World Footwear

Companies

Skechers achieves record net sales

Oct 23, 2019 United States
Skechers achieves record net sales
In the third quarter of the year the US-based brand reported a new sales record of 1.354 billion US dollars
“We believe these results are an indication of the global strength of our brand with strong increases around the world, from Germany, the UK and Spain, to India, Turkey and the U.A.E., as well as China, Russia and Japan. With the strength of our international business as well as the growth of our direct-to-consumer channel, with more than 3 300 Skechers stores worldwide, of which 779 are company-owned, we are investing in both our logistics and inventory to meet the growing demand. Based on feedback from recent meetings with our international partners and domestic accounts, as well as our incoming order rate, we believe the momentum will continue in the fourth quarter and into 2020”, commented David Weinberg, Chief Operating Officer of Skechers.

Third quarter results

Sales grew by 15.1% as a result of a 21.9% increase in the company’s international business, or 25.7% on a constant currency basis, and a 6.7% increase in its domestic business. On a constant currency basis, the Skecher's sales increased by 17.2%. By segments, the company’s international wholesale business increased 21.7%, its company-owned direct-to-consumer business increased by 13.3%, and the company’s domestic wholesale business increased by 5.0%. Comparable same store sales in company-owned stores and e-commerce increased by 7.7%, including 6.8% in the United States and 9.9% internationally.

Gross margins increased as a result of improved retail pricing and product mix in its international businesses, partially offset by an increase in the average cost per unit in its domestic business.

Net earnings totalled 103.1 million US dollars and diluted earnings per share were 0.67 US dollars. On a constant currency basis, diluted earnings per share were 0.71 US dollars, an increase of 22.4%.

Accumulated results

For the nine-month period, sales grew by 9.2%, or 11.9% on a constant currency basis. By segments, the company’s international wholesale business increased by 15.9%, its company-owned direct-to-consumer business increased 11.8% and its domestic wholesale business decreased by 4.0%. The company’s international business grew by 16.8% and its domestic business grew by 0.4%.

Gross margins
decreased slightly as a result of promotional efforts to clear seasonal inventory in select international markets earlier in the year.

Net earnings
in the year reached 287.0 million US dollars so far and diluted earnings per share were 1.86 US dollars. On a constant currency basis, diluted earnings per share were 1.96US dollars, an increase of 21.0%.

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