Skechers posts Q4 earnings of 31 cents per share

For the fourth quarter, sales at Skechers grew 11.4 percent as a result of an 18.4 percent increase in the company’s international wholesale business, a 7.5 percent increase in its company-owned global retail business, and a 4.8 percent increase in its domestic wholesale business. Gross margins increased 90 basis points to 47.7 percent, while earnings from operations increased 28 million dollars or 50.4 percent. Net earnings were 47.4 million and diluted earnings per share were 31 cents compared with a loss of 66.7 million dollars or 43 cents a share, in the year-ago period.

Elaborating on the company’s performance, Robert Greenberg, CEO of Skechers said in a statement: “With the strength of our products, we remain the number one lifestyle casual, dress casual, walking and work brand in the United States. We also focused on growing our online business around the world—improving the functionality of our ecommerce sites in the United States and China, and launching an ecommerce platform in India, while also increasing our global retail footprint, ending 2018 with 2,998 Skechers company-owned and third party-owned stores. We are looking forward to what we believe will be a new first quarter sales record.”

Review of Skechers’ Q4 and full year results

The company’s international business grew 17.9 percent and its domestic business grew 4.1 percent. Fourth quarter comparable same store sales in company-owned retail stores, including ecommerce, increased 1.1 percent, which included an increase of 3 percent in its international stores and 0.4 percent in the United States.

For the full year, sales grew 11.5 percent as a result of an 18.8 percent increase in the company’s international wholesale business, a 12 percent increase in its company-owned global retail business, and a 0.8 percent increase in its domestic wholesale business. The company’s international business increased 19.2 percent and its domestic business increased by 3.5 percent.

For the full year, comparable same store sales in company-owned retail stores, including ecommerce, increased 9.2 percent, including an increase of 16.7 percent in its international stores, and an increase of 6.7 percent in the United States. Gross margins improved 130 basis points, earnings from operations increased 54.9 million dollars or 14.4 percent, while net earnings were 301 million dollars and diluted earnings per share were 1.92 dollars.

For the first quarter of 2019, the company believes it will achieve sales in the range of 1.275 billion dollars to 1.300 billion dollars and diluted earnings per share of 70 cents to 75 cents.

Picture:Skechers website

 

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