Skechers ups full-year outlook amid ‘robust demand’ and strong Q2 sales
Skechers reported record sales for its second quarter, which marked the 25th anniversary of its initial public offering.
The California-based footwear company’s sales rose 7.2% to $2.16 billion in the quarter ended June 30. The total included a 6.9% increase internationally and a 7.7% increase domestically. (On a constant currency basis, sales increased 8.7%.)
Skechers' direct-to-consumer sales increased 9.2% and wholesale increased 5.5%. Direct-to-consumer volume increased 10.2% and average selling price decreased 1.0%.
The company noted that its international sales increases were noteworthy, citing substantial headwinds from foreign currency, a lackluster 6-18 [sale event] in China, and supply chain disruptions related to the Suez Canal crisis.
Net earnings totaled $140.3 million, with earnings per share of $0.91, compared with prior year net earnings of $152.8 million and earnings per share of $0.98.
“In the face of significant operational and foreign exchange headwinds, Skechers delivered meaningful sales growth during the quarter, demonstrating the strength of our brand as the comfort technology leader,” stated John Vandemore, CFO of Skechers. “Demand for our innovative and diverse product portfolio remains robust, leading us to raise both sales and earnings expectations for the full year. We remain committed to and confident of achieving our long-term target of $10 billion in sales by 2026 and, with a new $1 billion share repurchase authorization, continuing to return cash to shareholders in a disciplined manner.”
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For fiscal year 2025, Skechers expects sales to range between $8.875 and $8.975 billion and earnings per share between $4.08 and $4.18. In the third quarter, Skechers is targeting sales between $2.30 and $2.35 billion and diluted earnings per share between $1.10 and $1.15.
“We are extremely encouraged by the demand for Skechers product as demonstrated in second half orders, which has led us to raise our full-year outlook for sales and earnings,” said COO David Weinberg. “As we look to the remainder of the year and beyond, we remain focused on enhancing our global infrastructure, managing inventory levels, and driving efficiencies to achieve profitable growth.”
Skechers' products are available in 180 countries and territories through department and specialty stores, and direct to consumers through approximately 5,200 Skechers retail stores and digital stores.
