Skechers reports strong Q2 results, sales increase by 7.2 percent

Second quarter sales at Skechers increased 7.2 percent to 2.16 billion dollars as a result of a 6.9 percent increase internationally and a 7.7 percent increase domestically. On a constant currency basis, sales increased 8.7 percent.

For the third quarter of 2024, the company expects to achieve sales between 2.30 and 2.35 billion dollars and diluted earnings per share between 1.10 dollars and 1.15 dollars. For the fiscal year 2024, it expects to achieve sales between 8.875 and 8.975 billion dollars and diluted earnings per share of between 4.08 dollars and 4.18 dollars.

“Skechers achieved a new second quarter sales record of 2.16 billion dollars driven by the strong demand for our diverse portfolio of comfortable and innovative footwear,” said David Weinberg, chief operating officer of Skechers.

Highlights of Skechers Q2 results

The company said in a release that wholesale sales grew 59.1 million dollars or 5.5 percent, including increases in AMER of 10.3 percent and EMEA of 3.9 percent, partially offset by a decrease in APAC of 2.6 percent.

Direct-to-consumer sales grew 86 million dollars or 9.2 percent in the second quarter, including increases in EMEA of 40.6 percent, AMER of 4.1 percent and APAC of 5.8 percent.

Gross margin for the quarter was 54.9 percent, an increase of 220 basis points, earnings from operations decreased 11.2 million dollars or 5.1 percent to 206.5 million dollars.

Net earnings decreased to 140.3 million dollars and diluted earnings per share were 91 cents.

“This quarter marked the 25th anniversary of our initial public offering. As we celebrated this event, we also achieved record second quarter sales and further solidified our position as the third largest athletic footwear company in the world by continuing to deliver comfortable, and innovative footwear worldwide,” added Robert Greenberg, the company’s CEO.

Skechers H1 sales increase 9.8 percent

The company’s year-to-date sales increased 9.8 percent to 4.4 billion dollars, reflecting an 11.1 percent increase in international sales and a 7.8 percent increase domestically. On a constant currency basis, sales increased 11 percent.

Wholesale sales increased 186.2 million dollars or 7.9 percent, due to increases in AMER of 8 percent, EMEA of 8.4 percent and APAC of 6.7 percent.

Direct-to-consumer sales grew 208.6 million dollars or 12.7 percent, due to increases in EMEA of 48.3 percent, APAC of 10.7 percent and AMER of 6.8 percent.

Gross margin was 53.7 percent, an increase of 290 basis points, earnings from operations increased 64 million dollars to 505.3 million dollars, resulting in an operating margin of 11.5 percent and net earnings were 346.9 million dollars with diluted earnings per share of 2.24 dollars, an increase of 12 percent over the prior year.