Skechers has posted record second-quarter sales of $2.16 billion, which management attributed to strong demand for its footwear products.
The sales represented a 7.2 per cent year-on-year increase, with direct-to-consumer sales up 9.2 per cent and wholesale sales up 5.5 per cent.
By region, sales increase 7 per cent in the Americas, 14 per cent in Europe, the Middle East and Africa; and 2 per cent in Asia Pacific.
The company’s earnings from operations decreased 5.1 per cent to $206.5 million as operating expenses rose 16 per cent to $135.1 million. Net earnings were $140.3 million, down from $152.8 million in the same period last year.
“In the face of significant operational and foreign exchange headwinds, Skechers delivered meaningful sales growth during the quarter,” said John Vandemore, CFO of Skechers.
“Demand for our innovative and diverse product portfolio remains robust, leading us to raise both sales and earnings expectations for the full year,” Vandemore added.
The company is expecting sales between $2.30 and $2.35 billion for the third quarter and between $8.875 and $8.975 billion for the full year.
“We remain committed to and confident of achieving our long-term target of $10 billion in sales by 2026 and, with a new $1 billion share repurchase authorization, continuing to return cash to shareholders in a disciplined manner,” said Vandemore.
As of June 30, the brand had 5267 stores, including 567 domestic stores, 1126 international outlets and 3565 distributor, licensee and franchise stores.
