Skechers Swings into Q4 Profit on Sales Gain

SKECHERS GOwalk Recovery slip-on in lightweight mesh and in Valentine’s Day red

Manhattan Beach, CA—Skechers reported Wednesday that it swung into a fourth quarter profit as it wholesale sales climbed and comparable store sales in its own stores improved.

For the quarter ended Dec. 31, 2012, the footwear maker posted a profit of $4 million, or 8 cents a share, compared with a loss of $57.7 million, or $1.18 a share, a year ago.

Net revenue rose 40% to $395 million. That beat analysts’ average estimate expecting a loss of 11 cents a share on sales of $337.62 for the quarter.

The company said gross margin, too, improved widening to 42.6% from 39.8% the year before.

David Weinberg, chief financial officer and chief operating officer for the company, said, “This was the result of growth in all our revenue channels domestic wholesale, international and our company-owned retail business. We are particularly pleased with the 72% gain in our domestic wholesale business.”

In addition to the wholesale gains, Weinberg pointed to a 30% increase in international business (including 17% growth in international distributorships and a 40.5% increase international subsidiary and joint venture sales), a 16.2% increase in domestic and international retail sales, a 39.4% jump in e-commerce sales, and a triple-digit growth in the brand’s women’s and double digit growth in men’s and kid’s divisions.

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com