- Prachi Singh |
Sales at Skechers USA Inc., grew 23.1 percent as a result of a 31.2 percent increase in the company’s international business or 32.3 percent on a constant currency basis, and a 13 percent increase in its domestic business to 1,330.7 million dollars. On a constant currency basis, the company’s total sales increased 23.8 percent. Comparable same store sales in company-owned stores and e-commerce increased 9.9 percent, including 10.3 percent in the United States and 8.8 percent internationally. Earnings from operations increased 10.4 million dollars or 12.4 percent to 94.1 million dollars and net earnings were 59.5 million dollars with diluted earnings per share of 39 cents.
“2019 was a remarkable year for Skechers as we achieved four quarters of record sales, culminating in annual sales of over 5.2 billion dollars—a significant milestone,” stated Robert Greenberg, CEO of Skechers, adding, “We are deeply concerned by the health crisis in China, and for the well-being of our employees, partners, vendors and consumers in the region. We continue to monitor this situation and its potential disruption to our global business.”
Skechers warns on coronavirus impacts on Q1 sales
Skechers said in a statement that by segments, the company’s fourth quarter international wholesale business increased 32.8 percent, its company-owned direct-to-consumer business increased 19.4 percent, and the domestic wholesale business increased 10.4 percent.
For the full year, the company added, sales grew 12.5 percent, as a result of 20.2 percent increase in the company’s international business, or 24.3 percent on a constant currency basis, and a 3.3 percent increase in its domestic business. Net earnings were 346.6 million dollars and diluted earnings per share were 2.25 dollars.
For the first quarter of 2020, the company believes it will achieve sales in the range of 1.400 billion dollars to 1.425 billion dollars, and diluted earnings per share of 70 cents to 75 cents. The company said, this estimate incorporates impact to the company of current events in China, including a significant number of temporary store closures and below average comparable store sales. The company further added that this estimate could materially change if the situation in China worsens considerably and affects the company’s business outside of China or its supply chain.