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Skechers Puts Its Best Foot Forward with Record Quarterly Sales

Source:

Skechers USA reported record global sales for the second quarter. International sales led the way in the quarter with an increase of 19.8% over the same period last year.

Lifestyle and performance footwear company Skechers USA Inc. (SKX:NYSE) reported record sales for its second quarter ending June 30, 2019. The company indicated that sales increased by 10.9% (or 13.7% on a constant currency basis) to $1.259 billion with its international sales increasing by 19.8% (or 25.2% on a constant currency basis). Same store comparable sales increased 4.9% overall, registering a 4.2% increase domestically and 6.7% internationally. The company advised that international sales account for 55.7% of all sales.

Fully diluted earnings per share (EPS) in Q2/19 were stated at $0.49, up 69% over $0.29 in the comparable Q2/18 quarter.

Sketchers' CEO Mr. Robert Greenberg explained, "Many of our key product styles are introduced at virtually the same time around the world, with nuances in certain markets, giving us the ability to replicate our success around the globe. . .In the second quarter, we saw this with the broad acceptance of our women's and men's sport and streetwear lines, as well as with the resurgence of our GOwalk collection and our fresh new Skech-Air styles."

Mr. David Weinberg, Chief Operating Officer at Skechers, added, "Record second quarter sales are a testament to the demand and strength for our brand and products. . .We experienced growth in every region, with the biggest dollar increases coming from India, the Middle East and China, as well as in Mexico with the conversion of the business to a joint venture."

The firm also provided sales guidance for the next quarter. "For Q3/19, Sketchers believes it will achieve sales in the range of $1.325 billion to $1.350 billion, and diluted EPS of $0.65 to $0.70. The guidance is based on expected growth in each of the Company's three segments."

Skechers is based in Manhattan Beach, Calif., and describes its business as a designer, developer and marketer of a diverse range of lifestyle footwear for men, women and children, and performance footwear for men and women. The company's products are available in the U.S. and over 170 countries and territories worldwide via department and specialty stores, more than 3,170 Skechers company-owned and third-party-owned retail stores, and the company's e-commerce websites. International business is managed through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly owned subsidiaries in Canada, Japan, India and throughout Europe and Latin America.

The company's shares opened up today at $39.52 (+4.68, +13.72%) over yesterday's closing price of $34.84. Since then, shares have traded between $38.52 to $40.50 with the firm reaching a new 52-week intraday high in early market activity.

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