Skechers Q3 revenues accelerate, plans further retail expansion

Skechers USA said that the third quarter 2015 net sales were 856.2 million dollars compared to 674.3 million dollars for the third quarter of 2014. Gross profit was 387 million dollars or 45.2 percent of net sales compared to 304.5 million dollars or 45.2 percent of net sales for the third quarter of last year. Earnings from operations were 95.6 million dollars as compared to 74.1 million dollars, same quarter last year.

“With product and marketing initiatives that continue to resonate with our consumers worldwide, we achieved a new quarterly sales record of 856.2 million dollars in the third quarter of 2015. These results followed record first and second quarter revenues, resulting in a 34.1 percent net sales increase for the first nine months of 2015 as compared to the same period last year,” said David Weinberg, Chief Operating Officer and Chief Financial Officer.

Revenue growth in across segments

“Driving the quarterly revenue were net sales increases of 11.8 percent in our domestic wholesale business, 52.9 percent in our international wholesale business, and 20.9 percent in our company-owned global retail business, which includes a 10.4 percent increase in comparable sales for the quarter. Of note, the gains in our business came despite the impact of negative foreign currency exchange rates in Brazil, Canada and Chile, and a rather sluggish domestic retail environment where we still achieved an increase in average price per pair of 6.8 percent during the third quarter in our domestic wholesale business,” Weinberg added.

Net earnings for the third quarter were 66.6 million dollars compared to net earnings of 51.1 million dollars in the third quarter of 2014, an increase of 30.3 percent. Diluted net earnings per share were 0.43 dollar on 154.5 million weighted average shares outstanding, compared to diluted net earnings per share of 0.33 dollar on 153 million weighted average shares outstanding for the third quarter of 2014.

Nine months net sales up

For the nine months ended September 30, 2015, net sales were 2.425 billion dollars compared to net sales of 1.808 billion dollars in the first nine months of 2014. Gross profit was 1.094 billion dollars or 45.1 percent of net sales, compared to 814.3 million dollars or 45 percent of net sales for the first nine months of 2014. Earnings from operations for the first nine months of 2015 were 296.1 million dollars, compared to earnings from operations of 176.1 million dollars in the first nine months of 2014.

Net earnings were 202.5 million dollars compared to net earnings of 116.9 million dollars in the same period last year, an increase of 73.2 percent. Diluted net earnings per share was 1.31 dollars per share on 154.1 million dollars weighted average shares, compared to net earnings per share of 0.77 dollar per share on 152.7 million weighted average shares for the same period last year.

Continues positive sales momentum and expansion

“The continued quarterly sales records, including our highest quarterly sales in the company’s 23-year history in the third quarter is a testament to the strength of our brand and the innovative product we continue to develop and deliver. We are pleased that Skechers has grown to be the second largest athletic footwear brand in the United States, and that we are expanding into new doors and opening more company-owned stores in key locations, including a Skechers store on Fifth Avenue in New York and our second in Times Square. At the close of the quarter, there were 1,210 Skechers stores worldwide, including just over 830 outside the United States,” said Robert Greenberg, Skechers Chief Executive Officer.

The company continued its positive sales trend in the third quarter with double-digit gains in its international subsidiary, distributor and joint venture operations, including a triple-digit increase in China. “We are continuing to invest in our infrastructure and develop new product innovations to advance our brand and drive momentum around the globe. We believe that this positive momentum will continue to grow across our three main business channels in 2016. We continue to invest in our global business to further gain market share and monetize what we see as a significant long-term opportunity for Skechers,” he added.

Continuing its retail expansion and the company plans to open an additional 12 to 17 company-owned Skechers stores before the end of the year, in addition to the five that have already opened during October 2015. Along with the 12 Skechers stores already opened through international distributor and franchise partners this month, another 45 to 55 Skechers stores are also planned through the remainder of the year. BY year-end, the company would have more than 1,280 stores.