Skechers profit doubles on record sales
American footwear company Skechers U.S.A., Inc. reported net earnings of $98.6 million for the first quarter on Thursday, an increase of 100.8% from $49.1 million in the same period in the previous year, thanks to strong sales that the group described as a Q1 record. Diluted net earnings per share for the quarter were $0.63, up from $0.32 in the prior-year period.
In the first quarter ended March 31, 2021, the company’s net sales totaled $1.43 billion, increasing 15.0% year over year from $1.24 billion.
According to Skechers CEO David Weinberg, the company saw a 20.2% increase in Q1 revenues in its international business and an 8.5% increase in its domestic sales, compared to the first quarter of 2020.
Growth was driven by a 23.8% rise in international wholesale, which was led by triple-digit growth in China. Skechers also saw an 18.1% increase in sales in its direct-to-consumer business and an impressive 143.0% rise in domestic e-commerce.
The company’s domestic wholesale channel, on the other hand, posted a 0.9% decline, due to the timing of shipments during the quarter.
“Skechers new sales record in the first quarter is a remarkable achievement, especially given the lockdown measures in many key countries, including across Europe,” said Skechers CEO Robert Greenberg in a release.
“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,” he added. “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.”
Looking forward, Skechers expects to achieve annual sales of between $5.8 billion and $5.9 billion in the full fiscal year 2021, and diluted earnings per share of between $1.80 and $2.00. For the second quarter, the company predicts diluted earnings per share in the range of $0.40 to $0.50, on revenues of between $1.45 billion and $1.50 billion.
Skechers currently has 3,891 stores, including 523 domestic locations, 331 international stores, 467 joint venture stores and 2,570 locations run by distributors, licensees and franchisees.
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