Skechers’ second-quarter revenue grew 7.2 percent to $2.16 billion, with a 6.9 percent gain abroad and a 7.7 percent increase domestically. Sales climbed by 8.7 percent in constant currency terms.
The business estimates sales to be between 2.30 and 2.35 billion dollars in the third quarter of 2024, with diluted profits per share between 1.10 and 1.15. It predicts sales of 8.875 to 8.975 billion dollars and diluted earnings per share of 4.08 to 4.18 dollars in fiscal year 2024.
“Skechers achieved a new second-quarter sales record of 2.16 billion dollars, driven by the strong demand for our diverse portfolio of comfortable and innovative footwear,” said David Weinberg, Skechers’ chief operating officer.
According to a press announcement, wholesale sales climbed by 59.1 million dollars, or 5.5 percent, with increases of 10.3 percent in AMER and 3.9% in EMEA, which were substantially offset by a 2.6% decline in APAC.
Direct-to-consumer sales rose by 86 million dollars, or 9.2 percent, in the second quarter, with increases in EMEA of 40.6%, AMER of 4.1 percent, and APAC of 5.8 percent.
Gross margin for the quarter was 54.9 percent, up 220 basis points; earnings from operations fell 11.2 million dollars, or 5.1 percent, to 206.5 million dollars.
Net earnings fell to 140.3 million dollars, while diluted earnings per share were 91 cents.
“This quarter marks the 25th anniversary of our initial public offering. As we commemorated this occasion, we also generated record second-quarter sales and strengthened our position as the world’s third largest athletic footwear brand by continuing to provide comfortable and creative footwear around the world,” said Robert Greenberg, the company’s CEO.
The company’s year-to-date revenues rose 9.8 percent to 4.4 billion dollars, with an 11.1 percent gain in overseas sales and a 7.8 percent increase domestically. Sales climbed by 11% in constant currency.
Wholesale sales climbed by 186.2 million dollars, or 7.9 percent, owing to growth of 8% in AMER, 8.4% in EMEA, and 6.7% in APAC.
Direct-to-consumer sales increased by 208.6 million dollars, or 12.7 percent, thanks to improvements in EMEA of 48.3 percent, APAC of 10.7 percent, and AMER of 6.8 percent.
Gross margin was 53.7 percent, up 290 basis points; earnings from operations increased 64 million dollars to 505.3 million dollars, resulting in an operating margin of 11.5 percent; and net earnings were 346.9 million dollars, with diluted earnings per share of 2.24 dollars, a 12% increase over the previous year.
