Register to get 2 free articles
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
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.”
