Skechers Boasts Higher Q2 Earnings

Skechers USA Inc (NYSE:SKX) reported better-than-expected earnings for its second quarter and issued strong third-quarter guidance.

The company out of Manhattan Beach, Calif., said sales hit $1.259 billion, an increase of 10.9% or 13.7% on a constant currency basis

International sales increased 19.8% or 25.2% on a constant currency basis

Comparable same store sales increased 4.9%, including increases of 4.2% domestically and 6.7% internationally

International sales represented 55.7% of total sales

Diluted earnings per share were $0.49, an increase of 69%.

Gross profit came in at $609.8 million, compared to $561 million in the
prior-year quarter.

Net earnings improved nearly 30% to $75.2 million from the prior-year quarter.

General and administrative expenses increased by $20.7 million but decreased as a percentage of sales by 160 basis points.

The dollar increase reflects additional spending of $18.5 million associated with the opening of 39 additional Company-owned Skechers stores, including 12 that opened in the second quarter, and $4.6 million associated with higher distribution costs in its subsidiaries, a result of increased sales.

CEO Robert Greenberg said, "As the world continues to become closer and digital becomes a critical means of communicating and embracing trends to tell your brand’s story, it’s no longer what is happening in one market that matters; it’s what’s happening across all markets. We’re continuing to strategically view our business with a global lens as trends are traveling faster."

Shares jumped $4.22, or 12.1%, to $38.99