Skechers posts record-breaking quarter on DTC, international growth
Footwear giant Skechers
The Los Angeles-based company said the record sales uptick came on a 17.9% increase in sales internationally and a 4.6% decrease domestically. Direct-to-consumer increased 29.1% to $212 million, which included increases in the Americas of 28.2%, APAC of 25.1%, and EMEA of 47.2%.
Meanwhile, wholesale decreased 5.9% to which included a decrease in the Americas of 18.7%, partially offset by increases in APAC of 14.3% and EMEA of 7.4%.
Net earnings for the quarter ending June 30 were $152.8 million and diluted earnings per share were $0.98 compared with prior year net earnings of $90.4 million and diluted earnings per share of $0.58.
“Skechers second quarter results set a new quarterly sales record of $2.01 billion. This achievement continues to reflect the global demand for our comfort technology products, evidenced by double- or triple-digit sales growth in most markets. We saw increases of 20% in APAC, including 19% in China and 27% in India, as well as 16% in EMEA, including 29% in Germany and 13% in the UK,” said David Weinberg
“Our strong gross margin of 52.7% was primarily driven by a higher proportion of direct-to-consumer sales, which grew 29%. We were able to deliver our product more effectively and improve our inventory levels, which enabled the robust sales across our comfortable, innovative, stylish and high-quality collections.”
Looking ahead, Skechers reiterated its future goal of $10 billion in annual sales by 2026.
