Skechers posts record Q3 sales on direct-to-consumer surge

Skechers announced on Thursday record revenues for the third quarter ending September, up 7.8% to $2.02 billion, on the back of steady growth in the footwear brand’s domestic and international markets. 

By geography, the Los Angeles-based firm clocked an 8.6% increase internationally, and a 6.5% increase domestically.

By channel, wholesale sales declined 1.4%, which includes decreases in EMEA of 8.3% and Americas of 0.5%, partially offset by an increase in APAC of 7.1%. Wholesale volume decreased 10.8% and average selling price increased 10.3%.

The decline in wholesale was more than offset by direct-to-consumer sales growth of 23.8%, which included increases in Americas of 17.3%, APAC of 24.2% and EMEA of 60.8%. Direct-to-Consumer volume increased 18.8% and average selling price increased 4.3%.

Net earnings were $145.4 million and diluted earnings per share were $0.93, compared with prior year net earnings of $85.9 million and diluted earnings per share of $0.55, said the U.S. brand in its trading update.

“Skechers’ achieved a new quarterly sales record of $2.02 billion, reflecting robust demand for our brand,” said David Weinberg, chief operating officer of Skechers.

“All regions grew, including the Americas, with growth of 7% in the United States due to continued strength in our direct-to-consumer channel, and Asia Pacific with growth of 18% in China. In addition, our inventory levels are down significantly, and our gross margin was strong at 52.9% reflecting favorable pricing, a higher mix of direct-to-consumer sales and lower unit costs. As we continue to focus on growing our international business, enhancing our direct-to-consumer presence and expanding our product offering, we remain confident in the strength of our brand and executing Skechers’ long-term growth strategy,” Weinberg concluded.

Earlier this week, Skechers announced its debut basketball collection, fronted by New York Knicks power forward, Julius Randle, and Los Angeles Clippers shooting guard, Terance Mann.