Shares for Skechers USA Inc. are surging in after hours trading — up more than 20 percent, to $28.84 as of 4:30 p.m. ET — on the heels of a blockbuster earnings beat.
The casual athletic brand produced third-quarter profit growth of 42 percent, to $92.3 million, or 59 cents per diluted share, besting market watchers’ forecast for diluted EPS of 43 cents.
With significant help from a booming international business — the segment represented 53 percent of Skechers’ revenues in the third quarter — the company said its total sales climbed 16.2 percent year-over-year, to $1.1 billion, which was roughly in line with analysts’ bests.
More specifically, sales in the company’s international wholesale business rose 25.7 percent; gained 18.6 percent in the company-owned global retail business and 1.4 percent in the domestic wholesale business. Overall, comp store sales gained 4.4 percent.
Skechers also pointed out that the increase in its company-owned retail business, which included sales growth of 9.5 percent in its domestic channel and a domestic comp store sales increase of 3.1 percent, came despite temporary store closures in Texas and Florida, and continued store closures in Puerto Rico due to the recent hurricanes.
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“With innovation and commitment at the forefront of our efforts, we are supporting our [employees] and their growth in the United States and around the world,” said CEO Robert Greenberg in a release. “It’s those teams that set us apart, working behind the scenes and on the front lines to deliver product rich in style and comfort to our customers. Achieving three record quarters of net sales in 2017, as well as annual record net sales in 2016, is a testament to the power of our team and the brand.”
While international has been a tremendous bright spot for Skechers, Greenberg said the domestic side of the business had its share of highlights in the quarter including a strong back-to-school performance — led by double-digit sales increases in Skechers Kids footwear.
Looking ahead, the company predicts net sales in the fourth quarter in the range of $860 million to $885 million, and diluted earnings per share of 9 cents to 14 cents.