Skechers Swings into Q4 Profit on Sales Gain

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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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