Skechers USA Inc.’s sales continued to shape up in the third quarter, but its earnings fell way short of analysts’ estimates.
Net income for the quarter ended Sept. 30 surged nearly 50 percent to $36.4 million, compared with $24.5 million in the same period a year ago, the company said Wednesday. Earnings per share were 74 cents, up on last year’s 52 cents.
Net revenue totaled $554.6 million, up 37 percent from $405.4 million.
But analysts were expecting EPS of $1.02, on revenue of $572.2 million, as polled by Yahoo Finance.
The 18-year-old, Manhattan Beach, Calif.-based firm said its net sales were a quarterly record and reflected “continued demand for [its] diverse product offering, [which] resulted in growth across [its] domestic and international wholesale and retail channels.” Without providing figures, the firm added the toning category was also still growing.
“We just finished … our best back-to-school season. Our kids’ business continued to grow strongly, supported by commercials featuring our well-known cast of animated characters, and we continued to dominate the toning category with a 55 percent share of the U.S. market, according to SportsOneSource in September,” said Robert Greenberg, CEO of Skechers.
Operating expenses rose 31 percent to $199 million, from $151.7 million, in the quarter.
“We are now evaluating our expense structure to ensure our expenditures will be in line with the current sales trend,” said David Weinberg, the firm’s COO and CFO. “Based on our double-digit backlogs, strong sell-throughs and positive comps in our retail stores … we believe our momentum will continue.”
As of Sept. 30, Skechers’ cash balance stood at $248.8 million, down from $265.7 million a year ago. Its accounts payable increased 18 percent to $231.5 million.