Shares for Skechers USA Inc. jumped nearly 10 percent in after-hours trading on Thursday following the company’s record third-quarter earnings.
The Manhattan Beach, Calif.-based footwear company reported Q3 sales of $2.35 billion, a 15.9 percent increase from $2 billion in the same period last year. Net earnings were $193.2 million and diluted earnings per share were $1.26, compared with prior-year net earnings of $145.4 million and diluted earnings per share of 93 cents.
These earnings came at the top of Skechers’ expectations. The company stated last quarter that it expected to see sales between $2.3 billion and $2.35 billion, with diluted earnings per share between $1.10 and $1.15 in Q3.
In the third quarter, international sales were up 16.4 percent and domestic net sales grew 15.3 percent. By channel, direct-to-consumer sales rose 9.6 percent to $81.3 million, and wholesale sales spiked 20.6 percent to $241.4 million. As of Sept. 30, Skechers said it had 592 domestic stores, 1,151 international stores and 3,589 distributor, licensee or franchise stores. Total store count at the end of Q3 was 5,332.
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Skechers chief operating officer David Weinberg said in a statement that strong consumer demand for the brand across all distribution channels resulted in this new quarterly sales record.
“With the growing awareness and broad acceptance of our comfort technology products by our partners and consumers, we believe each of these regions represent continued growth opportunities for Skechers,” Weinberg said. “We continue to invest in our operational capabilities and improve the customer experience, while meeting the increased global demand for our products and positioning Skechers for profitable growth now and in the future.”
Robert Greenberg, chief executive officer of Skechers, added that the company’s significant growth in the third quarter can be attributed to “offering the right product at the right price and ensuring availability at locations where consumers want to shop.”
“Raising awareness of our technologies, such as Skechers Hands Free Slip-ins, has been integral to our global growth,” Greenberg noted. “We achieve this through both technology-focused marketing campaigns and by leveraging our strong team of ambassadors and athletes.”
The CEO added that the company is in the early stages of team sports with the global rollout of Skechers court, football (soccer), basketball and cleated styles, supported by a growing roster of Olympians and elite athletes competing in Skechers footwear.
“We believe there are significant opportunities to build on our technical performance business,” Greenberg said. “While continued investment in product and marketing drove record quarterly sales, it is our commitment to deliver what consumers want that inspires us as we strive to bring innovation to people from all walks of life.”
Looking ahead, Skechers expects to achieve sales between $2.17 billion and $2.22 billion and diluted earnings per share of between 70 cents and 75 cents in the fourth quarter.
For the full fiscal year 2024, the company raised its guidance, predicting sales to be between $8.93 billion and $8.98 billion, with diluted earnings per share between $4.20 and $4.25. This is up from its previous guidance of $8.88 billion and $8.98 billion in sales and diluted earnings per share of $4.08 to $4.18.
