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Skechers announces record first quarter

Apr 28, 2021 United States
Skechers announces record first quarter
The US-based footwear brand posted net profit of 98.6 million US dollars in the first quarter of 2021, an increase of 100.8% compared to the 49.1 million dollars in similar period in the previous year. Record sales registered in the first quarter contributed to this result
“Skechers new sales record in the first quarter is a remarkable achievement, especially given the lockdown measures in many key countries, including across Europe. This significant growth is the result of continued demand for Skechers product as consumers desire comfort and quality in their footwear and walking remains a top COVID-19 pandemic activity. With warmer weather and increased vaccination rates around the world, traffic is improving in many of our retail stores, and our digital business continues to be a very strong growth driver. In the first quarter, we increased our marketing efforts in the United States and supported many open international markets”, commented Robert Greenberg, Chief Executive Officer of Skechers.

“The momentum we experienced in the second half of 2020 continued into the first quarter as we achieved revenue growth of 15.0% over the same period in 2020, and an exceptional 12% increase over the first quarter of 2019. This resulted in the Company’s first quarterly sales of over 1.4 billion US dollars. The positive results were due to a 20.2% increase in our international business and an 8.5% increase in domestic sales compared to 2020. Driving the quarterly growth was a 23.8% increase in our International Wholesale, led by triple-digit growth in China, an 18.1% improvement in our direct-to-consumer business, with March being the strongest sales month, and a 143.0% increase in domestic e-commerce. Domestic Wholesale decreased 0.9% due to timing of shipments. Nonetheless, we saw strength across customer types and encouraging sell-through in multiple categories. The momentum in our direct-to-consumer business along with continuing demand for our comfort product, leads us to believe that Skechers’ remains on a positive trajectory”, David Weinberg, Chief Operating Officer of Skechers.

First Quarter Results

First quarter sales increased by 15.0% as a result of a 20.2% increase in the company’s international sales and an 8.5% increase in domestic sales. Increases in international sales were driven by wholesale. Domestic sales increases were driven by direct-to-consumer, including e-commerce growth of 143.0%, partially offset by a slight decline in wholesale. On a constant currency basis, the company’s total sales increased 11.7%.

The company’s International Wholesale sales increased 23.8% and Direct-to-Consumer sales increased 18.1%, offset by a Domestic Wholesale sales decrease of 0.9%. Increases in the Company’s International Wholesale segment were driven by growth in China of 174.4%, partially offset by declines in Europe of 8.1% and a 6.5% decline in distributor sales. Direct-to-Consumer comparable same store sales increased 10.2%, driven by an increase of 25.7% domestically, partially offset by a decrease of 27.4% internationally.

Earnings from operations increased 112.9 million US dollars, or 252.0%, to 157.7 million US dollars.

Net earnings totalled 98.6 million US dollars and diluted earnings per share were 0.63 US dollars.

Outlook

For fiscal year 2021, Skechers believes it will achieve sales between 5.8 billion US dollars and 5.9 billion US dollars and diluted earnings per share of between 1.80 US dollars and 2.00 US dollars. Further, the Company believes that for the second quarter of 2021, it will achieve sales between 1.45 billion US dollars and 1.50 billion US dollars and diluted earnings per share of between 0.40 US dollars and 0.50 US dollars.

Image credits: www.brownsshoes.com

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