Listen to this article
This is an experimental feature. Give us your feedback. Thank you for your feedback.
What do you think?
There’s a new spring in Skechers’ step.
The US-based footwear maker announced on Thursday that quarterly revenue passed the $1bn mark for the first time in its history, thanks in part to strong growth in international markets, even as same-store sales failed to meet Wall Street estimates.
The company said that sales for the quarter ending March 31 were $1.07bn, versus expectations for sales of $1.06bn according to analysts surveyed by Bloomberg. It’s a 9.6 per cent year-on-year increase, and the first time that its quarterly revenue has surpassed $1bn, Skechers said.
Skechers attributed the strong sales to a 16.8 per cent increase in its international wholesale business as well as a 12.8 per cent increase in its global retail business. However, comparable sales — a key industry metric — rose 2.9 per cent, missing analysts’ expectations for a 3.7 per cent rise. Its domestic wholesale net sales were also relatively flat compared to last year, the company said.
Skechers’ earnings for the three-month period were slightly lower from the same time last year, coming in at $94m, a 3.7 per cent decrease year-over-year, and translating to 60 cents per diluted share. It still managed to beat the $84.2m in profit and 52.5 cents a share that analysts were looking for.
The company — which is benefitting from the sneaker craze taking hold across several continents — said that it expects another revenue record next quarter. It is forecasting net sales between $950m-$970m, which it said would represent its strongest second-quarter sales figure ever. It is also looking for earnings per share of 42c-47c.
Skechers chief executive Robert Greenberg hailed the company’s performance, noting that it surpassed $1bn in total annual sales just 12 years ago, in 2005.
“Our global footprint continues to grow with our ongoing success in Canada, Chile and China as well as in India, Australia and Turkey, and many other markets. This success is in part due to the expansion of Skechers retail stores around the world… We’ve come a long way since our first billion dollar year, and our first retail store in Manhattan Beach, but we plan to accomplish much more in product design, marketing and distribution.”
Skechers shares, which have declined 13.5 per cent in the past 12 months, rose in after-hours trading before paring those gains to trade down 0.5 per cent.