Skechers Hits Historic Financial Milestone in Q1

Skechers Store Times Square, NYC
The Skechers store at Times Square in NYC.
Courtesy of brand.

With help from its booming international business, Skechers USA Inc. has kicked off fiscal year 2017 on a high note.

The Manhattan Beach, Calif.-based casual footwear maker today announced that it logged its first billion-dollar quarter in Q1, with sales advancing 9.6 percent to hit $1.07 billion — which also topped market watchers’ bets for sales of $1.06 billion.

The company’s earnings, which dipped 3.7 percent year over year during the period, still came out on top of forecasts. Net earnings were $94 million, or 60 cents per diluted share. Analysts had predicted diluted earnings per share of 54 cents.

In 2005, we surpassed $1 billion in annual sales, and now less than 12 years later, we had our first $1 billion-plus in quarterly sales,” Skechers CEO Robert Greenberg reflected in a statement this afternoon. “The key to our success then and now is the drive, dedication and talent of the many people behind this great brand.”

Skechers COO and CFO David Weinberg credited much of the firm’s success in the quarter to its burgeoning international business.

Skechers’ international business, including retail, grew to 51.3 percent of our total sales in the first quarter due to the strength of our brand in numerous markets,” Weinberg said. “While we see opportunities in the United States to increase our business, we believe international markets continue to present the strongest opportunity for growth. To meet this growth in our international business, we continue to invest in our infrastructure and marketing to support the current and planned global expansion.”

Weinberg said the company experienced double-digit increases in its international distributor and subsidiary/joint venture businesses, as well as in its global company-owned Skechers retail stores.

Looking ahead, the company said it expects to see net sales in the second quarter in the range of $950 million to $975 million, and earnings per share in the range of 42 cents to 47 cents. This projection includes flat to slightly positive sales increases in the company’s domestic wholesale business, and increases in its international business and company-owned retail stores.

As of 4:30 p.m. ET, Skechers shares edged up 1.3 percent, to $26.50, in after-market trading.