Skechers sales skyrocket as consumers seek out comfortable shoes
American lifestyle and performance footwear company Skechers U.S.A., Inc. reported second-quarter sales of $1.66 billion on Thursday, reflecting strong progress achieved, in large part, by capitalizing on a growing desire for comfortable shoes.
The Manhattan Beach, California-based company’s sales for the second quarter ended June 30, 2021 represented an increase of 127.3% compared to the same period in the previous year, when its revenues – heavily impacted by the Covid-19 pandemic – totaled $729.5 million. Compared to the second quarter of 2019, the rise in sales was 31.7%.
The company saw increases across all its segments, but its domestic wholesale channel posted the most significant rise, achieving sales growth of 205.7%. The international wholesale channel experienced a 94.8% year-over-year rise in sales, while growth in the direct-to-consumer (DTC) segment was 137.8%.
Growth in the company’s international wholesale segment was led by a 150.2% rise in its European subsidiaries, with the UK and Germany making particular process, as well as by a 50.9% increase in China and 122.3% growth in distributor sales.
Quarterly net earnings at Skechers came to $137.4 million, or $0.88 per diluted share, up from a loss of $68.1 million, or $0.44 per diluted share, in the same period in the previous year.
“Our core product philosophy of comfort, style, innovation and quality at the right price has resonated with consumers during the pandemic, and as we emerge from it,” explained Skechers CEO Robert Greenberg in a release. “Consumers are embracing a more relaxed lifestyle and want to incorporate comfort into their work and weekend wear. To communicate that Skechers is The Comfort Technology Company, we delivered new campaigns for men, women and kids that highlighted this key message.”
In the first half of 2021, the company’s sales totaled $3.1 billion, up 56.5% from $2.0 billion in the same six-month period in the previous year. Net earnings were $235.9 million, or $1.51 per diluted share, up from a loss of $19.0 million, or $0.12 per diluted share.
Looking forward, Skechers expects its third-quarter sales to total between $1.60 billion and $1.65 billion, while diluted earnings per share for the period are predicted to be in the range of $0.70 to $0.75. The company’s diluted earnings per share for the full fiscal year are expected to be between $2.55 and $2.65, on sales of between $6.15 billion and $6.25 billion.
Skechers currently boasts 3,891 stores around the world, including 523 domestic locations, 331 international stores, 467 joint venture stores, and 2,570 distributor, licensee and franchise stores.
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