DTC powers Skechers to set a quarterly sales record

(Source: Skechers/Facebook)

Footwear brand Skechers USA saw net earnings soar amid higher sales in the first quarter.

The company’s net earnings jumped 28.8 per cent to $206.6 million as sales rose 12.5 per cent to $2.25 billion. Gross profit increased 20.7 per cent to $1.18 billion while gross margin improved to 52.5 per cent.

The company attributed the better performance to the 17 per cent rise in direct-to-consumer segment and a 10 per cent higher wholesale.

Moreover, domestic and international sales climbed 8 per cent and 15 per cent, respectively.

“For the quarter, international sales represented 65 per cent of total sales, and we achieved growth in all regions: 17 per cent in Europe, the Middle East and Africa; 16 per cent in Asia Pacific; and 8 per cent in the Americas,” said Skechers COO David Weinberg.

“Importantly, our domestic wholesale business returned to growth, increasing 8 per cent over last year.

“With the strong global demand for our brand and a healthy inventory position comprised of proven sellers, innovative technologies and new product categories, we believe that we have significant opportunities for growth across the globe, and we remain confident in our ongoing success.”

Skechers forecasts sales of $2.18 billion to $2.23 billion for the second quarter and $8.73 billion to $8.88 billion for the full year.

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