Skechers posts record Q3 sales on double-digit wholesale, D2C
Skechers U.S.A. Inc announced on Tuesday revenues for the recently ending third quarter grew by more than 20%, for a record-breaking $1.88 billion in sales for the three months.
The Los Angeles-based company said quarterly revenues grew by 20.2%, as a result of a 14.9% increase domestically and a 24.6% increase internationally, primarily driven by the footwear firm's wholesale sales, increasing 26.2% to $247.1 million. Skecher's direct-to-consumer also increased 11.9%, to $72.8 million.
Despite the sales growth, Skechers net earnings fell to $85.9 million and diluted earnings per share were $0.55, a decrease of 16.7% over the prior year. Diluted earnings per share included an unfavorable impact of $0.09 due to declines in foreign exchange rates, primarily in EMEA, the company said.
“Skechers’ ability to deliver record quarterly sales of $1.88 billion was a significant accomplishment, reflecting the ongoing global demand for our comfort technology products, which resulted in double-digit growth in our wholesale and direct-to-consumer segments,” said David Weinberg, chief operating officer of Skechers.
“All regions grew, led by EMEA with improvements of 48% as we realized growth across our largest European subsidiaries—Germany, Spain, and the United Kingdom, as well as strong distributor growth. The Americas achieved 16% growth primarily due to robust demand in the United States and Canada.
"In APAC, we experienced growth of 9%, which we are particularly pleased with given the Covid-related challenges in China and Japan during the quarter. While this broad-based consumer demand for Skechers is not unique to this quarter, we believe our ongoing momentum and strong product offering is a testament to the strength of our brand and resilience as an organization," Weinberg added.
Looking ahead, the company believes it will achieve sales between $1.725 billion and $1.775 billion for the fourth quarter, and diluted earnings per share of between $0.30 and $0.40.
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