Skechers Q3 Profit Declines, Sales Increase

Skechers Q3 Profit Declines, Sales Increase
A Skechers retail store.

Skechers USA Inc. saw its third-quarter net earnings slip amid the soft economy, but the firm still pulled out a slight increase in quarterly revenues.

The Manhattan Beach, Calif.-based firm said Wednesday after the close of the stock market that earnings totaled $24.5 million, or 52 cents a diluted share, compared with a profit of $28.3 million, or 60 cents, a year ago. Skechers easily beat out the expectations from analysts, who had predicted EPS of 35 cents.

Revenues rose to $405.4 million, also surpassing analysts’ estimates for $384.8 million, from $403.2 million the prior year.

“Our improved performance was driven by sales growth in the high single digits in our international business, and double-digit improvements in our retail channel,” COO David Weinberg said in a statement.

“Our margins also improved meaningfully in the third quarter due to [fewer] closeouts and clean, in-line inventory.”

Robert Greenberg, CEO, added: “The reaction by consumers to our fall product has been exceptional. We are hearing extremely positive reports and strong feedback from both our domestic and international accounts, and from retail stores across the U.S. and abroad.”

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