Skechers posts robust rise in Q3 sales and earnings

Skechers USA, Inc., for the third quarter ended September 30, 2019 reported sales growth of 15.1 percent as a result of a 21.9 percent increase in the company’s international business, or 25.7 percent on a constant currency basis, and a 6.7 percent increase in its domestic business. On a constant currency basis, the company’s sales increased 17.2 percent. Earnings from operations increased 23.5 million dollars or 19 percent to 147.4 million dollars, while net earnings were 103.1 million dollars and diluted earnings per share were 67 cents. On a constant currency basis, diluted earnings per share were 71 cents, an increase of 22.4 percent.

“Skechers is firing on all cylinders,” said Robert Greenberg, CEO of Skechers in a statement, adding, “We believe our holiday sales will be stronger across all channels of our business, and we’re looking forward to 2020 and the launch of our first campaign with Los Angeles Dodgers pitcher Clayton Kershaw.”

Skechers achieves sales growth across business segments

By segments, the company’s third quarter international wholesale business increased 21.7 percent, its company-owned direct-to-consumer business increased 13.3 percent, and the domestic wholesale business increased 5 percent. Comparable same store sales in company-owned stores and e-commerce increased 7.7 percent, including 6.8 percent in the United States and 9.9 percent internationally.

For the nine-month period, sales grew 9.2 percent or 11.9 percent on a constant currency basis. By segments, the company’s international wholesale business increased 15.9 percent, its company-owned direct-to-consumer business increased 11.8 percent and its domestic wholesale business decreased 4 percent. The Company’s international business grew 16.8 percent and its domestic business grew by 0.4 percent.

Earnings from operations for the nine months increased 70.3 million dollars or 19.9 percent to 424.4 million dollars, while net earnings were 287 million dollars and diluted earnings per share were 1.86 dollars. On a constant currency basis, diluted earnings per share were 1.96 dollars, an increase of 21 percent.

For the fourth quarter of 2019, the company believes it will achieve sales in the range of 1.225 billion dollars to 1.250 billion dollars, and diluted earnings per share of 35 cents to 40 cents. The guidance is based on continued growth in each of the company’s three segments in the fourth quarter, and a full-year effective tax rate of between 17 and 19 percent.

Picture:Skechers website