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Skechers announces record quarterly sales

Nov 1, 2023 United States
Skechers announces record quarterly sales
The US-based footwear company posted a 7.8% sales growth in the third quarter of 2023, as compared to the same period of last year, reaching a “record” 2.02 billion US dollars
All regions grew, including the Americas, with growth of 7% in the United States due to continued strength in our Direct-to-Consumer channel, and Asia Pacific with growth of 18% in China. In addition, our inventory levels are down significantly, and our gross margin was strong at 52.9% reflecting favourable pricing, a higher mix of Direct-to-Consumer sales and lower unit costs. As we continue to focus on growing our international business, enhancing our Direct-to-Consumer presence and expanding our product offering, we remain confident in the strength of our brand and executing Skechers’ long-term growth strategy”, explained David Weinberg, Chief Operating Officer of Skechers.

Third Quarter Results

In the third quarter of the current fiscal year, the company’s sales amounted to 2.02 billion US dollars, increasing by 7.8%, as compared to the same period of 2022, reflecting an 8.6% increase internationally and a 6.5% increase domestically.

Skechers recorded a wholesale sales decline of 1.4% to 1.17 billion US dollars in the third quarter of 2023, on a comparable basis to the same quarter of last year, driven by 8.3% and 0.5% declines in the EMEA and Americas regions, respectively, partially offset by an increase in the Asia Pacific region of 7.1%.

Meanwhile, its direct-to-consumer sales in the three months to the end of September rose by 23.8% year-over-year to 850.4 million US dollars, due to increases of 17.3% in the Americas region, 24.2% in the Asia Pacific region and 60.8% in the EMEA region.

In the third quarter of the year, the company’s gross margin widened by 590 basis points to 52.9% from the same period of the previous year, “primarily due to higher average selling prices, a higher proportion of Direct-to-Consumer sales, and lower freight costs”.

Altogether, Skechers’ net earnings in this period totalled 145.4 million US dollars and diluted earnings per share were 0.93 US dollars, on a comparable basis to the net earnings of 85.9 million US dollars and diluted earnings per share of 0.55 US dollars registered in the same quarter a year ago.

Nine Months Highlights

In the nine months which ended on the 30th of September, the company’s sales reached 6.04 billion US dollars, up by 8.5%, as compared to the same period of the prior year, as a result of a 15.6% increase in international sales and a 1.1% decrease domestically. At the same time, its direct-to-consumer sales rose by 26.0% year-over-year and its wholesale sales declined by 1.1% year-over-year.

Skechers also posted a total of 458.6 million US dollars in net earnings since the start of the year and diluted earnings per share of 2.93 US dollars, on a comparable basis to the net earnings of 297.5 million US dollars and diluted earnings per share of 1.90 US dollars recorded in the first nine months of 2022.

Outlook

For the last quarter of 2023, the company is expecting to achieve sales between 1.91 billion US dollars and 2.01 billion US dollars and diluted earnings per share in the range of 0.40 US dollars and 0.50 US dollars. In addition, its full year sales should reach between 7.95 billion US dollars and 8.05 billion US dollars and diluted earnings per share from 3.33 US dollars to 3.43 US dollars.


Image Credits: shop.airrobe.com

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