Skechers posts record Q3 sales on direct-to-consumer surge
By geography, the Los Angeles-based firm clocked an 8.6% increase internationally, and a 6.5% increase domestically.
By channel, wholesale sales declined 1.4%, which includes decreases in EMEA of 8.3% and Americas of 0.5%, partially offset by an increase in APAC of 7.1%. Wholesale volume decreased 10.8% and average selling price increased 10.3%.
The decline in wholesale was more than offset by direct-to-consumer sales growth of 23.8%, which included increases in Americas of 17.3%, APAC of 24.2% and EMEA of 60.8%. Direct-to-Consumer volume increased 18.8% and average selling price increased 4.3%.
Net earnings were $145.4 million and diluted earnings per share were $0.93, compared with prior year net earnings of $85.9 million and diluted earnings per share of $0.55, said the U.S. brand in its trading update.
“Skechers’ achieved a new quarterly sales record of $2.02 billion, reflecting robust demand for our brand,” said David Weinberg
“All regions grew, including the Americas, with growth of 7% in the United States due to continued strength in our direct-to-consumer channel, and Asia Pacific with growth of 18% in China. In addition, our inventory levels are down significantly, and our gross margin was strong at 52.9% reflecting favorable pricing, a higher mix of direct-to-consumer sales and lower unit costs. As we continue to focus on growing our international business, enhancing our direct-to-consumer presence and expanding our product offering, we remain confident in the strength of our brand and executing Skechers’ long-term growth strategy,” Weinberg
Earlier this week, Skechers announced its debut basketball collection, fronted by New York Knicks power forward, Julius Randle, and Los Angeles Clippers shooting guard, Terance Mann.