Skechers Hits Record High With Q1 Revenues of $2.25B
Skechers continued its earnings winning streak on Thursday, posting record sales in the first quarter of 2024.
The Manhattan Beach, Calif.-based footwear company reported Q1 net sales of $2.25 billion, up 12.5 percent from $2.0 billion the same period last year. 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.
Shares were up nearly 8 percent in after-market trading on Thursday.
Skechers noted that its international business drove revenue growth in the quarter, with sales in the segment up 15.2 percent in Q1. Domestic net sales returned to growth, up 7.8 percent in the period. For the quarter, international sales represented 65 percent of total sales, the company noted.
Wholesale sales grew $127.1 million, or 9.8 percent in the period, including increases in EMEA of 11.5 percent, APAC of 15.3 percent, and Americas of 5.9 percent. Direct-to-consumer sales grew $122.6 million, or 17.3 percent in Q1, including increases in APAC of 16.5 percent, Americas of 10.5 percent, and EMEA of 62.4 percent.
As of March 31, Skechers said it had 565 domestic stores, 1,106 international stores and 3,532 distributor, licensee or franchise stores. Total store count at the end of Q1 was 5,203.
“We began the new year by setting a new sales record, delivering results above expectations, and further expanding the Skechers brand globally,” Robert Greenberg, chief executive officer of Skechers, said in a statement. “The broad-based growth is the result of our team’s dedication to delivering exceptional product for consumers of all ages and interests and supporting our initiatives with targeted and effective demand creation.”
Looking ahead, Skechers said it expects to achieve sales between $2.175 billion and $2.225 billion and diluted earnings per share of between 85 cents and 90 cents in the second quarter. Further, the company believes that 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.
“With our focus on evolving and innovating our extensive product offering, best-in-class partnerships with our distribution network, and exceptional global demand, we are confident that Skechers will have another record-breaking year,” Greenberg added.