Skechers Beats Q4 Sales Estimates, Misses On Earnings

Skechers Beats Q4 Sales Estimates, Misses
Skechers flagship store in Manhattan Beach, Calif.
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It was another quarter of across-the-board gains for Skechers USA Inc., which reported fourth-quarter financials after market close Wednesday. The Manhattan Beach, Calif.-based company’s earnings per share, however, fell just one cent below Wall Streets estimates.

The company said its net income climbed 34.3 percent year-over-year, to $29.4 million, or 19 cents per diluted share. Market watchers had forecast EPS of 20 cents per share. Still, the firm pulled off a 27 percent gain in revenue, to $722.7 million, in the quarter, well above Wall Street’s forecast for sales of $693.5 million.

The fourth quarter growth was across our key product lines for men, women and kids, which led to high single-digit gains in our domestic wholesale business, and double-digit increases in our international wholesale and company-owned retail stores businesses. Also in the fourth quarter, our international business grew to 41 percent of our total sales, bringing it closer to our goal of 50 percent within the next two to three years,” said Skechers CFO and COO David Weinberg in a release.

The company reported that its inventories are up about 37 percent compared to the revenue gains of 27 percent. The current quarter is off to a solid start, Weinberg said — noting that January sales were up 35 percent while February had a “strong first week.” Backlogs were up 9.5 percent at the end of Q4.

Weinberg and Skechers CEO Robert Greenberg were upbeat on the brand’s overall results for fiscal 2015, pointing out that revenues hit $3.1 billion for the year.

Surpassing $3 billion in annual sales is a remarkable accomplishment and to achieve this growth across both our domestic and international businesses speaks to the global strength of the Skechers brand,” Greenberg said in a release. “In the United States, we are the number two footwear brand and the number one walking and work brand…. Our accelerated international growth is an indicator of the global acceptance of our product and marketing, which now includes icons Ringo Starr and Sugar Ray Leonard as well as pop superstars Demi Lovato and Meghan Trainor.”

Greenberg added that Skechers’ retail store count has also grown to more than 1,300 while the company plans to add 330 to 340 additional doors globally this year.

Looking at 2016, we plan to continue to grow worldwide and believe we will see strong double-digit and, in some cases, triple-digit gains in countries around the world,” Greenberg added.

Net earnings for fiscal 2015 were $231.9 million compared to $138.8 million in 2014. Diluted EPS for fiscal year 2015 was $1.50 compared to 91 cents in the prior year.