Skechers posts another record-breaking quarter on international, D2C sales

Skechers U.S.A. Inc. announced on Thursday record sales of $2.25 billion, a 12.5% increase, for the first quarter, on the back of double-digit increases in international and direct-to-consumer sales, respectively.

The Los Angeles-based footwear company quarterly sales increased thanks to a 15.2% increase in international sales, and a 7.8% increase domestically. 

Wholesale sales grew $127.1 million, or 9.8%, including increases in EMEA of 11.5%, APAC of 15.3%, and AMER of 5.9%. Wholesale volume increased 9.9% and average selling price was flat.

Direct-to-Consumer sales grew $122.6 million, or 17.3%, including increases in APAC of 16.5%, Americas of 10.5%, and EMEA of 62.4%. Direct-to-Consumer volume increased 15.5% and average selling price increased 1.6%.

Net earnings were $206.6 million and diluted earnings per share were $1.33 compared with prior year net earnings of $160.4 million and diluted earnings per share of $1.02.
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“For the first quarter, Skechers achieved a new sales record of $2.25 billion, EPS of $1.33, gross margins of 52.5% and an operating margin of 13.3%, all notable accomplishments as we mark our 100th earnings call as a public company,” said David Weinberg, chief operating officer of Skechers.

“We saw growth of 17% in our direct-to-consumer segment and 10% in wholesale, as well as increases of 15% internationally and 8% domestically. For the quarter, international sales represented 65% of total sales, and we achieved growth in all regions: 17% in Europe, the Middle East and Africa; 16% in Asia Pacific; and 8% in the Americas. Importantly, our domestic wholesale business returned to growth, increasing 8% over last year. With the strong global demand for our brand and a healthy inventory position comprised of proven sellers, innovative technologies and new product categories, we believe that we have significant opportunities for growth across the globe, and we remain confident in our ongoing success.”

Looking ahead, the company predicted for the fiscal year 2024 it will achieve sales between $8.725 and $8.875 billion and diluted earnings per share of between $3.95 and $4.10.

In March, Italian eyewear manufacturer Marcolin and Skechers renewed their worldwide licensing agreement for the design, production and distribution of the American sneaker brand’s eyewear.