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Skechers first quarter sales improve 15 percent

By Prachi Singh

23 Apr 2021

Business

Skechers, Facebook

First quarter sales at Skechers USA increased 15 percent as a result of a 20.2 percent increase in the company’s international sales and an 8.5 percent increase in domestic sales. On a constant currency basis, the company’s total sales increased 11.7 percent.

“Skechers new sales record in the first quarter is a remarkable achievement, especially given the lockdown measures in many key countries, including across Europe,” said Robert Greenberg, chief executive officer of Skechers.

Skechers Q1 sales increase

The company said in a statement that increases in international sales were driven by wholesale. Domestic sales increases were driven by direct-to-consumer, including e-commerce growth of 143 percent, partially offset by a slight decline in wholesale.

The company’s international wholesale sales increased 23.8 percent and direct-to-consumer sales increased 18.1 percent, offset by a domestic wholesale sales decrease of 0.9 percent.

The company added that increases in the company’s international wholesale segment were driven by growth in China of 174.4 percent, partially offset by declines in Europe of 8.1 percent and a 6.5 percent decline in distributor sales.

Direct-to-Consumer comparable same store sales increased 10.2 percent, driven by an increase of 25.7 percent domestically, partially offset by a decrease of 27.4 percent internationally.

Skechers posts robust growth in operating earnings

Gross margin for the quarter increased 350 basis points to 47.6 percent as a result of increased margins in both the international wholesale and direct-to-consumer segments.

The company further said that earnings from operations increased 112.9 million dollars or 252 percent to 157.7 million dollars, while net earnings were 98.6 million dollars and diluted earnings per share were 63 cents.

For the fiscal year 2021, the company believes it will achieve sales between 5.8 billion dollars and 5.9 billion dollars and diluted earnings per share of between 1.80 dollars and 2 dollars.

Further, the company believes that for the second quarter of 2021, it will achieve sales between 1.45 billion dollars and 1.50 billion dollars and diluted earnings per share of between 40 cents and 50 cents.