Skechers records increase in Q3 sales and earnings

Third quarter sales at Skechers increased 7.8 percent as a result of an 8.6 percent increase internationally and a 6.5 percent increase domestically. On a constant currency basis, sales increased 6.7 percent.

For the fourth quarter of 2023, the company believes it will achieve sales between 1.91 billion dollars and 2.01 billion dollars and diluted earnings per share of between 40 cents and 50 cents. For the full year, sales are expected to reach between 7.95 billion dollars and 8.05 billion dollars and diluted earnings per share of between 3.33 dollars and 3.43 dollars.

“Skechers’ achieved a new quarterly sales record of 2.02 billion dollars, reflecting robust demand for our brand. All regions grew, including the Americas, with growth of 7 percent in the United States due to continued strength in our direct-to-consumer channel, and Asia Pacific with growth of 18 percent in China,” said David Weinberg, chief operating officer of Skechers in a statement.

Review of Skechers’ Q3 results

The company’s direct-to-consumer sales increased 23.8 percent and wholesale decreased 1.4 percent.

“Our record third quarter sales were the result of our continued innovation and determination to deliver comfort, style and quality in every pair. We introduced a collaboration with entertainment legend Snoop Dogg, and we launched Skechers Football boots with Harry Kane, captain of England's national team. And, this week, we announced the signing of two-time NBA All-Star Julius Randle and rising star Terance Mann,” added Robert Greenberg, chief executive officer of Skechers.

Skechers wholesale sales declined 17 million dollars or 1.4 percent, which includes decreases in EMEA of 8.3 percent and AMER of 0.5 percent, partially offset by an increase in APAC of 7.1 percent.

Direct-to-consumer sales grew 163.6 million dollars or 23.8 percent, which includes increases in AMER of 17.3 percent, APAC of 24.2 percent and EMEA of 60.8 percent.

Gross margin for the quarter was 52.9 percent, an increase of 590 basis points. Earnings from operations increased 83.2 million dollars or 64 percent to 213.2 million dollars, resulting in an operating margin of 10.5 percent.

Net earnings were 145.4 million dollars and diluted earnings per share were 93 cents compared with prior year net earnings of 85.9 million dollars and diluted earnings per share of 55 cents.

Skechers achieves nine month sales increase of 8.5 percent

The company’s year-to-date sales increased 8.5 percent, reflecting a 15.6 percent increase in international sales and a 1.1 percent decrease domestically. Direct-to-consumer increased 26 percent and wholesale decreased 1.1 percent. On a constant currency basis, sales increased 9.6 percent.

Wholesale sales decreased 41 million dollars or 1.1 percent, due to a decrease in AMER of 11.4 percent, partially offset by increases in APAC of 14.5 percent and EMEA of 6.2 percent.

The company’s direct-to-consumer sales grew 514.6 million dollars or 26 percent, due to increases in AMER of 24.2 percent, APAC of 22.4 percent, and EMEA of 47.8 percent.

Gross margin was 51.5 percent, an increase of 470 basis points, earnings from operations increased 194.5 million dollars to 654.5 million dollars, resulting in an operating margin of 10.8 percent and net earnings were 458.6 million dollars and diluted earnings per share were 2.93 dollars, an increase of 54.2 percent over the prior year.