Skechers reports record third quarter and nine-month sales
Skechers on Thursday announced that it has achieved new third quarter and nine-month sales records and the second highest sales quarter in its 24-year history.
Third quarter net sales jumped 10.1% to $942.4 million as a result of an 18.3% increase in its international wholesale business and a 16% increase in global retail. Following the increase, the international wholesale business now comprises 40.1% of total sales, or 47.9 percent including international retail, according to Chief Operating Officer and CFO David Weinberg.
Gross profit for the third quarter increased to $430.0 million, or 45.6% of net sales, compared to $387.0 million, or 45.2% of net sales, in the previous year, and earnings from operations increased 8.1% to $103.4 million. Net earnings decreased 2.2% to $65.1 million and diluted net earnings per share fell to $0.42 from $0.43 in the previous year.
Net sales for the nine-month period were $2.80 billion; gross profit was $1.28 billion, or 45.7% of net sales; and earnings from operations were $342.3 million. Net earnings were $236.8 million and diluted net earnings per share were $1.53 per share.
As the company enters the fourth quarter, Weinberg expects the US wholesale business to decrease in the fourth quarter and into the first quarter, and for the distributors of its international business to continue its positive fourth quarter trend.
“We believe that our international business represents the greatest growth opportunity with many countries continuing to show strong growth in the quarter, including China at just over 50 percent in net sales,” he said. “To further grow our business internationally, we have transitioned certain international distributors to our subsidiary or joint venture model, including Israel most recently to a joint venture, and we are in the final stages of South Korea moving to a joint venture as well. We are also pleased with the 16.0 percent sales growth in our global retail business.”
For the fourth quarter, Skechers expects net sales to be in range of $710 million and $735 million assuming international wholesale and total retail comps increase in the single digits and the domestic wholesale business decreases in the single digits.
Copyright © 2023 FashionNetwork.com All rights reserved.