Sales growth in China helps Skechers Q3 results

Worldwide
Published:  04 November, 2020

The U.S. based sports and casual footwear brand reported sales of US$1.30 billion for the third quarter, down 3.9% year-on-year but representing a 78.3% increase from the second quarter.

Skechers’ sales decreased 3.9% in the third quarter of the year, attributed to a 4.1% decrease in the company’s international business and a 3.7% decrease in the home market. According to the company, the decline in overseas sales was driven by lower distributor and retail sales, partially offset by increases in its joint venture and subsidiary sales, including growth of 23.9% in China and 18.1% in Europe. The lower sales in the U.S. were attributed to lower retail sales, partially offset by growth of 172.1% in e-commerce sales and growth in its domestic wholesale business. Net earnings amounted to US$64.3 million in the quarter and diluted earnings per share were US$0.41. Adjusted to exclude the effects of the one-time non-cash compensation charge, adjusted net earnings were US$82.6 million and adjusted diluted earnings per share were US$0.53.

“Skechers third quarter results illustrate the strength and resilience of our brand, as business across the globe began to recover from the effects of the global pandemic. There were many bright spots, from a return to growth in our domestic wholesale channel and continued strength in e-commerce to resurgent growth in China and Europe”, said John Vandemore, CFO, Skechers. “We continue to invest for growth, including increased penetration in our direct-to-consumer channel, evident in new stores and an enhanced digital presence, as well as improved global distribution infrastructure.”