Skechers scores 29 percent rise in FY14 revenues

Skechers USA reported that net sales for fiscal year 2014 were 2.378 billion dollars compared to net sales of 1.846 billion dollars in 2013. Gross profit for 2014 was 1.072 billion dollars or 45.1 percent of net sales compared to 818.8 million dollars or 44.4 percent of net sales in 2013. Earnings from operations for 2014 were 209.1 million dollars compared to 93.6 million dollars in 2013.

Net sales for the fourth quarter of 2014 were 569.7 million dollars compared to 450.7 million dollars in the fourth quarter of 2013. Gross profit for the fourth quarter of 2014 was 257.6 million dollars or 45.2 percent of net sales compared to 200.6 million dollars or 44.5 percent of net sales in the fourth quarter of 2013. Earnings from operations in the fourth quarter of 2014 were 33 million dollars compared to earnings from operations of 17.1 million dollars in the fourth quarter of 2013.

“Skechers fourth quarter revenues of over 569 million dollars set a new record for the period, and followed a record third quarter 2014, which was the highest quarterly sales in the company’s history. This momentum led to record annual revenues of 2.378 billion dollars for 2014, an approximately 29 percent increase compared to 2013 sales of 1.846 billion dollars,” opined David Weinberg, Skechers Chief Operating Officer and Chief Financial Officer.

Added Robert Greenberg, Skechers Chief Executive Officer, “Just a year ago, we were honored as the 2013 Brand of the Year for GO (Footwear News) and 2013 Running Design Excellence and Children’s Design Excellence (Footwear Plus), and now we are 2014 Company of the Year (Footwear News and Footwear Plus), and the No. 2 footwear brand and the No. 1 walking brand in America. This speaks volumes to the product we have developed and delivered, the global marketing support behind it.”

Net earnings for 2014 were 138.8 million dollars compared to 54.8 million dollars in 2013. Net earnings per diluted share for fiscal year 2014 were 2.72 dollars based on 51 million weighted average shares outstanding compared to 1.08 dollars based on 50.6 million weighted average shares outstanding in the prior year.

Net earnings for the fourth quarter of 2014 were 21.9 million dollars compared to net earnings of 14.2 million dollars in the fourth quarter of 2013. Net earnings per diluted share during the quarter were 0.43 dollars based on 51.4 million weighted average shares outstanding compared to 0.28 dollars based on 50.7 million weighted average shares outstanding in the fourth quarter of 2013.

In the fourth quarter, the company signed world renowned drummer Ringo Starr to a global marketing agreement for its growing men’s footwear line, launched Demi Lovato first campaign, and saw Meb cross the finish line first among the Americans at the New York Marathon. The company announced the opening of its 1,000th Skechers retail store, completed the initial phase of the automation of European Distribution Center equipment. In the first quarter of 2015, Skechers converted three distribution partners doing business in 14 Central Eastern European countries to wholly-owned subsidiaries. The company now aims to expand the Skechers retail store base to an estimated 1,250 stores by the end of 2015, anticipating strong double-digit and, in some cases, triple-digit gains in Europe, the Americas, the Asia-Pacific region and the Middle East.

“With continued investments in our infrastructure for the coming years, including equipment automation upgrades at our European Distribution Center and establishment of a Company-operated distribution center in Chile,466.7 million dollars in cash and inventories in-line with expected sales, we believe we are prepared for growth in 2015. We believe the best is yet to come, and are looking forward to the first quarter of 2015, which we expect will be a new quarterly sales record of 690 million dollars to 710 million dollars and earnings per share of 0.95 dollars-1.05 dollars,” added David Weinberg.