- Prachi Singh |
Fourth quarter sales at Skechers USA Inc. grew 27 percent to 970.6 million dollars as a result of a 40.2 percent increase in the company’s international wholesale business, an 11.6 percent increase in the domestic wholesale business, and a 25.8 percent increase in its company-owned global retail business. Comparable same store sales increased 12 percent, including a domestic increase of 10.5 percent and an international increase of 16.5 percent. Full-year sales grew 16.9 percent to 4,164 million dollars, driven by a 24.3 percent increase in the international wholesale business, a 21.9 percent increase in the global retail business, and a 4.1 percent increase in the domestic wholesale business. Comparable same store sales increased 7.2 percent, including a domestic increase of 6.4 percent and an international increase of 10.1 percent.
“2017 was a monumental year for Skechers as we achieved sales of more than 4 billion dollars for the first time in our 25-year history,” said Robert Greenberg, Skechers CEO in a statement, adding, “Furthermore, we grew our Skechers store base to 2,570 locations at year-end and saw impressive growth across the globe—including record sales on Single’s Day in China.”
Review of Skechers’ Q4 and full year performance
Fourth quarter gross margins increased due to strength in the company’s international retail business and increased sales in the international subsidiary business. Earnings from operations increased 96.9 percent primarily due to sales growth. Net loss was 66.7 million dollars and diluted loss per share was 0.43 dollar per share. However, after adjusting for the impact of Tax Cuts & Jobs Act, adjusted net earnings were 33.3 million dollars and adjusted diluted earnings per share were 0.21 dollar.
Gross margins for the year, Skechers said, improved due to the sale of more in-line product in 2017 and a stronger company-owned retail and international business. Earnings from operations increased 3.3 percent primarily from increased sales growth. Net earnings were 179.2 million dollars and diluted earnings per share were 1.14 dollars per share. However, after adjusting for the impact of TCJA, adjusted net earnings were 279.1 million dollars and adjusted diluted earnings per share were 1.78 dollars.
For the first quarter of 2018, the company believes it will achieve sales in the range of 1.175 billion dollars to 1.200 billion dollars and diluted earnings per share of 0.70 dollar to 0.75 dollar.