Skechers ‘comfort’ styles drive record Q2 sales
Skechers marked its 30th year in business with record second-quarter sales, driven by strong wholesale growth.
The footwear brand reported that its sales totaled $1.87 billion, for the quarter ended June 30, up 12.4% from the year-ago period. The growth was the result of a 15% increase in domestic revenue and 10% in international businesses, primarily driven by strength in wholesale sales, which grew 18.3%.
Net income declined during the quarter Net earnings totaled $90.4 million and earnings per share were $0.58, down 34.1% over the prior year but were still more than analysts had expected. Skechers said its earnings include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA.
The company faced a number of challenges during the quarter, including macroeconomic headwinds, supply chain issues and COVID-related restrictions in China, noted COO David Weinberg.
Skechers’ wholesale growth was led by increases in the Americas where sales rose 34.9%. Direct-to-consumer sales increased 4.3%, led by increases in the Americas of 3.7%, with the consumer average selling price up 5.3%.
Sales rose 21% in the Americas and 8% in EMEA. In APAC, where sales were flat due to COVID-19 restrictions in China, Skechers saw strong growth in most other markets, particularly in India, South Korea and Malaysia.
“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” said CEO Robert Greenberg. “In the second quarter, we delivered hands-free comfort footwear to a world now desiring more ease in their lives … and designed more fashion-focused styles as comfort at work and play is the new norm. in key markets.”
During the quarter, Skeckers opened its biggest East Coast retail destination to date, a nearly 22,000-sq.-ft. “superstore” at The Mills at Jersey Gardens, in Elizabeth, N.J.
Looking ahead, Skechers expects to achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.70 and $0.75 in the third quarter of 2022.
“While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year,” said Weinberg.
Skechers products are available in over 180 countries and territories through department and specialty stores, and direct to consumers through digital stores and 4,355 company- and third-party-owned physical retail stores, which includes 526 domestic locations.