Skechers Q1 sales increase by 26.8 percent

First quarter sales at Skechers U.S.A., Inc. increased 26.8 percent as a result of a 28.7 percent increase in domestic sales and a 25.5 percent increase in international sales, primarily driven by strength in wholesale sales.

The company said in a release that both segments experienced increases, with wholesale increasing 32.7 percent and direct-to-consumer increasing 15.7 percent. On a constant currency basis, sales increased 28.7 percent.

“As we mark our third decade in business, we couldn’t be more excited about our future. In the first quarter, we achieved a new quarterly sales record, delivered the most innovative, stylish and comfortable product yet, and supported it with impactful marketing,” said Robert Greenberg, chief executive officer of Skechers.

Highlights of Skechers’ Q1 performance

The company’s wholesale sales growth of 308.2 million dollars or 32.7 percent, was led by increases in AMER of 41.6 percent and EMEA of 42 percent. Wholesale volume increased 22.7 percent and average selling price increased 8.6 percent.

The company added that direct-to-consumer sales growth of 76.9 million dollars or 15.7 percent, was led by increases in EMEA of 157.3 percent, which lapped Covid restrictions in the prior year, AMER of 11.2 percent and APAC of 8.5 percent. Direct-to-consumer average selling price increased 15.1 percent resulting from reduced promotions and higher prices.

Gross margin was 45.3 percent, a decrease of 250 basis points, while earnings from operations increased 18.2 million dollars or 11.6 percent to 175.9 million dollars. Net earnings were 121.2 million dollars and diluted earnings per share were 77 cents, an increase of 22.2 percent over the prior year.

For the second quarter of 2022, the company believes it will achieve sales between 1.75 billion dollars and 1.80 billion dollars and diluted earnings per share of between 50 cents and 55 cents. Further, the company believes that for the fiscal year 2022, it will achieve sales between 7.2 billion dollars and 7.4 billion dollars and diluted earnings per share of between 2.75 dollars and 2.95 dollars.