Skechers reports record quarterly sales
Skechers U.S.A Inc. announced on Tuesday revenues for the second quarter increased by more than 12%, on the back of double-digit sales growth in the footwear brand's domestic and international business, respectively.
The Los Angeles-based company reported record quarterly sales of $1.87 billion, a year-over-year increase of 12.4%. Wholesale revenues were up 18.3%, and direct-to-consumer sales grew 4.3% for the three months ending June 30, 2022.
Net earnings were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year. Diluted earnings per share include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA, the company added.
"Skechers achieved a new quarterly sales record of $1.87 billion, a significant accomplishment especially given the macroeconomic headwinds, supply chain issues and Covid-related restrictions in China during the period,” said David Weinberg, chief operating officer of Skechers.
“The growth was the result of increases in sales of 15% in our domestic and 10% in our international businesses. Growth was driven by sales increases of 21% in the Americas and 8% in EMEA.
"In APAC, where sales were flat due to Covid-related restrictions in China, we saw strong growth in most other markets, particularly in India, South Korea and Malaysia. During the quarter, we focused on delivering our in-demand footwear direct to consumers and through our wholesale partners globally. While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year," added Weinberg.
For the six months ending June 30, Skechers said revenues totalled $3.69 billion, up 19.1% on the first half of 2021.
During the six months, domestics sales increased 21.4%, compared to 17.3% increase in international sales with the largest contribution derived from wholesale sales. Both segments experienced increases, with wholesale increasing 25.4% and direct-to-consumer increasing 9%
First-half net earnings were $211.6 million and diluted earnings per share were $1.35, a decrease of 10.6% over the prior year.
“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” said Robert Greenberg, chief executive officer of Skechers.
"This, our 30th year in business, is our strongest year yet from a sales, marketing and product perspective. We are in a unique position as a brand that delivers on comfort technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. As a company, we are determined to outdo ourselves and reach further heights as we strive to meet our customers’ needs.”
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