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SKECHERS Announces Record First Quarter 2016 Financial Results

MANHATTAN BEACH, Calif., Apr 21, 2016 (BUSINESS WIRE) -- SKECHERS USA, Inc. SKX, +2.56% a global footwear leader and the second largest footwear brand in the United States, today announced financial results for the first quarter ended March 31, 2016.

First quarter 2016 net sales were $978.8 million compared to $768.0 million in the first quarter of 2015, an increase of 27.4 percent.Gross profit for the first quarter of 2016 was $432.2 million, or 44.2 percent of net sales, compared to $332.5 million, or 43.3 percent of net sales in the first quarter of 2015. Earnings from operations for the first quarter of 2016 were $138.6 million, or 14.2 percent of net sales, compared to net earnings from operations of $88.2 million, or 11.5 percent of net sales, for the first quarter of 2015.

“At no other time in the Company’s history have we been stronger across our many product categories, marketing initiatives and multiple distribution channels. The growing demand for our brand has resulted in record revenues of $978.8 million and earnings from operations of $138.6 million for the first quarter of 2016,” began David Weinberg, chief operating officer and chief financial officer. “These significant achievements are primarily the result of a 47.1 percent increase in our international wholesale business over the first quarter 2015, and a shift forward of some domestic and international orders into the first quarter due to the Easter timing. In addition, domestic wholesale sales increased 12.1 percent and our Company-owned retail sales increased by 23.2 percent with a 9.8 percent comp store sales increase over the prior year period. For the first time ever, our international business has grown to be our largest segment—with international wholesale representing 42.9 percent and international wholesale and retail representing 47.7 percent of our total sales. To meet the increased demand, we are investing in our infrastructure, including improved efficiencies in our European Distribution Center, which allowed us to achieve a record three million pairs shipped in a month during February. With the completion of our European Distribution Center expansion to one million square feet in the second quarter of 2016, and with the automation to be fully completed later this year, we expect to be even more efficient in our largest market outside of the United States.”

Net earnings in the first quarter of 2016 were $97.6 million compared to net earnings of $56.1 million for the first quarter of 2015. Net earnings per diluted share in the first quarter 2016 increased 72.5 percent to $0.63 based on 154.8 million weighted average shares outstanding compared to a diluted net earnings per share of $0.37 based on 153.4 million weighted average shares outstanding for the same period in the prior year.

Robert Greenberg, SKECHERS chief executive officer, commented: “2016 marks Skechers’ 24 [th] year in business and we couldn’t be more pleased to start 2016 with record quarterly revenues just shy of the billion dollar mark. By remaining focused on our product, building on our proven sellers—like our colorful and comfortable Skechers Sport collection and our vast array of Skechers GOwalk footwear—and introducing new designs, including a retro sport line that global singing sensation Meghan Trainor is wearing in her new Skechers campaign, we continue to innovate and further develop our global brand. The sales growth that we achieved in the first quarter in the United States is due to our expanding product range that appeals both to our loyal shoppers and a widening demographic, including tweens and teens, as well as those that first wore our product in 1992. This is due to our advertising—which features young superstars like Meghan and Demi Lovato, as well as icons such as Sugar Ray Leonard, Ringo Starr and now Howie Long. Our consumer base also includes serious athletes who have embraced our technical product thanks in part to the recognition we’re receiving with our elite runner Meb in the running for an Olympic medal, a team of top ranked golfers, and the title sponsorship of the Skechers...