Skechers, the renowned footwear brand, proudly reports exceptional financial results for the third quarter, marked by record-breaking revenues totaling $2.02 billion, showcasing a remarkable 7.8% surge. This impressive performance is attributed to the brand’s consistent expansion in both domestic and international markets.
Globally, the Los Angeles-based company experienced an impressive 8.6% rise in sales, while domestically, it achieved a substantial 6.5% increase.
In terms of sales channels, wholesale sales witnessed a slight decline of 1.4%, primarily due to decreases in EMEA by 8.3% and Americas by 0.5%. However, this was partially offset by an encouraging increase in APAC by 7.1%. Although wholesale volume decreased by 10.8%, the average selling price demonstrated a substantial growth of 10.3%.
The dip in wholesale sales was significantly outweighed by the extraordinary growth in direct-to-consumer sales, which saw an impressive surge of 23.8%. This surge was observed across the Americas (17.3%), APAC (24.2%), and EMEA (60.8%). The direct-to-consumer volume also saw a noteworthy increase of 18.8%, with the average selling price showing a considerable growth of 4.3%.
The company reported net earnings of $145.4 million, with diluted earnings per share at $0.93. In comparison, the prior year saw net earnings of $85.9 million and diluted earnings per share of $0.55, as highlighted in the company’s trading update.
David Weinberg, the Chief Operating Officer of Skechers, expressed his contentment with the company’s performance, underscoring the strong demand for their brand. He emphasized that all regions experienced growth, particularly highlighting the 7% growth in the United States, driven by the robust performance of their direct-to-consumer channel, and the remarkable 18% growth in China within the Asia Pacific region. Weinberg also emphasized the significant reduction in the company’s inventory levels and the robust gross margin, standing at 52.9%. He concluded by expressing confidence in the brand’s strength and the continued execution of Skechers’ long-term growth strategy.
In recent news, Skechers unveiled its inaugural basketball collection, featuring New York Knicks power forward Julius Randle and Los Angeles Clippers shooting guard Terance Mann.
