Skechers shares are up more than 16 percent in after-hours trading after the Manhattan Beach, Calif.-based company announced fourth-quarter sales of $1.08 billion — bringing its total annual revenue to $4.64 billion, its biggest year yet.
The brand has seen a fresh wave of fashion relevance in the past year thanks to its on-trend heritage D’Lites collection, which CEO Robert Greenberg called out as a best-selling style.
Most importantly, though, the company has made strategic investments to capture international market share, and saw double-digit growth in each of its international businesses — company-owned retail, distributor, subsidiary and joint venture — as well as single-digit growth in domestic wholesale and retail.
“In 2018, we also shipped a record number of pairs from our distribution centers across South America, North America, Japan and Europe, which is a testament to the strength of our global operations and the breadth of our international sales, which represented 54 percent of our total business for the year,” said Skechers COO David Weinberg in a statement.
The company reported diluted earnings per share of 31 cents a share, blowing past the consensus estimate of 23 cents. Its earnings from operations increased 50.4 percent to $83.7 million.
Despite macroeconomic headwinds in China and Europe, Skechers sees its international business as its “most significant growth opportunity,” said Greenberg. To that end, it recently took control of its India business (formerly a joint venture) and launched an e-commerce platform in the country. It also established a joint venture with its distribution partner in Mexico, improved the functionality of its e-commerce sites in China and the U.S. and began construction on a new distribution center in China.
Finally, at home, it broke ground on an expansion of its headquarters that will more than double its footprint by 2022.