Skechers reports record first-quarter sales
Skechers U.S.A. Inc. announced on Thursday record quarterly sales of $2 billion, a year-over-year increase of 10%, as a result of double-digit growth internationally offsetting a decrease domestically.
The Los Angeles-based company said international sales increased 21% and fell 4.8% domestically.
Wholesale sales grew 3.5%, which includes increases in EMEA of 20.1% and APAC of 24.1%, partially offset by a decrease in AMER of 13.2%. Wholesale average selling price increased 5.3% and volume decreased 1.9%.
Direct-to-consumer sales surged 24.5%, which includes increases in AMER of 28.6%, APAC of 17.9%, and EMEA of 29.5%.
Net earnings were $160.4 million and diluted earnings per share were $1.02 compared with prior year net earnings of $121.2 million and diluted earnings per share of $0.77.
“Our first quarter 2023 marks a new milestone with quarterly sales of over $2 billion. The 10%, or $182 million, sales increase was the result of broad strength in most markets globally, including regional sales improvements of 21% in both EMEA and APAC, which includes growth of 3% in China,” said David Weinberg, chief operating officer of Skechers.
“With an increase of 24.5% worldwide, direct-to-consumer performed particularly well due to the improved inventory availability in stores and strong demand for our fresh comfort product offering. Our record sales, expanded gross margins of 48.9% and meaningfully improved inventory levels are an indication of the strength of our comfort technology products and impactful marketing worldwide. We continue to build efficiencies and expand our distribution capabilities around the globe to meet the demand for the comfort, innovation, style, and quality that Skechers consumers want."
Looking ahead, the said it plans to reach $10 billion in annual sales by 2026.
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