Be Harmed If Our Contract Manufacturers, Suppliers Or Licensees Violate Labor, Trade Or Other Laws.
• We May Experience Disruptions To Our Business, Expenses And Potential Liability Associated With Existing And Unanticipated Future Litigation Against Us.
• Our Ability To Compete Could Be Jeopardized If We Are Unable To Protect Our Intellectual Property Rights Or If We Are Sued For Intellectual Property Infringement.
• Our Environmental, Social And Governance Commitments And Disclosures May Expose Us To Reputational Risks And Legal Liability.
• Breaches Or Compromises Of Our Information Security Systems, Information Technology Systems And Our Infrastructure To Support Our Business Could Result In Disruption Of Our Business And Damage To Our Reputation.
• Privacy Breaches And Other Cyber Security Risks Related To Our Business Could Negatively Affect Our Reputation, Credibility And Business.
• A Material Delay Or Disruption In Our Information Technology Systems Or E-Commerce Websites Or Our Failure Or Inability To Upgrade Our Information Technology Systems Precisely And Efficiently Could Negatively Affect Our Business.
• Our Units Are Not Tradable Or Transferable.
• The Value Of Our Units Is Highly Uncertain And Cannot Be Reliably Estimated.
• Beach Acquisition May Never Pursue An Initial Public Offering Or A Change Of Control, Or Realize The Anticipated Benefits Of Its Strategy, And Even If It Does, It May Not Provide The Liquidity Or Return On Investment Legacy Members Expect.
• Our Units Will Not Be Listed On Any Securities Exchange And, Accordingly, Holders Of Our Units Will Not Have The Benefit Of Certain Corporate Governance Protections.
• Legacy Members That Hold Units Will Not Have The Same Rights Or Protections As Shareholders Of A Corporation And Will Be Subject To Transfer Restrictions.
• We Are Controlled By Fund VI. The Legacy Member Representative Has Limited Rights Pursuant To Our A&R LLCA And Has No Ability To Control Or Direct Our Policies.
• Neither We Nor Fund VI Have Any Direction Or Control Over The Appointment Of The Legacy Member Representative. Legacy Members Will Be Bound By Certain Of The Legacy Member Representative’s Decisions.
• We Intend To Terminate Or Suspend Our Reporting Obligations Under The Exchange Act, As Promptly As Practicable. In Addition, Our A&R LLCA Affords No Information Rights To Legacy Members.
• Legacy Members Are Not Entitled To Receive Distributions.
• Future Issuances Of Our Units May Be Significantly Dilutive To Holders Of Our Common Units, To The Extent Preemptive Rights Are Unavailable Or Unexercised With Respect To Such Issuances.
• Our A&R LLCA Includes A Jury Trial Waiver That Could Limit The Ability Of Our Members To Bring Or Demand A Jury Trial In Any Claim Or Cause Of Action Arising Out Of Or Relating To Our A&R LLCA Or Us.