Skechers records fourth-quarter sales dip despite strong e-commerce, international sales
Manhattan Beach, California-based footwear retailer Skechers USA Inc. saw a slight dip in fourth quarter sales as a result of a 2.8% decrease in domestic sales, partially offset by a 1.1% increase internationally.
For the fourth quarter and full year ended December 31, 2020 the company reported sales of $1.32 billion, a decrease of 0.5% year-over-year. Net earnings came in at $53.3 million, 34 cents per share, compared to $59.5 million, or 39 cents per share, year prior. Adjusted earnings came in at 24 cents a share, compared to 39 cents year prior and missing expectations for 30 cents per share.
As a result of the decrease, shares of the company slipped as much as 6% as of Thursday.
Despite these decreases, the company saw skyrocketing e-commerce sales which rose to 142.7%, and saw significant growth in its China sales.
The company's international wholesale business saw 2.5% sales growth led by a 29.7% increase in China, as well as double-digit increases in Chile, United Kingdom, Germany and Spain, among others. Domestic wholesale sales increased 1.2%, direct-to-consumer sales decreased 6.4%, a slip attributed to the temporary store closures and reduced operating hours caused by the Covid-19 pandemic.
Throughout the year, Skechers opened stores in select domestic and international markets, including its first dedicated golf store, located in China.
“For Skechers, 2020 began with positive momentum following a year of record sales, but the global pandemic put us to the test," said Robert Greenberg, chief executive officer of Skechers, in a press release.
"Remaining authentic was paramount in 2020, but the challenges we faced last year and are still facing in 2021, have created an even more agile and focused company—one with products that will remain in-demand during the ongoing crisis and beyond."
Added David Weinberg, chief operating officer of Skechers: "While we understand the economic recovery from the Covid-19 pandemic will not be quick and many regions are still being impacted, Skechers remains a desired brand."
"As we plan for future success, we continue to invest in our long-term growth potential, including improving our supply chain in the United States, Asia and Europe and other select markets, scaling innovation within our operations, and further enhancing our digital capabilities with the planned roll out of e-commerce platforms around the world.”
Skechers chose not to provide further financial guidance "given the ongoing business disruption and substantial uncertainty surrounding the impact of the Covid-19 pandemic on its business globally."
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