Skechers’ sales continue to climb in Q3
Boosted by international operations, Skechers’ third quarter results surpassed internal goals and blew past analyst estimates.
For the quarter ended Sept. 30, net earnings increased 41.8% to $92.3 million. Net earnings per share for the third quarter were $0.59, compared with $0.42 in the prior year. This also exceeded analyst expectations of $0.43 cents per share.
The Manhattan Beach, Calif.-based brand’s net sales increased 16.2% to $1.095 billion, compared to third quarter 2016 — an increase that also set a new quarterly record for the company.
“Third quarter net sales surpassed our previous record in the first quarter earlier this year by $22 million, setting a new quarterly record for the company,” stated David Weinberg, COO and CFO. “This also resulted in a new nine-month record with sales exceeding $3 billion.”
Skechers credits the quarter’s growth to a 25.7% increase in the company’s international wholesale business, a 1.4% increase in its domestic wholesale business, and an 18.6% increase in its company-owned global retail business, which had total comp store sales increases of 4.4%.
The company’s domestic company-owned retail business sales grew 9.5%, and domestic comp store sales increased 3.1%. This was despite temporary store closures in Texas and Florida, and continued store closures in Puerto Rico due to the recent hurricanes. Skechers’ net sales last year were $1.5 million for the days corresponding to the days closed this year due to the hurricanes.
“The [quarter’s] growth came across our three distribution channels — with double-digit increases in our company-owned Skechers retail business worldwide and our international subsidiary and joint venture businesses, as well as a single-digit increase in our international distributor and domestic wholesale businesses,” Weinberg said. “The strong international growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with our strong international retail business, resulted in international wholesale and retail representing 53% of our total sales in the third quarter.”
Looking ahead, Skechers believes it will achieve net sales in the fourth quarter in the range of $860 million to $885 million, and diluted earnings per share of $0.09 to $0.14. Capital expenditures for the fourth quarter are estimated to be approximately $20.0 million to $25.0 million, which includes corporate office upgrades, opening an additional 12 to 15 company-owned retail stores and remodeling several stores.
For the quarter ended Sept. 30, net earnings increased 41.8% to $92.3 million. Net earnings per share for the third quarter were $0.59, compared with $0.42 in the prior year. This also exceeded analyst expectations of $0.43 cents per share.
The Manhattan Beach, Calif.-based brand’s net sales increased 16.2% to $1.095 billion, compared to third quarter 2016 — an increase that also set a new quarterly record for the company.
“Third quarter net sales surpassed our previous record in the first quarter earlier this year by $22 million, setting a new quarterly record for the company,” stated David Weinberg, COO and CFO. “This also resulted in a new nine-month record with sales exceeding $3 billion.”
Skechers credits the quarter’s growth to a 25.7% increase in the company’s international wholesale business, a 1.4% increase in its domestic wholesale business, and an 18.6% increase in its company-owned global retail business, which had total comp store sales increases of 4.4%.
The company’s domestic company-owned retail business sales grew 9.5%, and domestic comp store sales increased 3.1%. This was despite temporary store closures in Texas and Florida, and continued store closures in Puerto Rico due to the recent hurricanes. Skechers’ net sales last year were $1.5 million for the days corresponding to the days closed this year due to the hurricanes.
“The [quarter’s] growth came across our three distribution channels — with double-digit increases in our company-owned Skechers retail business worldwide and our international subsidiary and joint venture businesses, as well as a single-digit increase in our international distributor and domestic wholesale businesses,” Weinberg said. “The strong international growth, including the continued strength in China, the resurgence of the United Kingdom and growth across all of Europe combined with our strong international retail business, resulted in international wholesale and retail representing 53% of our total sales in the third quarter.”
Looking ahead, Skechers believes it will achieve net sales in the fourth quarter in the range of $860 million to $885 million, and diluted earnings per share of $0.09 to $0.14. Capital expenditures for the fourth quarter are estimated to be approximately $20.0 million to $25.0 million, which includes corporate office upgrades, opening an additional 12 to 15 company-owned retail stores and remodeling several stores.