Skechers Posts Another Street Blowout in Q2

Skechers USA Inc. is unstoppable.

For the second quarter, ended June 30 2015, the firm posted revenue gains of 36 percent and obliterated Wall Street’s estimates for earnings per share posting $1.55 for the quarter. And now the firm’s share price is soaring in unison with the massive beat, up more than 12 percent in after hours trading.

With solid momentum in the casual athletic space and superstar musicians and athletic endorsers like Meghan Trainor, Sugar Ray Leaonard and Demi Lovato driving unprecedented interest in the brand, Skechers CEO Robert Greenberg said the firm is in the midst of “the most exciting time” in its 23-year history.

The CEO said that while domestic wholesale remains the largest piece of the firm’s business at 42 percent, the highest channel increase in the second quarter came from the international segment, which improved by 60 percent and now represents 30 percent of Skechers’ total sales. The firm also saw a total comp store sales increase of 12.9 percent across its domestic and international retail stores.

The company has already logged $1.57 billion in sales for the first half of 2015.

Net Income: Net earnings in the second quarter of 2015 were $79.8 million compared to net earnings of $34.8 million for the second quarter of 2014, a 130 percent gain.

EPS: Earnings per diluted share rose by 87 cents year-over-year to $1.55, from 68 cents in the same year-ago quarter.

Net Revenue: Q2 net sales were $800.5 million compared to $587.1 million in the same year-ago quarter, a 36 percent increase.

Hit, Miss or Beat: Skechers substantially beat Wall Street’s estimates for earnings and EPS. Analysts polled by Yahoo Finance had predicted EPS of $1.01 and revenues of $736.4 million.

Executive Insights: “The demand for Skechers footwear in markets worldwide continues, and we are excited for several new product introductions coming later this year—including Star Wars from Skechers shoes for boys and men, along with some developments in our Skechers Performance and athletic lifestyle divisions. We believe that our accelerated growth trend will remain through 2015 and into 2016.” – Robert Greenberg, in a statement

“Driving [our] growth were double-digit increases in our three main business channels: domestic wholesale with an average price per pair increase of 9.0 percent; international wholesale, which includes 665 third-party-owned Skechers retail stores; and company-owned Skechers domestic and international retail stores with a total comp store sales increase of 12.9 percent for the quarter … the second quarter benefitted from both pent up demand resulting from U.S. port issues in the first quarter as well as a shift in back-to-school shipments due to increased demand in both domestic and international markets. Our international subsidiary business also remained strong with double-digit increases despite currency headwinds in several key markets.”  –David Weinberg, Skechers’ COO and CFO, in a release.

Looking Ahead: Weinberg said the company remains “comfortable with the analysts’ current consensus estimates for the back half of 2015.”

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