Skechers reports record revenues in Q2
it revealed that net earnings increased to $152.8m (£119m) and diluted earnings per share of $0.98 (£0.76)
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Footwear retailer Skechers has reported record quarterly sales of $2.01bn (£1.56bn), a YOY increase of 7.7%.
For the 12 weeks ended 30 June, it saw sales increase 17.9% internationally and a 4.6% decrease domestically. Direct-to-consumer increased 29.1% and Wholesale decreased 5.9%. On a constant currency basis, sales increased 9.1%.
Wholesale sales declined $67.3m (£52.4m), or 5.9%, which includes a decrease in AMER of 18.7%, partially offset by increases in APAC of 14.3% and EMEA of 7.4%. Wholesale volume decreased 13.1% and average selling price increased 8.0%.
Meanwhile, Direct-to-Consumer sales grew $212.m (£1653m), or 29.1%, which includes increases in AMER of 28.2%, APAC of 25.1%, and EMEA of 47.2%. Direct-to-Consumer volume increased 23.8% and average selling price increased 4.4%.
In addition, it revealed that net earnings increased to $152.8m (£119m) and diluted earnings per share of $0.98 (£0.76), up from $90.4m (£70.4m) and diluted earnings per share of $0.58 (£0.45).
David Weinberg, COO at Skechers, said: “Skechers second quarter results set a new quarterly sales record of $2.01 billion. This achievement continues to reflect the global demand for our comfort technology products, evidenced by double- or triple-digit sales growth in most markets. We saw increases of 20% in APAC, including 19% in China and 27% in India, as well as 16% in EMEA, including 29% in Germany and 13% in the UK.
“Our strong gross margin of 52.7% was primarily driven by a higher proportion of Direct-to-Consumer sales, which grew 29%. We were able to deliver our product more effectively and improve our inventory levels, which enabled the robust sales across our comfortable, innovative, stylish and high-quality collections.”
He added: “As we look to the future and our goal of $10bn in annual sales by 2026, we remain focused on improving distribution efficiencies, developing new categories including some that will be introduced later this year, enhancing our Direct-to-Consumer segment, and further expanding our international business, including the acquisition of our Scandinavian distributor, which we believe will deliver increased sales growth in the coming years.”
