Skechers profits falls 24 percent in Q2
Footwear maker Skechers USA Inc saw shares tumble Thursday after same-store sales missed estimates in the second quarter ended June 30, 2018.
Net earnings were $45.3 million, down 24 percent year-over-year.
Sales grew 10.6 percent as a result of a 24.9 percent increase in the company’s international wholesale business, and 12.8 percent increase in its company-owned global retail business. Sales reached $1.13 billion.
Comparable same store sales in company-owned stores worldwide grew 4.5 percent, including a 2.2 percent rise in the United States and an 11.3 percent increase internationally, however the company suffered from a weak domestic wholesale business, which fell 7 percent, and a 6.1 percent decrease in the company’s international distributor business.
“With the right product and marketing, we believe there is significant opportunity to further grow our brand and continue to take market share. We are investing in our international business—both in newer and established markets as we continue to experience strong growth overseas. We’re looking forward to the back-to-school season, and the remainder of the year as we deliver more new styles backed by impactful marketing,” said Robert Greenberg, Skechers chief executive officer.
For the third quarter of 2018, the company expects to reach sales in the range of $1.200 billion to $1.225 billion, and diluted earnings per share of $0.50 to $0.55.
The third-quarter outlook was again below marks.
“Looking forward, we believe both of our domestic wholesale and international distributor businesses will be positive in the second half of the year. Our focus for the balance of 2018 is to continue to grow our international business while maintaining our strength in the United States," added Greenberg.
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