Skechers posts marginal drop in Q4 sales

Fourth quarter sales at Skechers U.S.A. Inc. decreased 0.5 percent as a result of a 2.8 percent decrease in the company’s domestic sales partially offset by a 1.1 percent increase internationally. Domestic declines were driven by lower retail sales partially offset by growth of 142.7 percent in e-commerce and growth in the wholesale channel. Fourth quarter earnings from operations decreased 36.4 million dollars or 38.7 percent to 57.7 million dollars, while net earnings were 53.3 million dollars and diluted earnings per share were 34 cents.

“In the fourth quarter, we nearly drove our sales to a new fourth quarter record,” said Robert Greenberg, Chief Executive Officer of Skechers.

Review of Q4 and full year results at Skechers

The company’s fourth quarter domestic wholesale sales increased 1.2 percent, international wholesale sales increased 2.5 percent and its direct-to-consumer sales decreased 6.4 percent. Increases in the company’s international wholesale segment were driven by growth in its international wholesale subsidiaries and joint ventures, led by increases of 29.7 percent in China and 22.9 percent in Europe partially offset by a decline of 57.9 percent in its distributor sales. Direct-to-consumer comparable same store sales decreased 13.4 percent, including decreases of 9.8 percent domestically and 21.7 percent internationally.

Gross margin increased 102 basis points to 48.9 percent, rising in all segments, driven by a favourable mix of international and e-commerce sales and average selling price increases in domestic wholesale.

Full year sales decreased 11.9 percent, reflecting the impact of the global pandemic on the company’s businesses worldwide and full year earnings from operations decreased 384.7 million dollars or 74.2 percent to 133.7 million dollars, while net earnings were 98.6 million dollars and diluted earnings per share were 64 cents.

Picture:Facebook/Skechers