World Footwear

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Skechers with record annual sales

Feb 13, 2015 United States
Skechers with record annual sales
US-based footwear company announced sales for 2014 totaling 2 378 billion US dollars, the highest level ever
Net sales for the fourth quarter of 2014 amounted to 569.7 million US dollars compared to 450.7 million US dollars in the fourth quarter of 2013. Gross profit for the period totaled 257.6 million US dollars or 45.2% of net sales. Earnings from operations in the fourth quarter of 2014 were 33.0 million US dollars compared to earnings from operations of 17.1 million US dollars in the fourth quarter of 2013.

Net earnings for the fourth quarter of 2014 reached 21.9 million US dollars compared to net earnings of 14.2 million US dollars in the fourth quarter of 2013. According to Skechers, during the fourth quarter the company's net earnings were negatively impacted by approximately 7.0 million US dollars as the result of negative foreign currency translations and by 2.3 million US dollars, resulting from foreign and domestic bad debt write-offs.

"Skechers fourth quarter revenues of over 569 million US dollars set a new record for the period, and followed a record third quarter 2014, which was the highest quarterly sales in the company’s history. This momentum led to record annual revenue of 2 378 billion US dollars for 2014, up by 29% compared to 2013”, stated David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer, adding: “The outstanding fourth quarter growth was the result of double-digit improvements in our domestic and international wholesale and Skechers company-owned retail businesses (…) within our domestic wholesale business, our average price per pair increased by 7.4% in the quarter, and within our international wholesale business, we experienced double-digit growth in many key countries that were negatively impacted by currency issues, both further testaments to the strength of our brand and product.”

In fiscal year 2014, net sales totaled 2.378 billion euros compared to net sales of 1 846 billion US dollars in 2013. Earnings from operations for 2014 totaled 209.1 million US dollars, going up from 93.6 million US dollars in the previous year. Net earnings for 2014 amounted to 138.8 million US dollars, more than twice the figure posted in 2013 (54.8 million US dollars).

Robert Greenberg, Skechers Chief Executive Officer, commented: “2014 was an excellent year for Skechers, and we expect the momentum to continue in 2015 based on domestic and international Skechers retail stores comps of 17% in January, year-over-year worldwide backlogs up 60% at December 31st and the steady demand for our product including expansion in new doors and existing doors. With continued investments in our infrastructure for the coming years, including equipment automation upgrades at our European Distribution Center and establishment of a company-operated distribution center in Chile, 466.7 million US dollars in cash and inventories in-line with expected sales, we believe we are prepared for growth in 2015. We believe the best is yet to come, and are looking forward to the first quarter of 2015, which we expect will be a new quarterly sales record of 690 million US dollars to 710 million US dollars and earnings per share in the range of 0.95 US dollars-1.05 US dollars".

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