Skechers achieves record revenues in Q1 2016
Skechers USA, Inc. announced on Thursday the financial results for its first quarter ended March 31, 2016. The company reported record revenues just shy of $1 billion.
Net sales increased 27.4% to $978.8 million from $768.0 million in the previous year’s first quarter, and net earnings in the quarter were $97.6 million compared to net earnings of $56.1 million.
Earnings from operations for the first quarter were $138.6 million, or 14.2% of net sales, and gross profit was $432.2 million or 44.2% of net sales.
Skechers COO and CFO David Weinberg explained that the demand for Skechers products has increased significantly. Weinberg said, “To meet the increased demand, we are investing in our infrastructure, including improved efficiencies in our European Distribution Center, which allowed us to achieve a record three million pairs shipped in a month during February. With the completion of our European Distribution Center expansion to one million square feet in the second quarter of 2016, and with the automation to be fully completed later this year, we expect to be even more efficient in our largest market outside of the United States.”
In addition, the international wholesale business increased 47.1%, domestic wholesale sales increased 12.1 percent and Company-owned retail sales increased by 23.2 percent.
Robert Greenberg, Skechers Chief Executive Officer, commented: “2016 marks Skechers’ 24th year in business and we couldn’t be more pleased to start 2016 with record quarterly revenues just shy of the billion dollar mark. In the first quarter, together with our international partners, we opened 87 Skechers retail stores, bringing the total to 1,397; with the opening of 17 stores in the second quarter already, we now have 1,414 Skechers stores, of which 1,017 are in international markets.”
Skechers expects second quarter net sales to range between $875 million and $900 million.
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