Skechers reports Q1 net sales rise of 40.5 percent

Skechers USA for the first quarter ended March 31, 2015, reported net sales of 768 million dollars compared to 546.5 million dollars in the first quarter of 2014, an increase of 40.5 percent. Gross profit was 332.5 million dollars, or 43.3 percent of net sales, compared to 240.4 million dollars, or 44 percent of net sales in the first quarter of 2014. Earnings from operations were 88.2 million dollars, or 11.5 percent of net sales, compared to net earnings from operations of 48.2 million dollars, or 8.8 percent of net sales, for the first quarter of 2014.

“Skechers’ first quarter net sales of 768 million dollars mark the highest quarterly revenues in the company’s history. The net sales growth of 40.5 percent, is attributable to the continued strong demand for our lifestyle, performance and kids’ footwear from both our customers and consumers around the world,” said David Weinberg, Chief Operating Officer and Chief Financial Officer.

“The sales results are attributable to double-digit increases in our domestic and international wholesale businesses, and our worldwide company-owned retail business, as well as single-digit increases in our ecommerce business. Additionally, for the quarter, our total company-owned retail store comps were up over nine percent and our domestic wholesale business saw an average price per pair increase of 1.27 dollars or 5.9 percent,” added Weinberg.

Net earnings in the first quarter were 56.1 million dollars compared to net earnings of 31 million dollars for the first quarter of 2014. Net earnings per diluted share were 1.10 dollars based. Robert Greenberg, Skechers Chief Executive Officer, commented, “Having just achieved a new annual sales record of 2.4 billion dollars in 2014, we expected the momentum to continue into 2015. Now, more than ever, we are seeing many of the same products resonating across six continents, and quickly leveraging the success we are experiencing in the United States to global markets. This resulted in international sales growth of 59 percent in the first quarter, which comprised 37 percent of our total sales for the quarter, bringing us closer to our goal of international sales representing 50 percent of our business.”

Skechers stores, at 1,063 at quarter-end—including 610 international locations owned by distributors or franchisees, continue to be an important part of the company’s brand building and growth strategy, and it expects to grow the total Skechers store base to approximately 1,250 by year-end 2015. With the demand for our key product initiatives in the United States, Asia, Europe, the Middle East and South America remaining very high, Skechers believes the growth momentum will continue in 2015.