Skechers achieves Q1 sales growth of 12.5 percent

Skechers first quarter sales increased 12.5 percent as a result of a 15.2 percent increase internationally and a 7.8 percent increase domestically.

“For the first quarter, Skechers achieved a new sales record of 2.25 billion dollars, EPS of 1.33 dollars, gross margins of 52.5 percent and an operating margin of 13.3 percent, all notable accomplishments as we mark our 100th earnings call as a public company,” said David Weinberg, chief operating officer of Skechers.

The company said, wholesale sales grew 127.1 million dollars or 9.8 percent, including increases in EMEA of 11.5 percent, APAC of 15.3 percent, and AMER of 5.9 percent.

Direct-to-consumer sales grew 122.6 million dollars or 17.3 percent, including increases in APAC of 16.5 percent, AMER of 10.5 percent and EMEA of 62.4 percent.

Commenting on the outlook, Robert Greenberg, chief executive officer of Skechers said in a statement: “With our focus on evolving and innovating our extensive product offering, best-in-class partnerships with our distribution network, and exceptional global demand, we are confident that Skechers will have another record-breaking year.”

Gross margin was 52.5 percent, an increase of 360 basis points. Earnings from operations increased 75.2 million dollars or 33.6 percent to 298.8 million dollars, resulting in an operating margin of 13.3 percent.

Net earnings increased to 206.6 million dollars and diluted earnings per share were 1.33 dollars.

For the second quarter of 2024, the company expects to achieve sales between 2.175 dollars and 2.225 billion dollars and diluted earnings per share of between 85 cents and 90 cents. The company believes that for the fiscal year 2024, it will achieve sales between 8.725 dollars and 8.875 billion dollars and diluted earnings per share of between 3.95 dollars and 4.10 dollars.