Skechers Q3 Shines Despite Costs, Ringo Starr Named Spokesman

In What's New, Industry News by Accessories Staff


Ex-Beatle Ringo Starr will be the first-ever musician to face Skechers’ Relaxed Fit footwear line.

Manhattan Beach, CA—Skechers USA reported third quarter sales Wednesday of $674.3 million, a huge jump from last year’s $515.8 million. Net earnings, too, were up significantly, from $26.8 million in last year’s Q3 to $51.1 million, or $1 a share.

Nonetheless, Skechers said its bottom line was hurt by foreign exchange losses and warehousing costs totaling 13 cents a share. Analysts forecast earnings of 93 cents a share.

“With product and marketing initiatives that continue to resonate with our consumers worldwide, we achieved a 30.7% net sales increase over the third quarter last year, and the highest quarterly revenues in the company’s 22-year history,” said COO/CFO David Weinberg.

That record growth, says Weinberg, came from all three of the company’s primary distribution channels. “We achieved net sales increases of 18.5% in our domestic wholesale business, 60.6% in our international wholesale business, and 25% in our company-owned global retail business, which included an 11% increase in comparable net sales for the quarter on top of a double-digit increase last year in comparison to the third quarter 2012.”

In other news, Skechers announced that 74-year-old Ringo Starr, the ex-Beatle, will be the first-ever musician to face Skechers’ Relaxed Fit footwear line.

“Ringo possesses the charm, cool charisma and instant global recognition that will elevate awareness for our popular Relaxed Fit footwear collection,” Weinberg said. “As we move from the sports world to the music world with this campaign, Ringo is the perfect ambassador to illustrate how our comfortable footwear helps keep you relaxed in any situation.”

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