An 8.6% rise in international sales together with a 6.5% increase in domestic sales fuelled third-quarter sales growth at Skechers.
Wholesale sales decreased by 1.4% across channels, with Europe, Middle-East, and Africa (EMEA) and the Americas experiencing declines, partially offset by a drop in Asia Pacific (APAC) of 7.1%.
Skechers also notes a wholesale volume decrease of 10.8%, while the average selling price saw a rise of 10.3%.
The drop in wholesale figures was offset by an increase of 23.8% in direct-to-consumer sales, which included the Americas, where it increased by 17.3%, APAC with a 24.2% rise, and EMEA with a substantial 60.8% surge.
The volume of direct-to-consumer transactions grew by 18.8%, accompanied by a 4.3% increase in the average selling price.
“Our record third-quarter sales were the result of our continued innovation and determination to deliver comfort, style and quality in every pair,” said Robert Greenberg, CEO of Skechers.
“We believe our constant innovation to meet the needs of consumers from all walks of life—including professional athletes, and our impactful marketing will drive our success for years to come.”
Key results from Skechers third quarter sales:
- Net sales of $2.02bn, compared to $1.87bn the year before
- Operating income increased to $213.2m vs $130m a year earlier
- Net income also jumped 69% to $145m
In its trading update, the US brand said gross margin was 52.9%, an increase of 590 base points. Earnings from operations increased $83.2m to $213.2m, resulting in an operating margin of 10.5%.
Net earnings stood at $145.4m and diluted earnings per share were 93 cents, compared to a prior year’s net earnings of $85.9m and diluted earnings per share of 55 cents.
Skechers fourth-quarter outlook
For the fourth quarter of 2023, the company believes it will achieve sales between $1.91bn and $2.01bn and diluted earnings per share of between $0.40 and $0.50. For the full year 2023, sales are expected to be between $7.95bn and $8.05bn and diluted earnings per share of between $3.33 and $3.43.
David Weinberg, chief operating officer of Skechers added: “As we continue to focus on growing our international business, enhancing our Direct-to-Consumer presence and expanding our product offering, we remain confident in the strength of our brand and executing Skechers’ long-term growth strategy.”
