Skechers, the renowned footwear giant based in Manhattan Beach, California, unveiled its financials with an impressive performance in the first quarter of 2024.
According to the latest financial report, Skechers recorded a staggering US$2.25 billion in net sales for Q1, marking a notable increase of 12.5 percent compared to the same period last year when it stood at US$2.0 billion. This remarkable growth was accompanied by a substantial increase in net earnings, which rose to US$206.6 million, alongside a notable rise in diluted earnings per share, reaching US$1.33. This signifies a significant leap from the prior year’s figures of US$160.4 million in net earnings and diluted earnings per share of US$1.02.
Following the release of these promising figures, investors responded with enthusiasm, propelling Skechers’ shares to increase by nearly 8 percent in after-market trading.
| Financial Figures | Amount (in USD) |
|---|---|
| Net Sales (Q1 – FY24) | $2.25 billion |
| Net Sales (Q1 – FY23) | $2.0 billion |
| Net Earnings | $206.6 million |
| Previous Year Net Earnings | $160.4 million |
| Diluted Earnings per Share | $1.33 |
| Previous Year EPS | $1.02 |
| Wholesale Sales Growth | $127.1 million |
| Direct-to-Consumer Growth | $122.6 million |
| Domestic Stores | 565 |
| International Stores | 1,106 |
| Distributor/Franchise Stores | 3,532 |
| Total Stores | 5,203 |
| Expected Sales (Q2) | $2.175 billion – $2.225 billion |
| Expected EPS (Q2) | $0.85 – $0.90 |
| Expected Sales (FY 2024) | $8.725 billion – $8.875 billion |
| Expected EPS (FY 2024) | $3.95 – $4.10 |
A key highlight of Skechers’ performance was the robust growth in its international business segment, which emerged as the primary driver behind the surge in revenue during the quarter. International sales witnessed a commendable uptick of 15.2 percent in Q1, while domestic net sales also exhibited a notable rebound, ascending by 7.8 percent during the same period. Notably, international sales accounted for 65 percent of the total sales for the quarter, underscoring the company’s global footprint and resonance.
The growth trajectory extended across both wholesale and direct-to-consumer channels, with wholesale sales witnessing a substantial uptick of US$127.1 million, marking a growth of 9.8 percent. Similarly, direct-to-consumer sales experienced a remarkable increase of US$122.6 million, translating to a robust growth rate of 17.3 percent in Q1.
As of March 31, Skechers boasted an extensive retail presence, with a total of 565 domestic stores, 1,106 international stores, and an additional 3,532 distributor, licensee, or franchise stores, bringing the total store count to an impressive 5,203 by the end of Q1.
“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.”
Robert Greenberg, the Chief Executive Officer of Skechers, expressed his satisfaction.
Looking ahead, Skechers exudes confidence in its future prospects, with expectations set for sustained growth momentum. The company anticipates achieving sales within the range of US$2.175 billion to US$2.225 billion and diluted earnings per share between 85 cents and 90 cents in the second quarter. Furthermore, for the fiscal year 2024, Skechers projects sales to range between US$8.725 billion and US$8.875 billion, accompanied by diluted earnings per share within the bracket of US$3.95 and US$4.10.
In Conclusion, Skechers’ exceptional performance in the first quarter of 2024 underscores its resilience and ability to navigate challenges while capitalizing on opportunities. The record-breaking revenue figures, coupled with robust international growth and strategic expansion initiatives, position Skechers as a formidable player in the global footwear market. With a steadfast commitment to innovation, customer satisfaction, and strategic partnerships, Skechers is set to sustain its upward trajectory and set new milestones in the times ahead.
