Skechers Credits Wholesale Growth for Record Q2 Sales

Skechers posted record sales in the second quarter of 2022 on Tuesday despite the macroeconomic headwinds, supply chain issues and COVID-related restrictions in China during the period.

The Los Angeles-based footwear brand reported on Tuesday that it reached $1.87 billion in sales in Q2, a 12.4% increase from the same time last year. According to Skechers COO David Weinberg, the growth was the result of a 15.4% increase in domestic sales and a 10.0% increase in international sales, primarily driven by strength in wholesale sales. Growth was also driven by sales increases of 21% in the Americas and 8% in EMEA, Weinberg said. In APAC, where sales were flat due to COVID-related restrictions in China, Skechers saw strong growth in most other markets, particularly in India, South Korea and Malaysia.

In wholesale specifically, sales grew $176.1 million, or 18.3%, in the second quarter. This was led by a 34.9% increase in the Americas region. Skechers’ direct-to-consumer segment saw growth of $29.8 million, or 4.3%.

“During the quarter, we focused on delivering our in-demand footwear direct to consumers and through our wholesale partners globally,” Weinberg said. “While we remain cautious given the challenges across the globe, we believe our comfort technology footwear, impactful marketing and the strength of our brand will drive continued sales growth in the back half of the year.”

Despite these gains, Skechers did note that net earnings were down in the quarter. Net earnings were $90.4 million and diluted earnings per share were $0.58, a decrease of 34.1% over the prior year, the footwear brand reported. Skechers noted that diluted earnings per share include an unfavorable impact of $0.11 due to declines in foreign exchange rates, primarily in EMEA.

“2022 is shaping up to be another remarkable year for Skechers with two consecutive record sales quarters, the result of our talented team’s passion, determination and execution to evolve our product offering, inform the world of our exceptional comfort technologies, and effectively navigate the supply chain constraints,” Robert Greenberg, CEO of Skechers, said in a statement on Tuesday.

“This, our 30th year in business, is our strongest year yet from a sales, marketing and product perspective,” Greenberg added. “We are in a unique position as a brand that delivers on comfort technology, style, innovation and quality with a global reach that includes 4,355 Skechers stores. As a company, we are determined to outdo ourselves and reach further heights as we strive to meet our customers’ needs.”

Looking ahead, Skechers believes it will achieve sales between $1.80 billion and $1.85 billion and diluted earnings per share of between $0.70 and $0.75 in the third quarter of 2022.

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