Consumer Products

How Skechers Is Kicking It With Earnings

When Skechers USA Inc. (NYSE: SKX) reported its most recent quarterly results after the markets closed on Thursday, the shoe firm said that it had $0.31 in earnings per share (EPS) and $1.08 billion in revenue. This compared with consensus estimates of $0.23 in EPS and $1.1 billion in revenue, as well as the $0.21 per share and $970.59 million posted the fourth quarter of last year.

During the most recent quarter, sales grew 11.4% as a result of an 18.4% increase in the international wholesale business, a 7.5% increase in the global retail business, and a 4.8% increase in its domestic wholesale business.

At the same time, comparable same-store sales, including e-commerce, increased 1.1%, which included an increase of 3.0% in its international stores and 0.4% in the United States.

Looking ahead to the first quarter, the firm expects to see EPS in the range of $0.70 to $0.75 and sales of $1.275 billion to $1.30 billion. Consensus estimates call for $0.69 in EPS and $1.35 billion in revenue for the quarter.

On the books, Skechers cash, cash equivalents and investments totaled $1.07 billion, an increase of $312.2 million, or 41.4% from the end of the previous fiscal year.

David Weinberg, chief operating officer of Skechers, commented:

2018 was a year of record sales—our first fourth quarter of over a billion dollars and, combined with three previous record quarters, a new annual sales record of $4.64 billion. For the quarter, this growth was fueled by double-digit sales increases in each of our international businesses—Company-owned retail, distributor, subsidiary and joint venture, and by single digit sales increases in both our domestic wholesale and retail businesses. For the year, we achieved double-digit sales increases across our international portfolio and single-digit sales increases in our total domestic business. In 2018, we also shipped a record number of pairs from our distribution centers across South America, North America, Japan and Europe, which is a testament to the strength of our global operations and the breadth of our international sales, which represented 54.0 percent of our total business for the year.

Shares of Skechers were last seen up about 17% at $32.45 on Friday, in a 52-week range of $21.45 to $43.08. The consensus price target is $31.92.

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