- Prachi Singh |
For the first quarter ending March 31, 2018, sales at Skechers USA Inc grew 16.5 percent as a result of a 17.9 percent increase in the company’s international wholesale business, an 8.5 percent increase in the company’s domestic wholesale business, and a 26.4 percent increase in its company-owned global retail business. Comparable same store sales in company-owned stores worldwide increased 9.5 percent, including 7.0 percent in the United States and 17.6 percent internationally, as compared to the first quarter of 2017.
“What a way to start 2018,” said Robert Greenberg, Skechers CEO in a statement, adding, “We truly felt 2017 was a banner year, but yet again we surpassed our expectations and hit a new quarterly sales record. We’re looking forward to the remainder of our spring deliveries, and sharing our results as we move through the rest of 2018.”
Highlights of Skechers’ Q1 results
The company said, gross margins in the first quarter increased due to strength in the company’s international subsidiary and company-owned international retail businesses. Earnings from operations increased 24.4 million dollars or 19.6 percent and net earnings were 117.7 million dollars and diluted earnings per share were 0.75 dollar. The benefit of discrete tax items to the company’s diluted earnings per share was approximately 0.07 cents per share.
“During the first quarter, our North American Distribution Center experienced a record month for shipment volume, a testament to the strength in our wholesale and retail businesses in the United States and Canada. Further, our European Distribution Center experienced a record quarter for shipment volume, an indication of the strength of our operations in that region. Our international subsidiary and joint venture businesses are driving our growth with a combined quarterly increase of 25.7 percent, and there are now 2,197 company-owned or third-party Skechers stores outside the United States,” added added David Weinberg, COO of Skechers.
For the second quarter of 2018, the company expects to achieve sales in the range of 1.120 billion dollars to 1.145 billion dollars, and diluted earnings per share of 0.38 dollar to 0.43 dollar. The estimated quarterly sales, Skechers added, includes an expected shift in shipments from the second quarter to the back half of the year for several key international distributors and domestic accounts. Based on current expectations, the company continues to anticipate that its 2018 annual tax rate will be in the range of 12 percent to 17 percent.