Skechers Net Rises 23% On Record Quarterly Sales
- Scott Peters
- U.S.A. New York City
-
Skechers USA Inc reported first-quarter 2022 sales increased 27% and earnings rose 23%. The third-largest footwear brand is on track to achieve $10 billion sales by 2026.
Skechers USA Inc said first-quarter 2022 revenues increased 26.8% to $1.82 billion, net income rose 23% to $121.2 million, and diluted earnings per share increased to 77 cents from 63 cents.
In the quarter, wholesale sales rose 32.7% and direct-to-consumer sales increased 16%.
Domestic sales increased 28.7% and international sales rose 25.5%.
By region, sales in the Americas rose 31% by double-digit increase in the U.S., APAC sales rose 4% driven by a 9% increase in China.
Sales in Europe, Middle East and Africa surged 49% driven by strong growth in Europe.
Gross margin was 45.3%, a decrease of 250 basis points, driven by higher per unit freight costs partially offset by average selling price increases.
In the quarter, the company repurchased 652,000 Class A common shares for $25 million and approximately $475 million remain available for the buyback program.
At the end of the quarter, the company opened 108 and closed 106 stores totaling 4,308.
Guidance and Outlook
In the second quarter, revenues are estimated between $1.75 billion and $1.8 billion and earnings per share between 50 cents and 55 cents.
For the full-year the retailer guided sales between $7.2 billion and $7.4 billion and earnings per share between $2.75 and $2.95.
“As we mark our third decade in business, we couldn’t be more excited about our future. In the first quarter, we achieved a new quarterly sales record, delivered the most innovative, stylish and comfortable product yet, and supported it with impactful marketing,” said Robert Greenberg, Chief Executive Officer of Skechers.
“Our position as the third largest footwear brand in the world is the result of exceptional global partnerships and the strong consumer demand for our products."
Inventory was $1.45 billion, a decrease of $21.5 million or 1.5% from December 31, 2021. The slight decrease in inventory reflects lower merchandise in transit levels due to the improvement of some supply chain constraints.
Annual Returns
| Company | Ticker | 2025 | 2024 | 2023 |
|---|---|---|---|---|
| Skechers U S A Inc | SKX | -1% | 9% | 46% |