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Skechers sales improve driven by domestic and international growth

By Prachi Singh

29 Oct 2021

Business

Image: Skechers, Facebook

Third quarter sales at Skechers increased 19.2 percent as a result of a 20.1 percent increase in domestic sales and an 18.6 percent increase in international sales. On a constant currency basis, the company’s total sales increased 17.1 percent.

Commenting on the third quarter trading, Robert Greenberg, chief executive officer of Skechers said: “While we supported our business with pervasive advertising campaigns globally, we also focused on developing new products. Our accomplishments were many during the quarter—including remaining the third largest athletic footwear company in the world and achieving a new quarterly sales record for the period.”

Highlights of Skechers’ Q3 results

The company said in a release that sales grew across all segments with increases to domestic wholesale of 10.1 percent, international wholesale of 10.6 percent, and direct-to-consumer of 44.1 percent.

The company added that international wholesale increases were driven by growth of 61.9 percent in distributor sales, 10.0 percent in China, and 67.5 percent in India, partially offset by an 11 percent decline in our European subsidiaries. Direct-to-consumer comparable same store sales increased 31 percent, driven by an increase of 33.7 percent domestically and 25.1 percent internationally.

Gross margin increased 150 basis points to 49.6 percent, earnings from operations increased 54.1 million dollars to 146.2 million dollars, an increase of 58.7 percent, while net earnings were 103.1 million dollars and diluted earnings per share were 66 cents.

Skechers year-to-date sales up 41.7 percent

The company’s year-to-date sales increased 41.7 percent reflecting a 42.4 percent increase in domestic sales and a 41.2 percent increase in international sales with the largest contribution derived from international wholesale growth. On a constant currency basis, the company’s total sales increased 37.4 percent.

Sales grew across all segments with increases to domestic wholesale of 36 percent, international wholesale of 35.6 percent, and direct-to-consumer of 58.9 percent. International wholesale saw growth in China of 52.6 percent and Europe of 16.1 percent. Direct-to-Consumer comparable same store sales increased 45 percent, driven by an increase of 49.4 percent domestically and 33.4 percent internationally.

Gross margin increased 250 basis points to 49.6 percent, while earnings from operations increased 429.1 million dollars to 505.1 million dollars. Net earnings were 339.1 million dollars and diluted earnings per share were 2.17 dollars. For the fiscal year 2021, the company believes it will achieve sales between 6.15 billion dollars and 6.20 billion dollars and diluted earnings per share of between 2.45 dollars and 2.50 dollars. Further, the company believes that for the fourth quarter of 2021, it will achieve sales between 1.51 billion dollars and 1.56 billion dollars and diluted earnings per share of between 28 cents and 33 cents.