Skechers reports jump in Q2 sales and profit

Skechers USA reported that its second quarter 2015 net sales were 800.5 million dollars compared to 587.1 million dollars for the second quarter of 2014. Gross profit was 374.6 million dollars, or 46.8 percent of net sales, compared to 269.4 million dollars, or 45.9 percent of net sales, for the second quarter of last year. Earnings from operations were 112.3 million dollars, or 14 percent of net sales, compared to net earnings from operations of 53.8 million dollars, or 9.2 percent of net sales for the second quarter of 2014.

“The continued strong demand for our product worldwide led to record quarterly financial results for the second quarter—including net sales, earnings from operations and earnings per share. Our second quarter net sales of more than 800 million dollars combined with record sales in the first quarter resulted in the company achieving 1.57 billion dollars in sales for the first half of 2015,” said David Weinberg, Chief Operating Officer and Chief Financial Officer.

For the six months ended June 30, 2015, net sales were 1.57 billion dollars compared to net sales of 1.13 billion dollars in the first six months of 2014. Gross profit was 707.1 million dollars, or 45.1 percent of net sales, compared to 509.8 million dollars, or 45 percent of net sales, for the first six months of 2014. Earnings from operations were 200.5 million dollars, or 12.8 percent of net sales, compared to earnings from operations of 101.9 million dollars, or 9 percent of net sales, for the first six months of 2014.

While domestic wholesale remains the largest piece of its business at 42 percent, the highest channel increase in the second quarter came from the international segment, which improved by 60 percent and now represents 30 percent of the total sales. With 1,126 Skechers retail stores worldwide, including the new markets of Czech Republic, Nigeria and Alaska, the company is expanding its global footprint steadily with additional Skechers stores already opened in the third quarter by its international distribution partners in Russia, Australia, Taiwan and Ireland, a joint venture store in India, and another six domestic and international company-owned stores.

“With increased year-over-year backlogs at the end of June, strong incoming order rates and July sales, as well as the positive sell-through reports from wholesale and an additional 125 to 135 company-owned and third-party-owned Skechers retail stores planned to open later this year, we believe that we will continue to achieve new sales and profit records through 2015. With 513.9 million dollars in cash, inventories in line with sales, and improved efficiencies and capacity in both our North American and European distribution centers, we believe we are well prepared for our planned growth,” added Robert Greenberg, Chief Executive Officer of Skechers.