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Strong wholesale growth drives Skechers Q2 results

By Prachi Singh

Jul 27, 2022

Management

Image: Skechers

Second quarter sales at Skechers USA increased 12.4 percent as a result of a 15.4 percent increase in domestic sales and a 10 percent increase in international sales, driven by strength in wholesale sales.

“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” said Robert Greenberg, chief executive officer of Skechers in a statement.

Skechers posts strong wholesale and DTC sales growth in Q2

The company said, all segments experienced growth, with wholesale increasing 18.3 percent and direct-to-consumer increasing 4.3 percent. On a constant currency basis, sales increased 16.4 percent.

Wholesale sales growth of 176.1 million dollars or 18.3 percent, was led by increases in AMER of 34.9 percent. Wholesale volume increased 14.8 percent and average selling price increased 3.1 percent.

Direct-to-consumer sales growth of 29.8 million dollars or 4.3 percent, was led by increases in AMER of 3.7 percent, EMEA of 13.5 percent and APAC of 2.7 percent. Direct-to-consumer average selling price increased 5.3 percent.

Gross margin was 48.1 percent, a decrease of 330 basis points. Earnings from operations decreased 47.0 million dollars or 23.4 percent to 154.2 million dollars. Net earnings were 90.4 million dollars and diluted earnings per share were 58 cents, a decrease of 34.1 percent over the prior year.

“Skechers achieved a new quarterly sales record of 1.87 billion dollars, a significant accomplishment especially given the macroeconomic headwinds, supply chain issues and Covid-related restrictions in China during the period,” added David Weinberg, chief operating officer of Skechers.

Skechers H1 sales increase 19.1 percent

The company’s year-to-date sales increased 19.1 percent reflecting a 21.4 percent increase in domestic sales and a 17.3 percent increase in international sales with the largest contribution derived from wholesale sales.

Both segments experienced increases, with wholesale increasing 25.4 percent and direct-to-consumer increasing 9 percent. On a constant currency basis, the company’s total sales increased 22.1 percent.

The company said that wholesale sales growth of 484.3 million dollars or 25.4 percent was led by increases in AMER of 38.2 percent and EMEA of 24 percent. Wholesale volume increased 18.8 percent and average selling price increased 5.9 percent.

Direct-to-consumer sales growth of 106.8 million dollars or 9 percent was led by increases in AMER of 6.8 percent, EMEA of 44.2 percent and APAC of 5.3 percent. Direct-to-consumer average selling price increased 9.4 percent.

Gross margin was 46.7 percent, a decrease of 300 basis points. Earnings from operations decreased 28.8 million dollars to 330.1 million dollars, while net earnings were 211.6 million dollars and diluted earnings per share were 1.35 dollars, a decrease of 10.6 percent over the prior year.

Skechers reveals Q3 and FY22 outlook

For the third quarter of 2022, the company expects to achieve sales between 1.80 billion dollars and 1.85 billion dollars and diluted earnings per share of between 70 cents and 75 cents.

The company believes that for the fiscal year 2022, it will achieve sales between 7.2 billion dollars and 7.4 billion dollars and diluted earnings per share of between 2.60 dollars and 2.70 dollars.

Skechers