Manhattan Beach, California – Skechers reported sales of $ 942.4m in Q3 2016 – up 10.1% on the prior year quarter – but net earnings were over 2% lower.
David Weinberg, coo and cfo, said “Skechers achieved a new third quarter sales record for the period, and the second highest sales quarter in our 24-year history. This also resulted in a new nine-month sales record of $ 2.8bn.”
“The Q3 sales increase was primarily due to 18.3% growth in the firm’s international wholesale business, which it said, accounts for over 40% of total sales. Sales in China increased over 50%, Weinberg added.
“To further grow our business internationally, we have transitioned certain international distributors to our subsidiary or joint venture model, including Israel most recently to a joint venture, and we are in the final stages of South Korea moving to a joint venture as well,” he added.
The company’s domestic wholesale business decreased 3.4%, which was due to “sluggish retail environment in the United States,” the firm said.
Earnings from operations during Q3 2016 were reported as $ 103.4m, an increase of 8.1% on Q3 2015. Net earnings decreased 2.2% to $ 65.1m compared to the prior year quarter, the firm said.
Weinberg concluded: “For Q4 2016, the company expects net sales in the range of $ 710m and $735m. This outlook assumes single-digit increases and comps in its international wholesale business and total retail business, respectively, as well as a single-digit decrease in its domestic wholesale business.”
