Skechers reports strong sales and profit growth in Q1

Skechers USA first quarter net sales were 978.8 million dollars compared to 768 million dollars in the first quarter of 2015, an increase of 27.4 percent. Gross profit was 432.2 million dollars, or 44.2 percent of net sales, compared to 332.5 million dollars, or 43.3 percent of net sales in the first quarter of 2015. Earnings from operations were 138.6 million dollars, or 14.2 percent of net sales, compared to 88.2 million dollars, or 11.5 percent of net sales, for the same quarter, last year.

“At no other time in the company’s history have we been stronger across our many product categories, marketing initiatives and multiple distribution channels,” said David Weinberg, COO and CFO of the company, adding, “These significant achievements are primarily the result of a 47.1 percent increase in our international wholesale business over the first quarter 2015, and a shift forward of some domestic and international orders into the first quarter due to the Easter timing.”

String growth driven by international markets

“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,” added Robert Greenberg, Skechers Chief Executive Officer.

The sales growth in the United States, the company said is due to its expanding product range and advertising—which features young superstars like Meghan and Demi Lovato, as well as icons such as Sugar Ray Leonard, Ringo Starr and now Howie Long.

With a strong sales increase in the first quarter driven by substantial growth across Europe, Asia, the Middle East and Canada and Chile, Greenberg foresees international business as being a key driver of the company’s continued growth. In the first quarter, together with its international partners, Skechers opened 87 retail stores, bringing the total to 1,397; and with the opening of 17 stores in the second quarter, it now operates 1,414 Skechers stores, of which 1,017 are in international markets.

“We currently believe second quarter net sales will be between 875 million dollars and 900 million dollars. Our first and third quarter net sales have the potential to become larger relative to the net sales balance of the other quarters as our international business becomes a greater percentage of our total net sales. We therefore believe there could be upside opportunity for the third quarter and the balance of the year,” concluded Greenberg.