Skechers Q3 misses

Skechers’ third quarter results came in below estimates as the company said it would continue to focus internationally for growth.



The Manhattan Beach, Calif.-based brand’s net income fell 2.2% to $65.1 million, or 42 cents per diluted share, which was below forecasts for diluted EPS of 47 cents. Skechers said its diluted EPS were negatively impacted by foreign currency translation and exchange losses.



Revenues increased 10% to $942.4 million, below analysts’ estimates for revenues of $954.4 million.



Skechers COO and CFO David Weinberg attributed most of the sales growth in the quarter to an 18.3% rise in the brand’s international wholesale business, which he said now comprises 40.1% of its total sales, or 47.9% including international retail.



“We believe that our international business represents the greatest growth opportunity with many countries continuing to show strong growth in the quarter, including China at just over 50% in net sales,” said Weinberg.



Weinberg said the company was also pleased with the 16.0% sales growth in its global retail business with 556 company-owned Skechers retail stores, including 150 international locations, at the quarter’s end.



Including third-party-owned stores, there are now 1,716 Skechers stores worldwide.”