Skechers posts record Q3 sales, fueled by demand across all channels
Skechers USA reported a strong third quarter with better-than-expected sales and earnings amid growing awareness of its “comfort technology products," and raised its full-year outlook.
“Skechers’ record third-quarter financial performance underscores the strength of our global diversification and demand for our distinctive value proposition," said CFO John Vandemore. “These results reinforce our confidence in achieving our goal of $10 billion in sales by 2026 and continued growth thereafter
The global footwear brand’s net sales rose 15.9% to a new quarterly record of $2.35 billion, topping estimates of $2.31 billion, for the period ended Sept. 30. Domestic net sales were up 15.3%, while international sales increased 16.4%.
By channel, direct-to-consumer sales increased 9.6%. Wholesale sales jumped 20.6%.
Net earnings totaled $193.2 million, with earnings per share were $1.26, compared to net earnings of $145.4 million and earnings per share of $0.93 in the year-ago quarter. Adjusted earnings were $1.20 per share, ahead of analysts’ estimates of $1.16 per share.
“Skechers’ significant growth in the third quarter can be attributed to offering the right product at the right price and ensuring availability at locations where consumers want to shop — whether it’s in our own direct-to-consumer channels or with our network of key retailers,” said Robert Greenberg, CEO of Skechers. “Our product line up offers a unique value proposition for partners and consumers – style, comfort, quality, and innovation at a reasonable price. The combination of these attributes sets Skechers apart. “
Raising awareness of Skechers technologies, such as its “Hands Free Slip-ins,” has been integral to the company’s global growth, added Greenberg. Earlier during the quarter, Snoop Dogg and Philadelphia 76ers basketball star Joel Embiid 2043 wore Skechers during the Olympic Games in Paris. Most recently, the brand signed television host and comedian Howie Mandel and launched a campaign with him.
In its performance division, Skechers has established solid business with pickleball footwear. The company is in the early stages of team sports with the global roll-out of Skechers court, football (soccer), basketball and cleated styles with a growing roster of Olympians and elite athletes competing in its footwear.
“We believe there are significant opportunities to build on our technical performance business,” Greenberg said.
Skechers raised its full-year outlook from its previous July forecast. It now expects sales between $8.925 and $8.975 billion and diluted earnings per share of between $4.20 and $4.25.
As of Sept. 30, Skechers had 592 domestic stores, 1,151 international stores and 3,589 distributor, licensee or franchise stores.
