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Skechers Q2 earnings, sales beat Street; guidance strong

7/19/2019
Skechers is off and running after reporting a second quarter that included a 19.8% rise in international sales and strong third-quarter earnings and sales guidance.

The shoemaker’s earnings soared to $75 million, or $0.49 a share, in the quarter ended June 30, from $45 million, or 29 cents a share, in the year-ago quarter. Analysts had expected earnings of $0.33 a share.

Total sales rose 10.9% to $1.26 billion, with an 8.6% increase in direct-to-consumer sales, beating analysts’ estimates of $1.22 billion. Same-store sales rose 4.9%, including a 4.2% increase in the U.S.

“Our product continues to resonate worldwide, and we are committed to investing in our global infrastructure and operational capabilities to meet consumer demand for the Skechers brand,” said John Vandemore, CFO of Skechers. “This includes the construction of our first distribution center in China, the expansion of our North American distribution capabilities, the upgrade of our European logistics center and the further development of our direct-to-consumer offerings, both in e-commerce and in our retail stores.”

Skeckers said it experienced growth in every region, with the biggest dollar increases coming from India, the Middle East and China and in Mexico with the conversion of the business to a joint venture. It also sounded a confidente note about back-to-school, a crucial season for its domestic business.

“Now in the third quarter, we are delivering our back-to-school and fall offerings, and believe we have fresh styles in our core accounts that will drive growth, while we also deliver some unique and limited-edition styles in select doors that will create additional excitement for the Skechers brand,” said Robert Greenberg, chief CEO of Skechers.

The company forecast third-quarter sales between $1.325 billion to $1.350 billion, and diluted earnings per share between 65 cents and 70 cents.

Skechers footwear is sold in the United States and over 170 countries and territories worldwide via department and specialty stores, more than 3,170 Skechers Company-owned and third-party-owned retail stores, and the company’s e-commerce websites.
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