Feb 18, 2010
Skechers fourth quarter results beat Wall Street
Feb 18, 2010
Feb 17 (Reuters) - Shoe maker Skechers USA Inc (SKX.N) reported a fourth-quarter profit that outpaced its earlier forecast and beat market expectations, driven by strong margins and strength at its retail business.
"The nearly 17 point increase in gross margin percentage was due to... less closeouts, strong product sell-throughs, and higher initial margins during the quarter," Chief Operating Officer David Weinberg said on a conference call with analysts.
Operating expenses as a percentage of sales slipped to 38.1 percent, compared with 43.9 percent, a year ago, Weinberg said. The company, whose rivals include Deckers Outdoor (DECK.O) and Timberland (TBL.N), said it had seen strong sales momentum in the second half of 2009, boosted by sales and gross margin improvement in the United States and some other countries, and double-digit growth in many markets.
Weinberg expects the company's international business -- which currently chips in with 25 percent of sales -- to become a significantly larger percentage in the future.
The company plans to open 25 to 30 new stores in 2010, he added.
For the quarter, Skechers swung to a profit of 58 cents a share, compared with loss 44 cents a share, a year earlier.
Revenue jumped 30 percent to $388.6 million, helped by growth of Skechers' international business, including its retail channel and online business.
Analysts were looking for earnings of 52 cents a share, on revenue of $386.8 million, according to Thomson Reuters I/B/E/S.
"Based on our key performance indicators, which include backlog up 40 percent, positive double-digit retail comps and strong sell-throughs, all of which continue into the first quarter, we believe we will see continued product and brand momentum through 2010," Weinberg said. Shares of the Manhattan Beach, California-based company, which touched their two-year high last month, rose 1 percent in after market trading. They closed at $30.16 Wednesday 17 February on the New York Stock Exchange.
(Reporting by Shradhha Sharma in Bangalore; Editing by Anil D'Silva, Ratul Ray Chaudhuri)
© Thomson Reuters 2023 All rights reserved.