Skins (SKNS) is a development stage footwear company specializing in footwear for both men and women. The company puts an orthopedic support in its shoes, known as the “Bone,” and places a fashionable cover on the outside, known as the “Skin.” This combination allows consumers to mix and match bones and skins to create the look they like best. Skins products can now be found in 21 retail outlets. Once a customer has bought a pair of bones, they don’t need to repurchase another pair, but they can buy an unlimited quantity of skins, which are available at footwear and apparel retailers and over the Internet.
While the company had sales of less than $1 million in 2007, Skins is estimating sales of $10 million to $15 million for 2008. Bones retail for around $60, while Skins cost between $100 and $200. As is par for the course with start-up companies, Skins has lost nearly $8 million since starting operations in 2004. New York-based Skins is led by Chief Executive Officer Mark Klein and a senior management team steep in retail experience.
Retailers currently featuring Skin’s products include trendy outlets such as Chicago’s City Soles and Sportie LA of Los Angeles. The company has said it hopes to have 250 locations selling its products by the end of this year. Investors should note that no Wall Street analysts currently follow Skins and the company has scant institutional ownership of its shares, with just one institution owning 6,000 shares. However, company insiders do own 29 percent of Skins stock.
Shares of Skins closed Wednesday at 6 cents and have traded between 5 cents and $1.60 over the past 52 weeks. The average daily volume for the past three months is almost 147,000 shares. Skins has a market capitalization of $3.36 million.
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