Skechers USA Inc. is adding another Wall Street beat to its books.
The Manhattan Beach, Calif.-based footwear brand said today that its first quarter net income climbed 74 percent to $97.6 million, or 63 cents per diluted share, compared with earnings of $56.1 million, or 37 cents per diluted share in the prior year’s period. It was a significant beat on Wall Street’s forecast for diluted earnings per share of 54 cents.
Revenues also gained 27.4 percent to $978.8 million, from $768 million in the same period last year. Those results surpassed market watchers’ forecasts, for revenues of $917.3 million, by more than $60 million.
“2016 marks Skechers’ 24th year in business and we couldn’t be more pleased to start 2016 with record quarterly revenues just shy of the billion dollar mark,” said Skechers CEO Robert Greenberg in a release. “By remaining focused on our product, building on our proven sellers — like our colorful and comfortable Skechers Sport collection and our vast array of Skechers Gowalk footwear — and introducing new designs, including a retro sport line that global singing sensation Meghan Trainor is wearing in her new Skechers campaign, we continue to innovate and further develop our global brand.”
Skechers COO and CFO David Weinberg said international, for the first time in the company’s history, has become the company’s largest segment with international wholesale representing 42.9 percent and international wholesale and retail representing 47.7 percent of total sales.
“To meet the increased [international] demand, we are investing in our infrastructure, including improved efficiencies in our European Distribution Center, which allowed us to achieve a record three million pairs shipped in a month during February,” Weinberg said. “With the completion of our European Distribution Center expansion to one million square feet in the second quarter of 2016, and with the automation to be fully completed later this year, we expect to be even more efficient in our largest market outside of the United States.”
Weinberg said the brand’s domestic wholesale sales increased 12.1 percent and company-owned retail sales increased by 23.2 percent with a 9.8 percent comp store sales increase over the prior year period.
Looking ahead, Weinberg said he expects second quarter net sales to be between $875 million and $900 million.
“Our first and third quarter net sales have the potential to become larger relative to the net sales balance of the other quarters as our international business becomes a greater percentage of our total net sales,” Weinberg added. “We therefore believe there could be upside opportunity for the third quarter of 2016 and the balance of the year.”