Strong international sales boost Skechers to another record quarter
today Oct 23, 2019
Manhattan Beach, California-based footwear company Skechers USA, Inc. reported record third-quarter sales and improved earnings on Tuesday, with particularly strong growth seen in its international business.
For the third quarter ended September 30, 2019, Skechers’ total sales rose 15.1% to $1.35 billion, up from $1.18 billion in the prior-year period. In constant currencies the rise was 17.2%.
Progress was led by Skechers’ international business, which has operations in countries including Germany, the UK, Spain, India, the U.A.E., China, Russia and Japan, and posted a 21.9% increase in sales (25.7% in constant currencies). By comparison, the company’s domestic business reported a 6.7% rise.
By segment, sales rose 21.7% in the international wholesale business and 13.3% in the direct-to-consumer business, with slower growth of 5.0% seen in domestic wholesale.
Skechers’ quarterly comparable sales, which include sales made through both company-owned stores and e-commerce, rose 7.7%, reflecting a 6.8% rise in the U.S. and a 9.9% increase internationally.
Thanks to this progress, the company’s net earnings for Q3 totaled $103.1 million, or $0.67 per diluted share, up from $90.7 million, or $0.58 per diluted share.
Year to date, Skechers’ net sales increased 9.2% from $3.56 billion to $3.89 billion, while net earnings rose from $253.7 million ($1.62) to $287.0 million ($1.86).
“Skechers is firing on all cylinders. Our global marketing efforts are creating awareness and generating demand. Our product is innovative, relevant and comfortable,” commented Skechers CEO Robert Greenberg in a release. “We believe our holiday sales will be stronger across all channels of our business, and we’re looking forward to 2020 and the launch of our first campaign with Los Angeles Dodgers pitcher Clayton Kershaw.”
Looking forward to the fourth quarter, the company expects to report sales in the range of $1.225 billion to $1.250 billion and earnings per share of between $0.35 and $0.40.
Having opened 185 locations and closed 50 over the course of Q3, Skechers finished the quarter with a total of 3,307 stores around the world, of which 779 are company-owned.
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