Skechers Q1 Profit Jumps on 21% Sales Increase

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Skechers Nite OwlSkechers USA has seen its first-quarter profit increase more than four-fold, on the back of double-digit sales growth and higher margins, the footwear company said late Tuesday.

Net earnings reached $33 million in the three months to March 31, compared to $7.6 million in the year before.

‘Beyond Our Expectations’

Sales grew 21% to $546.5 million from $451.6 million last year, driven by increases in its domestic and international wholesale units, as well as growth in its worldwide company-owned retail business.

Gross margin improved to 44% over 42.7% in the prior year period.

“The demand for Skechers footwear from both our customers and consumers has been above and beyond our expectations,” said COO and CFO David Weinberg.

This, he added, was achieved despite Easter falling late in April and the extreme cold weather experienced in most of the United States throughout the quarter.

Skechers noted that April has started off “very strong” in terms of order rates, revenues and backlogs, all which have accelerated since year end.

“We believe this positive trend will continue through the second quarter and back half of the year as the demand for our key product initiatives in the U.S., Asia, Europe, the Middle East and South America remains very high,” added Weinberg.

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