Jul 30, 2015
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Skechers sales and earnings beat estimates, shares jump

Jul 30, 2015

Sports shoe maker and retailer Skechers USA Inc reported a better-than-expected 36 percent rise in quarterly revenue, helped by pent-up demand following the end of labor disruptions at U.S. West Coast ports that had held up imports, as well as increased shipments of back-to-school items.

Skechers shares were up 14.5 percent at $147.03 in after-hours trading, adding nearly $1 billion to the company's market value of $6.68 billion as of Wednesday's close.

The company, based in Manhattan Beach, California, said wholesale sales rose by a "double-digit" percentage. These sales include those to 665 third-party-owned Skechers retail stores outside the United States.

At company-owned stores, total comparable sales rose 12.9 percent in the second quarter, driven by demand for shoes such as the Skechers men's relaxed fit and Skechers GO line for women.

At the end of the quarter, Skechers had 461 company-owned stores, of which 95 were in international markets.

Analysts on average were expecting same-store sales to rise 6.1 percent, according to research firm Consensus Metrix.

"We believe that our accelerated growth trend will remain through 2015 and into 2016," Chief Executive Robert Greenberg said in a statement.

Net earnings attributable to Skechers rose to $79.8 million, or $1.55 per share, in the three months ended June 30 from $34.8 million, or 68 cents per share, a year earlier.

Analysts on average had expected a profit of $1.01 per share, according to Thomson Reuters I/B/E/S.

Net revenue soared to $800.5 million, handily beating the average analyst estimate of $736.4 million.

Up to Wednesday's close, Skechers' shares had risen about 133 percent since the start of the year. 

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