Skechers Posts Q3 Earnings Beat, Touts New Marketing Moves
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Skechers USA Inc. announced third-quarter earnings and sales that topped analysts’ expectations.
In its latest financial report for the period ended Sept. 30, the Manhattan Beach, Calif.-based footwear maker logged adjusted earnings per share of 71 cents, an increase of 22.4% and better than Wall Street’s forecasted 70 cents a share.
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Quarterly revenues also shot up 15.1% to $1.35 billion, versus consensus bets of $1.34 billion, while same-store sales climbed 7.7%, with respective domestic and international gains of 6.8% and 9.9%. Profits came in 13.7% higher at $103.1 million.
“Skechers is firing on all cylinders. Our global marketing efforts are creating awareness and generating demand. Our product is innovative, relevant and comfortable,” CEO Robert Greenberg said in a statement. “We continue to lead the walking footwear category and delivered technical and innovative work, golf, sport and kids’ footwear.”
However, the company also reported a weaker-than-expected outlook for the next quarter, the peak holiday shopping season. It predicts earnings per share in the range of 35 cents to 40 cents, on revenues of $1.225 billion to $1.250 billion, compared with analysts’ forecast of 39 cents in EPS and $1.22 billion in sales. As of 5:15 p.m. ET, Skechers’ stock had dipped 3% to $36.86 during after-hours trading on Tuesday.
In the past three months, Skechers has sent its chunky sneakers down the runways of New York, London and Milan. The brand also debuted new projects in North America, Asia and other regions, including its first campaign with Los Angeles Dodgers pitcher Clayton Kershaw.
Internationally, the athletic firm saw wholesale revenues increase 21.7%, while direct-to-consumer sales rose 22.3%. In its home market, the DTC business improved 8.7%, and wholesale returned to growth with a 5% gain. Skechers has more than 3,300 stores across the world, 779 of which are company-owned.
“Our product offering is vast and reaches every demographic, and at its core, comfort is what consumers have come to know and expect from Skechers,” Greenberg added. “This, and our comprehensive marketing, differentiates Skechers from other brands and is why we achieved growth across our domestic, international and direct-to-consumer businesses.”
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