Sketchers Q1 earnings grows over 100 per cent

American Footwear company Skechers expects to achieve annual sales of between $5.8 billion and $5.9 billion in the full fiscal year 2021, and diluted earnings per share of between $1.80 and $2.00. For the second quarter, the company predicts diluted earnings per share in the range of $0.40 to $0.50, on revenues of between $1.45 billion and $1.50 billion.

The company’s first quarter earnings grew 100.8 per cent to $98.6 million from $49.1 million in the same period in the previous year. Its diluted net earnings per share increased to $0.63 from $0.32 in the prior-year period. The company saw particularly strong growth in its international wholesale channel. Its net sales in the first quarter that ended March 31, 2021 increased by 15.0 per cent to $1.43 billion. The company’s revenues from its international business grew by 20.2 per cent while those from domestic business grew by 8.5 per cent. Most of this growth was driven by a 23.8 per cent rise in international wholesale, which was led by triple-digit growth in China. Skechers also saw an 18.1 per cent increase in sales in its direct-to-consumer business and an impressive 143.0 per cent rise in domestic e-commerce.

The company’s domestic wholesale channel, on the other hand, posted a 0.9 per cent decline, due to the timing of shipments during the quarter. Skechers currently has 3,891 stores, including 523 domestic locations, 331 international stores, 467 joint venture stores and 2,570 locations run by distributors, licensees and franchisees.