Skechers Swings into Q2 Profit with Improved Sales

Skechers' Twinkle Toes

Skechers’ Twinkle Toes

Manhattan Beach, CA—Skechers USA reported Wednesday it swung back into second quarter profit, boosted by gains in international wholesale and at its own stores.

For the quarter ended June 30, the footwear company posted net income of $7.1 million, or 14 cents a share, compared to a loss of $1.8 million, or 4 cents a share, a year ago.

Analysts’ estimate had expected 3 cents a share.

Net sales were up 12% to $428.2 million, surpassing analysts’ estimate for $427.6 million in sales. Comparable store sales at the brand’s own stores increased 16.5%.

The company said sales growth was led by double-digit gains in international wholesale and retail businesses as well as single-digit improvement in domestic wholesale division.

“We believe the momentum we are experiencing will continue through this year and into next year,” Robert Greenberg, chief executive, said.

Since the fall of its toning shoes collection, which Skechers had to pay $40 million in a class action suit over, the brand has been emphasizing new performance footwear. Its Skechers Relaxed Fit shoe, a cross between an athletic and casual shoe, has been performing well.

 

 

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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