“We began the new year by setting a new sales record, delivering results above expectations, and further expanding the Skechers brand globally. 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”, commented Robert Greenberg, Chief Executive Officer of Skechers. “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”, he concluded.

First Quarter Results

In the first quarter of the current fiscal year, Skechers achieved sales of 2.25 billion US dollars, an increase of 12.5%, on a comparable basis to the same period of 2023; this was the result of a 15.2% increase internationally and a 7.8% increase domestically.

The wholesale channel contributed 1.42 billion US dollars to the company’s total first quarter sales, up by 9.8% year-over-year, including increases of 11.5% in EMEA, 15.3% in APAC and 5.9% in AMER. Meanwhile, the direct-to-consumer channel added 829.9 million US dollars, up by 17.3% year-over-year, and including increases of 16.5% in APAC, 10.5% in AMER, and 62.4% in the EMEA.

Skechers first quarter gross margin improved by 360 basis points to 52.5% from the same period of the previous year, largely “due to lower costs per unit, driven by lower freight costs and higher average selling prices”.

In the three months to the end of March, the company reported net income of 206.6 million US dollars, or diluted earnings per share of 1.33 US dollars, up significantly from net income of 160.4 million US dollars, or diluted earnings per share of 1.03 US dollars in the first quarter of last year.

Outlook

For the second quarter of 2024, Skechers expects to achieve sales between 2.18 billion and 2.23 billion US dollars and diluted earnings per share in the range of 0.85 to 0.90 US dollars.  The footwear company added that it anticipates full year sales between 8.73 billion and 8.88 billion US dollars and full year diluted earnings per share in the range of 3.95 to 4.10 US dollars.