Manhattan Beach, CA—It’s a good thing that Skechers USA Inc. markets athletic-style footwear, the kind needed to run faster and jump higher—cause its latest financials are only getting higher and higher.
Following the release of its record second quarter earnings on Wednesday afternoon—which beat estimates—the company’s shares soared today to a lifetime high of $53.
Skechers reported a profit of $34.8 million, or 68 cents, up from $7.1 million, or 14 cents a share, a year earlier. That was way ahead of analysts’ average estimate for 40 cents a share.
Net sales climbed 37% to $587.1 million, handily beating analysts’ estimate for $508.8 million in sales.
In its domestic wholesale business, Skechers posted a 35.4% increase in sales, reflecting a jump of 30.1% in pairs shipped that benefited from product development initiatives across multiple lines and an increase of 4% in the average price per pair.
International business rose 54% on top of a 42.7% rise in international subsidiary and joint venture sales as well as an improvement of 87.3% in distributor sales. “Though tough macroeconomic conditions in several key markets impacted Skechers’ international distributor business, the company’s partners in Philippines, Mexico, Turkey, Taiwan, South Korea, New Zealand, the UAE and Australia experienced growth.”
On a combined basis, retail business sales grew 28.8% and comparable store sales were up 13.9%. Domestic retail sales rose 20.9% while comparable-store sales increased 12.1%. International retail sales soared 75.1% and comps climbed 24.6%.
Gross profit soared 38.2% to $269.4 million while gross margin increased 40 basis points to 45.9%, primarily driven by increased sales and a favorable product mix.
Operating increased over threefold year over year to $53.8 million while as a percentage of sales, it improved 520 bps to 9.2%.
“These results followed a record first quarter, resulting in a 28.8 percent net sales increase for the first six months of 2014,” Skechers COO/CEO David Weinberg said. “The strong sales are attributable to fresh styles across our lifestyle, performance and kids’ categories, and the demand for our product resulted in a positive shift of our Back-to-School domestic wholesale and international subsidiary shipments originally scheduled for July into June.”