First quarter sales at Skechers increased 10 percent as a result of a 21.1 percent increase internationally and a 4.8 percent decrease domestically. Both segments experienced growth, with direct-to-consumer increasing 24.5 percent and wholesale increasing 3.5 percent. On a constant currency basis, sales increased 13.3 percent.
The company said, wholesale sales growth of 43.3 million dollars or 3.5 percent includes increases in EMEA of 20.1 percent and APAC of 24.1 percent, partially offset by a decrease in AMER of 13.2 percent.
Direct-to-consumer sales growth of 139 million dollars or 24.5 percent includes increases in AMER of 28.6 percent, APAC of 17.9 percent, and EMEA of 29.5 percent.
“Our first quarter 2023 marks a new milestone with quarterly sales of over 2 billion dollars. Our record sales, expanded gross margins of 48.9 percent and meaningfully improved inventory levels are an indication of the strength of our comfort technology products and impactful marketing worldwide. With plans to reach 10 billion dollars in annual sales by 2026, we couldn’t be more positive about the many meaningful growth opportunities we see ahead,” said David Weinberg, chief operating officer of Skechers in a release.
The company’s gross margin was 48.9 percent, an increase of 360 basis points. Earnings from operations increased 47.7 million dollars or 27.1 percent to 223.6 million dollars. Net earnings were 160.4 million dollars and diluted earnings per share were 1.02 dollars compared with prior year net earnings of 121.2 million dollars and diluted earnings per share of 77 cents.
For the second quarter of 2023, the company believes it will achieve sales between 1.85 billion dollars and 1.90 billion dollars and diluted earnings per share of between 40 cents and 50 cents. Further, the company believes that for the fiscal year 2023, it will achieve sales between 7.9 billion dollars and 8.1 billion dollars and diluted earnings per share of between 3 dollars and 3.20 dollars.