Skechers U.S.A. Inc, the Los Angeles-based footwear company, has announced impressive sales figures for the third quarter, breaking records with revenues surpassing $1.88 billion, representing a growth of over 20%. The company’s outstanding performance can be attributed to significant increases in both its wholesale and direct-to-consumer (D2C) channels.

During the third quarter, Skechers witnessed a 14.9% rise in domestic sales and a 24.6% surge in international sales. This remarkable growth in both segments was primarily driven by wholesale sales, which experienced a noteworthy increase of 26.2% to $247.1 million. The D2C channel also contributed to Skechers’ success by recording an 11.9% increase to $72.8 million.

Despite these impressive sales figures, Skechers’ net earnings declined to $85.9 million, reflecting a decrease of 16.7% compared to the previous year. Additionally, diluted earnings per share dropped by 16.7% to $0.55. The decrease in earnings per share was influenced by an unfavorable impact of $0.09 due to declines in foreign exchange rates, particularly in the EMEA region.

David Weinberg, the chief operating officer of Skechers, expressed his satisfaction with the company’s performance during the third quarter. He attributed the double-digit growth in both the wholesale and D2C segments to the ongoing global demand for Skechers’ comfort technology products.

Weinberg emphasized that all regions experienced growth during the quarter, with the EMEA region leading the way with an incredible improvement of 48%. Major European subsidiaries such as Germany, Spain, and the United Kingdom contributed significantly to this growth. The Americas also witnessed a growth of 16%, driven largely by strong demand in the United States and Canada. Despite challenges in China and Japan caused by the COVID-19 pandemic, the Asia Pacific (APAC) region still managed to achieve a growth of 9%.

Looking ahead, Skechers is confident about its future performance in the fourth quarter. The company projects sales between $1.725 billion and $1.775 billion, with diluted earnings per share expected to range between $0.30 and $0.40.

The ability of Skechers to break records in quarterly sales highlights the global popularity of its comfort technology products. With its strong momentum and compelling product offering, Skechers continues to establish itself as a resilient and successful organization in the footwear industry.

Useful Links:
1. Skechers Official Website
2. Skechers Third Quarter 2021 Financial Results